Fang Yuyou: Apply what you have learned, learning is endless, and the growth of the helmsman is the greatest help to the company
2024-08-22
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Learning is for practical use, learning never ends
The growth of the helmsman is the biggest boost to the company
Founded in 2007, PROYA is now a leading domestic cosmetics brand. During the "Double 11" period in 2022, PROYA's turnover on Tmall reached 1.4 billion yuan, a year-on-year increase of more than 120%, ranking among the best in the industry; on the Douyin platform, PROYA's sales also ranked first among domestic products, with a year-on-year growth rate of up to 120%.
Looking back on its 16-year development history, PROYA has been constantly transforming and innovating, from low-tier markets to first-tier markets, from offline channels to online channels, and from its own brands to incubated brands; and its co-founder and CEO Fang Yuyou is also constantly learning and surpassing himself.
“I learn while running a business”
During an interview, Fang Yuyou admitted that he did not study much when he was young, so he always studied while running a business. In the process of solving the problems of enterprise survival and development, Fang Yuyou constantly updated his business cognition and refreshed his own methodology.
Fang Yuyou in the DBA class
Looking downward, based on the sinking market, start the road to the rise of domestic brands.When PROYA was founded, the cosmetics industry was still dominated by international brands such as L'Oreal, Estee Lauder, and Shiseido. Beauty products in particular were not a necessity for the general public, and users paid special attention to brands. Local brands had little foothold in first- and second-tier cities. Fang Yuyou and his co-founders decided to take a different approach and focus on third- and fourth-tier cities where international brands had not yet covered the market.
Avoiding the sharp edge and attacking the inertia, PROYA fired the first shot of "surrounding the city from the countryside" in places where the potential of international big brands is weak. This strategic decision won PROYA space for development and time for growth, while also establishing a unique channel system and gradually forming a unique core competitiveness. Today, while the business is blossoming in multiple places, PROYA still maintains its leading position in the sinking market.
A gentleman is cautious about where he stands. Out of his keen business intuition, Fang Yuyou adopted a differentiated strategic positioning and wrote the prologue to the PROYA legend.
Look up, step out of your comfort zone, and focus on online channels.Since 2010, with the rapid improvement of infrastructure such as mobile Internet, mobile payment, and logistics, coupled with the rise of Generation Z consumers, the penetration rate of online shopping has been increasing. In 2017, after focusing on achieving the goal of listing, Fang Yuyou once again thought about a new breakthrough in the development of the company. Through the interaction of his own business perception and the learning results of the Cheung Kong Graduate School of Business, he chose to look up and shift the sales center to online channels.
In fact, as early as 2012, PROYA established an e-commerce company and gradually laid out e-commerce channels such as Taobao and Vipshop. However, at that time, it was still groping in the dark and only served as an auxiliary to offline channels. After going public, the dominant position of online channels was established, and investment increased significantly, followed by a surge in online revenue. From 2017 to 2020, the compound annual growth rate of PROYA's online direct sales channels reached 86%.
Fang Yuyou closely follows the actions of major e-commerce platforms. As early as 2018, when Douyin officially entered the e-commerce track, PROYA took the lead and became the first established beauty company to try Douyin live streaming sales. In 2021, it established a strategic partnership with Douyin and became Douyin's super head merchant.
Looking outward, from the "counter" to the platform, we will build an everlasting ecosystem.Fang Yuyou has studied at Cheung Kong Graduate School of Business for many times, and his business knowledge has been constantly refreshed and upgraded. He has interacted with the flourishing business practices, and his unique methodology has been increasingly improved, and his vision has become more sharp. While "digitalization", he also set his sights on "platformization".
If PROYA used to be a "counter" that only sold its own products, then the platform-based PROYA is an incubator for co-creating brands with entrepreneurs."Self-incubation + equity partnership + agency operation"Through the incubation form, the company shares its own R&D, production, supply chain and other resources with its partners, and has successively cooperated or incubated brands such as Korean brand YNM, makeup brand Caitang, and high-efficiency skin care brand Kerifu. Brand co-creation has also injected strong development momentum into PROYA's development.
Taking Caitang as an example, in 2021, Caitang achieved a revenue of 246 million yuan, accounting for 5.33% of PROYA's total revenue, while continuously increasing PROYA's brand voice.
The process of platformization is also a process of continuous improvement of the brand matrix. Each brand is positioned according to different consumer needs.“Continuous Change and Seeking Breakthroughs”, has always been the main theme of PROYA. From individual advancement to group operations, PROYA's core competitiveness is getting stronger and stronger.
“An entrepreneur must continue to learn”
Technology is the most powerful driving force for corporate development. As the scale expands, PROYA attaches more and more importance to research and development. It has invested in a research and development room in Spain, established a research and development factory in Switzerland, and conducted shampoo research in Japan, which is in line with the saying that what belongs to the world belongs to the nation. PROYA is expanding from applied research to basic research, and its research and development expenses are also rising. Last year, it reached 128 million yuan, and it is expected to exceed 200 million yuan in the next two years.
A company has no future without technology, and entrepreneurs will fall behind the times if they do not learn.Fang Yuyou knew this well.
"I started working at Cheung Kong Graduate School of Business in 2010. Every time I study at Cheung Kong Graduate School of Business, I have gained a lot and gained new knowledge and insights." Fang Yuyou is a practitioner of lifelong learning. He has participated in the President Class and CEO Class of Cheung Kong Graduate School of Business, and is now also participating in the Cheung Kong DBA Class.
Fang Yuyou shared his experience in the DBA class
After becoming a leading local brand, Fang Yuyou hopes to further expand into the world and build PROYA into an international brand. This requires a deeper insight into the essence of business and a more comprehensive grasp of the general trend, which is also his original intention to participate in the Yangtze River DBA course. "We want to be more systematic, more complete, and more standardized, so as to expand overseas more effectively, attract more international talents, and take the PROYA brand to a higher level."
He believes that cognitive upgrading can be achieved through learning in three aspects.
First, improve the level of cognition.
You don't know how high the sky is until you climb a mountain. As the leader of the new business civilization and the highland of Chinese business education, Cheung Kong Graduate School of Business can help students improve their position. This is first reflected in the experts and scholars' grasp of national policies. "I understand that the country is now increasingly supporting the cosmetics industry and the consumer goods industry. I think the trends of these policies are very important." Fang Yuyou benefited a lot from the interpretation of the 20 major topics hosted by Professor Li Haitao. He said, "At that time, I didn't know the future trends and directions of the country, and I felt very anxious. It happened that this class interpreted the future development direction after the 20th National Congress for us, including the emphasis on private enterprises, the development of high-tech enterprises, new energy, innovative development, etc. These are all very important."
Second, expand the breadth of cognition.
Learning alone without friends will only make you ignorant and uninformed. The students of Yangtze DBA are all leaders in various industries, with rich experience in business application and enterprise management, and each has his own unique methodology. Sharing experience and brainstorming can help transcend the cognitive limitations of the industry and collide with sparks of thinking.
"Classmates will share their experiences during the course, which we call Night Talks. This arrangement is also very good because the students come from all walks of life, and each company has to answer the question of how to develop after the 20th National Congress. The students can learn a lot from each other through communication and mutual learning, which will be of great help to our future development."
In addition, professors will use their own professional research and deep thinking to broaden entrepreneurs' international vision, help entrepreneurs consider the development of enterprises from a broader market, and find broader development space. "In the first two days of the course, Professor Xiang Bing talked about the changes in international relations, including how Americans view us, what policies they have, how consumers in Europe and Southeast Asia understand us, etc., so that we can increase our understanding of business development from a global perspective."
Again, increase the depth of cognition.
"The most important thing is the doctoral dissertation. The challenge of getting a doctorate degree is very attractive to me." The process of writing a doctoral dissertation is a systematic summary of one's own entrepreneurial experience and business management experience. While sorting out the development history of the enterprise, it can also more truly observe the future of the enterprise. Systematic academic thinking training will inevitably improve the quality of thinking and increase the depth of cognition. This is of great benefit to both the entrepreneur and the enterprise.
Apply what you learn, learning never ends.Starting a business and operating a business is the most authentic and effective way to learn.Participating in the Yangtze River DBA program is a reflection on learning and is the only way to achieve a leap forward.Because of the yearning for the sea, they flow into the Yangtze River. After being baptized by the Yangtze River, entrepreneurs will surely be able to sail to a wider ocean.
