On September 10, 2023, during a live broadcast, a viewer criticized Florasis cosmetics for becoming increasingly expensive, pointing out that a brow pencil weighing only 0.05 grams costs a staggering 79 Chinese yuan.
Li Jiaqi, a leading figure in Chinese live-streaming sales, responded sharply, saying, “Don’t make baseless claims. It’s tough for domestic brands. Sometimes, you should look at your own situation. Have your wages increased over the years? Have you been working diligently?””
His remarks quickly stirred controversy. By the early hours of September 11, Li Jiaqi issued an apology for his comments, which had drawn 1.27 billion views and were continuing to rise.
Netizens had their own take, with many commenting: “A group of poor people fed another poor person to become rich, and now this rich person is mocking the same group of poor people.”
First, a Closer Look at the Price from Three Perspective
Cost Perspective: Below 10 Yuan Aligns with Industry Norms for High Profit Margins
Beauty bloggers have pointed out that most of Florasis’ products, including the eyebrow powder pencil in question, are produced by contract manufacturers. According to a reporter’s inquiry, the manufacturing company, Yongli Pen Industry, confirmed they produce for multiple brands and that the cost of producing one eyebrow pencil is under 10 yuan, possibly even lower.
While the factory cost is minimal, the retail price is higher due to significant marketing and channel costs. Livestream sales, like those by Li Jiaqi, contribute to these increased marketing expenses. From a production cost standpoint, Florasis eyebrow pencils are not exactly cheap.
Historical Perspective: Previously Priced Over 50 Yuan
Consumers have been searching for evidence of price fluctuations for Florasis eyebrow pencils. However, factors like product upgrades, promotional offers, bundle discounts, and cross-store sales complicate price comparisons. Historically, the retail price for Florasis’ black sesame eyebrow pencil was around 69 yuan, with the lowest price reaching 62 yuan after discounts. In contrast, the pencils now sold by Li Jiaqi for 79 yuan, two replacement cartridges included, appear discounted but factor in the cost of the cartridges, which are relatively inexpensive to produce.
Industry Comparison: Higher Individual Price Than International Brands
Cosmetics are ultimately purchased for practical use, and consumers often seek a balance between price and performance, opting for affordable domestic brands. However, many have found that the unit price of some affordable domestic makeup products, like Florasis’ eyebrow pencils, is even higher than that of international giants. For example, the individual price of Florasis’ black sesame eyebrow pencil once exceeded 492.9 yuan, which is pricier than L’Oréal’s triple-head eyebrow pencil.
Source：DT商业观察
A comparison chart circulating online highlights that Florasis’ eyebrow pencil has a unit price of 985.71 yuan, making it more expensive than gold—though this calculation doesn’t include the cost of eyebrow pencil replacements, which are clearly less expensive to produce.
The Anxiety of Live E-Commerce: Diminishing Returns in Traditional Industries
Li Jiaqi’s emotional response during his live broadcast underscores the growing anxiety within the live e-commerce industry, particularly for brands like Florasis that heavily rely on traffic-based marketing. Despite spending over 3 billion yuan on marketing throughout the year, Florasis still does not own its own factory—a fact that reflects the rising consumer expectations for the brand’s transformation.
While live e-commerce was once seen as a groundbreaking model, it is now becoming a conventional approach. However, as the industry matures, the rapid growth, high profits, and widespread exposure that once characterized it are no longer sustainable.
For brands like Florasis that are overly dependent on traffic operations, their commercial vulnerabilities are becoming more apparent. Data reveals that in February 2020, more than 80% of Florasis’s sales came from Tmall, with 40% of that total driven by Li Jiaqi’s sales efforts. While the strong connection between Florasis and Li Jiaqi has fueled rapid growth, it also means the brand is sharing both the opportunities and risks with its key influencer.
For brands like Florasis, achieving long-term success and becoming a leading example of Chinese products requires more than just leveraging traffic; it requires building a solid foundation of systematic brand value, a path that remains challenging and far from easy.
