Fable Investments, which is the corporate venture investment arm of Brazilian beauty giant Natura &Co, has provided additional funding to Perfumer H, a fragrance brand located in the UK that was founded by Lyn Harris. Perfumer H, the UK-based fragrance brand established by Lyn Harris, received another investment from Fable Investments, the corporate venture investment arm of the Brazilian beauty giant Natura &Co. The investment was aimed to expand its product range, strengthen its leadership team, and facilitate growth in Asian markets. Fable Investments was established by Natura &Co on May 2021. Natura &Co said Fable Investments operates independently to ensure that it can fully dedicate itself to managing its investment portfolio and respond quickly to opportunities. The team possesses significant expertise in the beauty and retail sectors, including experience in entering new markets, promoting sustainability, and scaling brands that have a distinctive market position in a respectful manner. After the establishment of Fable Investments, in late May 2021, Fable Investments made its first investment with Perfumer H by acquiring a minority stake in the company. The precise details of the new investment were not disclosed. Perfumer H was created by the classically trained British perfumer Lyn Harris, who has been trained in Paris and Robertet Grasse before embarking on her career working with many acclaimed brands as well as founding Perfumer H in 2015. Lyn Harris is driven to produce exquisite fragrances that reflect life and are sophisticated and integral to her personal style. Her unwavering determination to reintroduce natural ingredients into perfumery was the beginning of her journey in the field of fragrance. In 2020, the Perfumer H had entered the China Taiwan market. While Perfumer H also expect to step into the HK market in the first half of this year. Source: WWD

LONKEY, the Chinese old-established cleaning products manufacturer that owns brands such as "Lonkey" and "GFL", announced to divest its daily chemical business by assets exchange with its controlling shareholder Guangzhou Consumer Goods and Services Group Ltd. Guangzhou LONKEY, an old-established daily chemical enterprise that owns brands such as "LONKEY" and "Gaofuli," announced in a statement that its controlling shareholder, Guangzhou Consumer Goods and Services Group Ltd, plans to exchange no less than 51% of the shares held directly or indirectly by Guangzhou Xinshicheng Enterprise Development Co., Ltd. (referred to as "Xinshicheng") with its daily chemical assets, including the entire share capital of Guangzhou LONKEY Daily Necessities Co., Ltd, Shaoguan LONKEY Co., Ltd and Liaoning LONKEY Industrial Co., Ltd, as well as the 60% equity of Guangzhou Daily Chemical Industry Research Institute Co., Ltd. LONKEY was founded in 1959 and formerly known as Guangzhou Hard Oil Plant. It is one of the oldest detergent production enterprises in South China. The company’s products include fabric textile care, kitchen cleaning products, home care cleaning products, personal care products and industrial cleaning products. After the completion of the transaction, Guangzhou LONKEY will hold a controlling stake in Xinshicheng, which operates several creative parks in Guangzhou, including T.I.T Creative Park, where WeChat's headquarters is located. At the same time, Guangzhou LONKEY will completely divest its daily chemical business and focus on food, as well as park development and operation in the future. It is reported that the specific asset appraisal report was not disclosed in this announcement, and the transaction is still in the preliminary planning stage. The two parties have not yet signed any agreements, and the core elements of the transaction, such as the transaction plan, transaction price, performance commitments, still need further discussion and negotiation. The necessary internal and external related decision-making and approval procedures of the company, the target company, and the transaction counterparty still need to be carried out, and there is a risk that the transaction may not pass such decision-making and approval procedures. According to the 2022 annual report of Guangzhou LONKEY, the gross profit margin of its daily chemical business was only 9.63%, a decrease of 1.68 percentage points compared to the previous year. This is a significant drop from the gross profit margin of over 22% in 2019.

Cosmetic filers should audit and evaluate the authenticity and completeness of the submission code and the corresponding ingredient safety information provided by the ingredient manufacturer. If authenticity issues are found, the ingredient should not be used. On May 11, the Guangzhou Municipal Administration for Market Regulation issued the Q&A on General Cosmetic Filing, which provides explanations on the collection and submission of ingredient safety information. For the collection of ingredient safety information by the filer of general cosmetics, the Guangzhou Supervision Bureau stated that according to the requirements of the Announcement No. 34, 2023 of the National Medical Products Administration on Measures for Further Optimizing Cosmetic Ingredient Safety Information Administration, the cosmetic filer, as the responsible party for product quality and safety, should collect and obtain detailed ingredient safety information when selecting ingredients included in the Inventory of Existing Cosmetic Ingredients through methods such as requesting information from ingredient manufacturers, reviewing literature, and conducting research and experiments. The filer should then compile the cosmetic ingredient safety information. At the same time, according to the requirements of Announcement No. 34, 2023, cosmetic filers should audit and evaluate the authenticity and completeness of the submission code and the corresponding ingredient safety information provided by the ingredient manufacturer. If authenticity issues are found, the ingredient should not be used. If completeness issues are found, the cosmetic filer may supplement the collection of corresponding ingredient safety information and submit it by filling out the ingredient safety information themselves, while also explaining the issues with the submission code. In addition, if the ingredient manufacturer has not yet registered on the ingredient platform and obtained an ingredient safety information submission code, the cosmetic filer can fill out the ingredient safety-related information through the Cosmetic Registration and Filing Information Service Platform and upload a scanned copy of the paper document with the filer's seal. The relevant certification materials for the self-reported ingredient safety information, such as the ingredient quality specification documents provided by the ingredient manufacturers, the literature reviewed, and the research and experiment data, should be filed and kept by the filer for future reference. It is worth noting that, according to the requirements of Announcement No. 34, 2023, products with different filing periods are subject to different transitional management requirements. Products with an initial filing date between May 1, 2021, and December 31, 2023, should submit ingredients with preservative, sunscreen, coloring, hair dyeing, and whitening functions. Products with an initial filing date of May 1, 2021, should submit ingredients that have quality specification requirements in the Safety and Technical Standards for Cosmetics, products filed for the first time starting from January 1, 2024, should submit all ingredients. In addition, this Q&A also answers the method for filling out the recommended dosage of ingredients in cosmetics. Cosmetic filers can fill in the recommended dosage of ingredients in cosmetics according to the information provided by the ingredient manufacturer. If the ingredient manufacturer does not provide relevant information, provides insufficient information, or provides information that does not comply with cosmetic regulations or related technical principles, the cosmetic filer may also fill in this content on their own after conducting sufficient research and having adequate basis. If there is a difference in the recommended dosage between different types of cosmetics (such as stay-on and rinse-off cosmetics), they should be filled in separately.

International brands are very optimistic about the Chinese market. The 27th China Beauty Expo (CBE) will be held at the Shanghai New International Expo Center from May 12th to 14th, 2023. This CBE will cover 9 exhibition halls, 10 themed pavilions, and more than 40 sub-categories within 13 major categories, attracting nearly 500,000 professional buyers from over 80 countries and regions worldwide. Information exchange and promoting cooperation are among the most important aspects of CBE. What are the "new exhibitors" participating in this edition of CBE? And what are the popular trends that will be presented? New exhibitors are not rookies At this year's CBE, many companies are exhibiting for the first time, but they are not unknown. Givaudan has always been a leader in the international daily chemical and fragrance raw material industry. This is their first time participating in CBE, with the theme concept of "Love for Nature", creating an immersive fragrance experience exhibition. With Givaudan's unique Naturality Platform and Naturality Guide as the main theme, they showcased 27 products from three business segments, including ESG daily fragrance, natural essential oils, and beauty active ingredients. "Givaudan has always been at the forefront of fragrance creation." said Emma, the person in charge of Givaudan's booth at the exhibition. Givaudan also brought cutting-edge technology and electronic devices to the exhibition, such as wearable fragrance devices, VR fragrance experience, and VAS Air virtual fragrance synthesizer. Emma said that this is the first time Givaudan has brought so many products and technologies to customers, hoping to bring customers a different fragrance experience. In addition to the first-time participation of international brands, Chinese brands also performed well at the CBE. Chinese emerging personal care brand Spes was named "China's Most Valuable New Brand" in the skincare and personal care category in 2021. The brand exhibited for the first time at the CBE, showcasing its newly launched shampoo, which focuses on solving scalp oiliness and dandruff problems with an "instant + long-lasting" effect. "I think the market still lacks a product that is truly developed for the scalp of Chinese people. Compared with Europe and America, Chinese people have lower hairlines, making them more prone to problems such as oiliness, acne, hair collapse, and dandruff. This is a specific need of the Chinese people, and we will focus more on the Chinese market to solve scalp water-oil balance and micro-ecology." said Spes founder Zheng Rujing. In addition to the new exhibitors, some old friends of CBE also brought new products to the exhibition. JALA Group has participated in CBE multiple times, and this time brought all 7 major brands including Natural Beauty and Meisu to the exhibition. Among them, the first infant and child skin science and efficacy brand of JALA Group, imine, made its debut, with products such as diaper cream and anti-chapping cream, expected to be launched in April at a price of around 100 yuan. According to Cao Wenwen, the product manager of the Jichu brand, the design inspiration for the imine products comes from the Himalayas, and also adds Jialan's patented ingredient " HiMurchaSin ", which mainly has the effect of soothing and generating a skin microbe barrier. The fragrance takes center stage In recent years, the topic of fragrances has been highly discussed in the market. According to QIANZHAN INTELLIGENCE's prediction, the size of China's fragrance market is expected to exceed 53.9 billion yuan by 2028, and the average annual growth rate from 2023 to 2028 will reach 20%. The fast-growing market reflects the increasing demand of Chinese consumers for fragrances. At the CBE, Eternal mainly exhibited high-end perfumes and brought several first-time exhibiting brands, including the home fragrance brands DR.VRANJES and AMOLN, and the skincare brand DOCTOR BABOR. Wang Wei, the COO of Eternal, said that the professionalization of consumers in the fragrance industry is much faster than that in the skincare and makeup industries, and brands need to provide consumers with richer product value and emotional value. Founder of Chaxiangshi, Badianlaowang, shares a similar view. Although fragrances and perfumes are imported products, people's pursuit of fragrances is universal. Western fragrances may express more personal emotions, while Eastern fragrances not only represent personal choices but also convey certain moods or states of mind. The overall trend of China's fragrance market is on the rise. Perfumes are capable of expressing emotions, and emotions are something that consumers are particularly concerned about, especially after the epidemic. Consumers need a carrier to soothe their emotions. "In the future, I think that its (perfume) growth rate in the beauty category should still be the highest," said Badianlaowang. International brands eye on Chinese market Italy is the guest of honor at this year's China Beauty Expo. Currently, Italy is China's fourth largest trading partner in the European Union. In 2022, bilateral trade volume reached $77.88 billion, a year-on-year increase of 5.4%. Italy's exports to China reached $26.98 billion. At the same time, Italy's exports to China reached $684 million, an increase of 39.2% compared to 2020. “Over 67% of the make-up consumed in Europe is produced by Italian companies, while it is 55% worldwide.“ Italian Trade Agency Shanghai Office Trade commissioner, Augusto Di Giacinto said, ”At this year’s China Beauty Expo, we are fully supporting 18 Italian beauty companies, who are participating in this beauty industry event for the first time in the form of a national pavilion.” Luxess is a German perfume manufacturer with main brands including the high-end Bugatti, as well as Espirit and Tom Tailor. Nicolas Tietz, the perfume management partner of Luxess in Germany, stated in an interview with CHAILEEDO that China is a completely new market with new consumers. "We know that the middle class in China is increasing, and the demand for perfume is also constantly rising," he said. The person in charge of Kose's booth stated that there have been more allergic people in China in March and April this year than before, so they are promoting products that have skin stabilizing and repairing effects. In addition, in order to cater to the needs of Chinese consumers, Kose's products do not use soap-based ingredients, but instead use milder ingredients. Many exhibitors have expressed that the attendance at this year's CBE is unprecedented, which to some extent shows that confidence in the cosmetics industry is continuously recovering. The recovery of the Chinese economy has driven market recovery, and the continuously growing market is attracting the attention of international companies.

Juliette Lévy believes that the acquisition aligns with Oh My Cream's strategy of integrating supplements into its niche skincare product range. French niche skincare retailer Oh My Cream has acquired Combeau, a supplements brand that combines natural ingredients with biotechnology formulations. This is Oh My Cream's first acquisition, and specific terms of the deal have not been disclosed. The acquisition will allow Oh My Cream to expand its retail network, which currently includes 26 stores across Europe and an e-commerce website, and accelerate the rollout of Combeau products. Both companies have made significant contributions Oh My Cream was founded by Juliette Lévy and is a multi-brand beauty concept/store that focuses on quality and purity labels. Since its launch in 2013, Oh My Cream's annual sales have grown between 50% to 100% year-on-year, but growth rates during the COVID-19 pandemic were around 30%. In 2016, Otium Capital provided a cash injection of $6.5 million for expansion. In 2019, Experienced Capital acquired a 41% stake in Oh My Cream. The brand, which focuses on clean beauty (with 26 concept stores and an e-commerce website), is strengthening its product offerings by acquiring French food supplement brand Combeau. Combeau was founded by Erika Fogeiro in 2019 and aims to create sustainable supplements by combining biotech-created formulations with natural ingredients. The brand is committed to ethical and transparent ingredient, packaging procurement, and communication. Combeau's first product, L'Essential Peau (Skin Essential), contains seven blended active ingredients designed to improve skin radiance, signs of aging, and blemishes. Combeau was launched on its own e-commerce platform and also launched at Selfridges and Oh My Cream. “Most expert, innovative formula there is on the market.” In an interview with WWD, Juliette Lévy stated that Combeau has "the most professional and innovative formulas" on the market. "Our vision of beauty has evolved toward something more holistic," explained Juliette Lévy, "We strongly believe that supplements are super dynamic and important." Juliette Lévy believes that the acquisition aligns with Oh My Cream's strategy of integrating supplements into its niche skincare line. For Combeau, the deal will enable growth both inside and outside of Oh My Cream's retail network, which currently has 26 stores across Europe, including 12 in Paris, and an e-commerce website. Additionally, the acquisition will help Combeau accelerate its product launches. Combeau’s first product, L’Essential Peau, or Skin Essential, includes seven active ingredients mixed to target skin radiance, signs of aging and imperfections. A one-month “cure” goes for 59 euros. Expand its retail network Oh My Cream's offline expansion has not been without challenges, as the retailer temporarily closed about 20 stores during the pandemic. Despite facing challenges during the pandemic, Oh My Cream's offline business has been thriving since the pandemic. According to Lévy, there has been a significant increase in the number of customers going back to physical stores, and physical retail now accounts for approximately 65 percent of their business, compared to approximately 40 percent before the pandemic. After nearly a decade of development in France, she felt her company was strong enough to expand overseas and opened two stores in London at the end of 2022. Earlier this year, it opened its first branch in Brussels. The Oh My Cream team strongly believes that the future of the beauty industry will become more holistic, and therefore, by operating in this way, the brand's expertise, know-how and all innovation ecosystem is internalized, which will perfect the Oh My Cream brand's product offerings. Oh My Cream plans to open more stores in Paris and the UK with a goal of opening 10 to 15 stores in London.

The net revenue in Asia Pacific business of COTY Group declined 0.4% in the third quarter, with COTY saying the decline was mainly due to the high-end fragrance business and consumer beauty business declining in China, where the market is still recovering. On May 9, Coty Group released its financial results for the third quarter of fiscal year 2023, which ended on March 31, 2023. During the reporting period, the Group's net revenue increased by 9% to $1.289 billion, which included a negative foreign exchange impact of 4% and a negative impact from the Russian exit of approximately 3%. Net revenue for the first three quarters was $4.202.5 billion, up 2% year-on-year, including a negative foreign exchange impact of 7%. Earnings per share improved to $0.19 during the quarter and adjusted earnings per share for the first three quarters were US$0.52, an increase of US$0.23, or 79%, compared to the prior year. Operating profit continues to rise Coty has grown rapidly over the past two years, ranking 10th in the 2022 Top 10 Beauty Companies by CHAILEEDO's previous publication, replacing Johnson & Johnson, which ranked 10th last year, and is the only beauty company in the Top 10 that focuses on fragrances. Through Coty's financial results for the last four quarters, CHAILEEDO found that Coty's net revenue has not changed much, but its adjusted operating profit is on the rise. (The last 4 quarters of Coty Group) Notably, in the third quarter of fiscal 2023, Coty reported net income attributable to common shareholders of $105 million, surpassing last year of $49.6 million, an increase of over 100%. Net profit attributable to common shareholders for the first three quarters was $465.4 million, up from $341.5 million last year, an increase of 36% year-on-year. For the future, Coty is extremely confident. Modest gross margin growth is expected in the fourth quarter and in fiscal 2023. Within ELF, Coty expects core business revenues to grow by 9-10% in FY2023 after adjusting for the impact of the Russian exit. Coty believes that in a complex global environment, beauty products remain a dominant category for consumers. It is in an optimal position for affordable luxury, self-care and confidence-boosting. This development reinforces the company's confidence that global beauty consumption is performing well in a variety of macroeconomic environments. Coty's leading position in fragrance and cosmetics, supported by the significant untapped potential in skincare, China and travel retail, is poised for success. Commenting on the operating results, Sue Y. Nabi, Coty's CEO, said. "We are once again proud to report strong operational and financial performance, with today's Q3 results marking the eleventh consecutive quarter of results in-line ahead. We are delivering on our balanced growth agenda, with strong LFL growth across both divisions and all regions, with growth contribution from volume, price and mix, and from our key categories including fragrances, cosmetics, and bodycare." Prestige segment grows rapidly By segment, Coty's Prestige segment generated net revenues of $799 million, or 62% of Coty's sales, up 10% year-on-year, with strong growth in almost all markets where the segment achieved double-digit growth. The Prestige segment generated a reported operating income of $102.4 million in 3Q23, compared to $83.8 million in the prior year. operating income was $140.7 million, up from an adjusted operating income of $123.1 million in the prior year. Coty also mentioned in its results that growth in the high luxury beauty and fragrance categories in North America and Europe accelerated sequentially. Global travel retail trends were strong across all regions, with growth rates of over 30% in the third quarter and first three quarters of fiscal 2023, supported by a continued recovery in tourism and increased spending. High-end beauty brands maintained strong growth trends through the launch of iconic new products and expanded markets. Market-leading premium products such as Burberry Hero and Her and Gucci Flora optimise the premiumisation of the entire portfolio. The success of Gucci Makeup and the continued growth of Kylie Cosmetics also further strengthen Coty's position within the premium beauty segment. In addition, the Consumer Beauty segment generated net revenues of $489 million in the quarter, accounting for 38% of Coty's sales and representing a 6% increase compared to the same period last year. The global market share of Coty's Consumer Beauty business continued to grow, driven by colour cosmetics, body care and skincare, achieving five consecutive quarters of market share growth. The third quarter of the year and year-to-date saw strong growth across most of Coty's key brands, with CoverGirl, Rimmel, Max Factor, Monange and Paixao all achieving double-digit revenue growth, driven by volume growth, impactful innovation and pricing execution. Credit: Burberry Hero and Her fragrance) Coty’s business in China declines Regionally, in the third quarter, Coty's net revenues in the Americas, EMEA and Asia Pacific were $543 million, $587 million and $157 million respectively, up 13%, 7% and -0.4% year-on-year, representing 42%, 46% and 12% of Coty's total sales. In Asia Pacific, the Prestige achieved solid growth in the quarter, with almost all markets achieving double-digit growth. However, in a gradually recovering market, the Prestige and Consumer Beauty in China declined. Moreover, on May 8, Coty China changed hands. According to the National Enterprise Credit Information Publicity System, Guilhem Julien SOUCHE, Senior Vice President of Global Travel Retail and General Manager of Coty China, is no longer the legal representative of Coty (China) Investment Company Limited and has stepped down as "Chairman and General Manager". His successor is Chen Min. (Photo: Chen Min, Chairman and General Manager of Coty China) In 2012, Chen Min joined L'Oréal China as General Manager of Retail for L'Oréal's Luxe, where he was responsible for the retail management, customer relations and operational strategy of all premium brands. In just two years, he doubled the size of his business in charge of the e-commerce, Sephora and domestic travel retail channels. In February 2014, he joined L'Oréal Active Cosmetics and was promoted to Vice President of the division. In January 2016, he was promoted to Vice President and General Manager of L'Oréal China Active Cosmetics, based on his achievements in business building and organisational development. Since then, Chen Min has pushed SkinCeuticals to open the brand's flagship shop on the Chinese e-commerce platform Tmall and entered shopping malls such as Deji Plaza in Nanjing Reel in Shenzhen, driving SkinCeuticals's China sales to grow 84% in 2017, making it the brand's second-largest market globally. The change of management at Coty China demonstrates its determination to continue to increase its presence in the Chinese market. The former General Manager of Coty China, Guilhem Julien SOUCHE, had said in a public interview that "China is one of the most important markets for any beauty company". The new General Manager of Coty China, Chen Min, is a Chinese who understands the Chinese market and Chinese consumers better. He will make more forward-looking and inspiring plans for Coty to increase its presence in the Chinese market. Chen Min has previously said, "Compared to more developed and mature countries and regions, the development of the cosmetics category in China is in a stage of accumulation and acceleration, and the market has huge potential for growth in terms of per capita consumption and beauty market share." Coty's future development will also be aimed at the Chinese market as an important consumer market. In addition, Coty made particular reference to its comprehensive skincare strategy in its Q3 of FY2023 financial report, including the launch of its Lancaster skincare range in China and travel retail. According to Coty CEO Sue Y. Nabi, "There is tremendous untapped potential in skincare, China and travel retail". In March, Lancaster launched a new line with the official announcement of its spokesperson, Guan Xiaotong. So far, Lancaster has opened offline boutiques in Hangzhou and Nanjing, with the next stop in Chongqing. Meanwhile, the official online flagship shops on Tmall and Douyin (Chinese version of TikTok) have been put into operation. The change of hands at the helm of Coty China by a Chinese may indicate that Coty is paying more attention to localization. Whether the new CEO can lead Coty China to resume growth is yet to be tested by Chinese consumers.

According to WWD, the board of directors and the Lauder family of The Estée Lauder Companies have expressed their strong support for group president and CEO Fabrizio Freda and the company's leadership team in an internal memo. According to WWD, the board of directors and the Lauder family of The Estée Lauder Companies have expressed their strong support for group president and CEO Fabrizio Freda and the company's leadership team in an internal memo. As previously reported, billionaire investor Nelson Peltz is exploring the possibility of a shakeup at The Estée Lauder Companies that could involve ousting the company's longtime CEO, Fabrizio Freda. Nelson Peltz is said to be pushing for changes to improve the company's performance, including the possibility of a turnaround and eventual sale of the company. The leadership of Estée Lauder has not yet publicly commented on these reports. Before the COVID-19 pandemic hit in 2020, LVMH, the French luxury conglomerate led by Bernard Arnault, reportedly expressed its interest in acquiring Estée Lauder to the company's controlling Lauder family. William Lauder said:” We are united in our appreciation for, and support of, our president and CEO, Fabrizio Freda, and the broader leadership team as they lead this company, and our powerful portfolio of brands, into the future,” “Under Fabrizio’s leadership, the company is executing a successful long-term strategy to drive our business. Fabrizio and our management team, like the Lauder family, continue to be focused on the best interest of our employees, customers and stockholders, to deliver long-term value.” William Lauder added. According to recent reports, the Lauder family holds approximately 84% of voting control and four out of the 17 board seats at The Estée Lauder Companies. While there have been reports about investor Nelson Peltz exploring a possible shakeup at the company, no SEC filings have been made to indicate that he has bought stock. Source: WWD

On May 10th, the 7th China Cosmetic Trends Conference with the theme of "Chinese Ingredients" was held in Shanghai, co-hosted by Qingyan, Qingyan Intelligence, and CHAILEEDO, with strategic cooperation from Huiwen Biotech, and jointly supported by Nox Bellcow, Global Cosmetics, and Nutri-Woods. Today (May 10th), the 2023 (7th) China Cosmetic Trends Conference, co-hosted by Qingyan, Qingyan Intelligence, and CHAILEEDO, with strategic cooperation from Huiwen Biotech, and jointly supported by Nox Bellcow, Global Cosmetics, and Nutri-Woods, takes place in Shanghai. The theme of this conference is "Chinese Ingredients." Representatives from leading cosmetic ingredient companies, benchmark enterprises/brands, and testing institutions from both domestic and international markets gather to discuss the development opportunities and challenges of Chinese ingredients. At the conference, Qingyan Intelligence and Huiwen Biotech jointly release the "Thiotaurine Cosmetic Trends Insight Report". The publication of this trend report will undoubtedly assist in analyzing and predicting the latest industry developments, grasping the industry's direction, and fostering the industry's growth. Cai Zhaoyang, Co-Founder of CHAILEEDO "The Chinese Ingredients cosmetics market is expected to reach a size of 100 billion yuan within five years." Prior to this trend conference, we interviewed more than 70 well-known experts, professors, and brand founders from both domestic and international markets, discussing a series of questions regarding Chinese Ingredients, such as what they are and what trends they represent. There were also many diverse suggestions made. It is often said that trends change every three years, and the premise of a trend is that there must be some kind of change. People are also very concerned about what changes the industry is facing now, because only through change can there be opportunities. Over the past 20 years, the market trend in the cosmetics industry has shifted from importing to exporting. The supply has changed from OEM to raw material research and development. The channel has moved from “To B” to “To C”. Chinese consumers have become more culturally confident. The industry situation has shifted from channel-oriented to traffic-oriented, and then to the current focus on technology-driven. Last year, the revenue of the top ten listed cosmetic companies in China increased by 2% year-on-year, with an average R&D investment ratio of 3.6%, and R&D investment increased by 36%. The day before yesterday, I saw a column in "Person" magazine, where the CEO of CHANDO, the CEO of Marubi, and the CEO of BIOHYALUX all talked about their respective brand stories. These examples also indicate that we now have the money to invest in R&D and the ability to tell good brand stories, which has also driven our cosmetics industry towards technological advancement. Chinese Ingredients are the bridge between consumers and technology, which is why we are talking about Chinese Ingredients today. Many people ask what Chinese Ingredients are. I believe that ingredients with Chinese characteristics, independent patent systems, and practicality are Chinese Ingredients. At this conference, CHAILEEDO released data to the industry for the first time, showing that the Chinese Ingredients cosmetics market size will reach ￥54.57 billion ($7.88 billion) in 2022, and is expected to reach ￥100 billion ($14.44 billion) within five years. According to CHAILEEDO DATA, the average unit price of the top 10 Chinese Ingredients products sold online in 2022 is ￥414.6 ($59.86), which will narrow the price gap with foreign brands from 2.5 times to 1.4 times. This indicates that Chinese Ingredients will help Chinese brands break through and become high-end. In the future, the top 100 Chinese brands will all use Chinese Ingredients, and Chinese Ingredients will become a standard for top brands. Today, the scientific research arms race in the cosmetics industry has entered a white-hot stage. In the next three years, telling good scientific research stories will be telling good brand stories. The six major trends in the Chinese cosmetics industry in 2023 are efficacy PRO, high-priced products, science+, customization, Chinese Ingredients, and going global. Shen Anqi, Greater China Brand General Manager of Cha Ling “Chinese ingredients belong to the world as well.” There is a clear trend in both the global and Chinese high-end beauty markets towards emphasizing the element of "sustainable development." Consumers are no longer satisfied with just functional needs, but are looking for products that bring emotional satisfaction and happiness, have environmentally friendly packaging, green ingredients, and traceable systems, among other concerns. Cha Ling, since its inception, has embedded "sustainable development" in its brand philosophy and continued to cultivate this concept - creating a sustainable, high-end beauty brand with Chinese elements to meet the needs of high-end beauty enthusiasts, which is our mission and vision. In my opinion, an important factor in defining whether a brand is a high-end brand is whether it has historical heritage in craftsmanship, culture, and other areas. Cha Ling brand undoubtedly meets these standards in every aspect. "Chinese ingredients not only belong to China, but also to the world." The birth of Cha Ling brand is closely related to the Chinese rainforest. The brand was specially created by the founder and CEO, Mr. Laurent Boillot, to fulfill the lifelong wish of his friend, Dr. Josef Margra, a German biologist known as the "father of tropical rainforest agriculture" to protect the Yunnan forest, Pu'er ancient tree, and rainforest ecological environment in China. This brand continues to inherit and promote his long-held concept of biodiversity conservation. Cha Ling upholds the concept of "pure goodness" and carefully crafts each product. What does "pure" and "essence" mean for Cha Ling? Firstly, Cha Ling's raw materials come from the Yunnan biological diversity forest, Pu'er tea, and each step of the process from picking, withering to sun-drying is completed according to the traditional process of making Pu'er tea by the Bulang people. We make Pu'er tea into tea cakes, store them for three years of natural aging, and then extract them in France. This is also a revival of the process of making Pu'er tea from the forest ancient trees, which is the "pure" aspect of Cha Ling. The "essence" of Cha Ling comes from the fusion of newly extracted and aged tea components developed by the R&D team at LVMH headquarters, creating a patented ingredient "forest ancient tree Pu'er tea complex," which has excellent skincare benefits. In addition, the "essence" also includes the essence of Chinese culture, and each product is paired with traditional Chinese tools that have been improved and modernized, such as the improved scrape therapy board and fire-free cupping. Furthermore, the luxurious Essence of Cha Ling cream comes in an artistic ceramic jar, with replaceable cream refills according to demand. Through the digitalization of all channels empowered by Sephora, Cha Ling is now present in 327 Sephora stores in China and 10 online channels, providing services to consumers at all times. Last year was a challenging year, but Cha Ling's sales doubled year-on-year, reflecting consumers' love and trust in the brand. It is worth mentioning that in July 2022, Cha Ling and Sephora achieved cumulative sales exceeding one billion yuan in less than three years. In the future, we will continue to forge ahead and strive to share the extraordinary "Chinese ingredients" with consumers. Yang Shengping, Chief Scientist of Shanghai HUIWEN BIOLOGY "Applied basic research is a reflection of brand competitiveness." Good morning, experts and leaders. The topic I am bringing to you today is "The Industrial Application of Synthetic Biology in the Cosmetics Industry". From the evolution of the three major sources of technology in the cosmetics industry, we can see that natural products have a long history, chemical synthesis has developed rapidly since the 19th century, and biotechnology has flourished since the 1980s. The 21st century is the century of biotechnology, and the three sources of technology each have their own characteristics, which together drive the development of the industry. The research system itself is a complex system, and research and development of chemicals is not the same as research and development of functional ingredients. Many people who work in technical research are prone to think that a cosmetic functional ingredient is just a chemical product, but it is not. First of all, we need to consider industry standards and national standards, as well as research and development platforms for technology and industrialization, stability research, compatibility, application data verification, and modification of basic raw materials. Functional ingredients also need to be designed to meet market demand. Many research projects in universities do not ultimately translate into practical applications. I have a deep understanding of this, as researchers often do not know what enterprises need, and enterprises do not know what researchers can do. The cosmetics industry has already entered an era supported by science and technology, and to create a scientific brand, we need to establish a scientific ecosystem centered around application solutions, functionality, technology, etc. We generally focus on products from the perspective of application solutions, functionality, and technology, combined with feedback from customers and the market. Through collaboration among four teams, including systemic research, technology and process, quality, and application research, we complete the landing of high-tech products, bringing about a benign interaction between science and technology and the market. Our research system is actually a large team working together with multiple disciplines, ultimately interacting with the market, which is also the main goal of our research. Zhao Lianming, General Manager of Personal Care Products for the Asia Pacific region and Greater China region at Ashland "ESG is not a burden for the enterprise, but a necessary investment." After nearly 30 years of rapid development in the Chinese cosmetics market, I believe this event will provide some new development ideas for our personal care industry. Beyond trends, we must also focus on the core concept of enterprise development, which is how to maintain sustainable development. Ashland's answer is to commit to sustainable development and implement ESG strategies. Firstly, Ashland always focuses on innovation and solutions. In 2006, Ashland established a global efficacy laboratory in Shanghai. We believe that a true brand story needs efficacy as support; otherwise, it is misleading to consumers. Another point is how to meet ESG. Many companies are exploring ESG, but is it a burden for enterprises? In Ashland's view, ESG is an opportunity for enterprise development and the cornerstone of supporting enterprise development. Consumer surveys show that Chinese consumers are increasingly valuing the ESG concept. Among them, 47% of Chinese consumers are more willing to pay for environmentally friendly beauty/care products. 85% of Chinese consumers hope that well-known brands have more innovative and sustainable ideas. 66% of Chinese women pay attention to the proportion of natural ingredients in the formula, and 34% of Chinese consumers have intentionally purchased green products to develop a minimalist lifestyle. From this set of data, it is not difficult to see that Chinese consumers are becoming more mature. Moreover, currently in China, 79% of consumers agree and pay attention to the environment and sustainable development, and pure beauty/sustainability is becoming increasingly important in the market. The awareness of sustainable development among consumers is continuously increasing, which also inspires us to find sustainable ingredients to manufacture products. Therefore, ESG is a new starting point for Ashland's sustainable development materials. We regard ESG as an opportunity for enterprise growth and a driving force for development. This is not a burden for the enterprise, but a necessary investment. I think this is an important conceptual change. Ashland creates sustainable new materials throughout the entire supply chain through technology. We not only collaborate with farmers and suppliers around the world but also work closely with local communities to ensure responsible procurement of natural or upgradable raw materials, minimizing the impact on the environment and ecosystems. At the same time, we use leading scientific research capabilities to define the composition of plant molecules, enrich the core ingredients contained in plants, and extract unique solutions. Currently, Ashland has 41 production bases and 22 research and development centers worldwide. Ashland China is one of the three largest research and development centers in the world. Besides technical services, Ashland Shanghai R&D center also has the capabilities of research and innovation, product development, efficacy evaluation, etc., ensuring that Ashland can provide the best solutions for the Chinese market and consumers. Qiu Xiaofeng, Vice President (R&D) of Nox Bellow The representation of Chinese ingredients signifies that the industry has entered a higher stage of development. Hello everyone, I am delighted to have the opportunity to share with you the Chinese ingredients in our Nox Bellow face masks. Chinese ingredients not only represent a trend, but also signify that the Chinese cosmetics industry has entered a higher stage of development. In the past five years, domestic brands have received increasing attention, especially in the mid-to-high-end market. The rise of Chinese brands is closely related to the importance of raw materials, which not only refers to the ingredients produced in China, but also includes ingredients that incorporate Chinese historical and cultural characteristics and represent Chinese scientific research and technological achievements. From a market perspective, consumers' attention to Chinese ingredient products continues to grow, with Chinese ingredients accounting for more than 50% of face mask products. Next, I would like to share with you how Nox Bellow better applies Chinese ingredients in our face masks. Firstly, Nox Bellow started with non-woven fabrics and has its own non-woven fabric production workshop and R&D team. We pay great attention to the source of fibers used in non-woven fabrics, including not only common cotton and plant fibers but also aloe vera fibers, mugwort fibers, tea fibers, soybean fibers, and other plant extracts. On the other hand, we have also made innovations in appearance by placing roses, peonies, osmanthus, and other Chinese or place of origin-specific flowers in the sandwich layer of the mask fabric, creating better visual effects. Freeze-dried masks are also a type of expression of "Chinese ingredients." They were developed, produced, and promoted by Chinese companies and have gained widespread recognition and use in the cosmetics market. This also demonstrates that as long as there is innovation in technology and guaranteed efficacy that meets consumer demand, both domestic and foreign brands are willing to use them. In addition, electrospinning masks are also an excellent product form that can be stored in a dry state, dissolve quickly, and help the active ingredients penetrate continuously. Regarding ingredients, we not only use raw materials directly provided by suppliers but also collaborate with them in joint research and development. We also conduct our own research, such as the extraction process of Tremella fuciformis and the secondary processing of Tremella fuciformis extract, expanding the production of shiitake mycelium, and researching various shiitake extracts. We believe that in order to incorporate Chinese scientific research achievements into Chinese ingredient products, personalized customization is also necessary, which is the direction of future development. Nox Bellow will continue to delve into the field of Chinese ingredients and create products with more technological and product strength to meet market demand. Chen Juanling, General Manager of Public Relations and Communications at JALA Group "Important ingredients need to be communicated forever." JALA Group was established in Shanghai in 2001 as a digitally-driven biotech and beauty company. JALA has established over 42,000 offline retail outlets nationwide, and is present on all major online e-commerce platforms, with over 67 million registered members. Its core brand, "CHANDO", was born in 2001, while "Himalaya" represents the brand as a natural science and technology brand originating from the Himalayas. CHANDO's brand philosophy is to learn from the way of nature and pursue natural beauty. CHANDO is also the first brand in China to commit to not conducting animal testing. Natural ingredients, cutting-edge technology, outstanding efficacy, high-end branding, environmental protection, and no animal testing are the six core values of CHANDO's brand. In 2018, CHANDO discovered the super yeast, HiMurchaSin, in the depths of the Himalayan Mountains. The birth of this super yeast was not accidental, but rather the result of JALA's powerful technical research and development capabilities. In 2013, JALA isolated 558 unique strains of microorganisms from the Himalayas, and successfully commercialized two proprietary raw materials, out of which HiMurchaSin was born after a decade of self-research and development. This ingredient was officially launched in May 2022 through the S-level project "Extraordinary Chinese Ingredients" on the Douyin platform. It is also an important breakthrough in the road of self-researched raw materials for domestic beauty brands, which has been highlighted by Chinese KOL Li Jiaqi. In my opinion, there are four key conditions necessary for effective scientific communication of Chinese ingredients. Firstly, continuous investment in scientific research to consolidate the company's research strength with top-notch technology. Secondly, "designing" good scientific content and scientific communication cases from the discovery of ingredients. Thirdly, collaborating with influential and trustworthy communicators who have professional credentials. Fourthly, scientific communication of raw material ingredients should use language that is easy to understand. Therefore, we have conducted over a dozen HiMurchaSin technology salons to experience and discuss with influential communicators who have professional credentials, in order to better promote the scientific communication of HiMurchaSin. Since its launch in June of last year, HiMurchaSin has received nearly 100 million exposures on various platforms. In my opinion, the most important aspect of effectively communicating Chinese ingredients is to "invite in and go out." "Going out" is easy to understand, but what does "inviting in" mean? It means inviting professional media and KOLs into the research and development center to understand how JALA conducts research and development. Over the past year, HiMurchaSin has received exposure of over hundreds of millions since its launch, which is inseparable from the help of KOLs. However, I think that one year of communication time is not enough, and it should be communicated for at least three years or more, because an important ingredient needs to be communicated for a lifetime. On May 20th, a promotional video for CHANDO's Li Jiaqi tracing HiMurchaSin's origins will be launched, telling the story of HiMurchaSin to consumers. Recently, CHANDO's freeze-dried facial mask sold 93,000 boxes in Li Jiaqi's live broadcast. Wu Zi, Head of the Synthetic Biology Application Research Center of SIYOMICRO Synthetic biology helps Chinese brands to make a breakthrough. Good morning everyone, it's a pleasure to have this opportunity to talk with you about how synthetic biology can help drive the iterative upgrading of the beauty and health industry, and share some of our practices and thoughts in this field. Synthetic biology is the third revolution in biotechnology, enabling humans to move from interpreting life to writing life and creating life, with significant potential applications in medicine, food, chemicals, agriculture, and other fields. Developing bio-manufacturing has become a consensus for all humanity to address climate change and energy transformation challenges, as well as an important area of strategic competition among major economies worldwide. Returning to the cosmetics industry, extreme category subdivision and the pursuit of high product efficacy have become major trends. The impact of the pandemic and global economic downturn has also brought unprecedented competitive pressures. In such an uncertain era, more and more companies have realized that research and development is one of the few things with certainty, and having independent technology and forming a full industry chain upgrade iteration is the key to breaking through. The industry has transformed into a technology-driven one, with both leading and emerging brands investing more in scientific research. The scientific arms race has become intense. How can we win in this scientific arms race and gain the most core differentiation advantage for our brands? To answer this question, we need to think from the perspective of the entire industry chain. Looking at the upstream supply chain, we do not have any gap with foreign companies in terms of formula and processing, but we have advantages in terms of cost, efficiency, and scale. On the other hand, in terms of innovative preparation of raw materials, we need to objectively acknowledge that due to resource and technological barriers, the cost of basic materials and active ingredients is high. At the same time, the improvement of cultural and national confidence provides a good development opportunity for the rise of Chinese ingredients. In the synthetic biology race, we are actually starting from the same starting line as all foreign companies. We can use synthetic biology, a disruptive new underlying technology, to reconstruct the raw material production method, bypass technological barriers, and leverage the advantages of our country's industrialization to ultimately achieve a breakthrough on the curve. Specific manifestations include: first, breaking through the technical and cost constraints of existing efficacy materials. Second, building an efficient and innovative model for new material development, accelerating basic research efficiency through the introduction of high-throughput platforms and artificial intelligence simulation calculations. Third, opening up the entire chain from basic research to applied research, helping Chinese ingredients expand their application in all scenarios, and using this as a fulcrum to help Chinese brands step onto a larger world stage. Ding Lan, Director of CHAILEEDO Intelligence "Morning protection and night repair" is becoming a new popular concept Recently, CHAILEEDO Intelligence and Huiwen Biotech jointly released a report titled "Thiotaurine Cosmetic Trends Insight Report". The report aims to analyze the efficacy, application, and consumer demand of thiotaurine in the beauty industry, in order to gain insights into the future development trends of this ingredient. Thiotaurine is an endogenous substance derived from deep-sea creatures such as vent clams, vesicomyid clams, and tube worms. This ingredient has detoxification effects and can combat free radicals caused by urban pollution, helping to reduce skin glycation and oxidative reactions, repair redness and other skin problems, enhance skin's self-protection, and improve skin elasticity. CHAILEEDO Intelligence research found that the main efficacy of thiotaurine is highly valued by the current beauty consumer population, especially the increasing demand for antioxidant, anti-photoaging, and anti-aging effects on social media. Thiotaurine was once an exclusive ingredient purchased by the Shiseido Group. Shiseido, Anessa, Vital Perfection, and IPSA brands have added this ingredient to hundreds of products. After the expiration of the buyout contract with the Shiseido Group, Huiwen Biotech transformed this ingredient into a patented product with intellectual property rights. In response to the current market with fewer combined applications of thiotaurine, Huiwen Biotech innovatively developed two combinations of thiotaurine with suitable compound ingredients to better address the pain points of complete skin repair and achieve a 1+1>2 effect. Both combinations have obtained invention patents. This ingredient has been used in many popular domestic skincare products, such as Proya' Luxe Dual Anti-Aging Essence and YoungBeast Code Daytime Light-Resist Essence. By comparing the years 2021-2023, we found that there have been significant changes in the public's understanding and focus on thiotaurine, as reflected in the related comments on social media platforms such as Weibo, WeChat, and Xiaohongshu. The frequency of comments related to "anti-aging and antioxidant" has decreased from 10.6% in 2021 to 6.1%, while the frequency of comments related to "repair" has increased from 9.7% in 2021 to 15%. More and more consumers are paying attention to the repairing effects of thiotaurine. In addition, over 40% of consumers have indicated that they have used cosmetics containing thiotaurine, indicating that this ingredient already has a certain consumer base. We have also observed that emerging brands are breaking through with thiotaurine cosmetics, and the concept of "morning protection and night repair" is becoming a new trend, with the ingredient being the main reason for its popularity. The "Moring protection and night repair" concept follows the idea of daytime protection and nighttime repair, with formulas being gentler and suitable for sensitive skin. The main idea is to use milder antioxidant and repair ingredients to replace VC and VA components. Thiotaurine is a representative ingredient in this regard. Kungchi HSU, L’Oréal R&I China Skincare Development Lab Director "Yue Sai is the brand within L'Oreal Group that uses Chinese ingredients most comprehensively." Yue Sai is the only high-end skincare brand originated in China and tailored for Chinese women under the L’Oréal Group. It is a leader in contemporary Chinese beauty, adhering to a unique philosophy of combining Chinese and Western skincare techniques. For over 30 years, Yue Sai has been dedicated to researching Chinese ingredients and incorporating them into beauty products. After joining the L’Oréal Group, Yue Sai combined its expertise with L’Oréal’s research and innovation capabilities to unlock, enhance, and reinforce the powerful skincare properties of Chinese herbal ingredients with advanced technology. Yue Sai also designs ingredient combinations for different ages and aging concerns, such as triple Ganoderma lucidum with triple VC, and cordyceps extract with Pro-Xylane acid. Yue Sai's use of Chinese herbal ingredients is demonstrated in three main aspects: firstly, green chemistry, which extracts highly concentrated or pure and safe ingredients through biotechnology and green processes, achieving better sustainability and reducing environmental impact. Secondly, advanced penetration technology, such as ingredient encapsulation and formula technology, to enhance the penetration of active ingredients into deeper layers of the skin. Thirdly, ingredient combination technology, which seeks synergistic ingredient combinations for Chinese ingredients, creating the strongest combination of Chinese and Western ingredients for optimal results. I believe that Chinese ingredients do not need to be limited to a solo approach and can be combined with biotech ingredients for mutual benefits. For example, Yue Sai uses patented low-temperature microjets to extract cordyceps extract, combined with L’Oréal’s flagship ingredient Pro-Xylane acid, and formula penetration technology. The newly launched Yue Sai Liumen series products have achieved effective improvements in wrinkle reduction, firming, and repair. Overall, Yue Sai has long been cultivating Chinese ingredients and integrating them with advanced technology to provide Chinese women with the most suitable skincare products and solutions for different ages and concerns. Qiao Xiaoling, R&D Department Director of Lily&Beauty "Chinese ingredients should be considered a type of technology rather than just a single ingredient." The topic I am sharing today is "Formula Technology Empowers the Development of Chinese Ingredients". Lily&Beauty (605136.SH) is a cosmetics online retail service provider that focuses on consumer big data insights, refined operations, and brand marketing. The company's self-owned brand, Meiyitang, is an effective skincare brand based on ceramides, aimed at helping consumers solve problems such as allergies, dullness, and aging caused by damaged skin barriers at the root. Jadeauty is a brand that combines Chinese modern technology with Chinese characteristic plants. I think Chinese ingredients are actually the technological achievements and new ingredients that Chinese companies have made through solid basic research and applied research. It not only includes our independently innovated ingredients but also technologies in which we have intellectual property rights, basic research, and achievements. It should be considered a type of technology rather than just a single ingredient. We must understand what Chinese ingredients are, what their effective active ingredients are, why they can work on the skin, what the target points of their effects on the skin are, and how to apply them in formulations. This is my understanding of the connotation of Chinese ingredients. Chinese characteristic plant resources are particularly abundant, and the deep application of Chinese characteristic plants is already in a state of rich diversity. With the support of new technologies such as low-temperature carbon dioxide extraction, cell extraction technology, and cell membrane encapsulation technology, our awareness of protecting the place of origin is increasing. In addition, cutting-edge interdisciplinary technologies are also merging and developing. With the support of synthetic biology technology and organic synthesis technology, Chinese companies have achieved results in hyaluronic acid, recombinant collagen, small molecule peptides, and ingredients such as methoxsalen, icariin, and surfactants. So far, 51 new raw materials have been registered, of which 30 are functional active ingredients, and 83% of the active ingredients are independently researched and developed by Chinese companies. This is a very encouraging number. However, in the continued development of Chinese ingredients, the four core issues of safety, stability, efficacy, and aesthetics are worth attention. How can formula technology help the development of Chinese ingredients? The fusion of nanocarrier and targeting technology, controllable release technology, and microfluidic encapsulation technology can be further explored and applied in the cosmetics industry. Microfluidic encapsulation technology can allow active ingredients that cannot coexist in one system to exist in a formula, achieving the compound of various functional ingredients. The electrospinning technology we are researching uses plant-derived biodegradable materials, which can allow active ingredients to have a long-term effect on the skin and may also solve the problem of sunscreen penetration. In addition, there is still a lot of imagination space for liquid crystal technology, eutectic technology, ionic liquid technology, and other technologies in cosmetics. From the perspective of formulations and technology, there are still many directions and dimensions to help the landing of Chinese ingredients. I believe that with the joint efforts of industry colleagues, we can achieve a strong alliance and mutual assistance between formula technology and Chinese ingredients, making greater contributions to consumers, brands, and the industry. Yu Shan, Chief Technology Officer of Global Cosmetics' Medical Research Collaboration Platform Medical research collaboration can promote rapid progress in cosmetics research and development. In recent years, I have observed two phenomena. Firstly, consumers are becoming more rational and demanding a deeper understanding of products, as well as greater transparency in product development. Secondly, the pharmaceutical and cosmetics industries are gradually converging, with more and more brands investing in product development and formulation. Undoubtedly, products are created to serve the market, and the market serves consumers. Nowadays, consumers are more willing to trust the opinions of professionals to understand the causes of their skin problems and to find suitable products. This change in consumer behavior and mindset has also forced the cosmetics industry to engage in medical research collaboration. From Global Cosmetics perspective, "Chinese ingredients" refer broadly to innovative and practical raw materials developed and produced by Chinese enterprises. Chinese ingredients can be plant or animal-derived materials with Chinese characteristics, chemical synthesized materials, or bio-synthesized materials with higher technological content. Currently, bio-synthesis technology is mainly based on fermentation, with the advantages of high biological activity and safety, but it also faces challenges such as high project investment, long cycles, and high entry barriers for enterprises. As a pharmaceutical company, I often find that the investment cycle for a project is very long, possibly up to 10 years, and the cost is also very high. For example, investment in a relatively complete biopharmaceutical laboratory may exceed 20 million RMB. In contrast, the cosmetics industry has a very short research and development cycle and a very fast product iteration, so brand owners often find it challenging to afford such high investments. Therefore, in this context, medical research collaboration between pharmaceutical and cosmetics companies is one of the ways to promote rapid progress in cosmetics research and development. For example, Global Cosmetics is currently collaborating on five scientific research projects with institutions and pharmaceutical companies such as The Chinese University of Hong Kong, Hong Kong Polytechnic University, Hong Kong Nano and Advanced Materials Institute, Southern Medical University, China Pharmaceutical University, and LinkedCare BioTech. They integrate and optimize resources in a short period by leveraging their own platform resources, past research experience, and historical research achievements. In May of this year, Global Cosmetics launched the first bio-material, Skbrella FN, developed in collaboration with Uni-Bio Science Group Limited, which is a small molecule high-activity recombinant human fibronectin that effectively promotes wound healing and significant cell adhesion. In the cosmetics industry, it has the functions of repairing skin barriers and soothing. This material has the advantages of "1+3+2", with "1" referring to the pure process, "3" referring to three key technologies, and "2" referring to two stages of efficacy evidence. The entire process, from seed cell bank to final fibronectin raw material, undergoes 16 processes and 16 critical control points, with the goal of creating high-quality, high-efficacy, and cost-effective raw materials for brands and consumers, and providing more product connotations for brand and product managers. Ren Hankun, Dean of the Nutri-Woods Taihekangmei Research Institute "The core connotation of Chinese characteristic plant resources needs to be realized through technology." Good afternoon, distinguished guests. Today, my topic focuses on the plant ingredients and characteristic plant resources in China. We will explore together why Chinese characteristic plant resources are extraordinary. We will discuss the traditional advantages and future potential of these resources in terms of technology. We do not have the qualification to define what Chinese characteristic plant resources are. However, we hope to provide a definition that focuses on plants that are native to China and have obvious unique elements within the natural environment of China. These plants should also have a history of traditional use in Chinese culture and be effective in promoting beauty. Why do we consider Chinese characteristic plant resources to be extraordinary? We can see that there are many small categories within this concept, such as the nine major Chinese herbs, representative plants in the "Compendium of Materia Medica," ethnic medicine such as Miao medicine and Dai medicine, and some distinctive regional plants. In the research of plants such as dendrobium, snow lotus, and Chinese juniper, we combine the original powerful efficacy of these characteristic plants with modern scientific research on skin care, exploring effective ingredients and mechanisms of action. The state encourages cosmetic companies to combine Chinese traditional advantage projects and characteristic plant resources with modern technology to develop cosmetics. This is not only a national policy but also a trend. In the future, Chinese characteristic plant resources can be combined with traditional medicine concepts and modern technology to conduct precise research on specific populations. In summary, why are Chinese characteristic plant ingredients important? Because they meet the rational and emotional needs of consumers and ultimately serve the brand. The trustworthiness of the brand and the zero-cost communication are the bottom-line logic that ensures the long-lasting vitality of Chinese characteristic plant resources. Chinese characteristic plant resources have their core connotations, but they need to be realized through technology. Everyone is looking for trends, but we believe that what conforms to natural laws is the ultimate trend. Guided by ideas and informed by nature, this is our fundamental thinking and logic. Thank you very much for your time, and we hope to work with more like-minded partners to shoulder the future of the Chinese cosmetics industry. Hu Gang, General Manager of R&D Center of OSM "Only through interdisciplinary integration can cosmetics technology be formed." "Chinese ingredients" can be said to be one of the hottest terms in the industry this year. Since 2021, the industry has been paying continuous attention to this concept, and even organizing selection activities for Chinese ingredient raw materials. Currently, the term "Chinese ingredients" has been widely accepted. In recent years, the most representative development of Chinese ingredients is reflected in the PCHi Fountain Awards shortlist. In 2021, 33% of Chinese raw materials were shortlisted for this award. In 2022, it was 36%, and this year the proportion has increased to 50%. I also participated in the evaluation process of the Fountain Awards, and from the information of the participating companies, I can see that domestic raw material companies have not only expanded their research on ingredients/raw materials, but also greatly improved the depth and comprehensiveness of their research. Similar to most industry professionals' understanding of Chinese ingredients, I believe that Chinese ingredients refer to ingredients with Chinese regional, cultural, and resource characteristics, or ingredients that are independently created by Chinese companies and have technological advantages and barriers. Regarding the topic of "Chinese ingredient's overtaking in the curve," I believe that overtaking in the curve means surpassing the opponent by taking a different path than previous competitors. The development of Chinese ingredients by Chinese brands is clearly an important path for raw material overtaking. Since 1967, OSM has been conducting research on pearls, which we divide into a technological route and a cultural route. The technological route includes research on pearl cultivation technology, the application of pearl powder, research on active ingredients in pearls, and now mainly focuses on research on active ingredients in pearl peptides. The cultural route is to explore the stories behind pearls by establishing a pearl museum and pearl cultural park. The application of pearls in skincare is not an intellectual tax. For example, OSM's core ingredient Hydrolyzed conchiolin protein (HCP) is a technology-based whitening ingredient that effectively inhibits ET-1, preventing darkening from the source. It also inhibits melanocyte dendrites and intercepts melanin transport. Pearls are the core of OSM's product technology and culture, but our research is not limited to pearls. We have done a lot of research in other areas, such as plants that grow in extreme conditions in high-altitude regions and polar microorganisms. Through research, we have found that products fermented by combining polar microorganisms and pearls have remarkable anti-aging effects, and we are currently applying for a patent for this. In fact, cosmetics are not just about technology, but the fusion of technology, art, and fashion. Cosmetics technology is also not just about ingredients, but a product of interdisciplinary integration. Therefore, while paying attention to ingredients and technology, brands also need to pay attention to the overall performance of their products to provide consumers with a better user experience. Dr. Xin Fang, Senior Scientist and Vice President of Product at Readline "The development of cosmetic ingredients can draw on the standardized process of developing generic drugs." Good afternoon, it's my pleasure to share with you our understanding of Chinese ingredients. Today, my topic is "Future Three Trends: Innovation Opportunities of Chinese Ingredients from Industry, Industry Chain, and Business Perspectives". From an industry perspective, cosmetics have entered the era of efficacy, with a potential market space of 40 billion yuan for functional skincare products. With the improvement and maturity of the regulatory system, the industry is accelerating towards specialization and standardization. However, the supply of high-quality basic and active raw materials in the domestic cosmetics industry still highly relies on overseas suppliers. The concepts of safety, health, greenness, and sustainability are accelerating their penetration into the Chinese market, and concepts such as pure beauty and sustainability are becoming popular. The green chemistry concept is also gradually becoming an important consideration for domestic brand owners and raw material suppliers. Basic functions such as moisturizing and cleansing can no longer meet market demands, and brand owners and raw material suppliers are now focusing on targets, pathways, formulations, and production methods. This is a necessary path for the industry to become more professional and mature. From an industry chain perspective, synthetic biology can greatly expand the range of biological synthesis substances and significantly enhance the space for biological synthesis products. The essence of biotechnology is a way of obtaining substances, and for it to become a mature production method to change the entire industry, it needs to meet four requirements: Does it have the potential to overturn existing production methods? Can it be transformed into industrial advantages? Can the industrial advantages be transformed into the competitiveness of specific products? Can the products gain market recognition and form commercial advantages? From a business perspective, we believe that functional skincare products are consumer goods with professional attributes, located between ordinary cosmetics and pharmaceuticals. Safety and effectiveness are explicit factors that influence consumer purchasing decisions, and this also affects the trend of cosmetic efficacy, with anti-aging gradually becoming a basic care requirement and sensitive skin care becoming an explicit demand. The regulatory system of the cosmetics industry is gradually approaching that of the pharmaceutical industry. The general process for developing new drugs is ten years and one billion dollars. If we follow the R&D process for innovative drugs, the cost and time for developing new cosmetic ingredients far exceed the financial return and product life cycle. Therefore, at this stage, the development of new cosmetic ingredients is more suitable for standardized processes similar to those for developing generic drugs. For raw material suppliers, it is not just about producing raw materials, but also about completing the entire process from design to production, including quality research, safety evaluation, efficacy evaluation, declaration and certification, and other supporting systems. Nowadays, the industry is in competition, but what we need is "evolution". We need to turn our technical advantages into customer product power, serve customer market power, and expand market brand power, while constantly achieving our own evolution and gaining market recognition. This is the self-cultivation of a raw material supplier and is also the natural way of the "shared growth" core value of Readline. Nicole, Compliance and Technology Director of Yiwi Testing & Evaluation "New regulations promote the rise of Chinese ingredients." Yiwi Testing & Evaluation is a service company that specializes in efficacy testing, sensory evaluation, safety assessment, compliance, and innovation claims. Today, I would like to discuss with you the opportunities and challenges of Chinese ingredients in the context of new regulations. From the perspective of raw materials, there are two key points to pay attention to next year. The first is the submission of safety information for raw materials, which has been extended to next year. The second is the safety evaluation report, which currently requires a simplified version to be submitted. However, starting from May next year, the complete version of the safety evaluation report will be required, which involves more than ten toxicological experiments. Companies will need to provide a lot of materials to prove that the raw materials are safe under usage conditions, which may pose a certain difficulty for them. It is worth noting that the Cosmetic Supervision and Administration Regulation (CSAR) explicitly encourages companies to conduct research on Chinese traditional characteristics and Chinese botanical resources. I believe this is also a great opportunity for Chinese ingredients. From the perspective of new raw material registration, as of the end of April 2023, 62 new raw materials have been registered and filed since 2021. These new raw materials are mostly universal, such as skin protectants and skin conditioners. Currently, safety evaluation and toxicological test data are the two major difficulties in the new raw material filing process, with long preparation cycles and high costs. Overall, there are seven key points that raw material suppliers need to pay attention to under the new regulations. In addition to submitting safety information for raw materials and safety evaluation reports, there are also new raw material filings, new mechanism research and efficacy verification, technical innovation (transdermal/stabilization), raw material claims and scientific communication, and sustainable development. The latter five mainly focus on efficacy claims. Currently, the pathway from potential efficacy of raw materials to legitimate testing indicators or advertising language has not yet been fully established. Companies need to learn how to build a scientific and low-risk method of claim-making to achieve the desired advertising effect. Yiwi Testing & Evaluation has developed a set of relevant internal guidelines, including risk vocabulary and methods for conducting efficacy evaluations based on regulatory requirements, which can be used as a reference for companies. He Jingyu, Director of New Material Development Center of Uniasia Research Institute “Substances containing Chinese genes are called Chinese ingredients.” I believe that any substance containing Chinese genes can be called a Chinese ingredient, including elements such as independent research and development, traditional history and culture, technological barriers, and leading quality. Remarkable Chinese ingredients give brands a unique character, demonstrate scientific and technological innovation abilities, and can enhance the competitiveness of enterprises or brands and improve product efficacy. When it comes to Chinese ingredients, efficacy cannot be ignored. Efficacy is determined by the ingredients themselves, which can be considered as internal factors, while the true manifestation of efficacy requires a certain application scenario, which can be understood as a formulation system and dosage form, i.e., external factors. Ingredients can be considered from the perspectives of source, efficacy, and safety, with safety being the most important factor. Computer simulations, in vitro physicochemical testing, cellular and molecular studies, 3D skin, and clinical evaluations can all be used for efficacy research on raw materials. Here are a few exploration methods for Chinese ingredients. First, Chinese ingredients can leverage the concept and technology of pharmacodynamic material research to study the application of Chinese characteristic resource efficacy materials in dermatology and apply them to the development of cosmetic and daily use product ingredients. Second, establish pharmacokinetic and pharmacodynamic models to explain the rules of changes in efficacy materials in the skin microenvironment, allowing Chinese ingredients to be more scientifically expressed and applied. Third, in herbal plants, Chinese ingredients have a main component, but there are many similar or derivative substances with similar efficacy. The opportunities for Chinese ingredients are reflected in four aspects: resources, technology, market, and policy. In terms of resources, there is still a lot of room for development in both land and marine resources. In terms of technology, biosynthesis, non-cellular systems, bioinformatics, artificial intelligence, and other technologies can be applied to the research, production, and testing of Chinese ingredients. In terms of the market, consumer recognition is constantly improving, and in terms of policy, regulations are continuously improving. Uniasia Research Institute has two research and development centers in China and Australia, and is currently focusing on research in the areas of natural plant efficacy raw materials, cell biology, and skin microbiome. It has established a research and development system based on basic research, technological platforms, product planning, and brand matrices. Currently, Uniasia Research Institute has more than 100 plant raw materials, 42 composite raw materials, and 35 microbial ecological ingredients in reserve. In the future, Uniasia Research Institute will develop a core ingredient for each of its products. In addition to the dozens of industry leaders' insightful speeches at the conference, which inspired the industry's thinking, upstream and downstream companies in the cosmetics industry chain, such as raw material suppliers, factories, and testing institutions, also showcased their latest products and technologies related to Chinese ingredients. Today, the connotation of "Chinese ingredients" goes far beyond ingredients with Chinese geographical, cultural, and resource characteristics, and also includes ingredients that are independently created by Chinese companies, with technological advantages and barriers. Clearly, Chinese ingredients have taken center stage, which will become another cornerstone for Chinese brands to stand in the world of cosmetics.

UK, the first country in the world to reject animal testing, recently received approval for animal testing, which means the 25 years of no-animal testing will end in this country. According to the BBC, the animal testing component of cosmetic testing will be reinstated in the UK. In response to the policy, Cruelty-Free International said that lifting the 25-year ban on animal testing of cosmetic ingredients was "outrageous". Animal testing resumes after a 25-year ban The UK government's High Court has expressed support for the government's decision to approve cosmetics to be tested on animals again, the BBC reports. According to a High Court ruling, which found that the government had acted legally in allowing the testing, before a lawsuit brought by animal rights supporters. As BBC reported, A Home Office spokesperson said: "We are pleased that the High Court has agreed with the Government's position in this case. The government is committed to the protection of animals in science". Guardian reported that Cruelty Free International (CFI) brought legal action against the Home Office, accusing it of leaving the public “in blissful ignorance” that the department’s longstanding policy apparently changed after February 2019. The CFI chief executive, Michelle Thew, said after the ruling: “It is outrageous that the government has abandoned the ban on using animals in cosmetics testing, and did so in secret while giving the impression that the policy remained in place.” The Home Office, which oversees animal experimentation regulation in Great Britain, rejected the CFI’s case as “plainly wrong”, arguing it had not acted unlawfully. The UK government has been issuing licenses for animal testing of cosmetic ingredients under EU chemical rules since 2019. Despite the UK having left the EU, it has been revealed. Animal testing licenses issued by the UK government reveal that animal testing may include the need to force rats to inhale or ingest to test chemicals commonly found in foundations and concealers. The BBC said it was not clear how many licenses had been issued or to whom. Animal testing on cosmetics or their ingredients has been completely banned in the UK since 1998. Animal testing is only allowed if the benefits from the research outweigh any animal suffering, such as drugs. However, the European Chemicals Agency (ECHA), the EU body responsible for overseeing the regulation of chemicals, ruled in 2020 that companies involved need to test certain ingredients used in cosmetics on animals to ensure they are safe for the workers who make them. (Homosalate, a sunscreen ingredient common in concealer and foundations, may need to be tested on animals) Over 80 brands are dismayed BBC reported over 80 brands are "dismayed" by the government's new position. "We want the UK to uphold its 1998 position as intended, with no new tests on animals allowed," reads a letter signed by the brands. It notes that "the UK was the first country in the world to say no to animal testing for cosmetics and their ingredients," which led to "innovation in non-animal safety science and assessment approaches." The industry now has a "'toolbox' of non-animal methodologies with which to assess product safety," yet the European Chemicals Agency is "requiring some widely used cosmetics ingredients (and ingredients used in many other types of consumer products) to be tested on hundreds of thousands of animals." Chris Davis, Global Director of Activism and Sustainability at The Body Shop, commented: “The Body Shop was the first global beauty company to campaign to ban animal testing in cosmetics in 1989, with the UK becoming the world’s first to rule it out in 1998. We share the deep-rooted concerns of our longstanding partner Cruelty Free International that the ban was effectively lifted in 2019, under the radar. Following today’s high court ruling we also call on the government to reinstate the ban immediately. We can’t turn back the clock.” He added: “Allowing animal testing for cosmetics in the UK would be a devastating blow to the millions of people who have supported campaigns to end this appalling practice for nearly 35 years. “So, the fight continues and we will campaign vigorously, as our late founder Dame Anita Roddick did, for as long as it takes.” Dr. Julia Fentem, head of the safety and environmental assurance centre at Unilever - one of the world's largest cosmetic companies - said tests potentially required under the new policy were "unnecessary", and that safety tests could be carried out without animal involvement. More beauty giants such as L'Oréal and Beiersdorf have already contributed to the fight against "animal testing". In February this year, more than 35 cosmetic companies, suppliers, industry associations and animal protection organizations, including L'Oreal, Unilever, Beiersdorf and BASF, joined forces to call for an end to animal testing by launching the International Collaboration for Cosmetic Safety (ICCS). A growing number of international beauty brands are also promoting the zero-cruelty beauty philosophy, including NYX, REVOLUTION, Fenty Beauty, The Ordinary, Le Labo, Aesop and others. Meanwhile, several countries or regions, including the UK, EU, New Zealand and Australia, have banned animal testing in cosmetics. Cruelty-free cosmetics are also a recent global trend. According to Global Data's Q3 2021 consumer survey, 45% of Europeans find vegan claims in personal care products to be somewhat (or fairly) attractive, 33% of respondents agree that they are somewhat more loyal to brands that support green or environmental causes, and 18% vote "completely loyal ". In 2021, L'Oréal acquired the US zero-cruelty brand Youth to the People, a move seen by analysts as a major sign of L'Oréal's compliance with recent consumer trends. Commenting on the acquisition, Cyril Chapuy, President of L’Oréal Luxe, said: "We are very pleased to welcome Youth to the People brand, its founders and fantastic teams. Because of its solid reputation and remarkable product quality, Youth to the People is a favorite among all genders. Its skincare expertise based on healthy, vegan, high-efficacy formulas makes it a very strategic addition to L’Oréal Luxe." (Credit: The Youth to the People products) China embraces "zero-cruelty beauty" The presence of "zero-cruelty beauty" is growing in the international market. Chinese regulators are gradually embracing the international trend of "zero-cruelty" In China, regulations have been in place since 2014 that allows for animal testing to no longer be mandatory for general cosmetics manufactured and sold in China, but animal testing is still required for the filing and approval process for imported cosmetics and Chinese special cosmetics. This requirement made it impossible for a long time for many international cosmetic brands that insisted on rejecting animal testing, mostly through cross-border e-commerce to test the Chinese market, to land in China, especially in the offline market. However, things took a turn for the worse in 2018 when Cruelty Free International (CFI) signed an agreement with the Chinese government and regulators to collaborate and reach a consensus with Shanghai-based certification and compliance body Knudsen & CRC, Shanghai Fengpu Industrial Park and Oriental Beauty Valley to license some international brands to be exempted from post-market animal testing by manufacturing in China. On 14 January 2021, the French Federation of Beauty Businesses issued a statement saying that the French National Agency for Safety of Medicines had launched with a qualification platform that allows French manufacturers of generic cosmetics to apply for qualifications related to production quality management systems that comply with the Chinese authorities' regulations. Then the French cosmetics manufacturers can export their generic cosmetics to China without having to undergo animal testing. Subsequently, from 1 May 2021, China launched a regulation that imported cosmetics were exempted from animal testing. As a result of the policy change, Aesop, which had previously been unable to open shops in mainland China, has finally completed its offline filing and will open two offline flagship shops in Shanghai by the end of 2022. It is clear that with the relaxation of the animal testing policy, the Chinese market is bound to welcome more brands with zero-cruelty. The international opposition to animal testing coincides with the gradual relaxation of the Chinese market. Under these trends, more cruelty-free beauty will bloom in China and internationally in the future.

Cathay Capital announced the completion of capital injection into the top French salon perfume brand, Juliette Has A Gun, in conjunction with new investors Weinberg Capital Partners and existing investor USHOPAL. Cathay Capital, a global investment firm, announced the completion of capital injection into the top French salon perfume brand, Juliette Has A Gun, in conjunction with new investors Weinberg Capital Partners and existing investor USHOPAL. This is the second time Cathay Capital invest in the French perfume. In 2021, Cathay Capital took minority stake in Juliette Has A Gun with terms of the deal were not disclosed. Cathay Capital said this deal aims to continue to support Juliette Has A Gun in consolidating its influence in major regions such as China, the United States, and the Middle East, as well as further expanding into the perfume markets of Latin America and Southeast Asia. Over the past four years, Juliette Has a Gun has achieved significant growth, with an average annual increase of 40%, and a tripling of turnover in the past two years, resulting in €120m in retail sales value in 2022. The company has been able to expand globally through the investment and operational support of Cathay Capital, as well as its partnerships with Sephora in the USA and USHOPAL (a portfolio company of Cathay Capital) in China. Juliette Has a Gun is a rapidly expanding niche fragrance brand, founded in 2006 by Romano Ricci, the great grandson of Nina Ricci. The brand is currently distributed in more than 50 countries worldwide, through a network of over 2,500 carefully selected and exclusive retail outlets. Romano Ricci, Founder of Juliette has a gun said “Juliette has a gun gained significant audience over the last years, especially among young women who are now looking for more originality and a real quality experience to mark their singularity. Juliette has a gun’s clients identify themselves to our elegant, modern & feminist essence. We would like to thank the Cathay team for their continued support and trust and are delighted to pursue our collaboration, and warmly welcome Weinberg Capital Partners. We are convinced that their combined expertise will take the brand to the next stage.” Ohana & Co. is the financial advisor for Juliette Has a Gun and law firm Bredin Prat acts as the legal advisor for Juliette Has a Gun in this deal. Source: Cathay Capital

DSM-Firmenich AG announced the completion of this merger between DSM and Firmenich. As a result of the transaction, Firmenich is now a wholly owned subsidiary of DSM-Firmenich. DSM-Firmenich AG announced the completion of this merger between the Heerlen-based health, nutrition company DSM and the Geneva-based fragrance and flavor Firmenich. As a result of the transaction, Firmenich is now a wholly owned subsidiary of DSM-Firmenich. Firmenich is headquartered in Geneva, Switzerland. It is the world's largest privately-owned company in the fragrance and flavor industry, mainly focusing on perfumes, flavors, and ingredients. DSM is headquartered in the Netherlands and has a history of over 150 years. It has now become a global leader in health, nutrition, and biotechnology. The newly founded DSM-Firmenich is structured into four separate high-performing businesses, including Perfumery & Beauty, Taste, Texture & Health, Health, Nutrition & Care and Animal Nutrition & Health, all of which are founded on complementary world-class scientific research and excellent manufacturing capabilities. In the fiscal year of 2022, DSM recorded sales revenue of 8.39 billion euros ($9.22 billion), while Firmenich generated revenue of CHF 4.723 billion ($5.31 billion). The combined annual sales of these two companies amount to $14.53 billion, making the new company poised to become the world's leading enterprise in the fragrance and flavor industry, and also the largest merger in the cosmetic ingredients sector this year. Geraldine Matchett and Dimitri de Vreeze, Co-CEOs of dsm-firmenich, commented: “Today marks a new beginning for us all that is the culmination of more than a century of ground-breaking science from two great companies. dsm-firmenich now stands out as a category of one, uniquely working at the intersection between what people individually want and what we collectively need, without costing the Earth.” “After all, what is essential has limited impact if it is not desirable, and that impact is not positive if it is not sustainable. And sustainable things that people don’t want or need don’t help much! We are truly global, built on an incredible foundation of proven world-class science with the broadest portfolio of nutrients, flavors, and fragrances. We are delighted to embark on this journey together as a single force for good as innovators in nutrition, health, and beauty.” Geraldine Matchett and Dimitri de Vreeze added.

The battle of sunscreen. In May, the sunscreen battle is in full swing. A survey released by Xiaohongshu shows that the peak season for sunscreen products is from March to June each year, with May being the peak month for searches and the fastest-growing month for the sunscreen category. Recently, CHAILEEDO found that consumers have a strong demand for sunscreen products in various beauty retail stores. Many brands have launched a series of promotional activities since May 1st. Online, the discussion volume on sunscreen has also increased. It can be seen that May is undoubtedly a time point that brands need to seize. The Japanese skincare brand Bb Laboratories, which is well versed in the creation of popular products, will not miss this opportunity. Battle: Sunscreen battle begins, opening up the second growth curve The world's first sunscreen product dates back to 1928, with ingredients including benzyl salicylate and benzyl cinnamate. In 1935, Garnier launched the first suntan oil product. In 2016, Shiseido launched the world's first "water-resistant sunscreen cream". From 1928 to the present, the time that has gone through 95 years, sunscreen products have been updated. In recent years, people's awareness of sun protection has been continuously improved. The need of sun protection has changed from "optional" to "mandatory". Especially in the past two years, under the influence of the "anti-aging starts with sun protection" concept, sun protection has extended from outdoors to daily commutes. The strengthening of sun protection concepts and the increasing emphasis on skin health have led to an endless stream of sun protection products, driving the industry into the fast lane. According to data from CHAILEEDO, since 2017, the overall market size of sun protection in China has been increasing year by year, with an annual growth rate of over 5%, and the market size reached nearly 10 billion yuan ($1.4 billion) in 2022. In the huge market, competition is extremely fierce, and international and Chinese brands are fighting for the sunscreen sector. According to a report released by CBNData, among sunscreen brands, imported brands account for over 80% of consumer spending, with Japanese brands being the most popular. Japanese professional sunscreen brands represented by Anessa and ALLIE are more in line with the needs of Chinese consumers for sun protection and minimal skin burden. Head brands have captured most of the sunscreen market. But compared to other skincare categories, the sunscreen market offers more opportunities for new businesses. Related data shows that the monthly sales of the TOP10 businesses account for about 30%. Insight into the above trends, Bb Laboratories, a Japanese brand specializing in skin repair, entered the sunscreen sector in 2022. Right in the 25th anniversary of the brand, it launched its Bb Laboratories PH Protect UV Spray. From April to June, the sales volume of all channels exceeded 1 million units. This year, it will strive to double its growth and share a piece of the unlimited potential of China's sunscreen market. Public information shows that Bb Laboratories was founded in Tokyo, Japan in 1997 by renowned dermatologist Dr. Takanashi Masanori and is now a subsidiary of the listed Japanese company Zongyiken Holdings. In fact, sunscreen is not the first category that Bb Laboratories has launched in China. The brand has been deeply cultivating the Chinese market for many years and has a solid foundation in professional endorsements and market accumulation. It is understood that as early as 2017, Bb Laboratories entered the Chinese market and promoted the Moist Cream Mask for five years, with a total sales volume of 30 million units, ranking first in Tmall's apply mask sales and successfully promoting the development of the apply mask segment. (Cited: Bb Laboratories Moist Cream Mask) Among the many apply mask products, Bb Laboratories has captured a certain market share of apply masks with a single explosive product. The professionalism of Bb Laboratories in creating popular products can be seen from the Moist Cream Mask. With the hero single product, Bb Laboratories entered the sunscreen field in 2023, hoping to create a second growth curve and create the next popular product. Explosive product path: Ace ingredients + medical endorsement For the vast majority of Chinese consumers, getting to know Bb Laboratories starts with the super-popular Moist Cream Mask. The success of this product in the market is closely related to many factors. First and foremost is the use of ingredients in the product. The core ingredient of the Moist Cream Mask is one of the few resurrection grasses that have survived since the Ice Age – "Balkan Pinguicula". Public information shows that in extremely arid environmental conditions, the resurrection grass will appear in a withered "dormant state", but when it encounters moisture, it will quickly recover from months of drought and freely guide moisture into every part, becoming vibrant and unharmed. It is reported that the Balkan Pinguicula leaf extract contains a unique and important active ingredient, MYCONOS IDE. MYCONOS IDE is a potent antioxidant that can inhibit oxidation in the skin, reduce oxidative stress damage, and protect the skin from free radical-induced skin problems. The brand concept of enhancing the skin's self-healing ability is also applied to Bb Laboratories PH Protect UV Spray (Cited: Bb Laboratories PH Protect UV Spray) This is in line with Bb Laboratories' consistent logic in creating products. As the brand name Bb LABORATORIES suggests, it is a combination of biology and botany technology. For 26 years, Bb Laboratories has been using advanced biological technology and plant essence to provide safe and effective care solutions for Asian skin. In addition, the choice of product ingredients is closely related to the background of the founder of Bb Laboratories, a dermatologist. In decades of clinical research experience, doctors believe that everyone's skin has inherent self-circulation power. Instead of using a large number of highly irritating chemical ingredients to damage the fragile and delicate skin barrier, it is better to extract the original power of nature, awaken the skin's potential energy, generate a healthy and benign skin self-healing cycle, and lead users to the ideal beautiful skin. Furthermore, in research and development, Bb Laboratories also has certain core competitiveness. Relying on its parent company, Integrated Medical Research Holdings Corporation, Bb Laboratories uses advanced biological marker development technology and plant bioanalysis systems to insist on providing safe and effective solutions to skin problems and caring for the healthy skin of Asians. Sun protection is the last step in skincare and the last line of defense for safe skin protection. It is reported that this time Bb Laboratories PH Protect UV Spray adheres to the brand concept of "specializing in healing the skin" and is specially tailored for Asian consumers, offering alcohol-free and safe sun protection. Currently, the product has obtained sun protection special license, with a sun protection index of SPF50+ and PA++++. (Cited: Bb Laboratories PH Protect UV Spray) Additionally, in terms of technology, the product uses liquid micro-emulsification technology, with a transparent and moisturizing texture, suitable for use after makeup and easy to adapt to various outdoor scenes with its lightweight and portable packaging. Full-channel mode: gain reputation online, then turn to offline sales Since entering the Chinese market in 2017, Bb Laboratories has accumulated a strong communication volume on multiple online social platforms such as Douyin (Chinese version of TikTok), Xiaohongshu, and Weibo with its "Specialized Healing Skincare Brand" positioning. It has been widely recommended by users. However, online brands can gain short-term popularity, but the audience is relatively fixed, which means that brands need to constantly invest in new resources and repeatedly reach the same wave of people to complete the conversion. In comparison, offline experience is an important factor in determining whether consumers will convert to a brand or product. Especially, beauty products rely on direct experiences such as smell and touch, which cannot be compensated for online. Based on this, Bb Laboratories gradually expanded offline two years ago, hoping to use the online and offline linkage to leverage the accumulated online brand volume to drive offline traffic and create an all-channel marketing model. "In 2023, Bb Laboratories will focus on the layout of offline channels, join forces with WOW COLOR, and lead the transformation of the sunscreen industry segment," the brand told CHAILEEDO. WOW COLOR is a super unicorn that has swept the beauty industry in recent years. At the end of 2019, the offline beauty collection store WOW COLOR entered the market, attracting public attention with its stormy approach and being hailed as a "new species" dark horse in the industry. Within three years of its establishment, it has received financing from Innovation Factory, IDG Capital, Hillhouse Capital, and Tencent Angel Round. As of now, WOW COLOR has expanded to over 200 stores with more than 2.5 million fans online. At the "Focus on Beauty Power·WOW in Full Bloom" 2023 Beauty Business Annual Conference held by WOW COLOR on March 17, they announced a new positioning as a membership-based service-oriented beauty collection store. They also stated that they will deepen the offline scene experience while linking more users from online channels to improve all-channel operations. The combination of online and offline channels to create an all-channel model is in line with Bb Laboratories' strategy. During a visit to the WOW COLOR store in Guangzhou Grandview Plaza, CHAILEEDO noticed that the store was mainly featuring a futuristic metallic style, organically blending high-tech sophistication and a warm, girly touch. Upon entering, one can see Bb Laboratories sunscreen spray prominently displayed. According to the store guide, this sunscreen is currently the main product of WOW COLOR, and most customers coming to buy products now have a basic need for sun protection. "Compared to traditional sunscreen creams, sunscreen sprays are more convenient to use, suitable for spraying large areas of the body, and can also be used after makeup to enhance sun protection, making it a summer essential." (Photographed at WOW COLOR store in Grandview Plaza, Guangzhou) Talking about the advantages of Bb Laboratories PH Protect UV Spray, the store guide confidently stated: "Bb Laboratories PH Protect UV Spray is more delicate with small particles, so it is evenly distributed when applied. In addition, this product can instantly give the skin a matte finish, so using it in the summer is like using sunscreen and setting spray." Entering the Chinese market for 6 years, with a consistent product development logic and brand concept, as well as the backing of flagship ingredients and medical research experiments, it can be expected that Bb Laboratories will definitely have a place among the many sunscreen products. After accumulating a certain online presence, entering the offline market is also beneficial for achieving stable business in the current environment, while continuously creating better consumer experiences. Bb Laboratories’ determination to build a strong brand in the Chinese market is evident. It is worth mentioning that at the 27th China Beauty Expo, Bb Laboratories will showcase more new products and welcomes everyone to come and experience them.