It is reported that Hainan has become the 9th largest consumer goods importer and the 2nd largest cosmetics importer province in the country. On June 29, Haikou Customs Deputy Director Zhao Junlun introduced at a press conference on "Hainan's foreign trade and Haikou Customs' measures to optimize the business environment" that since the issuance of the "Overall Plan for the Construction of Hainan Free Trade Port" on June 1, 2020, Hainan's foreign trade imports and exports have achieved leapfrog development. In the three years from June 2020 to May 2023, the total value of Hainan's import and export of goods trade is 504.48 billion yuan ($69.53 billion), an increase of 101.4% over the previous three years (the same below), ranking first among all provinces and cities in the country in terms of growth rate during the same period. Zhao Junlun introduced, in the past three years, Hainan free trade port foreign trade subject flourishing development. In the past three years, the number of foreign trade enterprises with import and export performance in Hainan has increased by 144.1% to 2387. Among them, the role of private enterprises in the development of Hainan's export-oriented economy has become more and more prominent, the number of enterprises with import and export performance increased significantly by 161.1%, reaching 2136. It is worth mentioning that over the past three years, Hainan's free trade port has effectively connected to the large Chinese domestic market. Over the past three years, the total amount of duty-free shopping on Hainan's outlying islands has exceeded 130 billion yuan ($17.9 billion), an increase of 290%. Hainan's foreign trade imports amounted to 354.79 billion yuan ($48.9 billion), an increase of 127%. Among them, the import of consumer goods is 133.84 billion yuan ($18.4 billion), a significant increase of 254.9%, Hainan has become the country's 9th largest consumer goods imports, the 2nd largest cosmetics import province. According to data released by the Hainan Provincial Bureau of Statistics, total sales of cosmetics in Hainan in 2022 were 26.4 billion yuan ($3.6 billion), accounting for 11.6% of total retail sales of consumer goods, ranking second in sales of all categories. In the previous year, Hainan's total retail sales of social consumer goods were 249.7 billion yuan ($34.4 billion), of which cosmetics sales totaled 30.7 billion yuan ($4.2 billion), accounting for 12.3%, the highest percentage of all social consumer goods categories. It is reported that at the end of March this year, Hainan announced the independent customs operation of Hainan in preparation. After this news came out, major beauty brands deployed the region of Hainan, French luxury brand Louis Vuitton opened a shop in Hainan, Estee Lauder's high-end beauty brand La Mer the world's largest duty-free shop opened in Hainan, etc. At the same time, major beauty companies have also made Hainan one of the group's key strategic regions. Shiseido has positioned Hainan's free trade port as "a place to launch new brand information", while Coty sees the domestic duty-free channel on Hainan Island and other places as "another channel" to reach consumers in mainland China. Since 2021, Coty has launched several consumer campaigns in Hainan, such as Lancaster Superbrand Day, Fragrance of the Year Awards, Fragrance Traveller limited-time shop, and virtual games and virtual makeup trial devices at duty-free counters to enhance the in-store experience.

In the virtual world created by Fenty Beauty, participants can cocreate a physical product, such as the customised Gloss Bomb Universal Lip Luminizer, one of the company's best-selling products. Fenty Beauty has recently announced it launched a new limited-time campaign on the massively multiplayer online game creation platform Roblox that will take players on a virtual exploration of the world of Fenty Beauty. Running from Friday through July 30, the campaign, named Fenty Beauty + Fenty Skin Experience, will feature interactive scavenger hunts, mazes and other opportunities to learn about the inspirations and ingredients of some of the company’s most popular products, including Fenty Skin Melt Awf Jelly Oil Makeup-Melting Cleanser, Fenty Eau de Parfum and Fenty Beauty Gloss Bomb Universal Lip Luminizer. The space also includes a virtual beauty lab where visitors can create a customized version of the Gloss Bomb Universal Lip Luminizer by choosing its ingredients, effects, bottle, lid and applicator. They also can name their own shade and put the finished product on a virtual retail display called the “Sephora Experience,” where others can vote on their favorite user-created item. The winner will inspire the next Gloss Bomb, which will hit the market in 2024. “Beauty experiences are meant to be fun, so I’m excited to provide everyone, everywhere, a glimpse into our world and a new realm of amusement with our makeup, skincare and fragrance,” said Rihanna, Founder of Fenty Beauty in a statement. In March 2022, Rihanna said that Fenty Beauty would enter the meta-universe, and according to US trademark attorney Josh Gerben, the singer recently filed a new trademark. He noted that Rihanna will offer virtual cosmetics and hair care products under the Fenty banner. After her success in music, Rihanna partnered with French luxury group LVMH in 2017 to create the cosmetics and skincare brand Fenty Beauty, whose revenues doubled in 2022 compared to the previous year, according to LVMH's FY2022 financial report. In the report, the company attributed the growth to "the expansion of its distribution network and the success of its product launches".

US-based high-end home fragrance brand Trapp Fragrances is expanding its product line to hand care. Trapp Fragrances, a luxury home fragrance brand based in the US, has announced its entry into the hand care market by launching a new line of hand soaps and lotions. The collection will be available in three of Trapp's most popular fragrances, namely Orange Vanilla, Lavender de Provence, and Palo Santo. The hand soaps and lotions from Trapp Fragrances are packaged in 8-ounce bottles that are shatterproof and recyclable. Additionally, these products are cruelty-free, paraben-free, phthalate-free, and SLS-free, making them safe for use. The hand soaps contain aloe vera, which moisturizes the hands, while the hand lotions are enriched with cupuaçu seed butter, an antioxidant-rich ingredient that helps restore skin elasticity, and oat bran extract, which naturally cleanses the skin by removing dirt and oil. Trapp's hand soaps and hand lotions are available for purchase on their website in three fragrances: No. 04 Orange Vanilla, which features a blend of Brazilian Orange, Tahitian Vanilla, and Tonka Bean. No. 25 Lavender de Provence, which contains French Lavender, Clary Sage, and Vanilla Orchid. And No. 77 Palo Santo, which has a mix of Peruvian Palo Santo, Oakmoss, and Kashmiri Saffron. Trapp Fragrances is a high-end home fragrance brand based in Kansas City, Missouri, that offers a range of premium products, including soy wax blend candles, reed diffusers, ultrasonic diffuser oils, wax melts, and fragrance mists. Trapp products are made using top-quality botanicals and contain a higher concentration of fragrance compared to other products in the market. Mike Lipski, Faultless Brands CEO and President commented: "We surveyed our high-end fragrance buyers who requested that we expand into this category, and that sentiment was echoed by our social media followers," “At Trapp, we believe that fragrances elevate everyday moments into sensory experiences, and that now extends to handwashing and skin care." Mike Lipski added. Source: Trapp Fragrances

Zhejiang Peptites Biotech Co., Ltd. seeks an IPO, intending to list on the ChiNext market. The company may become the first listed company of peptides in China. On June 28, Zhejiang Peptites Biotech Co., Ltd. (hereinafter referred to as ZPC) submitted its prospectus to the Shenzhen Stock Exchange, intending to list on the ChiNext market. The prospectus shows that ZPC is the largest cosmetic peptide raw material supplier in China, having cooperated with well-known cosmetics companies such as Proya, Bloomage Biotech, and Marubi. In 2022, its revenue was 213 million yuan ($29.39 million), and its net profit was 70 million yuan ($9.66 million). ZPC is expected to become China’s first listed company of peptides. It is understood that ZPC's peptide products are mainly used in cosmetics raw materials and pharmaceutical fields. In 2021, ZPC ranked first in China's peptide cosmetics raw material market share. Currently, ZPC has developed more than 40 beauty peptide products, including snake venom-like peptides, blue copper peptides, and red scorpion venom. The red scorpion venom is an independently developed innovative beauty peptide product and the first domestically developed structural beauty peptide. Financial data shows that from 2020 to 2022, ZPC's revenue was 86.17 million yuan ($11.89 million), 143 million yuan ($19.73 million), and 215 million yuan ($29.67 million), respectively. Net profit was 12.40 million yuan ($1.71 million), 38.52 million yuan ($5.32 million), and 71.69 million yuan ($9.89 million), respectively. In terms of growth, the company's revenue increased by 50.17% in 2022, and its net profit increased by 86.11% year-on-year. A significant portion of ZPC's revenue comes from peptide cosmetics raw materials. From 2020 to 2022, revenues were 46 million yuan ($6.35 million), 89 million yuan ($12.28 million), and 138 million yuan ($19.04 million), accounting for 53.64%, 62.46%, and 64.61%, respectively, with a three-year growth rate of 72.79%. This is mainly due to the rapid growth of anti-wrinkle peptide cosmetics raw material sales, which, in the past three years, accounted for the highest proportion of total peptide cosmetics raw material revenue at 39.33%, 67.36%, and 61.87%. The prospectus shows that ZPC's peptide cosmetics raw material liquid production capacity has steadily increased year by year, reaching 977 tons in 2022. In terms of products, the sales unit price of anti-wrinkle products was 990 yuan ($136.61)/kg in 2022, increasing year-on-year but significantly lower than in 2020; the unit price of repair products was 1,592.35 yuan ($219.73)/kg, decreasing year by year over the past three years. Moreover, the gross profit margin of ZPC's peptide cosmetics raw materials was 77.74%, 79.50%, and 77.47%, respectively. According to the prospectus, ZPC's public offering will not exceed 139,030,660 shares, no less than 25% of the total share capital after issuance. The company intends to raise 1.245 billion yuan ($171.8 million) for the peptide industrial park construction project, drug peptide R&D project, cosmetic peptide R&D project, and supplementary working capital to expand the scale and improve comprehensive strength. From the perspective of the top five customers, Bloomage Biotech and Proya have been among the top three customers of ZPC in the past three years. In 2022, Proya contributed 63.58 million yuan ($8.77 million) in revenue to ZPC, accounting for 29.62%, making it the largest customer. Bloomage Biotech, as the second-largest customer, contributed 16.28%. In the past three years, the two contributed 178 million yuan ($24.56 million) in revenue. The prospectus also shows that since 2018, ZPC has provided cosmetics raw materials to Bloomage Biotech. In early 2021, the two companies signed a contract to jointly build a research and development laboratory. In June 2022, Bloomage Biotech increased its capital and invested in ZPC, currently holding a direct 1.64% stake in ZPC. Additionally, in 2019, ZPC provided peptide cosmetics raw materials to Proya. According to Frost & Sullivan data, the Chinese peptide cosmetics raw material market size has grown from 630 million yuan ($86.93 million) in 2016 to 1.45 billion yuan ($200.09 million) in 2021, with a compound annual growth rate of 18.2%. It is expected to reach 2.32 billion yuan ($320.14 million) by 2025 and 3.24 billion yuan ($447.094 million) by 2030.

MISIFU announced that it has passed the listing counseling acceptance. The China's single-brand beauty company intends to list on BSE. Recently, Suzhou MISIFU Cosmetics Co., Ltd (hereinafter referred to as "MISIFU") announced that it has passed the listing counseling acceptance of the Jiangsu Securities Regulatory Bureau. This means that as a representative enterprise of domestic single-brand beauty stores, MISIFU is expected to become the first listed company of single-brand beauty stores. Public information shows that MISIFU was founded in Suzhou in 2011 and officially listed on the National Equities Exchange and Quotations in 2016. Its " MISIFU" brand revolves around the aesthetic culture of Jiangnan skin, positioning itself as "precision skincare" and creating a product system tailored to Chinese skin characteristics. At present, MISIFU's products cover skincare, makeup, facial masks, etc., with more than 300 individual items and over 10 functional series sets. It is worth mentioning that in terms of sales and operation model, MISIFU mainly promotes and sells cosmetics through single-brand stores opened by distributors, and has built a three-in-one store retail operation model of "offline store service experience retail + online smart store promotion fission + data operation analysis precision operation." According to MISIFU's official website, as early as 2020, there were more than 500 MISIFU stores. By 2025, the number of MISIFU stores is planned to exceed 2,000. According to a previously released announcement, MISIFU intends to apply for an IPO on the Beijing Stock Exchange and plans to issue no more than 25 million shares to unspecified qualified investors at an issue base price of 8 yuan ($1.11) per share (including the principal). It is worth noting that MISIFU plans to raise 180 million yuan ($25.07 million) in this IPO, which will be used for three major projects: marketing channel expansion, R&D and testing upgrade, and brand upgrade. Among them, MISIFU plans to use 118 million yuan ($16.43 million), or 65.5% of the total funds raised, for the marketing channel expansion project. According to MISIFU's disclosed financial report, from 2018 to 2022, MISIFU's revenue was 108 million yuan ($15.04 million), 123 million yuan ($17.13 million), 127 million yuan ($17.69 million), 148 million yuan ($20.61 million), and 154 million yuan ($21.45 million), respectively. From 2019 to 2022, the year-on-year growth rates were 14.07%, 2.99%, 16.98%, and 3.74%, showing a steady growth trend overall. In terms of net profit, from 2018 to 2022, MISIFU's net profit attributable to shareholders was 15 million yuan ($2.09 million), 20 million yuan ($2.79 million), 22 million yuan ($3.06 million), 20 million yuan ($2.79 million), and 27 million yuan ($3.76 million), respectively. As can be seen, after a decline in net profit in 2021, MISIFU's net profit rebounded rapidly last year, with a year-on-year growth of 33%. It is worth mentioning that in the past five years, MISIFU has maintained a stable gross profit margin, hovering around 46%, and broke through 50% last year. According to MISIFU's financial report, from 2018 to 2022, MISIFU's gross profit margins were 44.90%, 47.78%, 46.50%, 46.52%, and 51.25%, respectively.

Boots, the UK-based health and beauty retailer, plans to shut down 300 stores across the UK over the next 12 months. Boots, the UK-based health and beauty retailer, announced its plan to shut down 300 stores in the UK, reducing the number of stores from 2,200 to 1,900 within a year. The decision to reduce the number of branches by the UK health and beauty retailer is driven by a desire to improve efficiency. Boots plans to achieve this by closing stores that are situated near other stores, which will allow them to streamline their operations and reduce costs. Boots currently employs over 52,000 team members. The cutting of 300 stores will impact thousands of jobs. However, the retailer has stated that it hopes to avoid redundancies and that all affected staff will be offered redeployment to nearby shops. On 27 Jun, Walgreens Boots Alliance, the parent company of Boots released its FY23 Q3 results. Boots has achieved another strong quarter, with retail sales increasing by 13.4% for the three months ending 31 May 2023. This marks the ninth consecutive quarter of market share growth, with gains across all categories, particularly in the beauty sector. Boots has experienced an increase in the number of customers shopping both in-store and online, resulting in a rise in the number of transactions. Footfall growth has exceeded that of the wider retail market. The retailer's city center flagship and travel stores have seen the largest increase in sales. Additionally, Boots' digital sales have continued to grow, with a year-on-year increase of 25.2%. Boots stated that beauty, particularly skincare, has continued to perform strongly for Boots, with sales increasing by over 18% year on year. In May, the category experienced its biggest sales week outside of the Christmas period. Boots' in-house brands were key performers in the quarter, with No7, the UK's top skincare brand, achieving exceptional results. No7's success was driven by its new Future Renew range, with one product selling every two seconds on launch day and over half a million customer transactions in the first four weeks. Additionally, the Boots sun care range, Soltan, saw strong growth in the quarter, with sales increasing by 19%, aided by warm weather.

Paco Rabanne, the Puig-owned fashion and fragrance house, rebrands as Rabanne and launches a makeup line. As approaches its 60th anniversary, Paco Rabanne, the fashion and fragrance brand owned by Puig is moving forward with a new identity by simply being called "Rabanne". According to a media alert, the new logo and visuals will still honor the brand's founder, who passed away in February of this year. "Simplified and more international in spirit, the name change to 'Rabanne' represents a pivotal moment for the Maison as it celebrates a decade of remarkable growth and looks forward to shaping a new future uniting fashion and beauty as a one unique signature and lifestyle." Paco Rabanne said in a statement. In addition to the name change, Paco Rabanne is launching its first-ever makeup collection and has created a new role of Global Beauty Creative Director, which will be held by makeup artist Diane Kendal. Having established a successful track record in the fragrance industry, Paco Rabanne is now seeking to expand its success into the beauty sector. The brand has announced plans to enter the makeup space, with its first collection set to include eye shadows, lip products, and glittery pigments that reflect the iconic paillettes of the house. Paco Rabanne's makeup collection is organized into four categories: Eyephoria for eyes, Rouge Rabanne for lips, Nudes for skin coverage, and Arts Factory, which offers multi-purpose products inspired by artistry. Prices for the collection range from approximately $20 to $40. The makeup collection will be launched exclusively on the brand's e-commerce site and selected boutiques in August. It will then be rolled out in Selfridges in the UK, Sephora in Europe, the Middle East and Africa, and Ulta Beauty in the US.

Kiko Milano, the Italian makeup brand, has appointed Shelagh Wong as the North America regional managing director. Shelagh Wong Kiko Milano has appointed Shelagh Wong as the new regional managing director for North America, as part of its efforts to bolster its global leadership team. This move comes shortly after the company's appointment of Cecilia Schena as its chief marketing officer. Shelagh Wong's appointment indicates the company's dedication to making a strong comeback in the American market. In early 2018, the American arm of Kiko Milano filed for bankruptcy and subsequently closed almost all of its 29 retail locations in the United States. As part of her role, Wong will be responsible for supporting the brand's expansion plan in the region. This will involve accelerating Kiko Milano's omnichannel strategy to increase its market presence. Shelagh Wong will bring years of experience in the beauty and retail sectors to her new role as regional managing director for North America at Kiko Milano. Shelagh Wong's most recent position before joining Kiko Milano was at Luxury Brand Partners, where she served as the general manager of Elaluz and Smith & Cult brands. Previously, she worked as the Vice-President, of Asia Pacific & Travel Retail at Korres Skincare. Prior to that, from 2014 to 2017, she worked for Estée Lauder as the Director of International Business Development, where she was responsible for leading the development and expansion of emerging markets. Kiko Milano was established by Antonio and Stefano Percassi in 1997, and it is currently under the control of Percassi's Odissea Srl holding. The company's net revenue rose by 42% to €671 million in 2022 compared to the previous year, with all business segments and geographic areas contributing to this growth, despite challenges in China. Kiko Milano's expansion plan involves reaching 2,000 stores by the end of 2027, entering new markets, and strengthening its presence in Africa, Latin America, and Asia. The company's objective is to achieve net revenues of €1.250 billion by the end of 2027 through this expansion plan. Source: WWD

The transaction is reportedly the first acquisition move by Kering Group since the creation of its beauty division. On June 26, the parent company of Gucci, Kering Group, released a statement saying it had acquired the entire stake in fragrance brand Creed from funds held by long-term private equity BlackRock and Javier Ferrán. While the exact amount has not yet been disclosed, industry sources estimate the deal to be for around $1.5 billion. According to the agreement, the transaction will be completed in the second half of the year at the earliest. François-Henri Pinault, Chairman and CEO of Kering Group, commented, "The acquisition of Creed represents Kering Beauté’s first strategic initiative, and demonstrates our commitment to developing a strong position in the luxury beauty segment" “The House of Creed is recognized as one of the few leading global luxury fragrance brands, synonymous with exclusivity and creativity,” said Jean-François Palus, group managing director of Kering. “We are confident that this landmark acquisition will facilitate and amplify our development in fragrance. This is a milestone in the development of Kering Beauté, as we believe more than ever in the strong potential of our brands in beauty.” It is worth noting that Kering Group also mentioned in its statement to accelerate the brand's growth in China and travel retail, as well as to expand its categories in women's fragrances and personal care and home, while retaining Creed's original products and unique positioning, thus realizing the brand's potential in different regions, distribution models and product categories. Revenue of Creed was $ 273 million in the last fiscal year Publicly available information shows that the Creed was founded in London in 1760 by James Henry Creed. It was a royal perfume of Europe at the time. The brand's products such as Aventus and Silver mountain water were popular with consumers. The brand's fragrances are widely recognized and popular worldwide. Its high quality and unique approach to perfumery has attracted many consumers and perfume lovers. In regions such as Europe and North America, Creed's fragrances have a large market share and its sales and popularity are growing. In addition to reputation and sales performance, Creed's fragrances have received many awards and recognition. For example, the Aventus fragrance won the FiFi Award (the highest honor in the fragrance industry) in 2010 and was named one of the best-selling men's fragrances in the world in 2017. In addition, Creed's fragrances are loved and used by many celebrities and royalty, which adds to the popularity and appeal of its brand. According to data released by Kering Group, the brand has over 1,400 points of sale and 36 branded shops worldwide. For the fiscal year ending 31 March 2023, Creed's revenue exceeded $273 million, making it the largest independent high-end fragrance brand to date. At the same time, Creed fragrances have gained widespread recognition and popularity in the Chinese market. Online, the brand has a flagship shop on the Chinese e-commerce platform Tmall, with products ranging in price from 80 yuan ($11) - 2,820 yuan ($389.2). Silver Mountain water is the number one in the collection. Aventus is the number 3 hot seller in the shop. The highest-selling product is a perfume sample with 300+ people buying it. CHAILEEDO data showed that from January to May 2023, Creed perfume sales on Tmall and Taobao platforms were approximately 25.83 million yuan ($3.6 million). Also in January 2022, Creed announced a partnership with Eternal Group to open its first boutique in China at IFC in Shanghai and has already opened boutiques in Chengdu, Shenzhen, Beijing, Hangzhou and Hong Kong. In addition, to better fit the Chinese market, Creed and ROBBi have collaborated to launch the co-branded fragrance ROBBi in early 2023. (Credit: Creed's first shop in China) The first acquisition of Kering Beauty It is worth noting that the acquisition of Creed is the first acquisition by the Kering Group since the creation of its beauty division. For a long time, the beauty and fragrance business of the Kering Group has been licensed to other companies under a franchise model. The YSL beauty and fragrance business is operated by L'Oréal, while the Gucci, Alexander McQueen, Bottega Veneta and Balenciaga fragrance and beauty businesses are operated by Coty. And the fragrance businesses of Boucheron and Brioni are operated by Inter Parfums and Lalique Group respectively. However, in recent years, there have been reports in the industry that Kering Group intends to recover the operation of the beauty business from the Coty Group. Although this was later officially denied, the news also revealed that the Kering Group may intend to expand its beauty business independently. As early as July last year, Kering Group expressed its interest in entering the beauty sector after announcing its first-half results. At that time, Jean-François Palus, Managing Director of the Kering Group, revealed during a conference call that Beauty is a natural extension of its brands, and it currently operates the beauty business on a licensing basis. Beauty is definitely an area where it could consider some initiatives in the future. Industry sources said that Kering Group had been interested in acquiring Byredo (acquired by Puig in late May 2022) and Tom Ford (acquired by Estee Lauder in December 2022). Just this February, Kering Group announced the creation of its own beauty division and appointed Raffaella Cornaggia, former senior vice president and general manager of Estée Lauder International, who had also worked for L'Oréal and Chanel before her stint at Estée Lauder, as CEO of the division. Kering Group has said that Raffaella Cornaggia would help develop the beauty category for luxury brands Bottega Veneta, Balenciaga, Alexander McQueen, Pomellato and Qeelin, supported by a team of experienced professionals. This also means that Kering Group was officially moving into the in-house beauty sector, competing head-to-head with international beauty groups such as LVMH and Estee Lauder. (Credit: Raffaella Cornaggia, CEO of Kering beauty division) The "dream" of beauty from luxury group According to incomplete statistics from CHAILEEDO, so far in 2019, brands including Prada, Hermes, Valentino, Gucci, Burberry, Belgian haute couture brand Dries Van Noten, French luxury brand Balmain and others have ventured into beauty and makeup for the first time or increased their presence in the beauty sector. Hermes, known for its luxury leather goods, entered beauty as early as March 2020. And this entry has lived up to the brand's expectations. According to Hermès' financial report, sales in the fragrance and beauty division grew 21% year-on-year in the first quarter of 2021. Hermès also noted that the lipstick range contributed significantly to that. Also according to the 2022 financial report, the Hermès fragrance and beauty division reported sales of €448 million ($490.8 million), up 16.4% year-on-year. In addition to the new fragrance driving the division, the new facial primer collection Plein Air also contributed to the division's growth. In March this year, Hermès also announced that it would launch its first eye make-up range in the autumn. In February this year, LVMH, the world's largest luxury goods group, made a major change in its beauty division, appointing Stephane Rinderknech, formerly CEO of L'Oréal China, as the leader of the beauty division. Stephane would manage the LVMH group's 15 beauty brands, including Dior and Guerlain. The CEOs of Dior and Guerlain fragrances have also been replaced. In the first quarter of 2023, LVMH's fragrance and cosmetics division reported revenues of $2.3 billion, up 11% year-on-year. CHAILEEDO found that most of the luxury brands' beauty businesses are run by large cosmetic groups and now have a strong voice in the beauty sector. For example, L'Oréal Group holds the beauty business licenses of several luxury brands, including YSL, Armani and Valentino. Armani and YSL Beauty moved into the L'Oréal China $1 billion club as early as 2018. While the Tom Ford brand acquired by Estée Lauder is officially expected to break $1 billion in sales in the next few years. Coty is responsible for operating the beauty businesses of Gucci, Burberry and other luxury brands' beauty businesses, all of which are also performing strongly. Although Kering has been relatively late to the beauty game compared to other luxury groups, the acquisition of the high-end fragrance brand further demonstrates Kering's commitment to the beauty sector as a company that already has a presence in the luxury group. The addition of Creed will also bring more opportunities and advantages to Kering Group, and will further expand its influence and brand awareness in the global market.

Vegan, cruelty-free color cosmetics brand Half Magic announced the closing of the new investment round led by Alliance Consumer Growth. Half Magic, the Vegan and cruelty-free color cosmetics brand, announced the completion of its investment round led by Alliance Consumer Growth (ACG), a leading consumer investor. The new investment round also saw participation from A24, Imaginary Ventures, and Access Entertainment. ACG's investment in Half Magic has resulted in a minority stake in the company, although the exact amount of the investment has not been disclosed. Half Magic Beauty is a Vegan, cruelty-free color cosmetics brand founded by the American teen drama television series Euphoria ’s makeup artist Donni Davy. The brand offers a range of products including lipsticks, eyeshadows, and blushes that are cruelty-free, paraben-free, and made with natural ingredients. Half Magic Beauty has garnered attention for its bold and vibrant shades, as well as its commitment to sustainability and ethical practices. The funds raised in the investment round for Half Magic will be used to support the brand's growth, including its expansion into brick-and-mortar retail later this year. The brand's innovative approach combines beauty and entertainment in a unique way, and the investment will help to fuel its growth and success. Michelle Liu, General Manager of Half Magic, said: “The funding will help the brand drive further awareness with key talent partnerships, as well as prepare for a retail launch in the U.S. later this year. We expect these initiatives to prepare the brand for high growth over the next 24-36 months.” Julian Steinberg, Managing Partner of ACG, commented: “We are thrilled to be part of this exciting era in the makeup and beauty industry, and we take immense pride in backing HALF MAGIC. The brand sets a new standard for excellence, surpassing others in the industry by offering unparalleled formulas at an incredible value and the ability to resonate with trending demographic forecasts.” ACG's beauty investment portfolio includes several well-known brands, such as Innbeauty Project, NudeStix, and Pacifica. ACG has partnered with several notable brands as an early investor, such as OUAI Haircare, Milk Makeup, and Tata Harper, all of which were later acquired by major companies like Procter & Gamble, Waldencast, and Amorepacific, respectively.

Recently, in a further move into the beauty sector, Kering Group announced the new CEO position for Kering Beauty and the appointment of Raffaella Cornaggia to the position. A graduate of Bocconi University in Milan, Raffaella Cornaggia is said to have started her career at L'Oréal, where she spent 10 years in various roles in Italy and France under brands such as L'Oréal Paris, Garnier and HR. From 2005 to 2008, she served as Vice President of Global Cosmetics Marketing for Chanel Parfums Beaute. In addition, Raffaella Cornaggia spent 14 years at Estee Lauder in various roles, most recently as senior vice president and general manager of international for Estee Lauder and AERIN Aria. In her new role, supported by a team of experienced professionals, Raffaella Cornaggia will help luxury brands Bottega Veneta, Balenciaga, Alexander McQueen, Pomellato and Qeelin develop the beauty category. Thereafter, Raffaella Cornaggia, who will be based in Paris, will report to Jean-François Palus, managing director of the Kering Group. “I am delighted to welcome Raffaella Cornaggia, who brings us considerable experience in a segment that we see as strategically important for our houses,” Palus said. “We are building this new area of expertise within our group to ensure that our brands can fulfill their potential in this category.” Currently, the beauty business of Gucci, Kering Group's flagship brand, is licensed to beauty giant Coty Group to manage and operate, BOUCHERON's fragrance business is handled by Interparfums, and Brioni's fragrance business is developed by Lalique Group. The Kering Group, on the other hand, has frequently shown its exploration of its own beauty business. In July last year, after announcing its first-half results, Kering expressed interest in entering the beauty sector. Industry sources said Kering was interested in acquiring Byredo, which was acquired by Puig in late May 2022, and Tom Ford, which was acquired by Estee Lauder in December 2022. Industry experts believe it makes good strategic sense for Kering to sharpen its focus on beauty, especially as the group now has a stronger balance sheet and net cash position with which to carry out deals.

GS Caltex, a South Korean energy and chemical company, has recently signed a memorandum of understanding (MOU) with L’Oréal Group to develop and supply biomaterials-based cosmetic ingredients. Recently, South Korean GS Caltex signed a memorandum of understanding (MOU) with L’Oréal Group, regarding the development and supply of bio-based cosmetic ingredients. GS Caltex is a South Korean energy and chemical company jointly owned by Chevron and GS Group. This agreement marks the first step towards achieving common values and goals for sustainable futures in the development and supply of biomaterials-based cosmetic ingredients by GS Caltex, a leading comprehensive energy company in Korea, and L’Oréal, a global beauty company. L’Oréal is committed to addressing urgent social and environmental challenges worldwide through sustainable innovation. In particular, the company launched "L’Oréal for the Future" and announced various sustainability goals based on independent research with external experts and citizen organizations to convert its business into environmentally friendly operations by 2030. Since 2019, GS Caltex has been producing and selling 2,3-butanediol (2,3-BDO) using bio-mass and non-GMO microorganisms. 2,3-BDO is a human-friendly natural substance found in nature that is used as a moisturizer and anti-inflammatory agent and is also known for its excellent dispersion ability and skin feel, making it an ideal cosmetic ingredient. The company has obtained various domestic and international eco-friendly certifications and registrations for the environmental friendliness of the entire production process and supplies it as a raw material for famous domestic and international cosmetic brands under its own brand "Greendiol." The combination of the two companies' environmental responsibilities and circular economy values is expected to lead to new changes in the global beauty market. Hur Sae-hong, GS Caltex's chief executive officer pointed out that the agreement will enable the company to enhance its environmental leadership by effectively leveraging its capabilities in research, development, and production within the beauty industry through the partnership with L’Oréal. Barbara Lavernos, deputy chief executive officer at L’Oréal in charge of Research, Innovation, and Technology, stated that L’Oréal 's green science, which is based on the combination of nature and technology, is a crucial element in their current and future success. She pointed out that they intend to lead the way in sustainable innovation and shape the future of the beauty industry by collaborating with GS Caltex. Source: GS Caltex