Zhuhai Beyond Cosmetics lowered the overall cost of customized makeup production to 68% of that of the industry via the “Intelligent Cost Optimization Model”. Its MOQ can reach only 2,000 pieces (the industry standard is 10,000 pieces), and its unit price interval is controlled between 1.2-4.5 per piece (varies by complexity of the formula). And the development cost of the initial order reduces by 50%. For example, consider the custom cushion foundation of a specific Southeast Asian brand. Due to its “AI Formula simulation System”, the R&D cycle reduced from the industry average of 120 days to 45 days, and the development cost was merely 80,000 yuan (industry average is 250,000 yuan). Since after the launch of the product, due to the fact that color shades of the product coincided with local skin colors precisely (6 Southeast Asian skin tone Lab value parameters), the repurchase rate was as high as 53%. One product’s gross profit margin increased to 72%.
On the raw materials side, Zhuhai Beyond Cosmetics, with its global TOP 3 direct raw materials buying alliance (including suppliers such as BASF and Syracuse), has controlled major ingredient purchase price volatility within ±7% (the average volatility in the marketplace is ±22%). For instance, when developing pearlescent eye shadow powder, its in-house “microsphere coating technology” reduces the amount of mica consumed by 42% (from the normal 25% to 14.5%), but increases color saturation to 98% (wherein comparative products have a mean of 85%), and reduces production cost per unit by 19%. In 2023, one of the European companies, with its “dynamic formula library,” selected pre-formulated vegetable film-forming agents (33% cheaper than silicone oil systems) to develop a line of lip glosses free of animal testing, and it saved up to 1.2 million US dollars in production cost during the first year.
In production, the automated makeup manufacturing line of Zhuhai Beyond Cosmetics (each with a production capacity of 150,000 pieces a day) decreases defective product ratio to 0.12% (industry standard 0.8%) using AI visual inspection (detection accuracy of 99.98%), and assists with the switching of molds in an hour (when conventional manufacturing lines take six hours). For instance, an American brand’s bespoke 12-colour eyeshadow palette with its “magnetic modular packaging” innovation has enhanced filling efficiency to 400 palette per minute (compared with 220 palette per minute of the industry average), reduced unit energy consumption by 27%, and its total cost of production is 21% lower compared with the quote from a Vietnamese contract manufacturer. Its “flexible supply chain” is also able to produce 72-hour cross-border delivery. On Black Friday in 2023, it helped a global Chinese brand quickly add 50,000 lipstick orders, with logistics costs occupying only 8.7% of the total cost (industry average: 15%).
What is of concern to market validation, Zhuhai Beyond Cosmetics’ “Data-driven Pricing Strategy” can precisely predict the price sensitivity curve (with an error rate of ±3.5%) based on 280 million global cosmetic sales data. For instance, its AI suggested that one of the Japanese brands priced its bespoke foundation at 3,800 yen (against the originally designed price of 4,500 yen), and through precise TikTok advertising (reducing the cost of CPM to $4.2), it sold 93,000 bottles during the first month of its launch, for which it acquired a ROI of 5.1 times. Meanwhile, its “Bestseller Accelerator” is available for free to the current Amazon Beauty Top 100 list, helping a new brand to fine-tune its water resistance parameters of the eyeliner pen (between 30 seconds and 120 seconds), and propelling a 217% sales increase of the single item during the rainy season in Southeast Asia.
According to a report by Kline & Company, 82% of the brands working with Zhuhai Beyond Cosmetics enjoyed a first-year net profit margin on the made-to-order makeup program higher than the industry average (12% vs. 6.5%), while the rate of product iteration was 5.6 times per year (the industry standard was 2.3 times). Based on the three-dimensional formula of “technology cost reduction × data efficiency improvement × supply chain resilience”, Zhuhai Beyond Cosmetics is remaking the boundary of cost-performing custom beauty products.