China beauty retailer Harmay raises $200m

General Atlantic took the lead in the Series C and re-upped for the Series D, joined by Eastern Bell Capital, N5 Capital, and Ocean Link. Hillhouse Investment and Black Ant Capital also featured in Series C. QY Capital led the Series D.

Founded in 2008, Harmay started out as an online platform. Its first offline store opened in Shanghai in 2017, and a Beijing presence was launched two years later. There are now nine nationwide, with plans to enter Wuhan, Guangzhou and Shenzhen.

Offline operations play an important role in marketing and customer experience. Harmay comes up with innovative storefront designs based on the prevailing urban style in each location. This creates a unique aesthetic that attracts the selfie photo crowd. It also sells tea and snacks on-site to attract and retain customers.

Harmay offers more than 9,000 stock-keeping units across 400 brands, including international marquee names, niche overseas players, and emerging local brands. Much effort goes into frequent product categories updates and collaborations with new brands. In 2021 alone, Harmay launched 100 new collaborations.

Another key initiative is the sale of sample products or travel packs at low cost to walk-in customers, which is considered an efficient sales transformation method.

"If classified primarily as an offline retailer, Harmay would not command a premium. If the offline presence serves as a honeypot for females with high spending power, and foot traffic can be turned into offline traffic, that’s a different matter," an investor told AVCJ in a previous interview.

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• Topics
• Greater China
• Expansion
• Consumer
• China
• General Atlantic
• Eastern Bell Venture Capital
• Ocean Link
• Hillhouse Capital Management