The Estée Lauder Companies (“ELC”) announced the following updates to its Asia/Pacific leadership, which are effective February 1, 2022. Joy Fan will be promoted to President and CEO, China. She will report directly to Peter Jueptner in his new role as President, International, and she will remain a member of ELC’s Executive Leadership Team. Following the recent announcement that Mark Loomis, currently President, Asia/Pacific, will be taking on a new role as President, North America, Matthew Growdon, currently General Manager, Japan, will be promoted to Senior Vice President and General Manager, Asia/Pacific, also reporting directly to Peter. He will become a member of the Executive Leadership Team, leading all markets in Asia/Pacific, excluding mainland China.1 Mainland China will be elevated to report directly into the International organization. “This important evolution in our regional enterprise structure reflects our dedication to leveraging the unique talents, local expertise, and proven track records of internally-trained leaders across the organization. As we continue to elevate our commitment to China and Chinese consumers, these updates will also reinforce our focus on Asia/Pacific to realize future business growth,” said Fabrizio Freda, President and Chief Executive Officer. “We are proud to elevate Joy and Matthew, two seasoned and globally-minded strategic leaders at the helm of our China and Asia/Pacific businesses.” “This business evolution will further enable our regions to lead in an increasingly complex and competitive beauty landscape,” said Cedric Prouvé, Group President, International. “I have every confidence in Joy’s and Matthew’s strong leadership of our talented China and Asia/Pacific teams and know they will take our business to even greater heights as they step into their new roles.” Please read additional details about the elevation of China and Joy’s and Matthew’s respective appointments below. China is one of the most dynamic markets globally for prestige beauty and is strategically significant for the company as a source of deep inspiration for product development, marketing excellence, and consumer insights. The company continues to believe in the long-term growth fundamentals in the market and expects to deepen its commitment to China and Chinese consumers. Today, the company serves millions of consumers in over 600 cities across mainland China, with incredible potential for the future. Elevating ELC’s China business will enable increased speed, local decision-making, and global collaboration to advance the company’s leadership in this exciting market and to successfully deliver high-quality products and services for the Chinese consumer. The company is delighted that Joy Fan will assume the new role of President and CEO, China, overseeing the mainland China business. A visionary executive and one of the most respected leaders in the business, she has deep expertise in China, complemented by a global perspective and exceptional brand-building abilities. In 2012, Joy assumed leadership of the China affiliate, and has since worked with her team to lead its extraordinary growth over the course of just nine years. Her outstanding leadership while spearheading the direct-to-consumer strategy in China has resulted in the growth of multiple brands in ELC’s portfolio and the development of key channels. Additionally, under her guidance, the China affiliate has grown into an industry leader in social media and digital marketing. Joy has impressively leveraged her outstanding strategic vision, deep understanding of Chinese consumer preferences, and her terrific leadership abilities to successfully drive growth within the market, as well as to elevate the understanding of the Chinese consumer across the enterprise. The strong growth and success of the business in China, under Joy’s leadership, is a testament to her ability to attract and develop a strong China Leadership Team and the best talent across the local organization. Notably, under Joy’s leadership throughout the COVID-19 pandemic, the China affiliate has successfully pivoted to address the changing distribution landscape and evolving consumer preferences to rapidly return the business to positive growth. In her new role, Joy will continue to be responsible for the company’s long-term growth strategy for China and its vision for the Chinese consumer. The company is proud of the incredibly strong local organization in China that has played a significant role in driving the success in this market, leveraging innovation to recruit and retain new, young consumers, as well as drive repurchase and loyalty. As ELC expands its scientific presence through its new China Innovation Center in Shanghai, this world-class Innovation Center will create a unique opportunity to grow and build on market and consumer insights to help develop exceptional products to meet and surpass the needs and desires of Chinese consumers. This R&D center and the company’s scientific investments in China are expected to support and inspire the development of the entire prestige beauty industry all over the world. To that end, Joy will play an important role in the development of the China Innovation Center, enabling truly localized innovation. The company is proud that half of its geographic regional organizations will now be led by women, building upon ELC’s long legacy and commitments to equality and women’s advancement. ELC expects Asia/Pacific will continue to be a significant area of strategic focus and future opportunity for the company, as it includes some the largest affiliates globally, high-potential emerging markets, mainly across Southeast Asia, and other key markets of influence. The highly talented and dedicated Asia/Pacific team has done an incredible job of driving the business across the region. In his new role as Senior Vice President and General Manager, Asia/Pacific, Matthew Growdon will oversee all 12 markets in the region, working closely with affiliate General Managers. With the elevation of China, the Asia/Pacific team, led by Matthew, has an exciting opportunity to further focus its efforts on ELC’s multiple engines of growth throughout the region, including key affiliates that continue to drive the company’s global performance and significant opportunities in emerging markets. The Asia/Pacific team will continue to focus on strengthening its multiple engines of growth, leveraging new opportunities such as the Dr.Jart+ brand, and building new local capabilities to better serve consumers through its new state of the art manufacturing facility in Japan. Matthew is a true globalist with nearly 20 years of experience at ELC, which has included broad strategic and global management roles across Asia, Europe, Africa and the United States, as well as for the company’s global brands, including Estée Lauder and TOM FORD BEAUTY. His extensive experience working across geographies and cultures gives him a unique understanding and appreciation for the diverse consumers and channels within each market and especially across the Asia/Pacific landscape. A strong brand-builder with deep Asia/Pacific expertise, Matthew has led the strategic Japan market in his current role as General Manager, Japan, since January 2020, driving the vision and long-term strategy to deliver against ELC’s ambitions for this influential beauty market. Despite the many challenges from the COVID-19 pandemic, Matthew has led the Japan affiliate’s transformation, including a complete organizational re-design and establishing new capabilities. In addition, he led the channel diversification strategy through a dramatic expansion of the affiliate’s Online presence, the development of consumer data capabilities and strategic partnerships with key retailers. Highly respected for his inclusive leadership style, Matthew’s experience and strategic focus, combined with the diverse exposure gained from the roles he has held across the globe, give him a unique perspective into the business and will support his ability to successfully lead Asia/Pacific. A successor for Matthew’s current role will be announced at a later date. “These well-deserved promotions reflect Joy’s and Matthew’s global expertise, strategic focus and strong abilities to continue advancing our China and Asia/Pacific businesses into the future. I look forward to working closely with them,” said Peter Jueptner, currently President, Europe, the Middle East, and Africa region, who will take on the role of President, International, effective February 1, 2022.

Dr. Ci:Labo has achieved excellent performance within just a few years after entering the Chinese market: its overseas flagship store saw a 63% increase in total sales in the promotion of Women’s Day in 2020 and its Tmall flagship store saw a 1,056% surge in total sales. “I hope to help as many people as possible to be free from skin problems.” This beautiful vision is the impetus for Dr. Labo to create a skincare brand. In 1995, Dr. Labo established Labo Clinic to provide state-of-the-art radium treatments, extensive anti-aging treatment, and skin therapies. But in the search for the most effective skincare products for his patients, he found nothing that met his high standard for skin care. With a dream of beauty, Dr. Labo, the founder of the brand, started to realize his big dream of “making everyone’s skin as beautiful as possible” in a conference room with only three people in 1998. Dr. Ci:Labo has grown into a professional Japanese skincare brand by its close concern for women’s skin and continuous innovation. Over the years, Dr. Ci:Labo has always contributed to high-quality R&D and upholding the golden triangle skincare concept of “simple, scientific, and effective” to solve the problems of women’s skin. Nowadays, Dr. Ci:Labo has become the No.1 medical skincare brand in Japan. Up to now, Dr. Labo is still directly involved in the treatment of his patients and is committed to developing a daily skincare plan that gently nourishes the skin and eliminates all burdensome ingredients that damage skin. Considering the demand of customers at present, he launched a skincare plan, especially for skin users. Founded in 1999, Dr. Ci:Labo has ranked first in the market share of efficacious skincare brands in Japan for a long time. Since its entry into Tmall International in February 2017, its sales have surged 15 times in 3 months. Within 6 months it has been ranked among the Top 20 in the beauty category of Tmall. On the day of Double 11 - Chinese Shopping Festival- in 2017, its all-network sales broke $7.83 million and sales of its Tmall overseas flagship store broke $4,541,400 and its online omnichannel sales reached $28 million in only 9 months. In the promotional campaign on June 18th in 2018, Dr. Ci:Labo sold $8,755,500 across the online channel with an increase of 439% year-on-year equivalent to 5.4 times of the same campaign in the previous year. In September of the same year, Dr. Ci:Labo joined hands with Tmall to open its Super Brand Day. The sales on that day even exceeded $1,919,900 ranking NO.1 in the Tmall International beauty industry. On Women’s Day in 2020, it saw a 63% increase in total sales at Dr. Ci:Labo’s overseas flagship store and a 1,056% jump in total sales at the Tmall flagship store. In order to better match the Chinese market, establish a youthful brand image and bring the brand closer to the users, Dr. Ci:Labo also successively announced popular Chinese idol Kary Wang and the Chinese male group - TF Boys as the brand spokespersons in the Asia Pacific. Collaborations between skincare brands and celebrities have been commonplace for a long time but the choice of partners is crucial. Only celebrity partnerships that match the brand's tone can bring out the appeal and help consumers understand the brand's core concept in depth and thoroughly. Within just a few years of entering the Chinese market, Dr. Ci:Labo has brought a lot of in-depth brand experience to Chinese consumers with innovative products and services. Relying on the continuous innovation and upgrading of the brand, it has quickly won the likes and support of consumers and has grown rapidly from a new brand to a super brand in the Internet era. The outstanding achievement of Dr. Ci:Labo is partly due to the support of Chinese consumers and partly due to the brand's own excellent strength, product quality, service attitude and service concept. Dr. Ci:Labo is committed to exploring the diversified needs of China's medical beauty and skincare market and will continue to deepen product development and innovate advanced service methods to provide more Chinese consumers with better products and services.

The complaint by Chinese consumer of the “price difference” of Ampoule Replumping Mask from L’Oreal Paris during Double 11(Chinese Shopping Carnival) still happens one after another. What makes intense discussion is that Chinese e-commerce top live streamer Li Jiaqi and Wei Ya announced the suspension of their cooperation with L'Oréal Paris on the night of November 17. It started when many Chinese consumers found that the price of L'Oreal Ampoule Replumping Mask bought in the pre-selling of live streaming was far more expensive than the price on the promotion of Double 11(Chinese Shopping Carnival). On October 20, L'Oréal's Ampoule Replumping Mask pre-sold in Chinese top Li Jiaqi’s live-streaming priced at 429 yuan($67.18). However, the price of the same mask in L’Oreal’s live streaming on November 1 is only 257.5yuan($40.25). Before that, the brand announced in Weibo(Chinese biggest social platform) that the price of this mask in Li Jiaqi’s live streaming was the "biggest discount of the year" on October 13 and 14. After the complaint from consumers, the words "biggest discount of the year" are deleted in Weibo. L'Oreal's move has been questioned by many Chinese consumers and they believe it is false advertising. At the same time, tens of thousands of consumers have complained that "L'Oréal Paris disseminated false advertisement but issued a large number of coupons after paying deposit. That moves is suspected to cheat consumers and don’t refund the difference in price." After the scandal, the heat of related topics has been soaring with the 100 million views of topics. But L'Oreal has not responded positively. Until the evening of November 17, Chinese e-commerce top live streaming Li Jiaqi and Wei Ya announced at the same time to suspend all cooperation with L'Oréal Paris until the brand can properly resolved this issues. If the L'Oréal Paris still cannot come up with a reasonable solution within 24 hours, the two major live broadcasters will compensate consumers on their own. In the early morning of November 18, L'Oreal Paris issued an apology statement saying that the price difference was due to the overly cumbersome promotional mechanism of the platform but did not offer any substantial solution. As a result, Chinese consumers did not accept its apology. In addition, a large number of complaint from consumers that the goods of L'Oreal in pre-selling period had not been shipped for more than half a month and the customer service asked consumers to refund. This response also made many consumers feel unsatisfied. It is worth mentioning that L'Oreal Group's turnover exceeded 10 billion yuan ($1.566 billion) in the just-passed Double 11 shopping festival and L'Oreal became the TOP 1 brand in the FMCG industry. If this incident is not properly resolved, it will definitely affect image of L'Oreal in China.

Cosmetics belongs to the cosmetics industry and food is owned by the food category. "Edible" is not an "amulet" of cosmetics and "edible" cosmetics should not equalise its safety.

On November 15, French skincare brand L'Occitane announced that it plans to acquire approximately 83% of American body care brand Sol de Janeiro, which is expected to be worth approximately $370 million based on an estimated value of $450 million for 100% of common stock of Sol de Janeiro. The deal that may be completed before the end of the year. Sol de Janeiro sells premium body care, fragrance and hair care products directly to consumers through its website and also wholesales its products to various distribution channels. The company is said to be performing strong in finance. The Board of Directors of L'Occitane said that this transaction is complementary to the Group's existing business strategy and will benefit the Group's future global growth and profitability. In addition, according to recently disclosed financial results of L'Occitane, the Group's net sales amounted to approximately $830 million in the first half of fiscal 2022 representing an 11.4% increase in net sales. Its core brand - L'Occitane Provence - achieved significant growth of 21.7%. In addition, according to recently disclosed financial results of L’Occitane, the Group’s net sales amounted to approximately $830 million in the first half of fiscal 2022 Meanwhile, the second quarter saw a strong recovery in L'Occitane's offline channel, particularly in travel retail in Asia. In addition, L'Occitane attributed the growth to the company's ongoing restructuring strategy. “Same-store sales grew by 11.9% in the first half of fiscal 2022 as stores reopened worldwide,” the company said. Nevertheless, the Group's online channel remained strong growing 11.6% in the second quarter of fiscal 2022, following significant growth of 64.6% in the second quarter of fiscal 2021. "

At that time, I had a very strong desire to bring a high quality product like Cosme Decorte to Chinese consumers. In 1970, Cosme Decorte was first launched. It was a time when the first monthly salary after graduating from college was only $351.03. Cosme Decorte dared to launch such iconic items as face cream with $263.27 and loose powder priced at $1,017.99 with a 24-karat gold compact, which became the "pinnacle" of the cosmetic brand at the time both in terms of quality and price. In 1992, based on the results of continuous research in the medical field, we began to make multi-layered capsules of "phospholipids" - microlipid capsules - for use in beauty lotions. After eight years of research and commercialization, the iconic star product, Cosme Decorte Moisturizing Lotion, was finally completed. With the Group's entry into overseas markets from 1968, Kose entered China in 1988 and Cosme Decorte officially entered China in 2009. Its first offline store opened in Beijing SKP. This move was based on the forward-thinking judgment of Mr. Kazutoshi Kobayashi, Chairman and President of Kose Corporation of Japan. "At that time, I had a very strong desire to bring a high quality product like Cosme Decorte to Chinese consumers." Cosme Decorte previously sold mainly in brick-and-mortar stores where it could reach customers. But with the outstanding performance of Chinese e-commerce platforms such as Tmall. Kose Group shift sales channels of Cosme Decorte. For a overseas companies who want to sell goods in China themselves, they need to understand Chinese business practices and build relationships with wholesalers. By choosing to be settled on Tmall, the brand can go directly to consumers. On August 13, 2018, Cosme Decorte launched on Tmall after entering China for nine years. In the first 10 days of its opening, Cosme Decorte has already attracted about 600,000 consumers into its stores on Tmall, equivalent to the traffic of 30 counters of a cosmetics brand offline. At present, Cosme Decorte's official flagship store has over 5.51 million followers and 168 SKUs in the store. The "Herbal Vitalizing Lotion" is the hottest selling product in the store with monthly sales of 100,000+. 13 products in total achieved monthly sales over 10,000. In 2019, Cosme Decorte opened its 10th anniversary interactive experience exhibition in China. During this decade, Cosme Decorte has consistently provided quality products and services to Chinese consumers of all ages thus it gained more and more followers in China. Cosme Decorte has embedded its dedicated brand spirit into every product. With its luxury care and heartfelt care, it allows consumers to blossom with radiant confidence and beauty from the inside to outside. On May 22, 2020, Cosme Decorte landed on Tmall with its spiritual symbolic products, Absolute Quality high-end collection, to kick off the first Tmall Super Brand Day. It created an annual carnival day for Cosme Decorte fans. The turnover of Cosme Decorte Tmall official flagship store ranked top in the sales of beauty on May 22. Its new AQ set was sold 13,000 + sets. Its sunscreen products exceeded the sales volume of 25,000 units, firmly ranking Top 1 in high-end sunscreen. The number of Cosme Decorte active users grew 10 times and its fans grew 540,000 increased by 237% compared to the Double 11- Chinese Shopping Festival- in 2019. In 1946, Mr. Takasaburo Kobayashi founded the Kose Group with the wish "to make people brighter through cosmetics". As it moves from Japan to the world step by step, Kose has always been committed to creating truly good quality and actively promoting the diversity of beauty and culture. It spread beauty and touched the world with beauty. With this belief and mission in mind, Kose launched the Group's global premium brand, Cosme Decorte in 1970. Through the unique charm of cosmetics, we hope that each consumer will be able to live an independent and exciting life and that everyone in the world will be able to live the way they want to.

This one-to-one product logic has made La Roche Posay as a professional skincare product increasingly popular since its entry into the Chinese market. While the products focus on the efficacy of ingredients, the mid-range price is also considered cost-effective by many consumers. In earlier time, European and American efficacious skincare brands entered the Chinese market and occupied most of the market share. Seeing this opportunity, Chinese brand actively entered the market. In 1998, VICHY of L'Oreal Group became the first "pharmaceutical" brand to enter the Chinese market. Later, Avène and La Roche Posay entered one after another. Until today, international brands still firmly occupy most of the pharmaceutical market share in China. The three major international brands of VICHY, Avène and La Roche Posay, account more than 50% of the market share in Chinese cosmetic market. Among them, L'Oréal Group's La Roche Posay reached $196 million in retail sales in China in 2018 maintaining a relatively fast growth with a compound growth rate of 20% from 2009 to 2018. According to EuroMonitor, La Roche Posay ranked third in global dermatological skincare achieving $1.3 billion in end retail sales in 2019. It became the ninth L'Oréal Group brand to join the global "billion-euro" club. Not only did it achieve good performance in the global market, but also in the Chinese market La Roche Posay achieved double-digit growth. According to the monitoring data of VennData, sales of La Roche Posay in categories including cleansers, toners, lotions, creams, masks or kits ranked the front in the list from June 2019 to May 2020. Among them, Cicaplast Baume B5 Soothing Repairing Balm of La Roche Posay is highly popular in the market and it is often seen in the major list of face creams. In addition, products such as Effaclar K(+) and Prebiotic Thermal Spring Water were also highly popularized among consumers. La Roche Posay was once known as the "savior" of sensitive skin. At the beginning of its landing in China, La Roche Posay pioneered the pharmacy cosmetic retail model by referring to the successful models of the European and American markets. During this period, pharmacies and professional medical channels became the main channels of sales for La Roche Posay. Later, with the transformation and upgrading of the consumer market, La Roche Posay gradually increased its investment in department store counters and personal care channels in the health and skin care category. In 2017, La Roche Posay opened the baby care channel and turned into the first brand of L'Oreal Group to extend the baby care market. In recent years, La Roche Posay has been actively expanding its e-commerce channels and investing more resources in e-commerce. At present, La Roche Posay is available on Tmall, Jingdong, Vipshop and other mainstream e-commerce platforms in China. In Tmall, the brand official flagship store has more than 4.92 million followers with a price range of $10.50-$145.73 and a total of 168 SKUs. The highest-selling product, "Cicaplast Baume B5 Soothing Repairing Balm", was sold for $26.31 with monthly sales of 100,000+. Among them, there are 18 products in its flagship store with monthly sales of over 10,000 units. Products of La Roche Posay have always been more precise and simple. Unlike some local Chinese brands that launch hundreds of simply products every year just to create a craze. There are currently only 4 series in the skin care flagship store, each of which addresses the corresponding skin problems. For example, the B5 series which focuses on repairing the skin barrier and Toleriane Ultra series which is used for sensitive skin and improves skin redness. This one-to-one product logic has made La Roche Posay as a professional skincare product increasingly popular since its entry into the Chinese market. While the products focus on the efficacy of ingredients, the mid-range price is also considered cost-effective by many consumers. In addition to the meticulous improvement of its products, La Roche Posay has also actively accepted digital marketing and applied technology to serve consumers in recent years. At the end of 2017, the spray "unmanned store" launched by La Roche Posay in cooperation with Alibaba made its debut in Hangzhou. In just two days, the vending machine sold hundreds of sprays, equivalent to several times the sales of offline stores in the same period. In August 2019, the "La Roche Posay Efika Artificial Intelligence Acne Detection" smart app was launched on its official Tmall flagship store. After consumers follow the instructions to take a photo, the Efika Acne Detection will analyze their skin condition. Once the test is complete, the app will provide the consumer with an exclusive skin care plan based on their acne level. Driven by social platforms and beauty vertical category apps, Chinese consumers are not only becoming more rational and professional, but more and more people are paying special attention to cosmetic ingredients. This has led to an increasing emergence of professional research skincare brands and will further drive the Chinese professional skincare market to see a spurt of growth.

Grain Rain, a Chinese fresh brand, incorporates the natural landscape of the Summer Palace and the traditional Chinese cultural heritage. It works together with many outstanding Chinese brands and successfully goes to the world stage to showcase Chinese culture and splendid rivers and mountains. With the rapid growth of the Chinese economy and the further expansion of its influence in the international community, the cultural confidence of the Chinese people has been greatly enhanced. Taking advantage of this, a large number of Chinese makeup and skincare brands have emerged strongly. They broke the stereotype of Chinese brands from product quality, scientific innovation, raw material sources, and marketing layout. Some brands have also been able to build their own unique competitive advantages by drawing inspiration from traditional Chinese culture and using it to stand out in the competitive cosmetics market. Grain Rain, a Chinese brand is a brand that has been cultivating the efficacy of botanical skincare for 14 years. Grain Rain is a niche Chinese natural skincare brand founded in 2016. Its predecessor, Grain Rain Skincare Lab, has specialized in the use of precious natural essential ingredients in skincare products for over a decade. Grain Rain adheres to the concept of natural skincare, following the rules of nature, capturing the original power of plant extracts, strictly selecting gentle and reassuring ingredients, and returning to the essence of skin care. According to the founder of Grain Rain, An’ning Wang, the reason why he named the brand "Grain Rain" is because he has full affirmation and confidence in Chinese cultural values. The inspiration for the name comes from the 24 solar terms, one of the traditional Chinese cultures. In 2016, Grain Rain was born in Guangzhou. At that time, its brand founder, An’ning Wang, launched the Grain Rain on Taobao live stream and increased sales for Grain Rain with the three core brand elements of culture, nature, and efficacy after several attempts on multiple platforms. According to the data, sales from Grain Rain's live stream have been gradually improving since 2017 and monthly sales soon exceeded $77,600. Throughout 2017, the live channel accounted for 70-80% of total sales of Grain Rain. In 2019, hot-selling products of Grain Rain, an amino acid cleanser, spread across the internet with single product sales exceeding $15 million. However, Grain Rain did not limit its development on the live channel. Grain Rain began to clarify the positioning of "whitening for sensitive skin". It made further layout in a number of online platforms. For example, it has settled into deep cooperation with Xiaohongshu. On this platform, Grain Rain already has tens of thousands of notes for promotion. In 2020, the monthly visitors to the online store of Grain Rain reached 30 million, which is more than twice as many as in 2019. This online operational efficiency is considered head-level in the entire beauty industry. In August 2019, many brands that enjoy the elements of Chinese culture, such as Grain Rain and Liby, also held a joint exhibition with the Tmall platform in Paris, France, "The Country Is So Charming And Beautiful - Cultural Exhibition of Royal Gardens in Qing Dynasty". The exhibition brought a wonderful Chinese cultural feast to France and the world. As an excellent representative of the IP, large landscape garden Summer Palace, Grain Rain has launched the Grain Rain - Summer Palace Gift Box, which creatively incorporates traditional Chinese culture and Summer Palace features in both the design and the product. In the design of this Summer Palace gift box, Grain Rain has taken the traditional architecture of the Summer Palace and the cranes as the main design elements, combined with the brand's highly advocated concept of "seasonal skincare" to show the four seasons of the Summer Palace. Grain Rain, a Chinese fresh brand, incorporates the natural landscape of the Summer Palace and the traditional Chinese cultural heritage. It works together with many outstanding Chinese brands and successfully goes oversea on the world stage to showcase Chinese culture and China's splendid rivers and mountains.

The American skincare brand MEDATURE has launched in the Chinese market for just over a year and has been widely accepted by the industry and consumers. With the fierce competition in China's skincare market, combination between medicine and science has become a must for major brands and it is also a key point for niche brands to open up their business. The American skincare brand MEDATURE has been in the Chinese market for just over a year and has been widely recognized by the industry and consumers thanks to the efforts of Dr. Bergman, the brand's chief research and development officer and a leading American dermatologist. Data shows that nearly 1.1 billion people in China have sub-healthy facial skin, of which about 400 million people have damaged skin. In the past two years, "sensitive skin" and "repair skin barrier" have become popular keywords for skin care. Based on the widespread market demand, many global brands, such as Winona and La Roche-Posay, have invested more in recent years. American professional scientific skincare brand MEDATURE also entered the market in 2017 with its strong academic backing, professional research technology and brand philosophy. In addition to being a dermatologist, Bergman has many identities, including the founder of the field of contemporary skin typing in the United States, the founder of the Global Dermatology Advisory Board, and the founder of medical aesthetics teaching in the United States...... It is reported that Bergman decoded the secret of unlocking healthy skin energy earlier and proposed the concept of reducing skin care formulations - Clean Beauty. He obtained the latest research and development in clinical trials and research, which coincided with MEDATURE's skincare concept of combining technology with nature. In 2017, Bergman was invited by MEDATURE as the brand's chief research and development officer and joined hands with the top R&D team in the United States to create the brand MEDATURE, which was officially launched in China in March 2020. In its official flagship stores of Tmall and Jingdong, Qeyes noticed that MEDATURE has solutions for different types of skin, such as oily & dry sensitive skin, oily & dry sagging skin, oily & dry dull skin, etc. As for the choice of ingredients, Bergman has maintained a consistent scientific rigor in the creation of the MEDATURE with insisting on the combination of technology and nature. She says, "I will only use those active ingredients that are supported by science. Based on that, I will always choose its 'natural' version." By adhering to the research and development philosophy of "safety, efficiency, innovation and precision", MEDATURE products are both gentle and truly effective and are widely recognized in the market. MEDATURE has been in the Chinese market for more than a year and performed well. According to the introduction of the brand, its debut during in the promotional campaign on June 18th in its Tmall flagship store, the transaction exceeded $624,800 and broke through the Top 500 in the Tmall beauty industry. Among them, the star product "PSL Repair Moisturizer" has been rated as a unexpected winner for barrier repair by the media several times and has become a new star in skin care recommended by major KOLs and celebrities. On the occasion of 2020 Double 11 - Chinese Shopping Festival, the pre-sale of the its Gift Box, led by Bergman Cream and focusing on intelligent healing and repair, sold out perfectly in only 3 minutes with 1,500 pieces. In 2 days of pre-sale, sales exceeded $156,700 again. Since its launch, Bergman Cream was sold 50,000+ pieces. At the same time, new skincare product created by Dr. Bergman - Gentle Makeover Peel which has been developed for 18 months has finally been launched. As of October 19, 2021, its Tmall flagship store has a total of 46 SKUs, of which "MEDATURE Repair Cream No. 4" has a monthly sales of 4600+ with a total of over 42,000 reviews and 228,000 followers. The reverence for science and nature has made the remarkable results achieved by MEDATURE in a short period of time. This retrospective scientific skin care journey of MEDATURE has shown more people that product power is the foundation and key of a brand. From this, we can believe that with the efforts of Bergman and its team, MEDATURE will be able to bring more quality products to consumers in the future.

Nowadays, professionalization and science are the major trends in the Chinese skincare market. It can be said that, Avène was one of the first brands to tell the brand story based on the core ingredients of its products for Chinese consumers. It has impressed Chinese customers. Skin barrier repair is now a new growth area in the cosmetic industry and various brands have different solutions to this skin problem. Avène, for example, focuses on spring water. Avène belongs to the French Pierre Fabre pharmaceutical group. In 1975, the group started research on Avène Thermal Spring Water based on scientific water therapy and the Avène skincare brand was born and the Thermal Spring Care Center was established in 1990. Avène's products are designed for all types of sensitive skin care and can be calming and soothing for dry, dehydrated, acne-prone skin that may experience redness and molting in response to environmental irritation. The silica content in Avène Thermal Spring Water can also help to repair the barrier, but is not recommended after the skin has been restored to health. It follows a medical-pharmaceutical background and has gained a lot of attention in China and worldwide. To date, French thermal waters have become a geographical icon in the field of skincare, with 1,200 registered spas and 201 thermal water retreats in France. Thermal waters are mineral waters located deep underground and their purity and mineral content have a therapeutic effect on the skin. That principle that has been recognized for over two centuries. Studies have found that thermal waters can relieve various skin problems and also act as one of the active ingredients in sensitive skin care products, gently and without side effects.

In previous years, the Chinese setting sprays market was still dominated by international brands such as Innisfree and Givenchy. But nowadays, excellent Chinese brands are emerging frequently and their competitiveness is rapidly increasing. The Chinese setting sprays market is on the rise. PRAMY has ranked first in year-on-year growth of consumers attention in the last year in such a trend. Nowadays, the normalization of the pandemic has made masks a necessity for people in daily life. After wearing makeup for a long time, it is easy to cause the face to sweat and oil resulting in damaged makeup, dryness, and stuck lines. The tips to make the long-wearing coverage but not dry, take off the mask without taking off makeup become the most concerned topic of many women who love beauty. In addition to choosing the right base makeup products, it is especially important to set the makeup well. With the increasing penetration of the setting spray market in China, the pattern of setting spray categories has also changed. In addition to the two categories of loose powder and setting spray, sub-categories such as eyebrow setting and eye primer have also gradually emerged and are beginning to gain consumer attention. The growing share of setting sprays in China is now rising from 7.1% in 2018 to 17.8% in 2020. It also reflects consumers pursuit of this emerging category. In terms of consumer feedback on setting sprays, its effect is the perspective they are most concerned about, followed by experience. As of July 2021, the concentration of consumers on setting power has grown by 36% year-on-year. In previous years, the Chinese setting sprays market was still dominated by international brands such as Innisfree and Givenchy. But nowadays, excellent Chinese brands are emerging frequently and their competitiveness is rapidly increasing. The Chinese setting spray market is on the rise. It is worth noting that PRAMY has ranked first in year-on-year growth of consumers' attention in the last year in such a trend. It is understood that when PRAMY first ventured into the field of setting sprays, the field was still "unknown" in China. Small categories of setting sprays almost have no brands to explore in depth. PRAMY, with its excellent product strength and market acumen, focuses on the field of setting sprays. In this market environment, the brand launched its first makeup setting sprays, which became a hot-selling product as soon as it was launched, with monthly sales of 1.18 million + and total sales of 9.98 million +. It not only ranked top in the category of setting sprays for 3 consecutive years but also set a sales record of selling 1 bottle every 10 seconds. The launch of the moisturizing setting sprays achieved a breakthrough in the field of makeup fixing from 0 to 1. It also brought consumers a new experience in setting sprays. The launch of the Flawless Silk Loose Powder also brought total sales of 6 million bottles in only 6 months after the launch of the product due to its extreme cost-performance and strong power of quality. Research, development, and innovation are the foundation of the setting sprays market. As a professional makeup brand that has been working in the field of setting sprays for many years, PRAMY has summed up its own methodology in the difficult challenges once again: starting from the source of the product, taking the consumer's pain point as its entry point and putting the diversified setting needs into practice through innovative research and development. Why do the products of PRAMY become hot-selling when they are launched? The fundamental reason is that PRAMY is constantly exploring and adapting the ingredient formulas, package structures, and production processes that best meet the needs of consumers and bring them the ultimate setting spray experience. For a setting spray, consumers are generally concerned about four dimensions including its setting power, experience, efficacy, and makeup effect. Whether to add film forming technology directly advantage the setting effect of the setting spray makeup. However, the film forming technology is not the only factor that affects the setting spray. PRAMY is the first to consider that, the professionalism of the pump head also directly affects the final setting effect of the setting spray in addition to the film forming technology. Considering the impact of film forming technology and pump head technology on the setting effect, PRAMY moisturizing setting sprays are the first to use "high-quality dual-core compounding film forming technology + professional pump head" to set makeup, which brings a substantial breakthrough for the set effect and experience and is favored by consumers. As the level of consumption increases, consumers are less sensitive to price and instead demand more about the products themselves. Among the concerns of setting products, setting power and safety are growing more significantly year-on-year, which means that only by continuously improving the effectiveness and experience of products can a brand truly win consumers. It is understood that the setting spray on the market generally uses only a single film forming technology while PRAMY moisturizing setting spray applies SYNTRAN® PC5778 and VP/VA copolymer dual-core film-forming compound, which can quickly form a transparent non-sticky and be resistant from water and oil so that the setting effect is more durable. At the same time, a pump head with micron-sized pores and suitable strength has been custom-developed. It was repeatedly adjusted the pore size, suitable pressure, and suitable angle to further optimize the spray fineness, spray uniformity, and suitable pressure strength. It applies a hot-press aseptic sealing process and synergy with other ingredients in order to ensure the final setting effect. In the makeup market today, a "fancy" marketing approach can indeed attract a lot of traffic, especially for lipstick, eye shadow such as color makeup is particularly suitable. But in the field of higher professionalism for the setting spray, the situation is different. These products tend to pay more attention to the actual effect and not so much to "freshness". So consumers are more demanding of the product and tolerance is also lower. If a brand wants to win the hearts and minds of consumers through the product, the product can really withstand the test of time is more important compared to the frequent launch of new products. Unlike the "short, affordable, fast" method of the star brands on the market, PRAMY pursues the ultimate in each product from the formula to the small package material. It constantly strives in the detail to find a substantial solution to set the makeup so as to extend the life cycle of the product and create real and good long-term products.

GMV of PMPM surpassed $46 million on its first anniversary of launch. It outpaced a large number of Chinese skincare brands in growth in its first year of founding. Its GMV in Q1 2021 surpassed the GMV of last year. In an era where emotional resonance creates productivity, the logic of consumption brands no longer starts with categories or products but with human insights that resonate with consumers. In this regard, PMPM, an up-and-coming Chinese skincare brand with a spirit of discovery at its core, is a model. According to data, the GMV of PMPM in its first year exceeded $46 million, outpacing a large number of Chinese skincare brands in its first year of operation. Its GMV in Q1 this year even surpassed that of last year. PMPM also launched a series of "mindful" activities on the occasion of its 1st anniversary, such as its live streaming the magnificent scenery of the Brittany coast instead of promoting products. It brings distant land to consumers and pries the minds of users establishing the best demonstration of empathy between consumer brands and users in the new era. In the analysis of 20000 pieces, nearly 30% of them are related to brand spirit with high-frequency words such as "love", "considerable" and "distant land". Consumers' emotional affiliation has become the most unique core asset of the brand and also the value expression of the brand. The spirit of discovery resonates, and product strength triggers the purchase The PMPM founding team, Shanshuo, and Wen left P&G on a global journey based on this authentic experience. With the spirit of discovery at its core, the PMPM brand was born. PMPM is a brand name derived from the French word Pour le Monde Pour le Monde, meaning "to go to the world, to explore the world". Through its unique brand language and superior products, PMPM hopes to establish a consistent spiritual outlook with consumers and encourage people to discover and explore the beauty of the world. In its first anniversary, the brand has already explored the grasslands of Madagascar, the Bulgarian Valley of Flowers, and the forests of Piedmont with its consumers. While it also brought back the magical natural ingredients of the region. PMPM's original "X+Y+Z" formula spans the fields of scientific formulations and natural ingredients to create a comprehensive and effective skincare strength. It works with internationally renowned ingredient companies to develop custom ingredients. For example, PMPM Tuber Magnatum is co-created with Ashland, which is based on genomics technology to extract the target active fragments to ensure the efficacy of the ingredients. PMPM also has its own laboratory, which brings together a number of outstanding formulators in China and a world-class chief scientist in command. It is committed to compound star scientific ingredients with natural ingredients found around the world complemented by cutting-edge technology to create effective formulations and the ultimate skincare experience. It is understood that PMPM has successfully created many popular products such as "Sea Fennel Loctobionic Acid Moisturizing Essence Lotion", "Tuber Magnatum Mask" and "Rose Black Tea Essence Oil" with a rate of popularity product more than 50%. Not just selling goods but bringing back a sense of beauty and hope from afar PMPM is a warm brand that brings distant land to consumers to make them feel a greater sense of beauty and hope in their lives. A special spirit that the brand represents, ultimately reflecting who the consumer themselves are and what they want to be. This summer on the occasion of PMPM's first anniversary, it explored the Brittany coast with a new and updated brand vision and products It launched a brand campaign with the theme of "There's no place too far to go" bringing the distant Brittany coast to Chinese consumers. While other brands were immersed in the hullabaloo of live-streaming for sale. On May 16, PMPM was live-streaming a sea. In Tmall, TikTok, WeChat, Bilibili, and other Chinese social media platforms, it broadcast a day of the Brittany coast 9000 km away to Chinese consumers. Everyone can see the coast from sunrise to sunset in real-time and feel the surprise of the sea breeze blowing and the waves lapping at their faces. PMPM also brought the core natural ingredient "sea fennel” of the Brittany series to the live stream. Its original design carries out the brand's spirit of "exploration" and resonates with the majority of consumers. Insight into the path of brand growth in a market of red ocean There is no shortage of products or brands in the Chinese cosmetics market. How find your own unique positioning in such a red ocean market is a challenge that most brands encounter. PMPM's unique concept of "global exploration", a strong product development team, and experimentation system. Although PMPM is still young, its unique positioning and complemented by brand power and product power, it achieved rapid growth. In March 2020, the brand was established. Its GMV reached nearly $2.331 million monthly in less than six months through all online channels. On its first anniversary, GMV exceeded $46 million and the growth rate in the first year of its launch exceeded a large number of Chinese skincare brands. Its GMV surpassed the whole year of last year in 1 quarter of 2021. For consumers, PMPM is also like a light and a window that opens a new way of understanding themselves and the world. Some consumers have said that they were inspired by PMPM to get their first passport and more consumers have changed their views on Chinese cosmetics through PMPM. PMPM constantly moves from Africa to Europe and explores deeply into the jungle, polar regions, and oceans to enrich brand and product power. Only by mastering the thoughts and concerns of the brand's targeted audience, triggering emotional resonance with content that hits the soul, and solving functional needs with products that are proven to be effective, we can stand out from the thousands of brands. Building a sustainable global flow of plant-based raw materials Recently, PMPM was also invited as a corporate representative to attend the NGO Parallel Forum at the 15th Conference of the Parties to the United Nations Convention on Biological Diversity. As a recently established beauty and skincare brand, PMPM was recognized by the Conference for its industry-leading technology of exclusive botanical ingredient extraction and sustainable brand concept. It was invited to share its industry experience in promoting biodiversity conservation and sustainable development at the Conference. At the conference, PMPM founder Shan Shuo, as a representative of the Sustainable Development Committee of China Wild Plant Protection Association, focused on the theme of "exploring the relationship between innovative scientific research applications of plants and ecological protection on a global range" and used PMPM's experience as an example to discuss how beauty companies can play a role in bridging the sustainable development of high-quality plant raw materials in China from the perspective of international scientific research results. In the new development stage, beauty companies should play the role of a bridge to build a sustainable flow of global botanical raw materials. With the concept of "exploring the world and bringing back skin energy", PMPM focuses on the discovery of natural ingredients in worldwide. Through cooperation with top global research and development institutions, it achieves targeted and precise extraction of natural ingredients to help protect the ecology of raw materials while promoting the sustainable development of the local green economy. In a short period of time, PMPM has not only shown its strong product strength to gain consumer loyalty but also conveyed to consumers the global vision of Chinese new and prominent brand and the continuous upgrading of scientific innovation, which has taken an international road of protection and development hand in hand.