If the cosmetics that have been voluntarily canceled by filers and are not in violation of Chinese laws and regulations and that have been listed before the cancellation of the filing information, the cosmetics can be sold until the end of their shelf life. The cosmetics that have been canceled by the Chinese recordation department should not be listed for sale or import from the date of cancellation of the record. Violators will be punished according to the law.

Chinese cosmetics brand PROYA launched "YOUTH ACTIVATING EYE CREAM", claiming to add two new ingredients NOX-AGE and BOSWELLIA SERRATA RESIN EXTRACT, which can effectively resist dark circles. PROYA, the First Share in the Chinese Skincare Products Industry, With its New Product Unveiled It is understood that the NOX-AGE contained in the "YOUTH ACTIVATING EYE CREAM" is co-created by PROYA and ASHLAND, a global frontier laboratory, which is composed of lavender active essence and polypeptides. while BOSWELLIA SERRATA RESIN EXTRACT is created by using transdermal transmission technology to wrap 4 ingredients in a special way. Meanwhile, PROYA says the upgraded version removes the irritating ingredient and is mild and non-allergenic. At present, the product has been pre-sold in PROYA's official flagship store on Tmall with a pre-price of $44 per 20 ml. As of April 12, the reservation has exceeded 1000 units. According to the official website, PROYA was born in Hangzhou in 2003, a beautiful city, which was the earliest cosmetic brand launched by PROYA Cosmetics Co., Ltd. and focused on the research of Deep Ocean Energy. PROYA Cosmetics Co., Ltd. has always been known as "the first share in the Chinese beauty industry". In 2008, PROYA adheres to the "scientific formula". A scientific skincare laboratory was set up in 2008 based on professional skin texture research. The brand focuses on the study of core active ingredients and tests many times before launching the product and was committed to providing a safer and more effective scientific skincare program. The brand started from the daily chemical channel with a multi-category, multi-channel operation mechanism and has begun to set its foot into the supermarket, e-commerce, and other channels, which has formed a nationwide and three-dimensional marketing service network. To date, PROYA has tailored 11 comprehensive skincare series of products aimed to solve the nine skin problems of different ages in Asia, along with a base makeup collection. The brand's star products include the series of "ADVANCED ORIGINAL REPAIR CONCENTRATING ESSENCE", which focuses on anti-ageing, and the series of "DEEP OCEAN ENERGY", which focuses on improving fine wrinkles. Celebrity items include "SLIK GLOW SERUM Foundation", "WRINKLELESS AND FIRMING LIGHT CREAM", "ULTIMATE REPAIRING", "ELASTIC BRIGHTENING YOUTH ACTIVATING EMULSION" and "SUN AROUND UV PROTECTIVE SUNSCREEN SERUM". As of April 12, the "SUN AROUND UV PROTECTIVE SUNSCREEN SERUM" topped PROYA's official flagship store on Tmall, with a monthly sales volume of over 90,000, priced at $23 to $50. The "AQUA MOISTURIZING RENEWAL MASK" ranked second in sales followed by the "SUN AROUND UV PROTECTIVE SUNSCREEN SERUM", priced at $14 to $20 and both the "ELASTIC BRIGHTENING YOUTH ACTIVATING LOTION" and the "ELASTIC BRIGHTENING YOUTH ACTIVATING EMULSION" priced at $41 to $63, with monthly sales volume exceeding 30,000. During the double eleven periods in 2021 (the Chinese online shopping festival), PROYA's flagship store on Tmall exceeded more than 100 million yuan (RMB) within only 34 minutes on November 1 and the turnover in just 7 hours exceeded the total turnover of last year's. In March 2022, PROYA issued a performance forecast: it is expected that the net profit attributable to $23.24 million to $24.97 million from January to March 2022 will increase by 35% to 45% over the previous year, which is mainly attributed to the rapid growth of all brand sales during the International Women's Day on March 8 2022, of which the GMV of the PROYA's official flagship store on Tmall increased by more than 200% year-on-year and the GMV on TikTok increased by more than 100% year-on-year. PROYA has done a remarkable job both in its sales performance and brand marketing strategy. Since 2021, PROYA has embarked on brand marketing. In March 2021, PROYA joined hands with CHINA WOMEN'S NEWS to launch a promotional video "Gender is not a boundary line", which is inspiring. In May 2021, together with One Way Street Library and Shanghai Translation Publishing House, it launched a 520 (20th May which represents "I love you" in Chinese pronunciation) special plan "Dare to Love, But Also Dare not Love" to explore the true meaning of love. In September 2021, together with China Post, launched the opening season of "Written to the 18-year-old Self". On World Mental Health Day, together with China Youth Daily and Yi Xin Li, PROYA launched the public service short film "Echo", which released the emotions in the hearts of the audience. At the beginning of 2022, PROYA's different "turnaround" marketing is eye-catching. With the mainline of New Year, subway and poems, PROYA invited 27 "poets" from different fields to create works on the theme of hope. The Shenzhen Metro "Fan Shen" (turning over) station echoes people's New Year's resolution of "being a new self". The power of words trickles down in the subway stations where pedestrians come and go and the warmth and healing power are permeating in people's hearts in the post-pandemic era. Sun Li, PROYA's spokesperson, personally read the co-creation poem "What is the New Year" of the project, further raising the brand's fame. During International Women's Day on March 8, 2022, PROYA planned an advertising film, "Xing Shi Shao Nu" (Awakening Lion Girl) with "being equal" as its core. And PROYA also planned public welfare activities, so that more people participated in the topic of "gender prejudice". PROYA does not aim at sensationalism, but empathy. PROYA positions its brand marketing in a way of claiming its own emotional demands, which creates PROYA's "Youth" and supports the core of the brand.

In the first quarter of 2022, Beiersdorf achieved $2.41 billion in its corporate organic sales with a rise of 10.3% and its organic sales of the Consumer business segment increased 11.6% year-on-year to $1.94 billion. Recently, Beiersdorf's official website reported that corporate organic sales increased significantly by 10.3% to $2.41 billion in the first quarter of 2022, higher than current market expectations. Its organic sales in the Consumer business segment increased 11.6% year-on-year to $1.94 billion. Meanwhile, The 2022 full-year sales forecast published in March for the Consumer business segment remains unchanged in light of the ongoing volatile market environment. Beiersdorf anticipates sales growth in the mid-single-digit range for Consumer. Beiersdorf has stood for innovative, high-quality skin care products as well as pioneering skin research for nearly 140 years. Leading international brands such as NIVEA, the world's no. 1 skincare brand*, Eucerin (dermocosmetics), La Pairie (selective cosmetics), and Hansaplast/ Elastoplast (plasters and wound care) are cherished by millions of people around the world day after day. Renowned brands such as Aquaphor, Coppertone, Renowned brands such as Aquaphor, Coppertone, Chantecaille, Labello, 8x4, atrix, Hidrofugal, Maestro, and Florena round off our extensive portfolio in the Consumer Business Segment. Through the wholly owned affiliate tesa SE, Beiersdorf is also a global leading manufacturer of technical adhesive tapes and provides self-adhesive solutions to industry, craft businesses, and consumers. The Hamburg-based company has more than 20,000 employees worldwide, who are connected by shared core values, a strong corporate culture and the Beiersdorf purpose Care Beyond Skin. its C.A.R.E. + business strategy, the company pursues a multi-year investment program focusing on competitive, sustainable growth. The program is consistent with the ambitious sustainability agenda, with which Beiersdorf is generating clear added. The program is consistent with the ambitious sustainability agenda, with which Beiersdorf is generating clear added value for consumers, society, and the environment. In fiscal 2021, Beiersdorf's Consumer segment, which includes the cosmetics business, increased its EBIT excluding special factors to $804 million with an EBIT margin of 12.1%. The main driver of the segment's growth came from the e-commerce business. The e-commerce business now contributes more than 10% of the total sales of the consumer segment, which grew 32% in the previous fiscal year. The financial results show that its core brand NIVEA grew sales by 5.5% in 2021, with the NIVEA LUMINOUS 630 Spotclear Intensive Treatment Serum performing well, helping NIVEA to expand its market share in the facial care category thanks to the success of the line. The line is said to be a new addition to NIVEA's product portfolio and includes products such as NIVEA LUMINOUS 630 Spotclear Intensive Treatment Serum, LUMINOUS 630 UV Protect and LUMINOUS 630 Anti Dark-spot Even Tone Night Cream. The products contain W630, an active ingredient patented by Beiersdorf that reduces pigmentation and age spots, gently and efficiently lightens blemishes and acne marks, whitens and brightens, and is therefore known by consumers as the "strongest whitening ingredient on the planet". After the reform and opening up in China, NIVEA became one of the first foreign companies to come to China. In 1994, the parent company Beiersdorf officially set up a Sino-foreign joint venture with Shanghai Daily Chemical No.2 Factory, named NIVEA (Shanghai) Company. In 2020, NIVEA’s world's second largest innovation and R&D center was established in Shanghai after the headquarters in Hamburg, Germany. This reflects the importance NIVEA attaches to the Chinese market. It tended to further understand the Chinese market comprehensively and better serve Chinese consumers. In addition, Beiersdorf said the recovery in travel retail is driving consumer demand for the premium beauty brand La Prairie, which grew sales by 20.1 percent in 2021, with strong growth in the U.S., Germany and China, especially in China, where La Prairie's sales were well above average. According to the financial data, La Prairie grew rapidly in 2017, 2018 and 2019, three years before the start of the epidemic, with growth rates of 11.50%, 38.50% and 20%, respectively. However, going into 2020, La Prairie declined 23.9% due to the impact of the epidemic. From January to September 2021, sales of La Prairie under Beiersdorf declined by a larger propitiation of 34.5%. However, in the third quarter, La Prairie gained consecutive sales growth in Asia and the Americas, and the brand's overall sales declined by 16.9% in the third quarter, shrinking compared to the decline in the previous two quarters. According to the survey, a total of 62 SKUs are being sold in La Prairie’s official flagship store of Tmall beauty platform, with the highest sales of La Prairie Skin Caviar Luxe Eye Cream, with a total sales volume of 5,000+ units and a price of $534. But along with the rise of high-end beauty consumption in China and the brand's presence in the Chinese e-commerce platform Tmall channel, Beiersdorf is expected to further strengthen the brand's presence in this key market. This is indeed reflected in the 2021 earnings report as well. It is worth noting that the business says there is currently uncertainty due to the war in Ukraine, the embargo in China due to COVID-19 and inflationary pressure on raw material and logistics costs. Measures have been initiated within the Group to mitigate cost pressures. In addition, Beiersdorf's detailed first-quarter financial results will be released on April 28.

After the incident that P&G apologized for its post accused insulting women. It is found that a case was opened on March 28 against Guangzhou Procter & Gamble Co. due to its posted article Women's Foot Odor is Five Times Worse than Male's. Don't Believe me, Smell it now! Last month, P&G published Women's Foot Odor is Five Times Worse than Male's. Don't Believe me, Smell it now!, which triggered taunting, resenting and rebuking from consumers and was accused of insulting women and sexism. The article was deleted by P&G after the incident, but the matter still triggered extensive discussions on social media platforms. On March 24, the topic #P&G# and other related topics once soared to fourth place on Weibo trending topics. Many netizens did not accept the apology and said they would boycott P&G and P&G products. However, the matter did not end with P&G's apology. On March 26, a blogger on Weibo named "Lawyer Deng Gaojing" posted on the Chinese social media platform Weibo that the article blatantly fabricated facts to insult, slander, defame and denigrate women, which violated the Advertising Law of the People's Republic of China and the Public Security Administration Punishments Law of the People's Republic of China, and appealed that Guangzhou Market Supervision Administration would impose punishment on Guangzhou P&G Co. Ltd. However, it is found that this post has been deleted on its Weibo account. The Weibo account of "Lawyer Deng Gaojing" is certified as "Partner of DehehanTong Law Offices". On March 28, it was found that the "P&G Member Center" Wechat(Chinese social platform) Public Account had been canceled. The account showed that the public account had entered the freeze period of independent cancellation and the function could not be used. A few days ago, the account "Lawyer Deng Gaojing" on Weibo(a Chinese social platform) released information that "P&G allegedly released illegal advertising behavior has been filed for investigation." In this regard, the Guangzhou Huangpu District Market Supervision Administration stated that P&G was indeed investigated on March 28 this year. After that, on April 7, the lawyer posted on Weibo again, "After I was informed by phone on March 31 that the case had been filed. A text message was just sent by Guangzhou Huangpu District Government, officially informing us that an investigation had been filed on March 28, 2022 against Guangzhou Procter & Gamble Company Limited for allegedly releasing illegal advertisements (Sui Huang Case [2022] 00096), and the case is being processed. The results will be announced to the public after the case has been processed". For that, P&G did not respond and relevant staff from Guangzhou Huangpu District Market Supervision Administration said "It is true that a case was opened on March 28 against Guangzhou Procter & Gamble Co. due to its posted article Women's Foot Odor is Five Times Worse than Male's. Don't Believe me, Smell it now!." The staff said that the case is currently under investigation. In fact, not only "Lawyer Deng Gaojing", there are a number of lawyers commented on the matter after the incident have triggered a large discussion. They all believed that P&G's behavior was suspected of violating The Advertising Law of the People's Republic of China. According to Article 9 of The Advertising Law of the People's Republic of China, "advertisements shall not contain national, racial, religious or gender discriminatory content". Violation of this provision is punishable by a fine of not less than $31,000 and not more than $15.69 million in accordance with Article 57 of The Advertising Law of the People's Republic of China. In serious cases, the business license may be revoked, its advertising approval documents revoked, and its application for advertising review not accepted within one year. Its an advertising review application. For example, on March 24, the official weibo of Legal Daily quoted Kong Lei, a lawyer from Beijing Eastcapital Law Firm, as saying, "Commercial marketing should adhere to the legal and moral bottom line and effectively fulfill its obligation to protect the rights and interests of consumers. In addition, businesses can promote their own products, but can not ignore the rights of female consumers to be respected under The Law of the People's Republic of China on the Protection of Consumer Rights and Interests". According to the video released by the official account JINBW revealing that P&G has released a sexist advertisement in the article, which violates the provisions of Article 9 of the Advertising Law. In addition, the article uses P&G should not only be responsible for the accuracy of the data, but should also label the data in accordance with Article 11 of The Advertising Law. Article 11 of the Advertising Law stipulates that the source should be marked." Wang Wenbo said, "If these data are false, then P&G may also be suspected of issuing false advertisements." The data from P&G was found in a paper titled "Factors Influencing Microbiological Biodiversity of Human Foot Skin", which did not mention odor. According to an article published in 2019 in the SCI journal "International Journal of Environmental Research and Public Health", a study of the effects of age, gender, frequency of foot washing and physical activity on humans The effect of foot skin microorganisms was found to be 1.0*106CFU/cm2 on average for women's feet and 1.2*105CFU/cm2 for men's feet. However, the overall data difference between the two groups was not statistically significant, and it could not be concluded that there was a difference between the total bacterial count of women and men. Secondly, the sense of smell is a very subjective feeling, and there is no basis for the stink 5 times frequently proposed in the P&G article. Therefore, the argument that "women's feet smell 5 times more than men's" is not valid. And whether the sample data is applicable to Asian groups is open to question. Article 11 of the Advertising Law clearly states that "advertisements using data, statistics, survey results, abstracts, quotations and other quotations should be true and accurate, and should be indicated the source". If violate this provision, according to Article 59 of the Advertising Law, the advertiser may be fined up to $16 thousand.

The "perfume bottle" appearance for the patent applied by TikTok's parent company ByteDance obtained authorization. In January 2022, ByteDance's new perfume brand "EMOTIF" was put on sale. On April 5 (Beijing time), TikTok's parent company ByteDance applied for a "perfume bottle" appearance design patent and was authorized, with the application number being CN202130834324.6, the application date December 16, 2021(Beijing time) and the authorization announcement number CN307232074S. It is understood that ByteDance incubated a new perfume brand "EMOTIF" which was put on sale in January this year with three series of products from "Joi" and "Astronaut In The Ocean" to "Pompidou only drinks Champagne". The perfume is sold for 178 yuan (about $28) per 9ml, which means that 1ml of the price is more than $3. Chinese netizens make negative comments on this perfume, saying it is more expensive than well-known brands such as Hermès and Dior and they cannot afford it. According to the information exposed, Emotif is a French word that means "emotional or emotional person". It's clear that, like many perfume brands, ByteDance has focused on consumers' sentiment and the self-expression of a new generation. The brand introduces officially the perfumer of Emotif perfume and has debugged perfume for well-known brands such as Tom Ford and Aimani. It can be seen that ByteDance has distinguished the price of their perfume from Chinese affordable perfumes from the very beginning, orienting directly to the high-end market. At present, EMOTIF can be purchased through channels such as WeChat Mini Programs, but it is "compulsory" to register and become memberships for entering EMOTIF's store. It is reported that Beijing Yanlai Trading Co., Ltd., a wholly-owned subsidiary of ByteDance, applied for a number of "EMOTIF" trademarks in July 2021 with its international classification involving daily chemical products and advertising sales and most of the trademarks having been registered. Whether is it a coincidence or something else for ByteDance who is focusing on the perfume industry? There may be two reasons for the analysis of Chinese cosmetics industry insiders. First, China's perfume market has great potential. In August 2021, a research report released by Mintel, a British market research institute, predicted that China's perfume market will grow at a compound annual growth rate of 17 per cent in the next five years and market sales are expected to exceed $2.419 billion by 2025. Second, the technical barriers of China's perfume industry are relatively not too high and the brand entry requirements are low, giving many enterprises the space and opportunity to try. Unlike skincare products and cosmetics, there is no defined standard for the quality and inferiority of perfumes. Everyone can share their own opinions on the smell of perfumes and therefore the judgement about the smell of perfumes is both personal and emotional, which's quite friendly to new entrants.

The Chinese skincare brand Grain Rain launched a new version of the product "Whitening Luminosity Repairing Essence in Cream", claiming to add the ingredient of Glabridin, called "whitening gold", it can give consumers the desiring effect of deeply brightening and hydrating with its first purchasing price of $22 per hundred gram. Grain Rain made an announcement officially that the most two popular ingredients Glabridin called "whitening gold" and L-Carnosine+AA2G in the "Whitening Luminosity Repairing Essence in Cream", which has functions like mildly suppressing darkening, anti-sugar, and anti-yellowing and restoring translucent skin. It’s suitable for skins having been sunburned and to be repaired because of staying up late. According to the official website of Grain Rain, established in 2016, the brand is a domestic niche natural skincare brand. The predecessor of the brand is the Grain Rain Skin Care Lab, which has been researching the application of precious natural essence in skincare products over the last 12 years. It is understood that the products of Grain Rain feature the core ingredient of Glabridin, claiming that the whitening effect is 80 times that of VC. Glabridin is a kind of flavone extracted from a precious plant called Glycyrrhiza glabra L. Glabridin is known as “whitening gold” because of its powerful whitening effect, which can eliminate free radicals and melanin at the bottom of the muscle, known for its effect of whitening skin and slowing down ageing. Grain Rain’s self-built laboratory has been in research and development of Glabridin for 15 years with its top and core teams in research and development gathering together, including top experts in the industry, such as the former SK-II senior scientist Akio Sugi and Dr. Zhang Weiyang of East China University of Science and Technology. The laboratory has many core formula patents and exclusive applications technology and established its own joint planting base in Xinjiang, which is also the only artificial joint planting base cultivated and managed by modern science in China. In addition, Grain Rain has a high-standard professional joint research and development laboratory and has obtained a number of patented technologies such as supercritical crystallization purification and nano-penetration promotion. Grain Rain is the first domestic skincare brand that uses Glabridin for whitening. Currently, it has launched a series of products like Glycyrrhiza Glabra products, GINSENG FIRMING products, Cactus Pear Sheer products, and Cajupet Truffle Balanced products. The star items include “Whitening Luminosity Repairing Essence in Cream” and “Glabridin Brightening Essence Mask”. At present, Grain Rain has covered all online and offline channels, and its sales revenue reached $157 million in 2021, taking the lead among cutting-edge skincare products. In 2021, Grain Rain has won many awards including the “Gen Z Brand Innovation Marketing Award” of 2021 Tmall Golden Makeup Award, 2021 Beauty Care Trend Brand on RED, "2021 Most Competitive Brand" selected by China Cosmetics Conference, and 2021 Pin Guan Zhao Huo Beauty Awards for the “Top Ten Popular Skincare Brands”. In addition, in the selection of the Xiaohongshu Marketing Breakthrough Award, Grain Rain became the only domestic skincare brand that won the award and was selected by the People’s Daily as the people’s domestic product "Xiaohongshu Domestic Products Festival Selection Brand Full Scene Whitening Brand". At the same time, it has also been promoted by many stars such as Li Xiang, Shen Mengchen, Zhao Lusi, Yuan Shanshan, and Li Xiaoran and has been widely concerned by the industry and loved by consumers. But also in 2021, Grain Rain encountered a wave of false propaganda. In November 2021, an Internet celebrity blogger claimed that Grain Rain's products haven't obtained special whitening certificates issued by the National Medical Products Administration, but they advertised that the products can whiten skins and false propaganda exited. In addition, there are also issues such as fake ingredients and fake patents. Grain Rain responded by saying that products without special whitening certificates do not claim to be whitening and the product page only explains the efficacy of the product itself. Moreover, the allegations made by the internet celebrity blogger that the ingredients and patents were fake turn out to be false which has loopholes in professional knowledge. Grain Rain also said that the internet celebrity blogger has made false allegations against the brand before and now the two parties have been in legal proceedings. The legal action mentioned by Grain Rain was in response to the "fluorescent agent incident" that occurred in October. The above-mentioned internet celebrity blogger alluded to the fact that Grain Rain's "Glabridin Brightening Essence Mask" contains fluorescent agents. At that time, Grain Rain issued a third-party testing agency's fluorescent agent test report on the mask products and confirmed the safety of the products, which ended up with the blogger’s hastily deleted video. Although Grain Rain was falling into a storm of public opinion for a while due to the above two negative news, its products did not seem to be much impact in terms of its sales. Recently, Grain Rain launched an upgraded product, "Whitening Luminosity Repairing Essence in Cream", which was popularized among consumers as soon as it went public, setting an impressive record of over 50,000 sales volume during the month when Grain Rain launched its new products. Compared with "Whitening Restore Cream", the Glabridin in "Whitening Luminosity Repairing Essence in Cream" has been increased from 90% to 93% in purity. At the same time, soothing ingredients have been added such as alpha-Bisabolol, Centellae Herba, and Ceramide that repair the skin’s barrier. The upgraded version of cream succeeds in bringing whitening as well as soothing and repairing together. On January 6, 2022, Grain Rain cooperated with Kwai's internet celebrity, Zhou Zhou. In the live broadcast, both its "Glycyrrhiza Glabra Brightening Essential Water" and "Glycyrrhiza Glabra Brightening Osmotic Lotion" won the highest sales volume and sales revenue with a sales volume of 24,000 and a sales revenue of $1.05 million. As of April 8, 2022, Grain Rain's "Glycyrrhiza Glabra Brightening Essential Water" and "Glycyrrhiza Glabra Brightening Osmotic Lotion" has monthly sales of over 20,000 units in its cosmetics flagship store on Taobao, with the price starting at $30. The highest-selling item in the store is the "Whitening Luminosity Repairing Essence in Cream", which sells more than 30,000 bottles per month and sells for $22 to $31.

The cosmetics brand "TIN’SECRET" run by the Chinese celebrity duo Zhang Ting and her husband Lin Ruiyang owned by Shanghai Da Er Wei, was found to constitute an illegal act of organizing and planning pyramid schemes. The illegal gains were confiscated for $3.03 million and fined $270,000. On April 9 (Beijing time), the Chinese celebrity duo Zhang Ting and Lin Ruiyang once again faced a critical criticism, because the Chinese media reported in the afternoon of the same day that the couple's brand "TIN'SECRET" pyramid scheme had been characterized by the relevant Chinese departments and fined about $3.3 million by the Chinese relevant departments. As soon as the news came out, the topic hashtagged "Zhang Ting's TIN'SECRET identified as a pyramid scheme" was immediately ranked first on the trending list of The Chinese social platform Weibo. As of 14:35 on April 11 (Beijing time), the topic triggered 580 million views and 35,000 discussions. The Chinese media said in the report that after investigation, the Hubei Baokang Administration for Market Regulation believes that the bonus system formulated by Shanghai Da Er Wei Trading Co., Ltd. (hereinafter referred to as "Shanghai Da Er Wei"), the operating entity of the “TIN’SECRET. It divides members into two categories: Blue Card and Red Card, of which Blue Card members are general consumers and the bonus system for them is in line with commercial practices and does not violate the law. However, the bonus system implemented by red card members is to require the existing customers to invite other potential customers to join in and thus form an economical relationship between the two parties. And the online remuneration of the existing customers is based on the sales performance of the potential customers, but this belongs to the relevant provisions of China’s Regulation on the Prohibition of Pyramid Selling, which is a pyramid scheme and constitutes the illegal act of organizing and planning the pyramid scheme, confiscating the illegal income of $3.03 million and fining $270,000 according to the law. It is worth noting that the Hubei Baokang Administration for Market Regulation determined that "TIN'SECRET" constituted the illegal act of organizing and planning pyramid schemes that happened in September 2021. After that, the Administration for Market Regulation of Yuhua District, Shijiazhuang, Hebei Province, began to intervene in the investigation of "TST Court Secrets" suspected of using the internet to engage in pyramid schemes, and in December 2021, "TST Court Secrets" officially stated: "Shanghai Da Er Wei is a legally operated Chinese company, and since its establishment, it has always followed the guidance of the Chinese government, adhered to legal operations and paid taxes according to law. Thank's very much to the Administration for Market Regulation of Yuhua District, Shijiazhuang, Hebei Province for guiding our company to check the risks. At present our company's current operation is normal and we'll cooperate with the relevant departments." Zhang Ting and Lin Ruiyang also forwarded the response on Weibo. It is reported that “TIN’SECRET was once known as "the first Wechat business brand in China", Lin Zhiling, Tao Hong, Fan Bingbing and many other Chinese stars have supported it. Due to the blessing of the star effect, many consumers were willing to pay for it and the brand has successfully developed many downlines, thus forming a “pyramid scheme model”. It is understood that Shanghai Da Er Wei is jointly operated by Zhang Ting and Lin Ruiyang, with a registered capital of more than $35 million and the legal representative being Lin Ruiyang. According to the information on the official website of "TIN'SECRET", Shanghai Da Er Wei is a Chinese social e-commerce enterprise with its own brand founded by Lin Ruiyang and Zhang Ting in 2013 and headquartered in Shanghai, China, which has its own brand of "TIN'SECRET" that focuses on cosmetics and skincare products as well as the TMM brand that focuses on household consumer goods. The brand mainly sells its products through the O2O method of TIN’SECRET’s online APP and its offline physical stores. Zhang Ting, who has faded out of the Chinese entertainment industry for many years, was once the predecessor of Zhao Wei, Fan Bingbing and many other popular stars in China and her husband Mr Lin was once a well-known actor in Taiwan. Zhang Ting currently has 4.378 million followers on Weibo and 31.657 million followers on the Chinese short video platform TikTok, while her husband has 1.308 million followers on Weibo and 3.3 million on TikTok. The above platform accounts have all been banned except for Mr Lin’s account on TikTok.

The Ministry of Industry and Information Technology of the People's Republic of China issued the Digital "Three Quality" Action Plan for Consumer Goods Industry (2022-2025) (Draft for Comments) stating that China will cultivate 200 intelligent manufacturing demonstration factories in the field of food, household appliances, cosmetics, clothing, home textiles, electronic products and other consumer goods, to create 200 well-known brands with a scale of 10 billion yuan. This also means that, the Chinese cosmetics industry is very likely to give birth to brands with value of 10 billion yuan in the next four years with the promotion of the above program. On April 6, Beijing time, the Ministry of Industry and Information Technology of the People's Republic of China publicly solicited comments on the Digital "Three Quality" Action Plan for Consumer Goods Industry (2022-2025) (Draft for Comments) (hereinafter referred to as The Draft for Comments). The main purpose is to accelerate the digital transformation of China's consumer goods industry and promote the in-depth implementation of the "three quality" strategy of increasing variety, improving quality and creating brands. The Draft for Comments said to cultivate 200 intelligent manufacturing demonstration factories in the field of food, household appliances, cosmetics, clothing, home textiles, electronic products and other consumer goods, to create 200 well-known brands with a scale of 10 billion yuan. This also means that, the Chinese cosmetics industry is very likely to give birth to brands with the value of 10 billion yuan (about $1.572 billion) in the next four years with the promotion of the above program. What kind of beauty group, then, could become one of them? On March 10, 2022 Beijing time, Chinese cosmetics brand Perfect Diary's parent company, YATSEN E-Commerce, released its 2021 financial results. According to the data, YATSEN E-Commerce's 2021 revenue reached $916 million, up 11.6% year-on-year, with full-year gross margin up 2.5 percentage points to 66.8% and net loss narrowed by 42.5% year-on-year. On March 16, Beijing time, Shanghai Jahwa, a Chinese cosmetics company with brands such as Dr. Yu and Herborist, released its annual results announcement for 2021. During the year, the company achieved operating revenue of $1.204 billion, up 8.73% year-on-year and its net profit of $102 million, up 50.92% year-on-year. Its net profit after deduction achieved $106 million, up 70.76% year-on-year, reaching the highest level in the past six years. Among them, the skin care category grew at a rate of 22.22% for the year, far exceeding the average growth rate of China's cosmetics industry. Its revenue share rose to 35% soaring to become the company's top business category. On March 22, Beijing time, China skincare brand especially for sensitive skin Winona’s parent company BTN released its 2021 results report: BTN achieved its revenue of $632 million in 2021, up 52.57% year-on-year. Its net profit attributable to shareholders of the listed company was $136 million, up 58.77% year-on-year. Since its listing on China GEM in March 2021, BTN has rapidly risen to become a listed company with a high market capitalization in A-share cosmetics. During 5 years from 2017 to 2021, BTN's total revenue has doubled 5 times and its net profit has doubled 5.5 times. The 2021 annual report disclosed by Bloomage Biotech, which was named "the first hyaluronic acid stock" in March, showed that its revenue rose 87.93% to $783 million in 2021, and its net profit attributable to shareholders of the listed company was $124 million, up 21.13% year-on-year. The reason for the generous increase in revenue is that Bloomage Biotech focused on the cosmetics business in 2021 and continued to launch market demand products, such as "Biohyalux" and "Quadha", which are well known among young people. It achieved sales revenue of functional skin care products compared with the previous year. The sales revenue of functional skin care products increased by $312 million, or 146.57%, compared with the previous year. In summary, if the four companies, YATSEN E-commerce, Shanghai Jahwa, BTN and Bloomage Biotech, plan to become $10 billion groups in 2025, their compound growth rates in the next four years should reach 14%, 7%, 26% and 19% respectively. Besides, China government and related departments also implement policies to support cosmetic industry. In the normalization of the epidemic today, Chinese consumers spend more time online, thus China's major beauty brands increase online advertising on China's social media. More and more young people recognized brand innovation design, marketing and so on. In addition, due to restrictions on online overseas shopping and procurement service, Chinese beauty brands even surpassed international brands in sales during the epidemic. As traditional Chinese brands such as Herborist regained their popularity through brand upgrades and so on. A large number of Chinese national trendy brands also sprang up and became new favorites in the market. At the same time, those Chinese cosmetic companies with high market share and large scale will also go public one after another, such as Shangmei Group, which owns brands such as KANS and One Leaf, will go public in Hong Kong for IPO. In 2025, China's cosmetics industry may usher in its own 10-billion beauty group.

From January to December in 2021, the total cross-border online retail sales of shampoo/haircare exceeded $687 million. The unit price of cross-border shampoo and haircare is higher with the average transaction price reaching $13.5, which is $3.3 higher than the average transaction price of the whole internet. Among them, FINO's cross-border e-commerce shampoo and hair care retail sales accounted for the highest share of $91 million, while RYO's cross-border e-commerce shampoo and hair care retail sales accounted for the highest share of 6.17 million units. According to the list of China-wide cross-border shampoo/haircare retail from January to December 2021 by O&O Consulting, the total cross-border online retail sales of shampoo/haircare exceeded $687 million, accounting for 14.1% of the category's total China-wide sales. In addition, the unit price of cross-border products is higher with the average transaction price reaching $13.5, which is $3.3 higher than the average transaction price of the whole internet. In terms of retail sales, FINO exceeded $91 million in cross-border e-commerce shampoo and hair care retail sales, ranking first with 13.32% of retail sales in 2021. FINO Premium Touch Set ranked TOP 1 in the shampoo and haircare category during the single day on November 1st. On November 4, the sales volume of FINO shampoo and care kit exceeded 45,000 bottles within 3 hours of its launch. Among the best-selling single products of Tmall International shampoo/hair care, FINO hair mask and shampoo were on the list 7 times and 5 times respectively. In addition, FINO Hair Mask ranked third in the Jingdong International Shiseido Personal Care Overseas Jingdong Self-Employed Zone and 15th in the NetEase Kaola Self-Employed Yan Xuan Dian. In terms of retail volume, in 2021, the retail volume of RYO reached 6.17 million units in the cross-border e-commerce shampoo and hair care category, ranking first with 12.11% of the whole retail volume share. The brand's RYO Hair Loss Care Shampoo and RYO Ginsen Ex Hair Loss Scalp Care Shampoo ranked No. 1 and No. 2 in the list of Jingdong International Global Hair Shampoo and Care category's best-selling single products, with average transaction prices of $9.2 and $10.1, respectively. In particular, the No. 1 best-selling single product ranking in the Tmall International shampoo and hair care category from January to December 2021 was SELSUN Anti-dandruff Shampoo, with an average transaction price of $6.1. According to statistics, SELSUN's cross-border e-commerce sales were $35 million in 2021. As an anti-dandruff shampoo and haircare brand under the global famous pharmaceutical company Sanofi, Selsun, condensed the research and development time of conventional pharmaceutical companies, which originally took more than 12 months, to 6 months in order to solve the pain point of Chinese consumers' dry hair after using anti-dandruff products. It launched the new product - SELSUN Green Anti-dandruff Shampoo - in Tmall Global in May 2020, which helped the brand to be among the single-brand-billion club in one year. Up to now, SELSUN enjoys 70 SKUs in its overseas flagship store on the Chinese e-commerce platform Tmall, among which the best-selling is SELSUN Anti-dandruff shampoo, priced at $6.9 - $18.7 with a total sales volume of over 1 million units and monthly sales volume of over 20,000 units. Selsun Tmall overseas flagship store of personal care and cleaning products in China Top 30 best-selling stores in the first half of 2021 was listed in 29th place. It is worth noting that data from O&O Consulting shows that in 2021 the whole network shampoo and hair care (including Chinese and cross-border) category, retail sales of about 4.85 billion yuan and the average price of the transaction is $10.2 with an increase of 8.49% year-on-year. Among them, B2C e-commerce platforms contributed 82.2%% of the retail share, and C2C Taobao.com retail share was 17.8%. Comprehensive e-commerce remains the main sales force, with a 79.4% share of retail sales. In 2021, network-wide annual sales of more than $157 million of shampoo brands include Head & Shoulders, Pantene, L'Oreal, Kerastase, VS Sassoon, Adolph. In addition to international brands, Chinese toiletries brands are also showing their strengths, with Adolph ranking first in the 2021 Asia Market Brand Footprint Report with a 14.5% growth rate in consumer reach. Adolph Brand Center is established in Guangzhou City, and its parent company is Guangzhou Adolph Personal Care Products Co. From 2018 to 2020, Adolph's annual retail sales are over $1.57 billion, and the sales in 2019 have exceeded $2.36 billion. In the Double 11(Chinese Shopping Carnival) in 2020, its sales has achieved $52 million. In its Tmall flagship store, a wash and care kit of Adolph is priced at 99 yuan with a monthly sales volume of 20,000+ units and ranked first in the list of Tmall lasting fragrance shampoo repurchases, while the monthly sales of a number of other single products are also above 1000 + units, the price is mostly below $15.7. At this stage, China's consumers tend to segmentation and diversification of the demand for washing and care, different preferences for different functions of shampoo such as repair, softening, anti-dandruff, perming, dyeing, anti-detangling, etc., which has promoted the development of China's shampoo market to show the situation of blooming. Most of the Chinese shampoo market is occupied by foreign brands, and most of the brand products are recognized by consumers for their functions such as dandruff and oil removal, fluffing and smoothing, etc. The competitiveness is high. However, China's local brands led by Adolph have also emerged.

Recently, Valentino Beauty limited-time pop-up store landed in Sanya Hai Lyv Duty Free City providing an all-inclusive and diversified personality for customers who come to visit the store. The official Valentino Beauty store will also be located in the perfume and cosmetics area on the third floor of Sanya Hai Lyv Duty Free City in mid-April. Recently, Valentino Beauty limited-time pop-up store landed in Sanya Hai Lyv Duty Free City, passing on Valentino's aesthetic concept of "high definition as a dream, beauty overflowing on earth" to Sanya consumers, with citizens and tourists to feel the high definition charm of Valentino beauty while shopping. The limited-time pop-up store is decorated with the classic red color of the brand. In the store the entire line of high-definition makeup products are displayed including the four main stars of the Go-Clutch Set, air cushion, lipstick, perfume and other products, providing an all-inclusive and diversified personality for customers who come to visit the store. In addition, beauty assistants are provided in each area to offer professional guidance and advice to customers in the store. They help customers to provide multiple choices and create a unique beauty experience. The official Valentino Beauty store will also be located in the perfume and cosmetics area on the third floor of Sanya Hai Lyv Duty Free City in mid-April. It is reported that Valentino Beauty Asia Pacific Duty Free new counter was officially opened in another Hainan duty free store, CDF Mall, back on November 2, 2021. Founded in 1960, Valentino is a high fashion luxury brand originating from Italy. In 1978, it had the first launch of fragrance products. In 2019, L'Oréal officially took over the operation of Valentino from Puig and renamed it Valentino Beauty. On July 15 in 2021, L'Oréal Group unveiled its high fashion brand Valentino Beauty’s Tmall flagship store in Shanghai. This marks the official entry of Valentino Beauty into the Chinese market. It is understood that the Chinese market has always been one of Valentino's important territory. From the 1990s, Valentino began to hold fashion shows in China one after another. Valentino is also using the Chinese market as the first market for the brand's full line of beauty products in Asia. Currently, there are 79 SKUs of Valentino in its flagship store on the Chinese e-commerce platform Tmall Beauty with the best-selling products Valentino Go-Clutch lipstick with a total sales volume of 10,000 units and monthly sales volume of 20 units. It is priced at $70.7. Its parent company, L'Oréal Travel Retail Group Asia Pacific, also worked together with CDF to bring the new Valentino beauty counter to CDF Mall on November 2, 2021. With the boom in Islands free zone shopping, Hainan is gradually becoming a paradise for "shoppers". According to the data released by the Department of Commerce of Hainan Province, as of March 23, Beijing time, the sales of China's Hainan duty-free stores have exceeded $2.356 billion since 2022, a year-on-year increase, which has also provided international beauty brands to opportunities and continue to increase their presence in China's duty-free market. Currently, internationally renowned brands including Lancome, SK-II, TomFord, LA MER, Estee Lauder, DECORTE and others have been set foot in Hainan's duty-free stores. Only the beginning of 202, Armani Beauty, CPB, FREDERIC MALLE, KILIAN and other brands were settled in duty-free stores through opening special stores, pop-up stores and others. According to statistics, in the first two months of this year, the total sales of Hainan's 10 duty-free stores exceeded $2.022 billion, an increase of 33% year-on-year. Among them, duty-free sales amounted to $1.877 billion, up 38% year-on-year. The number of shoppers visiting duty-free stores was 2.1266 million, up 36% year-on-year; and the number of duty-free purchases was 12.623 million units, up 53% year-on-year. This time, Valentino is stationed in Sanya Hai Lyu Duty Free City, which officially opened on December 30, 2020, and is a high-end tourism retail complex integrating duty-free shopping, taxable shopping, catering and entertainment. It covers a business area of 95,000 square meters with introducing and operating more than 740 international famous brands covering 45 categories of duty-free goods such as watches, jewelry, bags, perfumes, cosmetics, electronic products and imported wine. It ranged 45 categories of duty-free goods such as watches, jewelry, bags, perfume, cosmetics, electronic products and imported wine. It is reported that Sanya Hai Lyu Duty Free has confirmed its participation in the 2nd China International Consumer Products Expo this year, and will join hands with internationally renowned brands of fragrance, jewelry and other categories to make a joint appearance at this year's expo. Its abundant booth activities in the expo held by Sanya Hai Lyu Duty Free will bring consumers a novel shopping experience.

A few days ago, a laundry detergent sold by Zhao Mengche, a well-known live streamer of Kwai, in the live broadcast room, was suspected of false publicity and a certain consumer reported: “It gives me the feeling of water. When I looked at the product carefully, I found that the back label of the product is printed with corporate standards, but the streamer strongly recommended in the live broadcast room that the detergent is in accordance with national standards. ” On March 11 (Beijing time), Zhao Mengche, the head anchor of China’s short video platform Kwai, sold a laundry detergent called “Liquid Detergent” during the live broadcast. The Detergent is priced at $10.98 with 4 barrels and 10 bags for a total of 26 pounds, plus free shipping. When he was selling through live streams, Zhao Mengche said the laundry detergent is the national standard laundry detergent. However, when consumers receive laundry detergent, they find that the laundry detergent looks as transparent as water, and it is difficult to wash clean clothes when used. After investigation, it was found that the outer packaging of the laundry detergent showed that the manufacturer was Zhejiang Zhuzhiyu Biotechnology Co., Ltd., and the implementation standard was Q/ZZY 04 (enterprise standard). The relevant person of the laundry detergent production plant said that the total active content of the standard laundry detergent produced by the enterprise is about 7 per cent, so it’s cheaper for enterprise standard. ” Public information shows that the standard of China's laundry detergent is divided into national standards and enterprise standards, which are defined by the active substance content, the active substance reaches 15% is the national standard, and the active substance is less than 15% is the enterprise standard. In general, the higher the total active content of the laundry detergent, the stronger the decontamination ability. The laundry detergent is sold at Yanwu’s flagship store on Taobao, a mainstream e-commerce platform in China, but after the incident, the merchant removed the laundry detergent. At present, there are thirteen SKUs in the flagship store of Yanwu with the categories including laundry gel beads, aromatherapy, mite removal detergent and etc. Then, on March 31 (Beijing time), Zhao Mengche responded in the live broadcast room, “The laundry detergent received by someone in the last live broadcast was the enterprise standard code, but each of its active substances in the detergent reached the national standard and this time it was all in accordance with the national standard ” It is reported that Zhao Mengche has more than 20 million followers on the Kwai platform and is one of the most popular live streamers of Kwai. Mr. Zhao is also an apprentice of Xin Ba, who is known as the first person in Kwai E-commerce, the China’s most attractive e-commerce platform, with more than 96.78 million fans on the Kwai platform. At the end of 2020, Xin Ba was widely questioned for the sale of Edible Bird’s Nest during live broadcasts and was punished by China’s Guangdong Administration for Market Regulation and other departments. In addition, Xin Ba’s account on was banned for 60 days. As of 11 am on April 8 (Beijing time), the topic of Xinba’s apprentice Zhao Mengche being accused of false propaganda was read by 8.59 million more times on Weibo, a Chinese social platform. The incident was first reported by the Mainstream Chinese media Nanfang Daily. At present, the media deleted relevant reports of this incident without explaining any reason. It is worth mentioning that on March 30 (Beijing time) the Cyberspace Administration of China, State Taxation Administration, and State Administration for Market Regulation jointly formulated the “Opinions on Further Regulating the Profit-Making Behavior of Online Live Broadcasting and Promoting the Healthy Development of the Industry”. The Opinions put forward 10 regulatory contents for China’s live broadcasting industry from the four directions of implementing the main responsibility of management, standardizing marketing behaviours as well as tax management and improving regulatory synergy. This means that issues such as inadequate management and irregular commercial marketing in China’s live broadcasting industry will be effectively mastered.

On April 2, Frog Prince Group, together with the Zhangzhou Federation of Industry & Commerce (General Chamber of Commerce), donated a batch of anti-pandemic materials such as wash-free hand sanitizers for sterilization and bacteriostasis to the Zhangzhou Municipal Health Commission. Frog Prince Group sent Condolences to the frontline medical staff of Zhangzhou pandemic prevention and paid tribute to the staff who continue to fight in the frontline against the pandemic. Since March 2022, Zhangzhou has gone through an unprecedented severe pandemic. As a local enterprise in Zhangzhou, Frog Prince Group not only actively participated in prevention and control, stepped up production, and successively donated protective materials to front-line people but also actively responded to various calls, bravely assumes social responsibility, dedicated love, and helped prevent and control the pandemic. According to the official website of Frog Prince Group, its headquarters is located in Zhangzhou, Fujian Province, which is a comprehensive personal care group company integrating R&D, production, and marketing. The products mainly cover four age groups: pregnant, infant, child, and adult. The group advocates the concept of “age-sharing care is more professional”. The group’s main business is divided into four sectors: pregnancy care, baby care, child care, and oral care. Frog Prince is a well-known domestic brand in China’s children’s care products industry, focusing on baby and child care for 23 years, with rich product development experience and strong scientific research strength in the field of infant care as well as nearly 100 invention patents. It has successively won the first “China Children’s Cosmetics Standardization Research Base”, the national high-tech enterprise, the Fujian Provincial Enterprise Technology Center and etc. It participates in the formulation of several national/group standards for baby and child products, cooperates with thousands of supermarkets, and has stable offline sales channels covering 22 provinces, 5 autonomous regions, and 4 municipalities in China. The Frog Prince was created by Li Zhenhui. In 1994, Li Zhenhui resigned from a state-owned enterprise in Zhangzhou and decided to go overseas for business. After that, Li Zhenhui shifted his focus to the children’s field and devoted himself to making children’s skincare products. Thus, the Frog Prince was born. To improve the popularity of the Frog Prince, Li Zhenhui has invested in the production of the “Frog Prince” animation series trilogy in the past 8 years which has been broadcast on the CCTV Children’s Channel and more than 100 local TV stations across the country. Under the leadership of Li Zhenhui, the Frog Prince has made great achievements. Within a few years, Frog Prince had developed into the first brand of children’s body lotion and the second brand of children’s shower gel and shampoo in China at that time. In July 2011, Frog Prince was listed on the main board of the Hong Kong Stock Exchange. In 2012, the company’s revenue was $247 million, an increase of 23.87% year-on-year. In the second half of 2013, Frog Prince had a market capitalization of more than $766 million. However, according to the short-selling report issued by the short-selling agency of the country, the actual sales of the Frog Prince were less than the 25% claimed by the company. Later on, the stock price of the Frog Prince plummeted and the company’s market value changed from the previous $766 million to only $12.76 million within five years. After that, the products of the Frog Prince were frequently commented on by the government with various product violations being exposed. In September 2016, Frog Prince Sunscreen was named by the National Medical Products Administration because the sunscreen ingredients detected by the product did not match the product approval and labeling ingredients. In July 2018, Frog Prince was criticized again for unqualified product sampling. In the notice issued by the National Medical Products Administration on the unqualified 10 batches of cosmetics, the product named “Frog Prince Sunscreen Lotion (Refreshing Type) SPF20” is restricted by the date of September 8, 2020, with the shelf life of being 2 years. While the inferred production date is September 9, 2018, which is inconsistent with reality. In recent years, Frog Prince Group has increased its investment in public welfare undertakings, donating $160,000 of bacteriostatic and protective materials to support flood prevention and disaster relief in Henan in 2021. And it donated pandemic prevention materials to Mudanjiang and Zhangzhou during the outbreak of the pandemic in China. In addition, Frog Prince is constantly seeking new directions in terms of product development and marketing. In August 2020, Frog Prince and Mount Wuyi jointly created camellia oil for baby and child care series products. In March 2021, Frog Prince and Fuzhou University jointly established a baby and child skincare product research base. In February 2022, Frog Prince launched a new series of products-Frog Prince & Ultraman Joint Series, and Frog Prince & ULTRAMAN Series, opening a new chapter for the domestic brand IP market. At present, the highest-selling item of this series in Frog Prince’s flagship store on the Taobao platform is the “Baby Fresh Cleansing Hair & Body Wash”, which costs $5 to $17 and sold 2000 plus more units per month.