The entry into Times Square this time is seen as an important part of the impact of MINISO products on the US market. Recently, MINISO's first global flagship store made its debut at Times Square in New York City, marking MINISO as the first Chinese new consumer brand to settle in Times Square. The store generated nearly $80,000 in sales on its opening day, setting a new record for single-day sales among all stores worldwide. Tom Harris, President of Times Square Alliance, attended the ceremony. "I would like to congratulate MINISO on opening a flagship at Times Square," he said. "Times Square is known for its vibrant and alive atmosphere. MINISO brings its wide variety of lifestyle products and adds to the dynamic environment here. Its arrival reflects the inclusiveness and diversity of Times Square." (MINISO's first global flagship store) Breaking into the American Market The first global flagship store of MINISO is located at the intersection of 42nd Street and 7th Avenue in Times Square, adjacent to iconic landmarks such as the Broadway theater district and Madame Tussauds Wax Museum. The flagship store occupies a street-facing space of 1,000 square meters and features ten different sections tailored to the most popular product categories in the local market, including an IP zone, blind box zone, toy zone, fragrance zone, and beauty zone. On the opening day, the storefront showcased beloved Disney characters such as Mickey Mouse and Toy Story, as well as other popular licensed characters, attracting the attention of numerous visitors. Times Square in New York City is known as the "Crossroads of the World" with an annual foot traffic of over 500 million and a daily coverage of 1.5 million people in the heart of the city. It is a landmark of New York City and a global center of fashion. As one of the most prominent commercial hubs in the world, it attracts numerous top brands from around the globe. Therefore, MINISO's entry into Times Square is seen as a crucial step towards its expansion into the US market. “The opening of the Times Square store is a crucial step towards our transformation and upgrade,” said Guofu Ye, Founder, Chairman, and Chief Executive Officer of MINISO. “Times Square is the Crossroads of the World and a hub of business, entertainment and culture. By making a physical presence in one of the busiest pedestrian areas, MINISO appeals to New Yorkers and visitors from around the world, and responds to consumer demands for attractive, fun, useful and affordable products.” Overseas market exceeds expectations Guofu Ye commented, "We delivered a strong start to calendar year 2023 with the best March quarter performance in our history, shaking off three years of uncertainty caused by pandemic. As a result, our revenues grew to over 2.9 billion yuan($0.411 billion), an increase of 26% year-over-year. Our margin profile continued to beat expectations, adjusted net profit margin expanded to 16.4%, an 11.7 percentage point increase compared to same period last year, and adjusted net profit grew to 483 million yuan($68.51million), an increase of 336% year-over-year. Both figures represent new all-time highs for MINISO." (MINISO Group March Quarter 2023 Financial Results) In the overseas market, during the reporting period, the overseas market revenue was 800.9 million yuan($113.6 million), a year-on-year increase of 54.6%. The main reason for the growth was that the average number of stores increased by 11.9% year-on-year, and the average revenue per MINISO store in the overseas market increased by 38.1% year-on-year. “Revenue from overseas markets contributed 27.1% of our total revenue in the March quarter, five percentage points higher than the 22.1% contribution in the same period of 2022.” MINISO's financial report showed that as of December 31, 2022, the total number of MINISO stores worldwide reached 5,440. Among them, there were 3,325 domestic stores, a net increase of 157 compared to the same period last year. The number of overseas stores was 2,115, a net increase of 238 compared to the same period last year. Due to the solid execution of the MINISO brand upgrade and the strong performance of its overseas business, the gross profit margin for the quarter in March reached 39.3%. Eason Jingjing Zhang, Chief Financial Officer and Vice President of MINISO, commented,“Looking forward into the June quarter, we expect our sales will continue to grow strongly on a year-over-year basis, driven by better store-level performance and store network expansion, while our margin profile will also continue to improve strongly on a year-over-year basis.” Is the beauty category no longer important? In this year's financial report, MINISO mainly mentioned the trend and play category, and the beauty category was not mentioned separately. Beauty products are a part of MINISO's product portfolio. Public information shows that MINISO's core SKU is about 8,000, covering 11 main categories including household items, electronics, textiles, bags and accessories, beauty tools, toys, cosmetics, skincare, snacks, perfumes, and stationery gifts. MINISO's growth cannot be separated from beauty products. In 2013, Ye Guofu and fashion designer Miyake Junya founded MINISO, which mainly operates new retail focusing on department stores, beauty, and digital products. In the early days, most of the prices were set at 10 yuan, making it one of the early beauty channels for many Chinese consumers. In addition, the globally renowned cosmetics contract manufacturer Intercos sued MINISO in 2016. It is understood that in the cooperation between MINISO and Intercos, both parties adopted a model of delivery before payment. The court ruling also showed that Intercos purchased raw materials and organized production according to MINISO's orders. After the products were produced, they were stored in Intercos's warehouse and then shipped according to MINISO's instructions. "MINISO has been using this model since its inception, placing orders with factories first, and only getting paid after delivering and selling the goods. It worked before, but during the pandemic when logistics are affected, problems can easily arise," a senior cosmetics industry professional told Chaileedo. In the view of industry insiders, the sluggish macro cosmetics market is one of the factors contributing to the difficulty in selling MINISO's beauty products. MINISO's expansion overseas has achieved initial success, but how to balance the relationship between the beauty category and the trend and play category may be the focus of operational changes in the future.

LVMH announced that Gonzague de Pirey and his team will further promote the group's digital transformation. LVMH has appointed Gonzague de Pirey as Sephora's new chief omnichannel and data officer, with the aim of driving Sephora's digital transformation. In an internal statement, LVMH said that Gonzague de Pirey will manage the group's omnichannel data, artificial intelligence, and digital customer service centers of excellence. Gonzague de Pirey has previously had extensive experience in various business areas in Asia, Russia, France, and Brazil. In 2020, he joined LVMH and was responsible for managing Sephora's German subsidiary. During the pandemic, he launched initiatives such as the Unlimited Loyalty Program and My Sephora Store sales channels to maintain customer stickiness. Two years later, he was promoted to the leader of Sephora' New Venture. The appointment will take effect on June 1, when Gonzague de Pirey will report directly to Antonio Belloni, LVMH's group managing director. LVMH said that Gonzague de Pirey and his team will further expand the global customer chain and provide more refined customer experiences across all channels, promoting the group's digital transformation. (Credit: Gonzague de Pirey, Sephora's new Chief omnichannel and data officer) Sephora drives LVMH's performance record high In fact, Sephora has always maintained strong performance and has been committed to digital transformation and omnichannel sales both online and offline. On April 12, LVMH released its Q1 of FY2023. The report showed that the group's sales increased by 17% year-on-year to 21 billion euros ($22.6 billion) in the three months to March 31. Sephora's luxury retail division performed the strongest, with sales up 30% to 3.961 billion euros ($4.27 billion). In LVMH's 2022 annual report, it was mentioned that due to Sephora's outstanding performance, the group's sales in FY2022 reached a record high. The group's 2022 sales rose 23% to 79.2 billion euros ($85.4 billion), with Sephora's luxury retail division sales increasing by 26%. In the financial report, LVMH mentioned that the group further invested in Sephora's omnichannel strategy in 2022, continuously improving customer repurchase and in-store shopping experiences. Sephora itself started as an offline beauty retail store. It began its digital transformation in 2013, merging its traditional marketing and digital marketing departments. Led by Chief Marketing Officer (CMO) and Chief Digital Officer (CDO) Julie Bornstein, this ensured that the digital team had a voice in the company's leadership. In October 2017, Sephora took a bigger step towards digital retail, combining its physical store team and digital retail team to create an omnichannel retail department. Regarding this move, EVP of U.S. Omni Retail at Sephora, Mary Beth Laughton, said: "Customers are looking for a more comfortable experience in the consumption process, allowing them to think and choose autonomously through different channels of information. As retailers, we should make it as easy as possible for consumers to make choices comfortably and quickly across various media channels." Through the performance of the luxury retail department after the merger, CHAILEEDO found that LVMH has continuously mentioned the contribution of digital transformation to Sephora's performance in its financial reports since 2018. The department only declined in 2020, but even so, LVMH mentioned in its 2020 financial report that Sephora showed good resilience during the health crisis, and its online sales growth reached record highs in all markets, promoting the development of services such as in-store pickup and online shopping. (Credit: chart of performance of selective retailing at LVMH in the last 7 years) Sephora's digital transformation has made a significant contribution to LVMH Group's performance and has also driven the group's overall digital transformation process. Sephora's successful experience provides valuable reference and inspiration for other brands under LVMH Group, promoting the overall development of the group. LVMH to fully transform to digitalization Sephora's digitalization has driven the digital transformation of LVMH Group to a certain extent. Data from global consulting firm McKinsey shows that in the next few years, the online sales of the luxury goods industry will see significant growth. It is estimated that by 2025, the online sales of the industry will triple, reaching 74 billion euros ($79.8 billion). Therefore, the luxury goods industry has to make corresponding adjustments in retail and marketing models to suit current consumption trends. In 2015, LVMH began to hire talents with digital experience. At that time, LVMH appointed Ian Rogers, head of Apple Music, as the Chief Technology Officer (CTO) for digital innovation. In 2017, Ian Rogers helped LVMH build a new luxury e-commerce platform, Sèvres.com, and created online stores for all LVMH brands. In 2017, LVMH achieved brilliant results, with a net profit share of 5.129 billion euros ($5.5 billion), a sharp increase of 29%. Moreover, this year (2023), LVMH hired former L'Oréal CEO Stephane Rinderknech as the Chairman and CEO of its beauty division. It is reported that Rinderknech helped L'Oréal China's digital transformation during his tenure, and L'Oréal has made great progress in e-commerce channels. From 2014 to now, its e-commerce revenue share has increased by 9 times, reaching 28% in 2022, contributing about 78 billion yuan in revenue. (Credit: Stephane Rinderknech, Chairman and Chief Executive Officer of the Beauty Division) LVMH Group Chairman Bernard Arnault once said that LVMH will fully transform to digitalization, not only vigorously developing online sales but also using digital technology to manage internal operations and improve communication efficiency. Sephora China's Strategy: Physical Stores + Digitalization Entering China for 17 years, Sephora has always been the leader in high-end beauty retail. When it entered the Chinese market in 2005, Sephora partnered with Shanghai Jahwa to open its first store in Shanghai. Since then, Shanghai Jahwa invested 4.57 million yuan ($649,300) in 2006 to establish Sephora (Beijing) Cosmetics Sales Co., Ltd. Shanghai Jahwa holds 19% of the shares in both companies. According to Shanghai Jahwa's 2021 annual report, Sephora Shanghai and Sephora Beijing achieved revenues of 8.956 billion yuan ($1.27 billion) and 1.921 billion yuan ($272.9 million), totaling 10.877 billion yuan ($1.55 billion), an increase of 17.41% over 2020. Undeniably, Sephora is paying more and more attention to the development of the Chinese market. Chinese brands are increasingly shown in Sephora stores. In 2017, Mariedalgar's high-end product line was exclusively launched in Sephora. In 2020, Sephora collaborated with Maogeping and Inoherb to develop high-end product lines. However, the pandemic in China severely impacted Sephora's offline stores in 2022. LVMH Group publicly stated that in the first quarter of 2022, due to the pandemic, store traffic decreased, and it had to temporarily close 15% to 25% of its stores in mainland China. However, Sephora China utilized the group's well-developed online and offline sales model. In early May last year, it used the "online order, offline delivery" method to meet consumer shopping needs. As of June 3, all 35 Sephora stores in Shanghai have resumed business. After the restriction eased in China, Sephora continued to focus on the deployment of digitalization + physical store. It is reported that Sephora Asia's second and China's first future concept store will land in Shanghai in early June 2023. The store will present cutting-edge beauty trends with innovative digital technology, professional store services, and a large selection of exclusive high-quality products, comprehensively upgrading consumers' beauty shopping experience. Previously, Sephora opened its first Asian "Future Store" new concept retail store in Raffles City Shopping Center, Singapore, on September 23 last year. It is evident that both the appointment of Sephora's new chief omni-channel and data officer and LVMH Group's continuous efforts in digital transformation indicate that sales driven by digital platforms will help LVMH Group continue to grow in the next few years.

As of the close of trading on the 22nd, the total market value of Chinese beauty company PROYA was 48.81 billion yuan ($6.88 billion), leading second-place Bloomage Biotech over 3 billion yuan ($425.4 million). Yesterday (May 22), Chinese beauty company PROYA's stock rose to 173.86 yuan ($24.7) per share, with a total market value of 48.81 billion yuan ($6.88 billion). This number means that PROYA has surpassed Bloomage Biotech, BTN, and other enterprises, becoming the top market value company among domestic beauty and cosmetics listed companies. Retained the top status steady This is not the first time Proya Group has reached the top in market value. Not long ago, Proya Group had also led with a slight advantage, but was quickly overtaken by Bloomage Biotech, BTN, and other companies. Currently, the market values of these three companies are still very close, making them "evenly matched." It is worth mentioning that although the top Chinese cosmetics market value often changes hands, companies represented by Proya Group, Bloomage Biotech, BTN, and Giant Biogene have consistently led the market in total value, occupying the first echelon. As of the close of trading on the May 22nd, the total market values of Proya Group, Bloomage Biotech, and BTN were 48.81 billion yuan ($6.9 billion), 45.37 billion yuan ($6.4 billion), and 44.78 billion yuan ($6.3 billion), respectively, firmly occupying the top three positions in the market value of Chinese beauty and cosmetics, with PROYA leading fourth-place Giant Biogene by over 10 billion yuan ($1.4 billion)(currently Giant Biogene's market value is 35.82 billion yuan, $5.08 billion), and leading fifth-place Shanghai Jahwa by over 20 billion yuan ($2.8 billion) (currently Shanghai Jahwa's market value is 20.36 billion yuan, $2.89 billion). This achievement is the result of Proya Group's years of hard work, with the company dedicated to providing consumers with high-quality cosmetics products. This rise also reflects the market's confidence in Proya Group and the degree of trust in Chinese beauty and cosmetics brands. (Credit: PROYA offline exhibition) Revenue exceeded 6 billion yuan ($850.8 million) in the 2022 Proya Group was founded in 1982 and is headquartered in Hangzhou. The company's products cover multiple fields, including cosmetics, skincare, and perfume, and its brands include PROYA, Timage, and Hapsode. The company has always focused on research and development and innovation, constantly introducing new products and services to provide consumers with better experiences. On April 20th of this year, Proya Group announced its financial report for the FY2022. According to the report, it achieved a operating revenue of 6.385 billion yuan ($905.3 million), an increase of 37.82% from the previous year, and net profit attributable to shareholders of the listed company of 817 million yuan ($115.8 million), an increase of 41.88% from the previous year. Compared with previous years' financial data, Proya Group's operating revenue and net profit attributable to shareholders growth rates were the highest in nearly four years. In just four years, PROYA has grown from of less than 2 billion yuan ($283.6 million) to over 6 billion yuan ($850.8 million). Furthermore, Proya Group has maintained a steady growth momentum this year. According to the financial report, Proya Group achieved a total operating revenue of 1.622 billion yuan ($230 million) in the first quarter of 2023, a year-on-year increase of 29.27%, and a net profit attributable to shareholders of the listed company of 208 million yuan ($29.5 million), a year-on-year increase of 31.32%. In the press release of Proya Group's major brand operating data for April 2023, released on May 21st, the company disclosed that the sales momentum of each brand in April was good, achieving steady growth. According to preliminary calculations, the flagship store on Tmall of main brand Proya achieved GMV of about 228 million yuan ($32.3 million) in April, a year-on-year increase of about 57%. The GMV on Douyin (Chinese version of TikTok) platform was around 135 million yuan ($19.1 million), a year-on-year increase of about 40%. The Tmall flagship store of the Timage achieved a GMV of about 45 million yuan ($6.4 million), a year-on-year increase of about 95%. The GMV on Douyin platform was about 29 million yuan ($4.1 million), a year-on-year increase of about 69%. How did Proya Group operating revenue grow 170% in four years? Proya Group stated that the continued growth in 2022's performance was mainly due to its ongoing promotion of the "6N" strategy (new consumption, new marketing, new organization, new mechanism, new technology, new intelligent manufacturing), deepening the "multi-brand, multi-category, multi-channel" strategy and the "large single product strategy." Its main brand Proya Group saw steady growth in sales, while other brands such as Caitang saw rapid growth, especially in the steady growth of online channels. Currently, with its main brand Proya, Proya Group has expanded into makeup Timage, skincare Hapsode, and personal care Off & Relax, forming a diversified brand matrix. However, Proya Group's main growth driver is still the core brand Proya. Financial reports showed that core brand Proya revenue still accounts for 82.74% of the group's total revenue. It's worth mentioning that in 2022, the company's core brand Proya became the only A-share cosmetics company with with a single-brand market value of over 5 billion yuan, with total revenue reaching 5.264 billion yuan ($746.5 million), a year-on-year increase of 37.46%. Proya's first hero product was Bubble Mask launched in 2019. In just August 2019, the Bubble Mask's monthly sales exceeded 100 million yuan ($14.2 million), becoming the driving force behind the growth of the official flagship store's sales and igniting the long-dormant brand in the market. After that, Proya began to explore the path of creating hero products. According to a report by Economic Observer, in 2019, the domestic market's awareness of functional skincare was not high, but Proya Group had already started planning a retinol-based single product, undergoing more than a year of internal research and development. This was the precursor to the now-popular Deep Ocean product. The report also mentioned that "after the product was launched, they spent a lot of money on marketing and promotion, bringing up the concept." (Credit: Proya Deep Energy Series) In early 2020, Proya Group officially launched the Ruby Essence. The powerful and cost-effective Deep Ocean Essence allowed Proya Group to raise its value to a higher level, creating even more impressive results for the brand. In 2021, Proya upgraded two single products, the Deep Ocean Energy Essence and Double Effect Brightening Essence. Although positioned as highly effective products, PROYA did not name them after their ingredients like The Ordinary or HFP did. Instead, PROYA relied on the "Morning C, Evening A"(a skincare routine that popular in China, which means apply Vitamin C in the morning and Alcohol A in the evening) that was popular on social media at the time and used a binding marketing strategy to promote both products. According to list of cosmetics on Tmall during the 2022 Double 11 Shopping Festival, PROYA ranked first in the Tmall Chinese beauty category. The Double Effect Brightening Essence, the "Morning C, Evening A" set and the Deep Energy face cream all exceeding 200 million yuan ($28.4 million) in sales. After analyzing the revenue of Chinese brands in 2022, CHAILEEDO found that, based on the publicly disclosed data, besides the PROYA brand, Winona was also close to the 5 billion yuan ($709 million) threshold, achieving revenue of 4.89 billion yuan ($693.4 million). Brands like Kefumei, Maogeping, Simpcare, and Biohyalux are still striving to reach the 2 billion yuan ($283.6 million). It can be said that PROYA and Winona have achieved a significant lead among Chinese beauty brands. Regarding other brands, the makeup brand Timage has already turned its losses into profits, while Hapsode and Off & Relax have also become profitable. The second growth curve led by Timage has already emerged for PROYA. Taking the Timage as an example, the financial report shows that in 2022, Timage's single-brand revenue exceeded 572 million yuan ($81.1 million), a year-on-year increase of 132.04%. Public data shows that during the Double Eleven shopping festival last year, Timage's three-color contouring palette ranked first in the Tmall highlighter category, its Master Makeup Primer ranked second in the Tmall makeup primer category, and its three-color concealer palette ranked second in the Tmall concealer category. In the third quarter earnings conference call, PROYA also made plans for other brands in the second growth curve. Off & Relax will further improve brand endorsement, enhance brand tonality, and improve research and development capabilities. Hapsode will deepen its focus on young oily skin positioning, expand new product categories around the needs of young oily skin consumers. In the increasingly competitive market for Chinese cosmetic brands, PROYA's ability to maintain its leading position also indicates an increase in consumer recognition and trust in Chinese cosmetic brands. In the future, PROYA will continue to strengthen brand building, product innovation, and channel upgrading, providing consumers with better products and services, and maintaining stable development and a leading position.

It is estimated that by 2033, China will account for 42.6% of the global sun care product market. According to Future Market Insights, the sun care product market is expected to continue its growth trend over the next decade. The market valuation is predicted to increase from $13.6 billion in 2023 to $25.3 billion in 2033, representing a doubling of the market size. This growth trend is driven by the increasing awareness among consumers about skin care and protection against UV radiation, which is driving the demand for sun care products. It is foreseeable that this trend will continue over time. Ten-Year Forecast According to Future Market Insights, the global sun care products market is expected to have a compound annual growth rate of 6.4% during the forecast period. This is compared to a compound annual growth rate of 4.3% for the historical data from 2018 to 2022. Future Market Insights has divided the market forecast into short-term, medium-term, and long-term. From 2023 to 2026, as urbanization accelerates and lifestyles change, more and more people will begin to use sun care products. Developed countries such as the UK and the US will widely use organic materials to produce sun care products. From 2026 to 2029, consumers will increasingly pay attention to the impact of skin damage and dullness, which will drive market growth. In addition, upgrades and innovations in SPF and UV protection sun care products could become the market growth engines during this period. In the long term, from 2029 to 2033, increased research and development investment, more markets being developed, and capital driving will drive the growth of the sun care products market. Manufacturers will extend the shelf life of products by adding green ingredients, which will also enhance brand value. Future Market Insights predicts that the market will reach a valuation of $25.3 billion in ten years. In contrast, the market valuation for the period from 2018 to 2022 was $12.9 billion. Online Retail to Become the Primary Sales Channel Sun care has always been one of the key categories for cosmetics companies. In terms of age, by 2033, adults may account for 79.2% and become the primary consumer group in the sun care market. The increasing number of skin problems, including premature aging, wrinkles, and sunburn, are gradually increasing the demand for sun care products among adults. Sun care products with the benefits of reducing skin cancer, leathery skin, and inflammation will be more favored. In terms of packaging, cosmetics manufacturers prefer to use tube-style packaging to provide products to customers. Currently, tubes packaging for sun care products is leading the global market and is expected to reach a market share of 42.8% by 2033. This is because tubes packaging is easy to store and reliable, convenient for storing cosmetics such as creams, lotions, foundations, and face wash. Additionally, this packaging material also helps improve product quality and prolongs shelf life. Based on sales channels, online retail will occupy a significant share and dominate the global market by 2033. Customers prefer to purchase products through online platforms. Top companies sell products online to gain maximum profits. Demand for Organic and Natural Products Drives Growth in China's Sun Care Market According to data from CHAILEEDO INTELLIGENCE, the size of the sun care market in China was 9.3 billion yuan ($1.323 billion) in 2022 and is expected to grow to 11 billion yuan ($1.565 billion) in 2023, a year-on-year growth of 8.9%. From the perspective of market sales, the top 10 brands on the Tmall platform in the first quarter of this year are Mistine, Anessa, L’Oréal, Shiseido, Lancôme, Winona, RE: CIPE, Naris, COGI, Lancer King. (Source: CHAILEEDO INTELLIGENCE) It can be seen that among the top-selling brands, the top positions are still dominated by international brands. According to data from Jingcanmou, in the first quarter of 2023, the sales volume of sun care products on Taobao and Tmall exceeded 12 million units, an increase of approximately 100% compared to the previous quarter, with sales revenue of nearly 1.5 billion yuan ($213 million), a quarter-on-quarter increase of approximately 74%. The sales volume of stores and the number of products sold related to sun care products have also increased. Future Market Insights predicts that by 2033, China will account for 42.6% of the global sun care products market. The growing demand for organic sun care products among consumers is driving the development of the Chinese market. Cosmetic manufacturers will lean towards using organic ingredients to maintain the skin's pH value, which will better align with Chinese consumer preferences for organic sun care products. Additionally, Chinese consumers prefer the label CLEAN BEAUTY, so synthetic products may be more popular. The Chinese market is promoting sun care products to consumers through expanding social media online marketing, including promoting the use of sun care products for improving skin tone, appearance, and texture. In addition, vegan products are popular among consumers due to their natural characteristics, which is also driving the development of China's sun care products market. With the pandemic receding and the increase in demand for travel after the full reopening, many industry insiders are optimistic about the growth of the sun care market. "This year's tourism economy has ushered in a good start, and we believe that the demand for sun care products will increase in the spring and summer seasons." Source: FMI

Nirvana Brands has strengthened its position as a major player in the luxury fragrance space with the acquisition of Lovely Distribution Company. Recently, UK-based perfume company Nirvana Brands completed a transaction with Lovely Distribution Company, the specific amount of which has not been disclosed yet. Through this move, the company will add Lovely Distribution Company's perfumes to its product portfolio, including the Lovely fragrance by Sex and the City star Sarah Jessica Parker. （Sarah Jessica Parker） The acquisition has expanded Nirvana Brands' portfolio Lovely was created by Sarah Jessica Parker, who is known for her role as Carrie Bradshaw on the HBO television series Sex and the City. The fragrance was born in 2005 and was the first perfume created through Sarah Jessica Parker's collaboration with Coty Inc. According to Sarah, the perfume is suitable for all generations, "from 17 to 107." The fragrance was developed by Laurent Le Guernec and Clement Gavarry in 2005, with Sarah herself serving as the creative director and actively participating in the process from start to finish. Nirvana Brands was founded by Dilesh Mehta in 2002 and now has a wide range of perfume products. This long list includes fragrances such as Ghost, Porsche Design, and Ariana Grande. Through the acquisition of Lovely Distribution Company, Nirvana Brands has strengthened its position as a major player in the luxury perfume industry. Dilesh Mehta, CEO of Nirvana Brands, commented: "We are thrilled to welcome Lovely Distribution Company into the Nirvana Brands family. Their expertise in developing and distributing leading fragrance brands aligns perfectly with our mission to provide quality luxury beauty products to our customers." （source: Nirvana Brands） The perfume industry has been experiencing frequent changes this year The market has been closely following perfume trends, and Estée Lauder Companies is no exception. Perfumes have become the growth engine of the company. According to Estée Lauder Companies' 2022 financial report, Jo Malone, Tom Ford Beauty, and Le Labo all achieved strong double-digit growth, driving a 30% performance growth in the perfume sector. In March of this year, Estée Lauder's strategic early-stage investment and incubation department, New Incubation Ventures, acquired a minority stake in British perfume brand Vyrao. The announcement stated that the funds would be used for brand marketing and advertising investment, strengthening consumer brand awareness, expanding retail channels, and expanding into international markets. China's perfume market has not only received widespread attention from beauty giants, but also attracted capital influx. On May 9th, Cathay Capital officially announced the completion of an increase in capital for French salon perfume brand Juliette Has A Gun. Weinberg Capital Partners and existing investors, Chinese high-end beauty brand group USHOPAL, also participated in this round of financing. This capital increase will support Juliette Has A Gun in consolidating its influence in major regions such as China, the US, and the Middle East, and further developing the perfume market in Latin America and Southeast Asia. In addition, celebrity fragrances like Lovely have also been targets of major investments. According to WWD, Henry Rose, a gender-neutral luxury perfume brand founded by American actress Michelle Pfeiffer, received an A-round financing led by Sandbridge Capital, marking the first external investment since its launch in 2019. However, the terms of the transaction were not disclosed. (source: Juliette Has A Gun) The perfume market has become increasingly competitive in recent years In the past few years, the pandemic has led many industry insiders to propose the "perfume effect," believing that the fragrance category with a stronger self-pleasure attribute will gradually become mainstream. The counter-trend growth of the Chinese perfume market also shows an increasing demand for fragrances among consumers. According to CHAILEEDO's intelligence data, it is expected that there will be a year-on-year growth of 20.15% in 2022, reaching 16.1 billion yuan ($2.5 billion), with growth rate far exceeding that of categories such as facial cleansers, makeup removers, serums, masks, and personal care. According to Euromonitor data, in 2020, the global market entered a period of economic downturn due to multiple factors, and the perfume market experienced negative growth. Despite this, the Chinese perfume market still achieved a growth rate of 10.6%. In 2021, the growth rate of the Chinese perfume market reached 38.7%, experiencing explosive growth. In 2022, as the year that the industry was most impacted by external environmental factors, the growth rate of the Chinese perfume market remained higher than that of the global market. According to data from CBNData and Tmall's 2023 Perfume and Fragrance Consumer Insight White Paper, the perfume penetration rates in international markets such as the United States and Europe have reached 50% and 42%, respectively, while the perfume penetration rate in China is only 5%. This means that the Chinese fragrance market has ample room for improvement, and also indicates that the Chinese fragrance market has a broad scene. Take Juliette Has A Gun as an example. In the past two years, Juliette Has A Gun's revenue has doubled. Its global retail sales in 2022 reached 120 million euros, with the Chinese market accounting for over 30%. In the Chinese market, Juliette Has A Gun ranks first in fragrance sales across all price ranges on Douyin, with an average unit price of nearly 1,000 yuan. In the US, Juliette Has A Gun is currently the best-selling high-end salon fragrance brand at Sephora. The influx of capital into the perfume category shows the prosperity of the perfume market. The rise of the "olfactory economy" has attracted celebrities to invest in the fragrance market, and the potential of fragrances is still being explored.

Estée Lauder Companies China Innovation Labs is not just for Chinese consumers, but will be radiated worldwide through the Chinese market. (Credit: Estée Lauder Companies China Innovation Labs in Shanghai) In recent years, more and more international beauty companies have been stepping up their efforts in China to accelerate localised research and development in the Chinese market. Recently, Estée Lauder Companies China Innovation Labs was inaugurated in Shanghai. According to Estée Lauder officials, this means that the Estée Lauder’s largest innovation lab in the international market was officially launched. Confident in the Chinese market The inauguration of Estée Lauder's heavyweight Innovation Lab is a 'shot in the arm' for the cosmetics industry. Meanwhile, for many brands, 2023 is the year of the rebound for the cosmetics industry. Following many consecutive months of decline last year, China's cosmetic retail figures has a positive growth for the first time this year. On May 16, China's National Bureau of Statistics released data showing that from January to April, total retail sales of consumer goods amounted to 1.498 trillion yuan ($213.3 billion), up 8.5% year-on-year. Among them, the cosmetics category in April this year, the total retail sales amounted to 27.6 billion yuan ($3.92 billion), an increase of 24.3% year-on-year. From January to April, the total retail sales of cosmetics category was 129.9 billion yuan ($18.5 billion), an increase of 9.3% year-on-year. As Estee Lauder's financial reports, in FY2022, Estee Lauder's net sales were $17.74 billion, up 9% by reported basis. While its business in Asia Pacific, the second largest market, was the worst performer, being the only one of the three regions (The Americas, Europe, the Middle East & Africa, Asia/Pacific) to decline with full-year sales down 1% to $5.437 billion. It declined in the first, third and fourth quarters in addition to the second quarter. However, the turnaround came in the recently published third quarter financial report. Estée Lauder Companies released its third quarter results for the fiscal year 2023, showing that net sales in Asia Pacific increased by 7% to $1.192 billion in the three months to March 31, and Estée Lauder's Mainland China market achieved double-digit growth in both February and March of this year. Through Estée Lauder's financial results for the past three years, CHAILEEDO found that the business in Asia Pacific, where China is located, has maintained double-digit year-on-year growth in both FY2021 and FY2020. In FY2022, however, the performance of Asia Pacific declined due to the fading of the travel retail channel as a result of the pandemic. (Credit: Estee Lauder's performance in recent financial years) Even so, Estée Lauder remains confident in the recovery of the China market. In FY2023 third quarter financial report, President and Chief Executive Officer Fabrizio Freda concluded, "While we are working to overcome the severe headwinds facing travel retail in Asia, we believe this is a temporary headwind and we are encouraged by the strong other business momentum." Indeed, this year marks the 30th year of Estée Lauder's presence in China since its entry into the mainland market in 1993. During this period, Estée Lauder has continued to increase its investment in the China market and the its net sales in China have almost doubled during the past three fiscal years. It is clear that Estée Lauder's performance in China are gradually in a rise. At the same time, and more importantly, being Estée Lauder's second largest market worldwide, China has also become the heart of Estée Lauder's research and development. Estée Lauder's world's largest innovation lab is located in China According to official sources, Estée Lauder Companies China Innovation Labs enjoys 12,000 square metre and is located in Shanghai's Minhang Caohejing Development Zone. It is its first integrated R&D centre worldwide that combines research, ideation, insight, clinical, sensory and performance evaluation, formulation, packaging and engineering. Justin He, Vice President, R&D China & APAC told CHAILEEDO that the Estée Lauder Companies China Innovation Labs combines modern and traditional Chinese design elements with architectural aesthetics. The beauty of this fusion is reflected in the design of the building's five floors - each of which is inspired by the five elements of traditional Chinese culture (gold, wood, water, fire and earth), with the five elements corresponding to the different responsibilities of each floor: consumer insight, cutting-edge R&D Centre, Packaging Model Studio, Interactive Testing Unit and Pilot Workshop. All of the parts are committed to accelerating the transition from consumer insight to commercialisation. Moreover, there is a dedicated Live Streaming Room and Experience Centre, giving Chinese consumers the opportunity to participate in the co-creation of new products on-site. Global Advanced Technology Center, which opened on the Innovation Day held by Estee Lauder on March 29, also collaborated with Chinese academic and research institutions in the field of materials science to develop new, highly effective skincare ingredients and formulations. According to Justin, over 60% of the staff at the labs have a master's degree and 90% of the staff at Global Advanced Technology Center are PhDs. The local scientists will also make full use of their strengths to deepen their research on natural actives with Asian characteristics and continue to improve the extraction process, so as to develop product formulations suitable for Asian skin. During the tour of the labs, Justin showed us rows of plants in containers placed in the Global Advanced Technology Center. He described to them that Estée Lauder is focusing on researching Chinese specialty botanical ingredients, categorised by active ingredients or species, combined with more advanced extraction techniques to maximise the active ingredients of raw materials. It is committed to providing Asian consumers with very good, skin care needs that can address efficacy. In fact, Estee Lauder's Innovation and Research Centre was established in 2005 on Bibo Road, Zhangjiang Hi-Tech Park to focus on new formulations for the prestige brand. 2008 saw the development of the first successful product, the M-A-C Lip Scrub, a classic product that has been sold to this day. In 2011, Estée Lauder Innovation Centre was upgraded to the Estée Lauder Asia Pacific Research and Development Centre, with the aim of further exploring consumer needs and developing products for the skin of Asian consumers, especially in China. The Estée Lauder Group announced this long-term strategic investment at the height of the pandemic in February 2020. On November 8 of that year, during the 3rd China International Import Expo, Estée Lauder, Shanghai Minhang District People's Government and Lingang Group held a signing ceremony for the labs. The construction officially began on May 13, 2021, taking a year and a half to finally complete. Speaking at an Innovation Day held at the centre, Estée Lauder Group China President and CEO Fan Jiayu said, "The growing innovation and research capacity will bring Chinese consumers more new products that are relevant to their needs, expectations and aesthetics. It will breathe new life into the continued development of our business in China. With the labs, Estée Lauder will continue to lead and reinvent the premium beauty industry, bringing a better experience to consumers in China, Asia and around the world." (Credit: open ceremony on Innovation Day held by Estee Lauder) In China, for the world In an interview with CHAILEEDO, Jane Anders, Senior Vice President, APAC R&D, The Estee Lauder Companies said the labs is dedicated to expanding from the Chinese consumer to the Asian consumer. Then the results will radiate globally. The philosophy of this lab from top to bottom is: "In China, for China"; "In China, for Asia"; and then "In China, for the world". By 2025, the labs will be the largest cutting-edge research centre in the Estée Lauder Group's international markets. At the same time, as a localisation function, the labs will also enable the Group's brands to develop and bring a customized product portfolio to Chinese and Asian consumers. "At the Innovation R&D Centre, our core strategy is that we want to understand Chinese, Asian skin, and we want to understand all aspects of Asian and Chinese skin and their skincare needs from a biological, chemical and morphological perspective." So says Jane. Chinese consumers are the most important group that Estée Lauder wants to serve. When it comes to anti-ageing issues, which are of greater concern to Asian consumers, Jane said that another core aspect of Estée Lauder's work is to look at extremely strong Asian-related iningringredients to address consumers' anti-ageing concerns, such as ginseng extract and Eastern Angelica root extract. As a result of Estee Lauder's research, it was found to be extremely effective in anti-ageing skincare as well. Currently, there are more than 10 Chinese specialty ingredients being used in Estee Lauder products to address the issues that consumers want to address. CHAILEEDO found that except for the Chinese market, the labs will also apply products and formulas developed in China to products in other countries. Currently, the centre focuses on skincare and make-up. The products developed will first satisfy Asian consumers and then be sold to international markets according to the needs of people in different countries. Jane said in the exclusive interview with CHAILEEDO: "Every market has its strengths and weaknesses. Like in the Chinese market, we just talked about toner, emulsion, air-cushion foundations, sun protection, which are probably at the forefront of the world. These things are advancing from the East to the West. There are other things that are probably at the forefront of the West, advancing from the West to the East." "We are basically seamlessly linked to our colleagues around the world, keeping the information flowing. The best quality technology is found first over here, and even if it's not available elsewhere yet, our colleagues will be the first to know about it because we see it over here and develop it, so it's a symbiotic and win-win situation."

French luxury brand Chanel has officially set up a store in Zhengzhou's David Plaza, which was previously the location of Max Mara and Dolce & Gabbana stores. French luxury brand Chanel has officially set up a store in Zhengzhou's Dennis David City, which was previously the location of Max Mara and Dolce & Gabbana stores. According to a local commercial real estate blogger on Xiaohongshu, the store covers an area of 840 square meters and is scheduled to open in December 2023. This will be the first Chanel store in Central China. Coincidentally, another French luxury brand, Dior, has also recently entered Dennis David City. Their store also covers over 800 square meters and is expected to open at the end of May, becoming Dior's first store in Henan. This is just one of the recent luxury brands to open their first stores in Zhengzhou or other cities in the region. In December 2022, luxury jewelry brand Van Cleef & Arpels opened a store in Dennis David City. In March, Hermes opened their first store in Henan in the same mall. According to a previous report by Interface Fashion, some customers waited outside the store for up to four hours on the opening day, and almost all products were sold out. In the past, Zhengzhou was not the first choice for luxury brands to expand beyond first-tier cities. Many brands tend to choose eastern cities such as Hangzhou and Nanjing after opening stores in Beijing, Shanghai, Guangzhou, and Shenzhen. With changes in development policies and consumer preferences, western cities such as Xi'an and Chengdu have become the preferred locations for expansion. Luxury brands have not ignored the Central China market, with Louis Vuitton opening stores in Changsha, Wuhan, and Zhengzhou early on. The Changsha IFS, developed by K11, is one of the largest high-end commercial projects in Central China. When it opened in 2018, it introduced many brands' first stores in Hunan, including Hermes. However, in terms of the richness of brand offerings, Central China may have gathered several leading luxury brands, but it is still not the preferred region for small and medium-sized brands as well as designer brands to expand. For quite some time, high-end shopping centers in Central China were operated by local developers and lacked vitality, despite the growing sales performance of luxury goods.

Amorepacific is launching a customized makeup brand called "TONEWORK" on 16th May. Based on artificial intelligence technology, customers can choose from a total of 600 options of base makeup products that are optimized for each customer's skin color. On May 16th, the Korean beauty giant Amorepacific unveils a customized makeup brand called "TONEWORK." The brand utilizes artificial intelligence technology to offer a variety of base makeup products that are tailored to the skin color of each customer. With a total of 600 options available, customers can select the product that is best suited to their individual needs. The customized technology used in TONEWORK won the Innovation Award in the Robotics Engineering category at the world-renowned consumer electronics and technology exhibition, CES 2023. A color diagnosis algorithm based on artificial intelligence precisely measures facial skin color, and the robot immediately produces the product based on the results. The brand offers a total of 600 options by designing 150 colors that are carefully crafted to match the skin tones of people around the world, and 2 product types (foundation and cushion) and 2 formulas (glow and semi-matte) that customers can choose from according to their personal preferences. TONEWORK is the first customized cosmetics brand to receive vegan certification from the Korea Agency of Vegan Certification and Services, and it uses FSC (Forest Stewardship Council) certified paper and recycled plastic (PCR) to apply sustainable packaging. According to a TONEWORK spokesperson, the brand will continue researching ways to enable customers to implement their unique color as 'AUTHENTIC COLOR' and become a customized makeup brand that helps individuals shine. The new "TONEWORK Vegan 150+ Foundation" and cushion-type "TONEWORK Vegan 150+ Foundation To Go" can be experienced at "Amore Store" located in Amorepacific's headquarters in Yongsan, Seoul, and purchased at Naver Smart Store. A brand launching pop-up store will be held at Lotte Hotel L7 Hongdae from the 25th of this month until July 19th, where customers can experience customized makeup services firsthand. More detailed information about the brand can be found on the official website. Source: Amorepacific

MINISO announced its unaudited financial results for the third quarter of fiscal year 2023 ended March 31, 2023. The company delivered revenue of 2,954.1 million yuan (US$430.2 million) in 23FY Q3, representing an increase of 26.2% year over year. MINISO, the global value retailer offering a variety of design-led lifestyle products, has released its unaudited financial report for the third quarter of the 2023 fiscal year, which ended on March 31, 2023. The company generated revenue of 2,954.1 million yuan ($430.2 million) in Q3 of fiscal year 2023, saw growth of 26.2% compared to the same period of 2022 and a quarter-on-quarter growth of 18.4%. MINISO reported gross profit of RMB1,161.7 million (US$169.2 million), with an increase of 64.4% year over year and 16.5% quarter over quarter. As of March 31, 2023, MINISO had a total of 5,514 stores, with a year-over-year increase of 401 stores and a quarter-over-quarter increase of 74 stores. The number of MINISO stores in China was 3,383, showing a year-over-year increase of 186 stores and a quarter-over-quarter increase of 58 stores. As of March 31, 2023, the number of MINISO stores in overseas markets was 2,131, with a year-over-year increase of 215 stores and a quarter-over-quarter increase of 16 stores. In the third quarter of fiscal year 2023, the company entered two additional countries, bringing the total number of overseas markets it has entered to 106. Mr. Guofu Ye, Founder, Chairman, and Chief Executive Officer of MINISO, commented, “We delivered a strong start to calendar year 2023 with the best March quarter performance in our history, shaking off three years of uncertainty caused by pandemic. We are pleased to see our domestic operations delivered a well-rounded and encouraging quarterly performance, while our overseas operations also moved further along its path of recovery.” In April 2023, the GMV of MINISO's offline stores in China showed a year-over-year increase of around 80%, and the average GMV per MINISO store increased by around 50%, excluding the impact of temporary store closures during the same period in 2022. The average GMV per MINISO store in China in April 2023 was around 85% of the level from the same period in 2019, indicating a significant sequential improvement from the previous two months. Additionally, the GMV of MINISO's overseas business increased by around 45%.

Coty has announced the release of a groundbreaking new serum by the ultra-premium skincare brand Orveda, as well as launch of Infiniment Coty Paris, the new niche fragrance project. Coty, the global beauty company with a range of well-known brands in fragrance, color cosmetics, skin and body care, has announced the release of a new and innovative serum from the ultra-premium skincare line Orveda, as well as the launch of the new new niche fragrance project Infiniment Coty Paris. “This ethos is embodied in our latest innovations, Orveda’s new Omnipotent Concentrate serum, which I believe is perhaps the most potent serum of all time. Infiniment Coty Paris, our most ambitious fragrance project to date, aims to usher in a new era for fragrances and perfumery, representing to fragrance what Orveda is to skincare.” said Sue Y. Nabi, Chief Executive Officer of Coty. Established in 2014, Orveda is a trailblazing brand that has gained a reputation for advancing the science of microbiomes and prebiotics in skincare. Their products are all vegan, environmentally conscious, and designed to be suitable for all genders. In 2021 Nov, Coty made investment in Orveda. Orveda CEO Nicolas Vu said “OmniPotent Concentrate has shown very strong clinical results and is expected to further cement Orveda’s leading position at the nexus of innovation, beauty, and wellness.” As for Infiniment Coty Paris project, Coty stated that or almost 120 years, The company has developed into a leading company in the fragrance industry, with a strong foundation of industry expertise, intellectual property, and a collection of iconic signature fragrance brands. To further solidify this position, Coty has announced the launch of its most ambitious and high-end fragrance project to date, "Infiniment Coty Paris." Drawing on more than a century of experience and the most innovative minds in beauty, Infiniment Coty Paris aims to be at the forefront of the fragrance industry, much like Orveda is in the skincare industry. The collection will eventually include fourteen distinct scents and is anticipated to be released globally in 2024. This will be the first fragrance to have patents pending for both its formulation and packaging. Source: Coty

The China National Health Commission has added a new list of 21 food additives that will not be approved for administrative permission, as announced on its official website. This list includes NMN (β-nicotinamide mononucleotide), which is marketed as an "anti-aging drug" . The National Health Commission recently announced on its official website a new batch of food additives that will not be granted administrative permission, including the so-called "anti-aging drug" NMN (β-nicotinamide mononucleotide) and "king of sweeteners" sucralose, among 21 new varieties included in the new list. The new 21 varieties that will not be granted administrative permission include 5'-nucleotide disodium, D-isoascorbic acid and its sodium salt, NMN, sucralose (also known as sucrose), tricresan, ethylenediaminetetraacetic acid disodium, potassium acetyl sulfonate, lactic acid, ascorbic acid (also known as vitamin C), citric acid, lemon yellow, nitrous oxide, calcium chloride, propylene glycol alginate, wheat conditioning agent, ribavirin M, hydroxytyrosol, carmine, benzoic acid and its sodium salt, capsicum oleoresin, and capsicum red. NMN, or β-nicotinamide mononucleotide, is a naturally occurring biologically active nucleotide. In the human body, NMN is the most direct precursor of NAD+, whose function is manifested through NAD+. NAD+, or nicotinamide adenine dinucleotide, is crucial for maintaining cellular vitality. Since nicotinamide belongs to vitamin B3, NMN falls under the category of vitamin B derivatives and is extensively involved in various biochemical reactions in the human body, closely related to immunity and metabolism. On January 24, 2022, NMN was approved by the National Medical Products Administration as a new cosmetic ingredient. It was then updated in June of the same year. The updated β-nicotinamide mononucleotide expanded its usage range, changing its scope from "can be used in all types of cosmetics except lip products, oral hygiene products, and spray products" to "can be used in all types of cosmetics." In January 2023, the National Health Commission formally accepted NMN as a new food additive. However, four months later, the dream of NMN as a food additive was shattered. Nonetheless, the market remains optimistic about the prospects of NMN. According to Bosson Research data, the global NMN market size was $255 million in 2021, and it is expected to grow to $449 million by 2028, with a CAGR growth rate of 8.40%. At present, the main source of NMN raw materials is China, and end products are primarily sold within China through cross-border e-commerce and duty-free shops. As per QY Research data, as of 2019, China's NMN consumption accounted for 67.83% of the global total.

The China National Bureau of Statistics released data on social consumer goods retail sales for April 2023. The total retail sales of consumer goods in April reached 3.491 trillion yuan ($501.69 billion). While the total retail sales of cosmetics reached 27.6 billion yuan ($3.97 Billion), saw growth of 24.3%. The China National Bureau of Statistics released data on social consumer goods retail sales for April 2023. The total retail sales of consumer goods in April reached 3.491 trillion yuan ($501.69 billion), an increase of 18.4% year-on-year. From January to April, the total retail sales of consumer goods reached 14.9833 trillion yuan ($ 2.15 trillion), a year-on-year increase of 8.5%. Regarding cosmetics-related data, in April 2023, the total retail sales of cosmetics reached 27.6 billion yuan ($3.97 Billion), a year-on-year increase of 24.3%. From January to April, the total retail sales of cosmetics reached 129.9 billion yuan ($18.67 billion), a year-on-year increase of 9.3%. Compared with the same period last year, although the total retail sales of cosmetics occasionally declined from September 2022 to April 2023, overall, it showed an upward trend, and the growth rate has significantly increased since the beginning of this year. According to data released by the National Bureau of Statistics in previous years, the total retail sales of cosmetics in April this year exceeded the highest value of 27.2 billion yuan ($3.91 billion) in 2021, reaching 27.6 billion yuan ($3.97 billion), and it was a strong recovery after negative growth in 2022. Regarding customs data, in April, China imported 32,167.8 tons of beauty, cosmetics, and personal care products, with an import value of 10.97 billion yuan ($1.58 billion). From January to April, a total of 121,779.7 tons were imported, a decrease of 8.1% compared with the same period last year. The total import value was 46.02 billion yuan (&6.61 billion), a year-on-year decrease of 3.7%. The National Bureau of Statistics stated that in April, the national economy continued to recover, and positive factors accumulated. However, it is also necessary to see that the international environment is still complex and severe, domestic demand is still insufficient, and the internal driving force for economic recovery is not yet strong.