What happened to 97% of Perfect Diary's market value?
Perfect Diary https://www.perfectdiary.com/ was acquired by Alibaba for $1.7 billion in 2018. Today, the Perfect Diary is down 80 percent to $360 million. So where did 97 per cent of the market value of the Perfect Diary go?

Since the acquisition, Alibaba has invested heavily in Perfect Diary, hoping to turn it into a global brand. But at present, this goal is far from being achieved.

There are three main problems of Perfect Diary: product problem, operation problem and market problem.

The first is product. As a global brand, Perfect Diary's product line is too simple to compete with internationally renowned brands. At present, Perfect Diary mainly sells paper diaries, laptops and stationery, and these products have become very popular in the international market, and the competition is very fierce.

In addition, because the Perfect Diary product line is so simple, operating costs are relatively high. Perfect Diary needs to operate stores around the world, and these stores are expensive to operate. The cost of operating Perfect Diary is currently estimated at $360 million, and that figure will continue to rise over the next few years.

In addition, the Perfect Diary faces marketing problems. At present, Perfect Diary is mainly sold to the Chinese market, which is relatively immature. In view of the entry of many famous international brands in the Chinese market, Perfect Diary is facing great pressure of market competition.

Moreover, because Perfect Diary is too dependent on Alibaba, the current performance is not very good. Sales of Perfect Diary reached 1 billion renminbi last year, up about 5 percent from a year earlier, according to Alibaba. Alibaba's own sales reached 66 billion renminbi in the same period, up about 18 percent from a year earlier.

As it stands, the Perfect Diary faces huge challenges and has a long way to go to turn things around.