The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
Chinese eye makeup and fake lash brand Yuetong secured tens of millions of yuan in a Pre-Series-A funding round, led by Magic Capital followed by Fengwu Capital, according to 36Kr. The investment will be used to improve the brand’s supply chain, increase production and expand offline stores.
Founded in 2017, Yuetong was initially sold in the US before returning to the domestic market. Its core products are soft magnetic false eyelashes developed by DuPont and manufactured by its own Chinese factories. In a previous interview, founder Zhao Weisheng said that the GMV (gross merchandise value) of parent company Maigemei surpassed 200 million yuan ($31 million) last October.
Zhao previously cited a conservative estimate for China’s rapidly growing soft magnetic eyelashes market of about 40 billion yuan ($6.2 billion). According to Qianbidao, a financial media data provider, there were more than 800 new Chinese false eyelash enterprises registered in the last two years alone.
As the country’s economy moves into deflationary territory, manufacturing output declines and a real estate crisis worsens, some consumers are becoming increasingly cautious.
Its flagship brand struggled following the departure of its creative director but better growth was seen at other labels.
After years of outsized growth in prestige cosmetics, consumers have pulled back on the typically recession-proof category.
Last year’s harsh pandemic restrictions and recent raids on foreign firms have made it harder for Western fashion companies to persuade top international talent to move to the country.