Recently, the baby and child care company Runben Bio received approval from the China Securities Regulatory Commission (CSRC) for its IPO on the Shanghai Stock Exchange. If successful, Runben Bio will become the first publicly listed company in China's baby and child care industry. With the continuous improvement of policies and regulations in China, the baby and child care market is experiencing rapid development. The baby and child care market in China offers both significant opportunities and challenges. While the market is growing rapidly with a high gross profit margin, companies need to navigate strict regulations and an increasingly competitive environment. Companies must focus on product safety, scientific claims, age-appropriate products, brand reputation, and adaptability to succeed in this market. Leading beauty companies are actively expanding into the field of baby and child care According to the market insights report on the children's cosmetics market by Chaileedo Intelligence, the compound annual growth rate (CAGR) of the global children's cosmetics market is expected to reach 8.66% from 2019 to 2024, with the market size projected to reach $23.57 billion. In China, the market size for children's personal care products already reached $4.1 billion in 2020, with a CAGR of over 10% from 2015 to 2020. It is expected that the market size for children's personal care products in China will exceed $7.2 billion by 2025. As the Baby & child care market continues to thrive, leading beauty companies in China are also actively entering the field of baby and child care. Shanghai Jahwa, representing a well-established Chinese daily chemical company, launched the baby and child care brand Giving in 2013. Giving is the first personal care brand in China to nurture newborns with the natural energy of birth. In terms of research and development, Giving is also keeping up with the trend. In 2022, Giving launched the Multi-Dimensional Soothing Daily Care/Special Care Cream, which used dual-layer separation technology to extract and study Artemisia annua (Qing Hao). The refined Artemisia annua extract helps improve common skin problems in babies, such as dryness and redness. Giving also released the first national group standard for Artemisia annua extract. By adding fermented essence to glutinous rice and utilizing the Prolipid constant protection technology, continuously improves problematic skin. Additionally, Shanghai Jahwa has formed a partnership with the domestic company Hengshun Vinegar to establish the "Jahwa-Hengshun Beauty Fermentation Research Platform" and jointly launched the exclusive fermented core patent ingredient, "V Yeast Essence," which is applied as a core ingredient in Giving's special care cream. Apart from Shanghai Jahwa, domestic sensitive skin leader BTN is also actively entering the field of baby and child care with its brand Winona Baby. Winona Baby inherits the genetic code of its parent brand "Winona" and focuses on baby skin science. It relies on the abundant resources of Yunnan Province to extract plant essences, aiming to create a professional skincare brand that guards the health of babies skin. Winona Baby performed well in the past year. According to the annual report of its parent company, BTN, Winona Baby achieved a revenue of 101 million yuan in 2022, with a year-on-year growth of over 122%. During the Tmall Double 11 shopping festival, the brand ranked among the top in the baby skincare category on Tmall, ranking fourth, which is an impressive achievement. In April 2023, BTN also held a seminar focusing on atopic dermatitis in children to enhance awareness of baby skincare and further strengthen market recognition and understanding of the brand. In addition to Shanghai Jahwa and BTN, another domestic beauty company, Chicmax which went public on the Hong Kong Stock Exchange, has also made early moves in the field of baby and child care. Chicmax launched the baby and child care brand Baby Elephant in 2015. By 2020, Baby Elephant's annual sales exceeded 1.5 billion RMB, making it the leading domestic brand in the Chinese mother and baby care product market. In addition to Baby Elephant. In 2022, Baby Elephant generated RMB655.1 million in revenue, which was 24.8% lower than the revenue generated in 2021. This accounted for 24.5% of the total revenue earned for the year. As early as 2019, Bloomage Biotech, a leading Chinese hyaluronic acid company, launched a mother-baby hyaluronic acid functional personal care brand. This brand adheres to the brand concept of "caring for baby's skin, starting from pregnancy," and is committed to providing customized care solutions for expectant mothers and babies' skin health. In addition to the efforts of some listed companies, the baby and child care industry has attracted a lot of attention from capital. Apart from the potential IPO of Runben Bio, according to incomplete statistics, in 2022 alone, children's care brands such as Evereden, MAYKERR, and Turtle Dad have received investments in the range of tens of millions to billions of yuan. Daikesi has secured five rounds of financing in five years, which is sufficient to demonstrate the hotness of this industry. In a sizzling market environment, three major characteristics emerge Amid the rise of emerging brands and the strategic layout of leading Chinese makeup brands, the Chinese baby and child care market exhibits three key features. Firstly, there is an emphasis on the use of natural, organic active ingredients, putting product safety at the forefront. Take Giving, a baby and child care brand under Shanghai Jahwa, for example. Shanghai Jahwa states that Giving insists on the innovative fusion of natural plant ingredients and skincare technology. Its main concept is "Specializing in the essence of nature to create new life". In Giving's products, plant extraction technology is its core message. In the New Essence of Naturals Babycare Collection, Utilizing a special " live ∙ burgeon extraction technique " to efficiently retain the fresh energy of primary plants. The Newborn Soothing Relief Collection, uses Innovative NaturalSafe + Technology to maintain healthy skin barrier function which enhances the baby's skin's resilience and endurance. The Newborn Extra-safe Collection selects Featured pure and pollution-free plant burgeons. The Winona Baby by BTN leverages the rich resources of Yunnan to extract plant essences. The main ingredients used in Winona Baby are extracts from green thorn fruit, purslane, and avocado. Green thorn fruit extract can repair the skin barrier independently, maintaining skin health. Purslane active ingredients can effectively soothe and resist irritation, enhancing skin tolerance. In addition, the core product of Chicmax is the Safe and Simple Care series of skincare products - 90 Safe Cream. The principal ingredient in the formula is natural organic-certified Red Myrrh Alcohol from Brazil, proven to have anti-inflammatory and soothing properties for sensitive skin, capable of alleviating stimulated skin and strengthening the skin barrier. BLOOMCARE, a baby and child care brand under Bloomage Biotech, incorporates the beneficial VB group ingredients, patented hyaluronic acid, ectoine, and other bioactive ingredients into its products, making them safer to use. It's not hard to see that domestic children's washing and care products emphasize ingredients derived from natural plant extracts, avoiding direct competition with other international functional skincare brands in terms of ingredient selling points. Secondly, functional skincare for baby and child care is a hot sub-market domestically. A spokesperson for Newpage, a subsidiary of Chicmax, once said, "There are not many brands of functional skincare products for baby and child in China. For many baby and child skincare brands, you can't remember their core effects or ingredients. Everyone talks about being mild and additive-free, but that alone is not enough to solve practical problems such as dryness, itching, and redness, but this demand exists." Currently, brands under some listed beauty companies have started to enter the field of functional skincare for babies and children, such as BLOOMCARE by Bloomage Biotech, Winona Baby by BTN, and Newpage by Chicmax. These brands pay more attention to common baby and child skin problems, such as eczema, dryness, itching, and swelling caused by skin sensitivity. For example, Winona Baby, under BTN, uses their wealth of experience in adult-sensitive skin care, based on the science of children's skin, and uses characteristic plant extracts to launch care products suitable for baby and child-sensitive skin. Similarly, Newpage focuses on the care of infant eczema and sensitive skin, with its main product being egg yolk oil. Newpage uses its independently developed Omega-Pro potent ingredient to strengthen the skin barrier, aiming to provide effective protection and nourishment, enhancing the barrier function of infant skin. These products aim to alleviate the discomfort caused by eczema and sensitive skin, offering mild yet effective care for infants. Third, baby and child care products have become more finely segmented in terms of their usage scenarios and functionalities. With the development of the economy and the improvement of education levels, the parenting concepts of the new generation of young parents are changing. They pay more attention to meticulous parenting practices and are embracing the concept of "stage-specific care" products. The popularity of this concept has led to a more refined segmentation of product scenarios and functionalities to meet the needs of infants and young children at different stages. Parents are more concerned about the physical, emotional, and cognitive development of their babies, and they seek more personalized and specialized care products to help infants and young children receive optimal care and developmental support at each stage. Emerging brands have shown particular sensitivity in segmenting product categories and functionalities. For example, the Baby Elephant brand focuses on providing special care for newborns and babies with sensitive skin, and they have taken differentiated considerations in product design. They have even made fine-grained product segmentation based on dimensions such as seasons and age groups to cater to the needs of infants and young children at different stages and with specific requirements. Hi!papa brand has segmented skincare products based on the pain points and skincare scenarios of users across all school ages. Particularly in the sunscreen category, they have achieved a refined segmentation of product efficacy. They have launched multiple product series targeting different skin types and special needs, including photosensitive skin series, red-sensitive skin series, oil-sensitive skin series, sensitive skin series, and fun and dry-sensitive skin series. For listed beauty companies, Giving, a subsidiary of Shanghai Jahwa, focuses on 0-3-year-old infants and young children, but their brand is also subdivided into eight categories, including shower gel, special cream, moisturizing lotion, and protective cream. Vinona Baby products are also divided into professional lines, infant and young children lines, and children's lines to meet different consumer needs. As consumers' demands for product usage needs and scenarios continue to evolve, major baby and childcare brands are actively exploring category segmentation, transitioning from individual products to larger product categories. They are committed to achieving category refinement and diversification to meet the diverse needs of consumers. In summary, the Chinese baby and child care market exhibits three characteristics: a focus on the use of natural and organic ingredients, an emphasis on product safety, attention to functional skincare for infants and children to address practical issues, and a segmentation of product scenarios and functionalities to meet different stage-specific needs. Emerging brands demonstrate keen insights in segmenting product categories, efficacy, and scenarios, dedicating themselves to meeting the diverse demands of consumers. Baby and child skincare is a new field At the beginning of this year, Liu Wei, former director of the Dermatology Hospital of the Air Force General Hospital and head of the Dermatology Department, told Chaileedo that children's skincare is a new field. New regulations not only ensure the safety of children's products but also provide a basis for the research and development of children's products. Liu Wei believes that children have different skin characteristics at each stage of growth, so skincare should be phased and personalized according to these characteristics. With the participation of pediatricians in the cosmetics industry, the development of children's cosmetics will rise rapidly in the next few years. The Chinese baby and child care market is favored mainly for two reasons. One is from the market end, the characteristics of the entire baby and child care market determine this, including the fast industry growth rate, high gross profit margin, and the constantly changing market competition pattern. The industry is growing fast. According to the prospectus data disclosed by Shanghai Shangmei, the mother and baby care product market is the fastest-growing segment of the cosmetics market, with a compound growth rate of 15.1% from 2015 to 2021, exceeding the average growth rate of 14.7% in the skincare market. Not only is the industry growing rapidly as a whole, but brands within the industry are also growing rapidly. Take the Red Elephant brand as an example, the brand was established in 2015, and its revenue scale increased from 766 million yuan in 2020 to 871 million yuan in 2021, an increase of 13.8%. Runben Shares is a company that focuses on mosquito-repellent products. Its sales of baby and child care series products have grown from 85 million yuan in 2019 to 217 million yuan in 2021. Baolutaiqi focuses on the field of baby and child personal care, and the total revenue achieved in 2021 is about 47.79 million yuan, a year-on-year increase of 114.91%. In terms of gross profit margin, according to the prospectus, the gross profit margin of the Red Elephant brand was 68.8% in 2021, and the gross profit margin of baby and child skincare products from Runben Shares in the same year was 59.93%. This is already a fairly high level of gross profit margin. In terms of market competition, in recent years, the baby and child care market has welcomed the influx of many emerging brands, causing significant changes in the market competition pattern. According to the provided data, the CR10 (the market share ratio of the top ten enterprises) of this market was 59.2% in 2011, but it dropped to 30.1% in 2020. This means that in the past ten years, many new brands have emerged in the baby and child care market, forming fierce competition with traditional big brands. The decrease in market concentration reflects an increase in the number of competitors, and new brands have achieved considerable results in market share. This change in the competitive landscape may be a positive development for consumers, as more choices mean more product innovation and better price competition. At the same time, for traditional brands, they need to continuously improve product quality and service levels to retain existing customers and attract new ones. In general, the competitive landscape of the baby and child care market has undergone significant changes, and the rise of emerging brands has brought new vitality and opportunities to the entire industry. Consumers will benefit from more choices and look forward to competition between brands to promote product quality and innovation. The second reason for the rapid development of China's baby and child care market is the increasingly perfect domestic laws and regulations. Since 2021, a series of supporting regulations related to the baby and child industry have been issued based on the "Cosmetics Supervision and Management Regulations" to regulate the disorder of the baby and child care industry. In October 2021, the National Drug Administration issued the "Food-grade Cosmetics are Misleading to Consumers", clarifying that there are no "food-grade" cosmetics. In December 2021, the relevant department issued a popular science article "Don't Use Toys as Children's Cosmetics", directly pointing to the chaos of the "children's dressing table" in the market, and clarified that babies under 3 years old should not use "makeup". The "Children's Cosmetics Supervision and Management Regulations" strengthens the supervision of children's cosmetics. This includes making children's cosmetics a key category for annual sampling inspection and risk monitoring and listing related operators of children's cosmetics as key regulatory targets. The regulations require children's cosmetics to undergo safety assessments and necessary toxicology tests to complete product safety evaluations. For illegal products, the relevant departments will take punitive measures such as ordering to suspend production and operation. Strict supervision promotes the compliant development of the baby and child industry. If enterprises cannot adapt to new rule changes and standardize their production and operation behaviors, they may face significant difficulties. In conclusion, the baby and child care market in China offers both significant opportunities and challenges. While the market is growing rapidly with a high gross profit margin, companies need to navigate strict regulations and an increasingly competitive environment. Companies must focus on product safety, scientific claims, age-appropriate products, brand reputation, and adaptability to succeed in this market.

Since 2020, there have been at least 20 international brands that have closed their overseas flagship stores on Tmall. "Afterwards, we will temporarily suspended our service in Chinese market." Recently, the overseas flagship store of the Japanese organic cosmetics brand Naturaglace ceased operations in China, customer service personnel told CHAILEEDO. Among the thousands of overseas beauty brands entering the Chinese market, it is common for brands like Naturaglace to quietly "disappear" in cross-border e-commerce channels. They either enter the Chinese market with great fanfare or quietly and silently “leave”. The demise of overseas beauty brands in cross-border channels reflects the cooling of the enthusiasm for overseas brands entering China and also reflects that cross-border e-commerce, as the first stop for entry into China, has difficulty meeting the long-term development needs of overseas brands. 20 overseas beauty brands have "disappeared" Earlier this year, the global famous beauty brand Huda Beauty officially closed its overseas flagship store on Chinese e-commerce platform Tmall. At that time, the customer service personnel of the store told CHAILEEDO that this was their only official channel in China. As a well-known influencer-founded brand, the news of Huda Beauty store closure immediately sparked widespread discussion, with comments like "unable to adapt to the local market" and "even a brand that is so popular in other countries cannot compete with Chinese domestic beauty brands." In fact, prior to this, many overseas influencer-founded beauty brands such as FLOWER Beauty and Victoria Beckham Beauty had also faced the fate of closing their overseas flagship stores. Moreover, according to incomplete statistics from CHAILEEDO, since 2020, there have been at least 20 international brands that have closed their overseas flagship stores on Tmall. Among them, at least five international beauty brands have closed their cross-border e-commerce channels and "temporarily bid farewell" to the Chinese market. CHAILEEDO found that among the brands that closed their stores, there were quite a few well-known beauty brands, such as amplitude, a high-end cosmetics brand under the Japanese beauty giant Pola, Too Faced, a cosmetics brand under Estée Lauder, and OPTE, a beauty device brand under Procter & Gamble. Looking at this year, international beauty brands such as therapuez, a Korean skincare brand, Naturaglace, a Japanese organic cosmetics brand, senegence, an American beauty brand, and LOOKFANTASTIC, a European skincare and beauty online store, have all closed their overseas flagship stores. Among them, Naturaglace, the organic cosmetics brand, has a high level of recognition in Japan. Its parent company is one of the earliest developers of organic natural cosmetics in Japan. The brand claims that its products are free of risky ingredients such as mineral oil, tar-based pigments, and synthetic fragrances. Senegence, the American beauty brand, started with lip gloss products and currently has over 300 products, including anti-aging skincare and cosmetics, sold by thousands of independent distributors worldwide. Regarding the withdrawal of overseas beauty brands, industry insiders in China have told that, "With the progress of Chinese domestic beauty brands in brand building and product quality, international beauty brands don't have much advantage. For international niche beauty brands, they face awkward situations in terms of recognition and cost-effectiveness." Some industry insiders have also previously stated to CHAILEEDO that "some overseas beauty brands do not have long-term plans for the Chinese market. They have a short-term arbitrage mindset and often withdraw in the face of low sales to minimize losses." Cross-border e-commerce struggles to become a brand According to documents released by the General Administration of Customs in 2018, China regulates cross-border e-commerce goods as personal-use imported items and does not enforce requirements for first-time import permits, registrations, or filings. This means that cross-border e-commerce channel products do not need to be registered according to Chinese regulations. The head of a certain international beauty brand once told the media, "Compared to traditional foreign trade, the cross-border e-commerce model does not require businesses to establish legal entities overseas (in China), and products can be marketed through a B2C model before applying for domestic product registration, greatly reducing the preparation time for brands to enter the market in terms of time and cost." As a result, with favorable policies and strong support from e-commerce platforms, the trend of overseas brands entering China has risen. The cross-border e-commerce channel has prospered in recent years, providing opportunities for hundreds of overseas beauty brands to test the Chinese market. At that time, the head of Tmall Global, a cross-border e-commerce platform, stated, "The new format of cross-border e-commerce has become a touchstone for imported niche brands to start businesses in the domestic market." It is reported that as of May this year, there are more than 46,000 global brands on Tmall Global. The platform introduced over 8,000 new brands in the past year, and launched over 4 million new global products. However, the lenient regulations have led to rapid industry development but have also exposed many problems. For example, to this day, many consumers still complain on social and complaint platforms about difficulties with after-sales service and the inability to guarantee product quality when purchasing from overseas flagship stores, and even instances of counterfeit international brands. According to data from the Hei Mao Complaints Platform, there have been over 8,700 complaints regarding "overseas flagship stores" to date. In recent years, although platforms have continuously strengthened regulation, the disorder in the cross-border channel continues due to lenient policies. Consumers still face difficulties in safeguarding their rights when purchasing cosmetics through cross-border e-commerce channels, as well as issues with product quality guarantee. Moreover, in terms of overseas beauty brands entering China, the attractiveness of the cross-border channel seems to be declining, especially for beauty brands that hope to have a long-term presence in the Chinese market. According to industry analysis, on the one hand, due to the existence of channels such as overseas shopping and purchasing, if overseas beauty brands do not have a good pricing system, it is easy for price confusion to occur after entering the cross-border e-commerce channel. For example, the prices of products in Huda Beauty's overseas flagship store were higher than those in overseas shopping channels, offering no price advantage. On the other hand, for beauty brands that have just entered the cross-border channel, they often rely on establishing online social accounts and collaborating with key opinion leaders (KOLs) and influencers to generate buzz. However, once the social hype fades away and there is no subsequent action, the brand seems to fall into a state of neglect. For example, KKW Fragrance, Kim Kardashian's perfume brand, initially connected with Viya's livestreaming when entering China, but now the hype has long gone. Huda Beauty has relied on joining Li Jiaqi's livestreaming to quickly increase brand popularity and sales. In today's increasingly competitive flow of traffic, especially in the face of Chinese domestic beauty brands that are adept at online traffic strategies, the approach of international beauty brands seems to struggle to truly enhance their “visibility” in the Chinese market. Therefore, for overseas beauty brands that hope to have long-term development in the Chinese market, relying solely on the cross-border e-commerce channel seems insufficient to meet the demand for deep interaction with Chinese consumers and to establish brand value. According to General Administration of Customs of the People’s Republic of China, due to factors such as the pandemic, China's cross-border e-commerce import volume reached 527.8 billion yuan ($73.2 billion) in 2022, a decrease of 0.8% compared to the previous year. Although China's cross-border e-commerce import volume reached 276 billion yuan ($38.3 billion) in the first half of this year, a growth of 5.7% and a rebound. Industry insiders believe that the "Pareto principle" phenomenon more pronounced with factors such as weak consumption, industry reshuffling and others, making it even more difficult for overseas niche beauty brands to stand out in the Chinese market. A brand which goes in craze in online should focuses on offline channels Through cross-border e-commerce platforms, brands tend to explore market demand at a lower cost, extensively cover consumers nationwide, validate product acceptance, and then consider entering offline channels and opening physical stores in the form of general trade. Going viral online and establishing a foothold in the Chinese market through offline presence is a common choice for overseas niche brands. Recently, there have been voices in the industry about overseas influencer-founded brands such as Fenty Beauty and Sunday Riley entering offline channels by partnering with Sephora. Huda Beauty, which closed its stores earlier this year, is also considering a return to the Chinese market in a different form. With the recovery of offline channels, the increase in online advertising costs, and the relaxation of animal testing regulations by regulatory authorities, some overseas beauty brands are already considering the possibility of exploring the Chinese market beyond cross-border e-commerce. In this regard, some industry insiders believe that "for some overseas beauty brands with their own traffic, they should conduct market research before exploring cross-border channels. They should not blindly hold activities close to consumers offline, but rather gain a deeper understanding of consumers' reactions to the brand before considering the issue of opening stores online and offline." Some industry insiders also point out that "imported products are naturally 'unfamiliar,' 'expensive,' and 'slow,' and Chinese consumers cannot see them offline. If they rely only on product details, it is difficult to understand their product strength and technological background." It should be noted that just last month, GROWN ALCHEMIST, a brand under L'Occitane, announced its entry into the Chinese market and chose Sephora as its exclusive channel, without opening a cross-border e-commerce channel. In addition, they also opened a four-day "Skin Aesthetics Laboratory" in Shanghai, allowing consumers to "see" the brand offline and truly understand its positioning and image, rather than just relying on social media promotion through online channels. Recently, the American skincare brand MALIN+GOETZ also announced that its first mainland China store debuted in Shanghai on August 8th. It was officially introduced to the Chinese market in September 2019, opening overseas flagship store on Tmall. However, since last year, this minimalist skincare brand from New York has actively expanded its offline presence and interacted with consumers, including entering SKP department store and opening pop-up stores in cities. Some industry insiders believe that "offline physical channels are an important means to deepen consumers' understanding and impression of the brand and convey the brand's value. They cannot be replaced by online channels, especially in the current recovery of offline channels. Overseas niche brands should have more in-depth interactions with consumers." It is worth mentioning that cross-border e-commerce platforms seem to have realized this issue as well. In May of this year, Tmall Global identified content creation as an important direction and planned to use short videos, live streaming, and other content formats to present overseas product features in a more comprehensive way, helping merchants tell brand stories and improve sales conversion rates. Dong Zhenzhen, General Manager of the Import Division of the Brand Business Development Center of Taotian Group, stated, "Behind each UV is a vibrant consumer, and behind each SKU is the treasure of a century-old brand or the new achievement of a professional brand. How can we effectively introduce these new products to Chinese consumers? Content creation is key." "Never go to war without proper preparation." With the increasing competitiveness of domestic beauty brands, the short-term trial of overseas niche brands through cross-border e-commerce channels are undoubtedly not conducive to their long-term development in China. Conducting thorough research on Chinese consumers' needs, communicating brand tone and product advantages in a more in-depth manner with consumers may be the right path. Overall, from the current perspective, opening overseas flagship stores is still the most cost-effective way to enter the Chinese market. However, as more brands consider long-term development in the Chinese market, cross-border e-commerce may no longer be the preferred option.

Inter Parfums' full-year 2023 guidance includes expected net sales of approximately $1.3 billion, or 20% growth from full-year 2022, and an earnings per diluted share guidance of $4.55, a 20% growth from $3.78 for full-year 2022. Inter Parfums, a global player in the fragrance industry, reported strong financial results for Q2 and H1 2023, with net sales of $309 million and $620.97 million, respectively. The company's Chairman and CEO, Jean Madar, attributed this growth to positive market trends and innovative programs that have helped increase market share. Furthermore, the company has seen robust growth across its 120-country distribution footprint, with signs of renewed life in the travel retail business. However, Inter Parfums remains cautious about the reopening of the Chinese fragrance market, as the market has yet to show significant growth potential. The company's CFO, Michel Atwood, noted that the supply chain disruptions and inflationary impacts on components are mostly behind them, and they are confident in achieving another excellent year in 2023. Inter Parfums' full-year 2023 guidance includes expected net sales of approximately $1.3 billion, or 20% growth from full-year 2022, and an earnings per diluted share guidance of $4.55, a 20% growth from $3.78 for full-year 2022. The company's guidance assumes that the dollar/euro average exchange rate remains at current levels and does not yet include initial sales of the newly acquired fragrance licenses, Roberto Cavalli and Lacoste, which are expected to start shipping in November/December 2023 and 2024, respectively. Overall, Inter Parfums' strong financial performance and optimistic outlook reflect its ability to navigate the challenges of the fragrance industry and capitalize on growth opportunities.

According to a reliable source, approximately 36 employees from the shared service teams of Costa Brazil, Onda Beauty, and Amyris in New York (excluding their locations in California and Brazil) are expected to be laid off. Amyris, a biotechnology and product manufacturing company, will be closing down two of its beauty brands: Costa Brazil, a skincare, haircare, and fragrance line founded by former Calvin Klein designer Francisco Costa, and Onda Beauty, a clean beauty retailer co-founded by actress Naomi Watts, as reported by The Business of Beauty. Amyris is a leading biotechnology company accelerating the world's shift to sustainable consumption through its Lab-to-Market™ technology platforms in the beauty, health and wellness, and flavors and fragrances markets On April 5, 2023, Givaudan acquired the key cosmetic ingredient portfolio of Amyris, Inc. According to a reliable source, approximately 36 employees from the shared service teams of Costa Brazil, Onda Beauty, and Amyris in New York (excluding their locations in California and Brazil) are expected to be laid off. However, Amyris has not confirmed the exact number of affected employees. Costa Brazil's representative mentioned that the brand will undergo a reorganization. Additionally, Amyris will also be discontinuing its sweetener company, Purecane. Kelly Devers Franklin, the Director of Corporate Communication at Amyris, stated in an email to The Business of Beauty, "We have been actively working to advance our strategic transformation and create a sustainable company, which includes divesting from businesses that are not essential to our future. We are appreciative of the teams that have contributed to the success of these remarkable brands." Amyris acquired Costa Brazil in March 2021 and purchased Onda Beauty in April 2022.

Net sales in the China business amounted to 130.609 billion yen ($913 million) , a sharp 12.8% increase year-on-year, and accounted for 26.4% of the Group's overall sales. Shiseido, a leading beauty and cosmetics company, has released its financial report for the first half of 2023. Shiseido stated that despite challenges and uncertainties, Shiseido achieved overall positive results and steady growth in its key markets. In terms of net sales, Shiseido achieved 494.189 billion yen ($3.45 billion), a slight increase of 0.2%. Overseas cosmetics markets also continued to recover overall. In China, the market was particularly challenging in January due to the resurgence of infections as a result of the government's lifting of its zero COVID policy; however, the market recovered from February onwards, and the first half of the year as a whole showed steady growth, partly due to a lower base as a result of the blockade centered on Shanghai in April last year. Consumption also continued to be buoyant in Europe and the Americas, with all categories of the cosmetics market showing similarly strong growth. Despite positive sales growth, operating profit declined by 19.7% to 13.632 billion yen ($95.3 million). The decline in operating profit was due to uncertainties such as the protracted conflict in Ukraine and rising prices. However, personal consumption showed signs of improvement and economic activity normalized during the period. Breaking down the regional results, the Japan business posted net sales of 125.157 billion yen ($87.5 million), up 8.2% year-on-year, and accounting for 25.3% of the Group's overall sales. Shiseido successfully launched innovative new products across several brands, capitalizing on the recovery in demand following the relaxation of mask use and the increased opportunities for people to go out. sales growth was strong at brands such as Clé de Peau Beauté and SHISEIDO, and new ELIXIR products featuring the latest technology also performed well. In addition, MAQuillAGE also posted significant growth as it responded to the revived demand for color cosmetics. Net sales in the China business amounted to 130.609 billion yen ($913 million), a sharp 12.8% increase year-on-year, and accounted for 26.4% of the Group's overall sales. It is worth noting that in the first half of 2023, China was the Shiseido Group's largest business market. In its China business, Shiseido has transitioned from a growth model primarily driven by mass promotions to a more sustainable approach that focuses on value-based brand and product communication to meet consumer needs. Shiseido's growth was driven by the offline channel, where brick-and-mortar stores provide consumers with a unique brand experience. clé de peau Beauté, on the other hand, primarily through e-commerce channels Growth was achieved through e-commerce. Shiseido's success in the "618" e-commerce promotion was due to platform diversification, emphasis on highly functional products and highlighting product efficacy. As a result, Shiseido's growth in China exceeded market expectations. Net sales of the Asia-Pacific business were 30.680 billion yen ($214.5 million), a slight decrease of 2.2% year-on-year on a reported basis, accounting for 6.2% of the total. Net sales in the Americas business declined 10.5% year-on-year on a reported basis to 52.8 billion yen ($369.1 million), accounting for 10.7% of the total, while net sales in the EMEA business declined 5.6% year-on-year on a reported basis to 52.6 billion yen ($367.7 million), accounting for 10.7% of the total. In the travel-retail business, which sells cosmetics and perfumes mainly through duty-free stores in airports and city centers, Japan experienced a strong recovery as a result of increased tourist traffic and the mitigating effects of COVID-19. However, sales in Korea and Hainan Island in China declined compared to the prior year as retailers adjusted their inventories and the market normalized due to changes in the business model that prioritized tourists. As a result, net sales in the Travel Retail business amounted to 77.5 billion yen ($541.7 million), down slightly by 0.5% year-on-year, and accounted for 15.7% of the total. In response to the challenges posed by the COVID-19 pandemic, Shiseido launched its medium- to long-term strategy "WIN 2023 and Beyond" in 2021. The strategy focuses on fundamental transformational changes to improve profitability and cash flow. As part of this strategy, Shiseido is focusing on the dermatology and beauty segment, restructuring its business portfolio with the aim of improving profitability, particularly in the Americas and EMEA regions. Looking ahead to a full market recovery by 2023, Shiseido has launched a new medium-term strategy called SHIFT 2025 and Beyond. The company aims to achieve a core operating margin of 12% by 2025 and 15% by 2027 through increased investment in brands, innovation and talent. Shiseido also plans to create a value-added base management model that provides unique value unmatched by any other company. In the first year of implementing this new strategy, the company seeks to strengthen its brand equity through strategic marketing, outperform market growth, and increase market share in all regions.

The Company anticipates that its sales for the entire year of 2023 will fall within the range of $11.3 billion to $11.6 billion, which is lower than the previous estimate of approximately $12.3 billion. Yesterday (August 7), the global leader in the creation and production of flavors, fragrances, and specialty ingredients, International Flavors & Fragrances Inc. (IFF) released its financial report of Q2 and H1 in 2023. In the financial report for the second quarter of 2023, IFF reported net sales of $6 billion in H1. In the Q2 2023, IFF reported net sales of $2.93 billion, remaining flat compared to the same period in the previous year. However, on a comparable basis, currency-neutral sales saw a 4% decrease due to softness in the Nourish & Health & Biosciences sector, despite continued growth in Scent and Pharma Solutions. The pricing aspect remained strong, with high-single-digit year-over-year increases, but volume was impacted by destocking, resulting in a low double-digit decline from the previous year. As for the segment, the Scent segment second-quarter sales reached $592 million. On a comparable basis, currency-neutral sales increased by 5%, driven by double-digit growth in Consumer Fragrance and a high-single-digit increase in Fine Fragrance. Both volume and price contributed to this growth. Scent adjusted operating EBITDA for the quarter was $117 million, with an adjusted operating EBITDA margin of 19.8%. On a comparable basis, currency-neutral adjusted operating EBITDA experienced a remarkable 41% increase, primarily attributed to net favorable price to inflation and productivity gains. The Company anticipates that its sales for the entire year of 2023 will fall within the range of $11.3 billion to $11.6 billion, which is lower than the previous estimate of approximately $12.3 billion. This revised expectation reflects the Company's belief that volumes in the second half of 2023 will not recover as initially anticipated, primarily due to ongoing customer destocking. Consequently, the Company now projects a mid- to high-single-digit decline in volume for the year, compared to the previous forecast of flat volume on a comparable basis. This decline is particularly significant in the Functional Ingredients sector. However, the Company still maintains its expectation of a mid-single-digit price increase for the full year of 2023.

In 2020, Dr. Plant opened online sales in Singapore on Amazon.com and Shopee.com. By the end of 2022, Dr. Plant has opened 11 single-brand stores in Japan. Dr Plant, focusing on single brand retail model, possesses 4600 stores. Recently, it plans to IPO. On August 4, it is shown on China Securities Regulatory Commission website that Beijing Dr. Plant Cosmetics Co., Ltd (hereinafter referred to as: Dr. Plant) disclosed counseling filing. It means that Dr. Plant is going to be listed in A-share with CITIC Securities as a counseling agency. Underlying first share of single-brand-retail beauty stores Public information shows that Dr. Plant was created by Xie Yong in 1994. In 2004, Xie Yong opened the first skincare franchise. Until 2014, Dr. Plant was officially born. Before the idea of opening his own stores, brands, as a cosmetic distributor Xie Yong experienced two channels: supermarket and Watson's. In this way, he was very familiar with the offline channels but also well aware of the channel foci. It prompted him to decide to "make" a unique channel. When Xie Yong was interviewed by CHAILEEDO, he put forward three key words for branding: channel, positioning and R&D. In his opinion, channel is the key to everything. In his view, the channel is the foundation of everything. The single brand retail and service is the cornerstone of Dr. Plant. It is understood that Dr. Plant focuses on alpine plant skincare and its iconic products are dendrobium orchid fresh muscle condensation time series, alpine black tea series, etc. In 2022, its offline stores have more than 4,600, the number of members more than 20 million. Channel development has always been the top priority of Dr. Plant. Relying on this concept, Dr. Plant stores are not only located in major cities in China, but also opened overseas. It is understood that in 2018, the Dr. Plant brand pushed its classic product Dendrobium orchid fresh muscle gel time series to Japan. In April 2019, the first Dr. Plant brand store in Japan opened in Osaka, starting the brand's international business. In 2020, Dr. Plant opened online sales in Singapore on Amazon.com and Shopee.com. By the end of 2022, Dr. Plant has opened 11 single-brand stores in Japan. (Credit: Dr. Plant store in Japan opened in Osaka) "Whoever opens the international market is an international brand." Xie Yong has publicly stated that after the end of the epidemic, China's national status, national strength, the commercial status of Chinese enterprises and the brand status of domestic brands will be greatly enhanced. Going global is the opportunity faced by this generation and is a must-do thing. In addition, Dr. Plant deployed online. As of press time, the highest-selling products is the "Camellia Yueze hydrating cleanser", priced at 69 yuan, monthly sales over 20,000 units on its flagship store on Chinese e-commerce platform Tmall. And on TikTok (Chinese version of TikTok) the highest-selling product is the "Alpine White Tea Series Set", priced at 299 yuan showing that 134,000 have been sold. In fact, beauty single-brand-retail store was first driven by the Korean brand MISSHA, Innisfree, etc. However, time has changed. These brands have long been despondent transformation. But Dr. Plant, Fan Wenhua, VEIBAO, Forest Cabin differentiated positioning to stand in the market as "skincare stores". Among them, Fan Wenhua stores have exceeded 5,000. Forest Cabin, insisting on years of self-management, also opened up the franchise model for further expansion. However, among A-share listed beauty companies, there is no single brand retail store. Not long ago, MISIFU planed to go list on Beijing Stock Exchange, but soon the company gave up the IPO program. Thus, Dr. Plant is expected to become the "first stock beauty single-brand store". According to the report filed by Dr. Plant for IPO counseling, the results of its IPO counseling will be available in November 2023, which means that Dr. Plant will usher in a new progress of IPO next year if the progress goes well. May be a 4-billion-yuan brand According to the data of China Chain-Store & Franchise Association, the sales of D. Plant have reached 3.878 billion yuan in 2022, which is at the forefront of similar single-brand store brands. This is not only related to its wide channel deployment, but also lies in the combination of digital operation and hero single product strategy. It is reported that Dr. Plant enjoys 100 IT staff, established a set of visualization of the national marketing data of real-time monitoring. In 2020, it invested the private domain to reach accurate consumers, so as to feed the brand to make the best decision. The efficacy of the product needs to rely on strong scientific research capabilities. The industry also agrees that the industry has moved from the era of "channel and traffic are the keys" into the era of "scientific research and the brand are king". In other words, brands lacking brand awareness and investing in scientific research can hardly cross the new cycle of the industry. For companies that going IPO, R&D is also a key indicator for assessment. According to public reports, Dr. Plant teamed up with the Kunming Institute of Botany of the Chinese Academy of Sciences to set up the research and development center of the Dr. Plant Kunming Institute of Botany of the Chinese Academy of Sciences. At the same time, the brand has featured four major R&D bases: the Kunming Botanical Skin Care Research and Development Laboratory, the Asia-Pacific Institute of Dermatological Sciences in Beijing, and the Guangdong Formulation and Clinical Research Team at the Han Fang Skin Care Scientific Research Center in Tokyo, Japan. In addition, the brand has hired Professor Pei Shengji, the founder of Chinese ethnobotany, as the chief scientist. It is worth noting that the products in stores of Dr. Plant in Japan are produced the Chinese Academy of Sciences Kunming Institute of Dr. Plant Japanese herbal skin care science research center joint research and development, with senior researchers from Shiseido, FANCL and other international big-name cosmetic companies. By integrating the innovative scientific research achievements of Japan and China, the center has successfully developed Japanese-made Dr. Plant products made from alpine plants, which are sold to the Japanese market and Hong Kong, China. Dendrobium orchid Shu lines vibration eye cream of Dr. Plant,, for example, spent 2 years in research and development, launched 1 month sold 100 million yuan. It is understood that in May this year, the upgraded version of Dr. Plant's Dendrobium Orchid Streak Relieving Vibrating Eye Cream came out. "We have our own channels. We have brand differentiation. Now the most important thing we need to do is research and development." Xie Yong accepted CHAILEEDO exclusive interview has said.

The Kao Group is advancing their ESG strategy, "Kirei Lifestyle Plan," and this initiative contributes to one of its key focus areas, "Zero Waste." Today (August 7), Kao Corporation announced that it would begin outlet sales of residual inventory of daily goods and some cosmetics that have been unavoidably discarded without being shipped from their own factories and logistics bases. It is reported that these outlet sales will take place on their in-house e-commerce site, "My Kao Mall," within the two-way digital platform "My Kao." This initiative aims to further promote waste reduction of their products and contribute to the realization of a resource-circulating society. Kao is committed to using limited resources most effectively, producing and delivering products that best suit each individual's needs in the necessary quantities. As part of this commitment, they have been implementing efforts to reduce product waste through measures such as demand forecasting and reviewing product transition methods. However, there has been a reality where discontinued items resulting from improvements or package changes and product inventory for stable supply remain as residual inventory at factories and logistics bases. While they have been promoting initiatives for waste reduction through employee sales and other means, there are still situations where product disposal is unavoidable. Therefore, starting from August 7, 2023, they will sell such residual inventory at outlet prices on "My Kao Mall OUTLET" for those who understand and support this initiative. The Kao Group is advancing their ESG strategy, "Kirei Lifestyle Plan," and this initiative contributes to one of its key focus areas, "Zero Waste." They aim to achieve a 95% reduction in product waste and promotional material waste (unused) by 2030 compared to 2020 levels. Moving forward, the Kao Group will continue to incorporate ESG perspectives into their management, strive for business development, and provide better products and services to consumers and society. They are dedicated to their purpose of realizing a "Rich and Sustainable World."

The growing popularity of Korean cosmetics has been attributed to several factors, including the Hallyu or Korean wave, reasonable pricing, and the flexibility of South Korean companies in accommodating small-scale orders. According to a report by the Yomiuri Shimbun, South Korean cosmetics emerged as the leading choice in the Japanese import market in 2022, surpassing French brands for the first time. The Cosmetics Importers Association of Japan (CIAJ) disclosed that Japan imported South Korean cosmetics, including perfumes and shampoos, worth ¥77.5 billion ($544 million) in 2022, surpassing the imports from France, which amounted to ¥76.4 billion. French beauty products, driven by prestigious labels like Chanel and Lancôme, had dominated Japan's import market for nearly thirty years. However, this trend has now been reversed due to the rapid growth of South Korean imports, which have increased six-fold in the past decade. While South Korean cosmetics were previously considered inferior in Japan, the popularity of BB cream around 2007 helped improve the reputation of South Korean beauty brands. The South Korean beauty trend has been further fueled by a surge in demand from young K-pop fans seeking the same cosmetics used by their favorite idols. A representative from the CIAJ remarked that this boom in South Korean cosmetics is not a temporary phenomenon. The growing popularity of Korean cosmetics has been attributed to several factors, including the Hallyu or Korean wave, reasonable pricing, and the flexibility of South Korean companies in accommodating small-scale orders. This can be seen in the sales performance of South Korean cosmetics, with Loft, a major Japanese general merchandise chain store, experiencing a 1.6-fold increase in sales between March and June this year compared to the same period last year. Additionally, cosmetics developed in collaboration with the Korean beauty brand rom&nd sold out within three days of their launch at Japanese convenience store chain Lawson in late March, as reported by the Yomiuri Shimbun.

During the reporting period, the company continued to adhere to the marketing model of "direct sales, supplemented by distribution" to enhance the breadth and depth of cooperation with downstream medical beauty organizations. Today (August 3), IMEiK Technology Development Limited Company (hereinafter referred to as IMEiK) released the 2023 half-year performance forecast. According to public information, IMEiK was founded in 2004 and focused on hyaluronic acid sector. It is a professional engaged in biomedical materials research and development, production and sales of national high-tech medical aesthetic enterprises. It is one of the largest suppliers of hyaluronic acid dermal filler in China. The announcement shows that as of June 30, the net profit attributable to shareholders of the listed company is expected to be 935 million yuan ($130 million) -995 million yuan ($138.5 million), up 60% - 70%. After deducting non-recurring gains and losses, the net profit is expected to be 908 million yuan ($126.3 million) -968 million yuan ($134.7 million), a year-on-year increase of 61% - 71%, up 61% - 71%. During the reporting period, the company continued to adhere to the marketing model of "direct sales, supplemented by distribution" to enhance the breadth and depth of cooperation with downstream medical beauty organizations. On the product side, with a full range of differentiated product matrix, clear product positioning, it continues to enhance product competitiveness and brand influence. As a result, the performance has achieved substantial growth. In addition, the announcement indicated that the financial data from January to June 2022 for the same period of the previous year had been retrospectively adjusted in accordance with "Accounting Treatment for Deferred Income Taxes Related to Assets and Liabilities Arising from Individual Transactions Not Subject to the Exemption from Initial Recognition" in "Interpretation of Accounting Standards for Business Enterprises (ASBE) No. 16" issued by the Ministry of Finance (MOF) in December 2022. The retrospectively adjusted net profit attributable to shareholders of the listed company for the same period of the previous year amounted to RMB 585.09 million ($81.4 million). The net profit attributable to shareholders of the listed company after deduction of non-recurring gains and losses amounted to RMB 564.77 million ($78.6 million).

Despite the Chinese market not showing tangible signs of recovery from 2022, the region witnessed excellent performances. Notably, group sales in China experienced double-digit growth in the second quarter of 2023. Intercos, a leading global provider of cosmetic and skincare solutions, has announced impressive financial results for Q2 and H1 of 2023. The company reported a record-breaking net sales figure of €488.4 million ($534.8 million), representing a remarkable increase of 32.7% compared to the same period in 2022. This growth was even more significant at constant exchange rates, with an increase of 33.3%. And its adjusted net profit was €26.9 million ($29.5 million), up 29.6%. The positive trend in order intake continued, supported by a steady flow of new projects, which reflects Intercos' commitment to innovation. The sales growth was witnessed across all geographic areas, business units, and customer types, highlighting the company's broad-based success. In particular, the second quarter of 2023 saw record revenue of €253.8 million ($277.9 million), up 31.3% from the previous year, despite facing unfavorable exchange rate fluctuations. When considering constant exchange rates, the sales increase in the second quarter was an impressive 33.8%. Analyzing the revenues by business unit in H1, the makeup segment performed exceptionally well, reporting revenues of €304.2 million ($333 million), a growth of 28.6%. This segment's strong growth continued into the second quarter, with significant contributions from all geographical areas and customer types. Asia and EMEA stood out for their excellent performance, along with emerging brands and multinational customers. The retail sector also showed signs of recovery during the second quarter. The skincare segment achieved revenues of €72.1 million ($79 million) in the first half of 2023, up 10.3% compared to the same period in 2022. The strong performance of this business unit was primarily driven by North American customers, with good performances from both multinational and emerging brands. The second quarter's results were in line with the positive trend observed in the first quarter. The hair and body segment experienced remarkable growth, with sales reaching €112.1 million ($122.7 million), a substantial increase of 69.8%. This growth confirms the strong growth rates expected following new agreements signed with renowned brands, including Dolce&Gabbana. The second quarter of 2023 saw an even greater acceleration, with sales surging by 88.9%. In terms of sales by commercial area, EMEA emerged as the top-performing region, reporting revenues of €258.2 million ($282.7 million), a remarkable increase of 46.2% compared to the first half of 2022. All business units, customer types, and market segments (mass and prestige) experienced growth in this region. The hair and body and makeup business units, along with emerging brands, played a significant role in driving the area's growth during the second quarter. The Americas posted revenues of €151.4 million ($165.8 million), representing a solid growth of 21.6% compared to the first half of 2022. This growth was supported by excellent results from all business units, with both emerging brands and multinational customers performing well. The second quarter also demonstrated strong performances in the region. Asia reported revenues of €78.8 million ($86.3 million), an increase of 18% compared to the first six months of 2022. China and Korea were major contributors to this growth, particularly in the makeup segment. Despite the Chinese market not showing tangible signs of recovery from 2022, the region witnessed excellent performances. Notably, group sales in China experienced double-digit growth in the second quarter of 2023. Intercos' customer types also experienced positive growth. Multinational customers achieved revenues of €254.8 million ($279 million), a notable increase of 21.6% driven by all business units. The performances in the US and EMEA were particularly excellent during the second quarter of the year. Emerging brands customers solidified their role as the primary growth driver, with revenues reaching €187.1 million ($204.9 million), a remarkable increase of 62.3%. Both the mass and prestige segments reported growth, with the US and EMEA regions contributing significantly. All geographic areas demonstrated significant increases compared to the previous year, and this positive trend further strengthened during the second quarter. Retailer customers also performed exceptionally well, generating revenues of €46.5 million ($50.9 million), up 7.7% from the previous year. The EMEA area primarily drove this growth, with a robust trend observed in the second quarter, recording a 15.1% increase. Looking ahead, Intercos remains optimistic about the future. The company expects a consolidation of results in the second half of 2023, in line with the previous year. Despite a shift in customer and product mix, with a greater focus on the mass segment and increased sales with packaging components, Intercos anticipates a slight increase in H2 2023 sales compared to the same period in 2022. The company's robust order book at the end of the first six months of 2023 provides confidence for the second half of the year. Although the Chinese market's recovery remains slower than anticipated, Intercos expects significant resilience in its target markets, particularlyin EMEA and the Americas. The company will continue to leverage its strong relationships with multinational and emerging brand customers to drive growth. Additionally, Intercos will maintain its commitment to innovation and product development, ensuring that it stays at the forefront of the cosmetic and skincare industry.

The sales in the Scent & Care of Symrise recorded 886 million euros ($968.4 million) in the first half of 2023, up 2.7% year-on-year. Yesterday (August 2), Symrise announced its 2023 H1 financial results. In the first half of 2023, Symrise sales increased by 6.8% to 2.414 billion euros ($2.6 billion). However, EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) recorded 446 million euros ($487.5 million), a year-on-year decline of 8.1%. It can be seen that Symrise performance in the first half of this year was a mixed bag. Continued high inflation led to increased costs According to the financial report, Symrise sales in the first quarter of this year amounted to 1.23 billion euros ($1.34 billion), a year-on-year increase of 12.8%. Among them, sales in the Scent & Care were 454 million euros ($496.2 million), up 8.3% year-on-year, with organic sales growth of 4.2%. In the second quarter of this year, the Group's sales amounted to 1.184 billion euros (about 9.343 billion yuan), of which sales in the fragrance care segment amounted to 432 million euros (about 3.408 billion yuan), basically unchanged from the same period last year. On a consolidated basis, in the first half of the year, Symrise sales continued to grow, up 6.8% to 2.414 billion euros ($2.6 billion). The EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) declined by 8.1% year-on-year to 446 million euros ($487.5 million) compared with 485 million euros ($530 million) a year ago. The net income was recorded at 188 million euros ($205.5 million), a decrease of 41 million euros ($44.8 million) from the same period last year. (Credit: from Symrise financial report) Regarding the rise in sales, Symrise said in its financial report that both of the group's two divisions made outstanding contributions to sales in an environment where the global economic situation is still unstable. But as for the decline in EBITDA, Symrise admitted that the increase in raw materials, energy and operating costs added to the group's burden. The closure of the Aroma Molecules division's plant on Colonel's Island resulted in a loss of 29 million euros ($31.7 million) for the group. Heinz-Jürgen Bertram, Chief Executive Officer of Symrise, said that in the first half of the year, the group's development was relatively stable thanks to its proven business model. However, continued high inflation has led to increased costs. The Group has now been able to partially offset the external challenges by adopting a cost management and price increase strategy. With the Group's increased production capacity and closer cooperation with China, the Group will continue to enhance its core competencies. Scent & Care segment grew 2.7% year-on-year By segment, sales in the Scent & Care of Symrise recorded 886 million euros ($968.4 million) in the first half of 2023, up 2.7% year-on-year. It is worth mentioning that the acquisitions of Groupe nsamuoli and Romani contributed 15 million euros ($16.4 million) to the group's sales. Specifically, the Scent & Care segment consists of the Fragrances, Cosmetic Ingredients and Aroma Molecules divisions. (Credit: Symrise financial report) The Fragrances segment achieved single-digit organic sales growth in the first half of 2023. This was mainly due to the boom in the fine fragrance business, which achieved double-digit organic growth, especially in the EAC and Latin America regions; not only that, the mass fragrance business also achieved single-digit growth. The Cosmetic Ingredients division posted solid sales progress, again with double-digit organic growth, and particularly strong growth in Sun Care and Microsun Care, which grew substantially in EAME, Asia Pacific and Latin America. However, not all divisions are riding high. The Aroma Molecules division has seen its share of challenges this year. Due to lower market demand, the shutdown of production in the Colonel Island region, and large stocks of fragrance ingredients and menthol, the division traded significantly lower compared to the same period last year. As a result, the Fragrance segment recorded an EBITDA of 111 million euros ($121 million), down 3.5% year-on-year. Business of Asian Market Shines According to the World Bank's calculations, global economic growth will slow sharply from 3.1% in 2022 to 2.1% in 2023, before recovering slightly to 2.4% in 2024. However, the performance of Symrise in Asian market is considered a bright color. According to the financial report, in the first half of 2023, China is located in the Asian market to achieve organic growth of 4.4%, with total sales of 508.3 million euros ($555.6 million). (Credit: from Symrise's financial report) In the first quarter, the business in Asian market grew organic growth 2.1% to reach 247.4 million euros ($270 million) in sales. Sales in the second quarter of the Asian market achieved 6.6% organic growth to reach 260.9 million euros ($285.2 million) in sales. Referring to developing countries and emerging markets, Symrise said that the economic output growth of developing countries and emerging markets increased from 3.7% in 2022 to 4.0% in 2022, and this is largely due to the recovery of the Chinese market. And Symrise is also paying more and more attention to the Chinese market. In May this year, Symrise Little Red House held the opening ceremony of its new Fine Fragrance creation hub in Shanghai, an initiative aimed at strengthening its position in China's major perfume market. It is understood that Little Red House would showcase a space that combines creative art and olfactory culture for its clients, and hosted exclusive events and cultural programs such as perfume master classes, perfumer meet-and-greets and trend talks. The Little Red House's audience will include Symrise customers, perfume enthusiasts, KOLs and the media, which will facilitate communication among different customer groups. In its financial report, Symrise forecasts that China's economy is expected to achieve 5.6% year-on-year growth in 2023. As a result, Symrise will further develop the Chinese market. Taking into account the performance of the first half of the year, Symrise confirms the Group's medium-term objectives: in 2023, the Group will achieve organic sales growth of 5% to 7%; profitability, measured by the normalized EBITDA margin, is expected to be around 20%. Looking to the future, Symrise expects sales of 5.5 billion euros ($6 billion) to 6 billion euros ($6.6 billion) in 2025. To achieve this, the company should maintain a compound annual growth rate of 5% to 7% and will target increased foreign investment.