Yesterday, L'Oréal Group announced its 2021 results with its sales up 16.1% year-on-year to $36.841 billion and its net profit rose 29% to $5.250 billion. Last year, L'Oreal had its biggest waterloo in China during the Double 11, the biggest shopping carnival in China --- its offer was screw up. In the run-up to the 2021 Double 11, two of China's top live streamer, Li Jiaqi and Weiya, both sold "L'Oreal Paris Ampoule Mask" on their live streams for 429 yuan (about $67.40) for 50 pieces. These two live streamers and L'Oreal official claimed that it was the "biggest discount of the year" (only in China). But a few days later, L'Oreal official sent tens of thousands of "over 999 yuan off 200 yuan" coupons, the lowest price of this product can reach 257 yuan (about $40.40). Consumers who bought the mask between the two live streamers felt cheated and more than 30,000 people complained to the relevant Chinese platforms about L'Oreal's false advertising with a collective rate of less than 10% due to the sheer volume of complaints. Both live streamers have also announced that they will suspend their cooperation with L'Oreal until the price difference issue is resolved. On November 18, L'Oreal offered a solution but many consumers did not accept it. However, just in the early morning of February 10, L'Oréal Group announced its key financial data for 2021 and the fourth quarter. The financial results show that L'Oréal sales as of December 31, 2021 were 32.28 billion euros ($36.744 billion), up 15.3% year-on-year, or 16.1% if based on a comparable structure and the same exchange rate. At the same time, operating profit reached a record 6.16 billion euros ($7.012 billion), or 19.1% of its revenue. This means that not only did L'Oréal's results not decline, but they were even 11.3% higher than sales in 2019 before the pandemic, a record high in nearly 14 years. In particular, the Chinese market recorded double-digit growth and a year-on-year increase of more than 50% in the fourth quarter compared to 2019. According to the report, L'Oréal Professional Hair Care, Mass Cosmetics, Premium Cosmetics and Active Health Cosmetics achieved sales revenues of $4.323 billion, $13.975 billion, $14.117 billion and $4.480 billion, respectively in 2021. Among them, the Fine Cosmetics Division grew 20.9% year-on-year, overtaking the Mass Cosmetics Division to become the largest division of the L'Oréal Group. Brands represented by Lancôme, HR and Kiehl’s continued to lead the market in their respective categories, strongly driving growth.

Recently, Intime Department Store, together with Chinese high-end beauty brand MAOGEPING, launched the first limited edition "Da Dian" series of digital collectibles, which was launched on February 14, 2022, at 0:00 pm(China Standard Time). Digital collectibles are the new trend this year. Chinese high-end beauty brand MAOGEPING, together with Chinese department store Intime Department Store, launched the first limited edition "Da Dian" series of digital collectibles, which launched on February 14, 2022, at 0:00 pm. The series has two collectibles - Da Dian Phoenix Totem and Da Dian Double Phoenix Fan limited to 1,000 pieces. The so-called digital collections are specific works, artworks, and commodities that are digitized and uniquely identified using blockchain technology. Each digital collection is mapped with a unique serial number on a specific blockchain and cannot be tampered with, divided, or substituted for each other. As the younger generation becomes more receptive to virtual objects. Digital collections have a smooth start and are becoming an effective means of communication between more and more brands and young people. Some experts believe that the future of consumerism is hidden in virtual products. After all, the capacity of the physical closet is limited but the virtual closet can be extended infinitely. It is reported that the series of digital collections are personally conceived and created by Mr. Mao Geping, the famous Chinese make-up artist and brand founder. With the theme of the Chinese grand ceremony of joyful charm and magnificence, it combined with the image of the phoenix, the traditional totem of the East in the color scheme of festive and solemn red and gold, symbolizing the classical craft of red lacquer tracing gold and shallow relief carving, designed and built with collection-level 3D model accuracy. It will be disseminated and distributed through Intime Department Store. "The digital collection itself is a relatively new form of art dissemination and MAOGEPING joins hands with Intime Department Store to try out the development of digital collection hoping to bring a different artistic experience to customers." Song Hong, General Manager of MAOGEPING Brand Division, said." Intime Department Store is a very important partner of MAOGEPING for a long time, which also gives the brand's aesthetic communication stronger kinetic energy." For big brands, offline counters are a powerful channel for the brand concepts to be presented completely and the cascading effect and brand loyalty created by users at counters is much higher than on other platforms. Through the digital capability precipitated in the early stage, Intime Department Store can also build a closed loop for the marketing and operation of the brand in the department store field online and offline. It is reported that Intime Department Store invites MAOGEPING to hold more than two large-scale roadshows in the mall every year. The brands turned the mall into a showground where MAOGEPING's products, makeup, and aesthetics are presented. The launch of this digital collection is a new attempt by both parties to explore new retail. Just recently, MAOGEPING's counter sales at Intime Department Store in Wenzhou Shimao won the No. 1 in China in 2021, which is also the fourth consecutive year the brand has been happy with the No. 1 counter in China at Yintai Department Store.

Recently, Shanghai Municipal Market Supervision Administration found in a sample inspection that two batches of products of Bioderma's product "Bioderma Soothing Multi-Effect Cleanser" and "LaboLabo Skin Pore Refining Gel" of Johnson & Johnson's subsidiary, Elsker, both had a net content of non-conformity. The net content of quantitative packaging of cosmetics has not been the focus of the Chinese cosmetics industry. But in fact, it is difficult for consumers to verify whether the net content of goods qualified while there are also companies in the Chinese market inaccurate labeling of a quantitative net content of goods. This is misleading to consumers and violates their rights. Recently, Shanghai Municipal Market Supervision Administration of a sampling announcement shows that the city's cosmetic net content of quantitative packaging goods supervision and sampling of 63 batches of products, the test, three batches failed. Among them, two batches of products, namely "Bioderma Soothing Multi-action Cleanser" and "LaboLabo Pore Refining Gel", were found to be unqualified in terms of net content and the place or channel of purchase was Metro Commercial Group Co. According to the investigation, the two batches of products are claimed to be produced by Shanghai Bedmar Cosmetics Trading Co. Ltd. is a wholly-owned subsidiary of Johnson & Johnson (China) Investment Co. In response to this issue, Professor Deng Yong of the Law Department of Beijing University of Traditional Chinese Medicine said that in China's cosmetics industry, the situation of unqualified products in the sampling is not an exception. The lack of penalties has led manufacturers to take a chance and ignore relevant Chinese policies and regulations. The cost of breaking the law is low and insignificant compared to the benefits companies get for violating the law, so the problem of "failed quality" can occur. As for the problem of unqualified net content of cosmetics, Prof. Deng Yong said that China's existing laws and regulations such as "Product Quality Law", "Consumer Rights and Interests Law" and "Supervision and Administration of Quantitative Packaging Goods" have all made relevant provisions. According to the "supervision and management of quantitative packaged goods" Article 9, the average actual content of quantitative packaged goods should be greater than or equal to its labeled net content. For example, in this test, the specification of "Bioderma Shu Yan Multi-effect Cleanser" is 500ml*2 bottles, which is applicable to the provisions of this article, and the net content cannot be lower than the standard. According to Article 8, the actual content of a single piece of quantitative packaged goods shall accurately reflect its labeled net content and the difference between the labeled net content and the actual content shall not be greater than the allowable shortage stipulated in the schedule of this method. The "LaboLabo Pore Refining Gel" and "Revitalizing Skin Hydrating Cream" under the current sampling is subject to the provisions of this Article and a shortage of 4.5g is allowed for 50~100g products. According to Article 18, if the difference between the marked net content and the actual content of the goods is greater than the allowed shortage, the producer or seller shall be ordered to make corrections and may be fined up to three times the value of the test lot, up to a maximum of 30,000 yuan (about $4700 dollars). Faced with the problem of unqualified net content of cosmetics, its manufacturers and related enterprises must first make adjustments to improve. Professor Deng Yong said that cosmetic companies, manufacturers and sellers should strengthen their legal awareness and responsibility, take the initiative to understand industry norms and actively achieve product compliance.

Shiseido Group released its annual report for 2021 showing that the group achieved sales of $8.969 billion last year, up 12.4% year-on-year. At the same time, the Shiseido Group also transferred its SHISEIDO PROFESSIONAL to Germany's Henkel Group. On the afternoon of Feb. 9, Shiseido Group released its 2021 annual report, showing that the group achieved its sales of $8.969 billion, up 12.4% year-on-year. Its operating profit recorded $360 million, a 177.9% jump year-on-year. It is worth mentioning that Shiseido's sales in China amounted to $2.382 billion, up 16.5% year-on-year in 2021. At the same time, China's share of the Shiseido Group's overall results increased from 19.1% in 2019 to 25.6% in 2020 and this share further increased to 26.6% in 2021. Meanwhile, China remains the Shiseido Group's largest overseas market,and the share of sales in China and the Shiseido Group's domestic sales in Japan has almost been equal. In addition, Shiseido expects that the group recorded its net sales of $9.532 million in fiscal 2022, up 14% in real terms (excluding the impact of business transfers). Shiseido said its goal is to recover the market by further expanding sales and improving the efficiency of cost rates and marketing investments by focusing on high-end skin and beauty brands. It is worth noting that on the same day of the 2021 financial report release, the Shiseido Group and Schwarzkopf's parent company Henkel Group released news that Henkel Group will acquire SHISEIDO PROFESSIONAL in Asia Pacific. It is reported that SHISEIDO PROFESSIONAL includes hair conditioner, hair color, perm/straightening agent and styling agent products. According to the agreement, Shiseido Group will license the trademark SHISEIDO PROFESSIONAL to Henkel while the brands SUBLIMIC (hair care), PRIMIENCE (hair color), CRYSTALLIZING (perm), STAGE WORKS (styling) and THE GROOMING (men) will be transferred to Henkel. In terms of the form of transfer, it is still a transition through a subsidiary. With Shiseido transferring the assets related to the company's hairdressing business held in Japan to its 100%-owned subsidiary, it will transfer 80% of the subsidiary's shares to a subsidiary of Henkel Group, as well as transferring the shares and related assets of the subsidiary's overseas target business to Henkel Group. Shiseido said that SHISEIDO PROFESSIONAL in Japan will be operated by Shiseido Professional Inc. (SPI). Shiseido will retain a 20% stake in SPI to provide continued support for the growth of the business. It is reported that SHISEIDO PROFESSIONAL began in 1974 as a business supplies sales division and was established in 2004 as Shiseido Professional Inc ("SPI") after several acquisitions and consolidations. According to the Shiseido Group's 2020 financial results, Henkel's proposed acquisition of SHISEIDO PROFESSIONAL has annual sales of approximately $114 million, which employs more than 500 people and has strong R&D capabilities. In response, Henkel CEO Carsten Knobel said, "This acquisition will also further strengthen our professional hairdressing business and will be an important part of our consumer brands business unit in the future." Neither parties has disclosed the price of the transaction at this time.

The Shenzhen Stock Exchange issued a concern letter to Fujian Green Pine Co., Ltd. due to the impact of the pandemic on its subsidiary, NBC and the adjustment of industry regulatory policies, and other factors. Green Pine expects a maximum pre-loss of $146 million in 2021. The Shenzhen Stock Exchange sent a concern letter to Fujian Green Pine Co., Ltd. On February 9, Fujian Green Pine Co., Ltd. released an announcement on its response to the Shenzhen Stock Exchange's concern letter. Recently, Fujian Green Pine Co., Ltd. issued a forecast of its 2021 results with an estimated loss of $130 million to $146 million for the year while the company also made a profit of over $71 million in the previous year. On January 26, the Shenzhen Stock Exchange sent a concern letter to Fujian Green Pine Co., Ltd. The concern letter asked Fujian Green Pine Co., Ltd. to explain whether the company's external business environment faces the risk of continuous deterioration and whether the decline in operating income of its main business is sustainable, taking into account the development trend of the industry in which its main business is located and the changing trend of market demand. Fujian Green Pine Co., Ltd. responded that, firstly, the overall growth rate of cosmetics industry failed to achieve the growth of operating income and the new investment eroded the profit. Secondly, due to the influence of commodity price fluctuation, upstream supply chain tension and other factors, the price of major raw materials for cosmetics is on a continuous rising trend resulting in the rising production cost of cosmetics business during the reporting period, which poses greater pressure on the product gross margin. Thirdly, the price of major raw materials and auxiliary materials and fuel for turpentine deep processing business increased. At the same time, as competitors resume production expansion, market competition intensified resulting in the rising price of upstream raw materials failed to be transmitted to the downstream and the product gross margin decreased compared with last year. In fact, a significant reason for the loss of Fujian Green Pine Co., Ltd. is the loss of its acquired subsidiary, NBC. In its 2021 earnings forecast, Fujian Green Pine Co., Ltd. said that NBC showed signs of goodwill impairment due to the impact of the epidemic, industry regulatory policy adjustment, industry growth rate decline and changes in the competitive landscape. In its response, Fujian Green Pine Co., Ltd. also said that along with project expansion and increased labor expenses, coupled with the impact of the pandemic as well as macro policies and commodity price fluctuations, NBC's operating net profit is expected to decline significantly year-on-year. NBC is a professional cosmetic ODM manufacturer integrating R&D, design and manufacturing, mainly engaged in mask, skin care products and wet wipes business. Data show that NBC achieved operating revenue of approximately $423 million in 2020, operating profit of $52,753,500, gross profit margin of 22.36% and net profit attributable to NBC's owner's equity of $45,756,500.

Beiersdorf has completed acquirement of Chantecaille on February 2, 2022. As part of consumer business, the company will continue to be managed separately as a complementary selective brand within the Beiersdorf Group. Beiersdorf has successfully completed the acquisition of Chantecaille Beaute Inc., USA. Effective February 1, 2022, Chantecaille’s global operations will be part of the Beiersdorf Group. As part of the Consumer business, the company will continue to be managed separately as a complementary selective brand within the Beiersdorf Group. The closing is taking place just five weeks after the announcement of the planned transaction on December 21, 2021, after all closing conditions were fulfilled. “Today’s closing of the Chantecaille transaction marks another important milestone in the implementation of our C.A.R.E.+ strategy. Chantecaille complements our portfolio in prestige beauty with innovative skin care, cosmetics and fragrance products that are based on botanical ingredients. In addition, the new brand will further accelerate our growth in the North American and Asian markets,” said Patrick Rasquinet, Member of the Executive Board for Pharmacy and Selective Brands. “I’m convinced that together with its dedicated team we will develop Chantecaille to the next level and continue to grow the brand as a leader in natural beauty.” On December 21, Beiersdorf announced the acquisition of luxury beauty brand Chantecaille, valuing the company at between $590 million and $690 million for an undisclosed amount. Chantecaille is the eponymous brand founded in 1997 in the United States by a Frenchwoman Sylvia Chantecaille and based in New York. The brand focuses on the concept of natural herbs and its products include skincare, perfume and makeup categories. It is reported that since its founding, Chantecaille has been loved by many Hollywood stars and New York social circles and is also known as the "noblewoman brand" in the beauty industry because of its high luxury brand positioning. In 2018, USHOPAL, a Shanghai-based luxury beauty group, officially introduced Chantecaille to China and now Chantecaille has opened a Chantecaille Tmall overseas flagship store and is also located in USHOPAL's offline store Bonnie & Clyde (B&C for short). In China, Chantecaille is famous for its premier single product. The data of Double 11(Chinese Shopping Carnival) in 2021 shows that GMV of Chantecaille Bio Lifting Mask+ grew 110% and its GMV of new premier grew 551%. The search index grew 200% year-on-year. In 2021, Chantecaille's global sales exceeded $100 million.

WeiMeiZi Industrial(Guangdong) Company Ltd.(hereinafter referred to as "WeiMeiZi"), the parent company of Saky, formally submitted a prospectus to the Hong Kong Stock Exchange for listing on the Main Board, with NCB International and BNP Paribas as joint sponsors. WeiMeiZi Industrial(Guangdong) Company Ltd.(hereinafter referred to as "WeiMeiZi"), the parent company of Saky, formally submitted a prospectus to the Hong Kong Stock Exchange for listing on the Main Board, with NCB International and BNP Paribas as joint sponsors, according to the disclosure of the Hong Kong Stock Exchange on February 8. The prospectus shows that WeiMeiZi is a leading oral care products provider in China, mainly engaged in the development and sale of a diversified oral care product portfolio covering four major oral care product categories (i.e. adult basic oral care, children's basic oral care, electric oral care and professional oral care). It owns some oral care brands - Saky and SakyKids, a children's oral care brand. According to Frost & Sullivan, WeiMeiZi ranks fourth in China's oral care market with a 5.3% market share in terms of retail sales of all oral care products in 2020. WeiMeiZi is also the largest provider of children's oral care products in China with a 20.4% market share. In addition, WeiMeiZi ranked fourth in China's electric oral care market with a 4.3% market share in terms of retail sales in 2020. The prospectus shows that WeiMeiZi's adjusted net profit increased 214.9% year-on-year from RMB 48.193 million (approximately $7.759 million) in 2019 to RMB 152 million (approximately $24 million) in 2020 and nearly RMB 129 million (approximately $20 million) in the first nine months of 2021, an increase of 56.7% year-on-year with strong profitability growth. Also mentioned in the prospectus, WeiMeiZi's gross margin shows a year-on-year trend of 53.8%, 58.1% and 62.8% in 2019, 2020 and the first nine months of 2021, respectively. It is reported that the proceeds from the listing on the HKSE will be used to strengthen the brand building, establish digital marketing and marketing content systems, strengthen offline sales and distribution networks and market penetration, make equity investments in premium niche oral care brands, enhance product development activities and strengthen R&D capabilities, and strengthen business digitization and optimize IT infrastructure, respectively.

Watsons is not having a good time in China, not only is it being hit by Chinese beauty collection stores such as HARMAY and THE COLORIST, but also because negative news of Watsons live streamer insulting consumers madly is sweeping in. Watsons has not had a good time in China in the past few years as it has not only been impacted by Chinese beauty stores such as HARMAY and THE COLORIST but has also been questioned for its live streaming and promotions one after another. According to National Enterprise Credit Information Publicity System, the second branch of Beijing Watsons Personal Products Chain Store Co., Ltd. was warned and fined 50,000 yuan (about $0.79 million) by the Beijing Yanqing District Market Supervision Administration for allegedly using false prices to lure consumers on January 11. In addition, negative news swept through Watsons' live streamer who insulted consumers madly. The incident began when Watsons launched a facial mask discount in China on January 11, under which consumers could buy a box of masks for 1 cent (about 0.16 cents), but needed to pick them up in an offline store, according to the promotion rules. However, consumers who placed successful orders said that after receiving information about the merchant's stock availability and pickup, they were told they were out of stock when they picked them up and that the merchant had no way to handle them. "The mask was on the shelf, but the clerk told me it was out of stock." Some consumers said on social media platforms. On the complaint platform "Hei Mao Tou Su", there are more than 7,000 complaints about Watsons, of which there are more than 1,500 lawsuits initiated due to the inability to pick up the "1 cent promotional mask". In the evening of January 14, Watsons China made an emergency apology. In the case of failure to pick up goods, Watsons said it will take the form of replenishment to continue to fulfill the above orders while saying that the scolding live streamer belongs to third-party cooperation agencies and will strengthen the training and supervision of third-party cooperation personnel. Frequent offline promotions, online and third-party cooperation live streaming ...... from a series of Watsons marketing seem to show that it is trying hard to keep up with the times. With the rise of many Chinese beauty collection stores, Watsons' performance has also been greatly affected. Watsons' earnings report showed that Watsons China revenue totaled $2.648 billion in 2020, down 19% year-over-year and the largest decline in five years. Although Watsons' results recovered in the first half of 2021, this was achieved based on a low base effect due to the impact of the pandemic outbreak but its results still are less than the first half of 2019. The slump at Watsons is in part due to the impact of an increasing number of Chinese brand collection stores. Upstream in terms of price, there are Sephora and HARMAY to meet consumer demand for high-end beauty products. Even within its group, Watsons has competitors. In 2005, the Watsons Group acquired the beauty collection store MarionnaudParis, which focuses on high-end skincare and fragrance products, and opened its first store in mainland China in Shanghai at the end of 2020. As a result, Watsons has been subjected to internal brand competition and pressure has increased dramatically. Downstream in terms of price, THE COLORIST and WOW COLOUR are available for consumers to select affordable beauty products and retail collection stores such as KKV allow consumers to buy lifestyle products. It is undeniable that Watsons, despite its many categories, brands and early popularity, seems to be a big grocery store and now it is in an awkward situation of not being able to make ends meet. According to the public financial report of Watsons' parent company CK Hutchison, Watsons opened almost one store a day in China from 2016 to 2019. After 2019, Watsons' store expansion in China slowed down but is still greater than the global store expansion rate. Watsons, which intends to keep laying out its sinking market, instead missed a good opportunity for e-commerce development at this time. As one of the world's largest international health and beauty products retailers, Watsons has expanded rapidly since entering the Chinese mainland market in 1989 with more than 4,000 stores and was once the first choice for young girls to buy beauty and personal care and snacks. With the improvement of people's living standards and consumption upgrades, the cosmetics retail industry has also turned into a huge market. Watsons, can it still return to the top?

Chinese social platform Xiaohongshu began its involvement in NFT with the launch of its digital art platform R-SPACE in November 2021. Not long ago, Xiaohongshu released dozens of digital collections at R-SPACE, dubbed "R-Digital Collections". The meta-universe is in full swing driving the development of many related industries, and the one closest to our lives at the moment would be NFT. By allowing every work and every transaction to be recorded through blockchain technology, it has to some extent eliminated the problem of copyright of works in the previous art field. Digital art is gradually flourishing. In the current Chinese market, Chinese social platform Xiaohongshu has also entered into NFT launching its digital art platform R-SPACE in November 2021. Not long ago, Xiaohongshu issued dozens of digital collections in R-SPACE, dubbed "R-Digital Collection". R-SPACE is used as a space for displaying R-digital collections in the personal center of Xiaohongshu. After a user obtains an R-digital collection and agrees to open a digital collection account, the personal homepage will open the function of R-SPACE. In it, you can display and share collections, share collection posters with users' unique attribution information, and also download and save HD graphic materials. Conceptually, NFT is a non-homogeneous token in the blockchain network and the digital collection can be said to be a product of NFT after evolution, with a unique blockchain number. According to the information shown in the Xiaohongshu R-Digital Collection Guide, the R-Digital Collection represents the originality of the work and the unique non-tamperable attribution right and the corresponding number on the blockchain of each digital product corresponds to the unique proof of right and transaction relationship. These digital collections have a unique number on the "Tencent Trust Chain" and cannot be tampered with. The unique serial number on the chain publicly records information related to the creation, storage, transaction and ownership of these works. Generally speaking, digital collections are online digital credentials. But the digital collections issued by Xiaohongshu on R-SPACE this time are a bit different accompanying with the words "including physical goods" on some product pages. In other words, users can have digital collectibles online, but also receive physical items in the same style offline. Compared to digital collectibles issued by other platforms, R-digital collectibles have a richer playability. The reason why NFT can be rapidly hot, in addition to its uniqueness, its social attributes can not be ignored. The unique NFT works not only can meet people's personalities but also represents the assets they own and some kind of identity belonging, such as NBA star Curry spent a lot of money to buy the "Boring Ape" as his social software avatar, Tencent issued the 23rd anniversary of the NFT digital collection. Xiaohongshu is a social software with uniqueness and rapid development momentum in the Chinese market and it also has the attributes of an e-commerce company, so it has the natural advantage of issuing digital collectibles. NFT may be able to enrich the interaction between users in the future. It is worth mentioning that the Xiaohongshu Re Zhong Zhi Studio, which created R-SPACE, is also about to launch AR function for projecting digital collections into the real world and will plan more personalized functions afterwards.

In 2021, JALA Group’s Chairman Zheng Chunying first proposed that the development of group-level agents and distributors plan. So far, there are 19 agents confirmed in the cosmetics store channel and the four brands of JALA to cooperate. It became the first group-level agents of Garan. On January 25, JALA Group held the first batch of 19 group-level agents of the award ceremony. During the ceremony, JALA Group’s Chairman Zheng Chunying said, "the development of group-level agents is one of the key tasks of JALA this year. On December 23, 2021, Zheng Chunying in the CHANDO’s agents annual meeting said the development of group-level agents and distributors plan for the first time. JALA’s "group-level agents" refers to the agents who are also agents of JALA’s 4 brands sold in the beauty store channel (CHANDO, MAYSU, Botanical Wisdom and Chun Xia). Group-level distributors refer to the distributors who operate these four brands at the same time. Then, in the joint annual meeting of the three brands of MAYSU Botanical Wisdom and Chun Xia, JALA officially released the investment policy for group-level agents and distributors on January 13, 2021 and received a positive response from the agents. So far, 19 agents have been confirmed in the cosmetics store channel with the four brands of JALA to cooperate and become the first batch of JALA group-level agents. On January 25, JALA held a grand online award ceremony for awarding the "group-level agent" status to the 19 agents . In the view of Zheng Chunying, although the industry has also existed "group-level agents", that is based on the old model established and all depending on the policy strength of the manufacturer and the agent's human input and reputation input. It also depends on the opportunity. "But now it is a digital model, more efficient." He further said that with the new model established by the new model of inventory and cloud store, JALA provides a digital supply chain operation platform, reducing the difficulty of operation, which reduced the need for personnel and supported the solution to the capital needs. The agents will be able to use the same manpower to serve more brands. "This is a completely different model than before, this is the digital model." Zheng Chunying said that agents should establish a new evaluation criteria for operating income, that is, no longer look at the gross profit spread but to look at the return on investment and human efficiency output, which is more scientific. JALA Group is China's digitally driven biotechnology beauty enterprise, which owns the brands of MAYSU, CHANDO, Botanical Wisdom and Chun Xia. In 2021, JALA has established more than 40,000 retail networks of various types in 31 provinces, autonomous regions and municipalities directly under the Central Government of China, covering cities and counties at all levels in China. As early as July 2020, JALA Group in advance entered the "digital" new battlefield to become the pioneer of the industry's digital transformation. In 2021, Jalan Group digital revenue accounted for 88.9%, an increase of 49.7% compared to 2019. Its digital retail accounted for 50.6%, an increase of 32.5% compared to 2019. Its brand, CHANDO, digital revenue share reached 94.7% and digital retail sales share reached 53.6%.

Jeffree Star, an American top-level beauty blogger with more than 10 million followers on Youtube, has released her first cosmetics review video of 2022 after an 8-month hiatus. This time's review is the Chinese makeup brand Florasis. Recently, the sharp-tongued American top-stream beauty blogger Jeffree Star with more than 10 million fans on Youtube posted his first beauty review video of 2022. It is also known that it's also his first update after a long gap of eight months. The surprise for Chinese followers is that Jeffree reviewed the Chinese makeup brand Florasis. The title of the review directly used the praise of "the world’s most beautiful makeup" and the 25-minute review video showed all the product experiences. The product finally made him fall in love with the perfect evaluation is the Florasis's highlighter, powder and Love Lock lipstick, while the eyeshadow was considered very beautiful but not enough color and the blush evaluation was relatively bland. Although not every product is recognized and praised but harvesting such recognition from the world's top beauty bloggers is already a rare "achievement" for Chinese cosmetics brands. Many netizens have speculated that "enough money from Florasis?" The people from Florasis said clearly, we did not spend any money on this promotion, "this is not really a matter of spending money to solve”. The story is the same as what Jeffree said in the video. The review of the product came from the fact that he found the Chinese brand on social media platforms and became curious about it. So he took the initiative to contact the brand to get the product. Florasis sent him a full set of products such as eye shadow, highlighter, powder, lipstick, blush, lip mask, etc., and has not received a response for several months since then. They didn't expect Jeffree's first review in 2022 would be a Chinese brand. It is reported that after the release of Jeffree Star video, the traffic on the overseas website of Florasis was directly pulled to the level of Black Friday. The sales of Love Lock lipsticks and other products certified by Jeffree rose the most. It is understood that the overseas official website of Florasis in May 2021 and successively delivered to Japan, the United States, Europe and others. So far, Florasis is available in 43 countries and regions, of which the United States, Australia, Europe is its main market. Taking the Love Lock lipstick highly appreciated by Jeffree Star as an example, he expressed his high sense of surprise about the appearance design and carved balm of Love Lock lipstick: "Only Chinese skills can do it!" This product also entered the top three of the Japanese Amazon lipstick sales list on the first day it was launched overseas and it became an "overseas hot-selling" on Black Friday 2021 selling out of stock for a while. Another product recognized by Jeffree Star, Florasis Air Powder, was well-received for its "airy powder". In order to create a high-quality national powder, Florasis searched for the world's top raw materials and techniques from Italy, Japan and other places regardless of the cost budget. It invested a lot of workforces and financial resources to develop an exclusive patented flower oil-control formula creating a product that is comparable to the highest quality in the world.

Amore Pacific announced that Charles Kao will step down as president of Amore Pacific China and will continue to serve as a consultant to the company until December 31 to assist the new president in managing the company's business in China. Amore Pacific announced on Jan. 25 that Charles Kao will step down as president of Amore Pacific China on Feb. 1 and Mike Hwang, formerly vice president of Amore Pacific China, will take over as president. Kao will continue to serve as an advisor to the company until Dec. 31, 2022, to support Hwang in managing the company's business in China. Since joining Amore Pacific in October 2013, Kao has reportedly been at the helm of the China team working for companies such as P&G and Estee Lauder. In the past eight years, through continuous changes and breakthroughs, he has opened the door for Amore Pacific's business development in China and enabled Amore Pacific to achieve comprehensive, stable and healthy growth in the Chinese market. In terms of business development, Kao has enhanced the awareness and penetration of Amore Pacific and its brands in various market by strengthening brands and expanding channels. He completed the construction of omnichannel both online and offline. Data show that by strengthening cooperation with digital platforms, the Group achieved a high growth rate of 50% in online channels in 2020, of which, China e-commerce sales grew by over 90% and several brands under the Group performed brightly in Chinese shopping campaign on June 18 and November 11. Sulwhasoo stepped into the billion yuan (RMB) club in Double 11(Chinese Shopping Carnival) in 2020. Its financial results of Q3 in 2021 show that Sulwhasoo continued its rapid growth in China with a growth rate of over 50% by the introduction of high-end products and further product portfolio optimization. As the importance of the China’s market continues to be highlighted in the overseas business, Kao has further consolidated the localized layout of the organizational structure and improved the efficiency of collaboration within the organization to ensure efficient local integration of R&D, production, logistics, sales, marketing and various support departments. In addition to actively developing the company's business territory, Kao also continues to promote the company and its brands in various public welfare undertakings, helping the company to establish a warm and responsible corporate citizenship image. He has directly led and participated in public welfare projects in the fields of women's health and empowerment, preservation of "non-foreign heritage", natural ecology and mental health of college students, and led the company to make donations to Wuhan against the pandemic and floods in Henan Province. In addition, during his eight years in office, Amore Pacific's low-carbon and sustainable development strategy in China have also been effective. 61% of the company's new products are environmentally and socially friendly in 2020 and the group's factory in Shanghai has been upgraded to the "Amore Shanghai Beauty Park", which integrates production, R&D and logistics.