Some industry insiders have said, “Currently, the volume of cross-border cosmetics business is still very small and cannot stop the continued decline in the performance of fast fashion brands in recent years.” In recent years, with the popularity of the cosmetics market, it has become a trend for fast fashion brands to cross over into cosmetics. Fast fashion brands such as H&M, Zara, Forever21, and Lululemon have all entered the cosmetics field. From the product side, international fast fashion brands often prefer color cosmetics. In 2009, Forever21 launched its first self-owned color cosmetics brand Love & Beauty, and in 2014, it launched another color cosmetics brand F21 Premium that focuses on affordable high quality. Another giant in the fast fashion industry, Inditex Group’s main fast fashion brands currently all have color cosmetics product lines. Zara launched its first lipstick series Zara Ultimatte in 2018 and then launched a full line of color cosmetics Zara Beauty. Bershka launched a full line of color cosmetics Beauty by Bershka in 2017. Pull&Bear and Bershka also launched color cosmetics lines Hey Beauty! in the same year. “The development prospects of the cosmetics market attract the covetousness of countless companies outside the industry. The fast fashion industry has also become a main force in the cross-border army, betting the company’s second growth curve on cosmetics,” an industry insider told CHAILEEDO. “But currently, the volume of cross-border cosmetics business is still very small and cannot stop the continued decline in the performance of fast fashion brands in recent years.” In the past decade, international fast fashion retail brands such as H&M, ZARA, and GAP have entered the Chinese market one after another, providing consumers with fashionable and trendy clothing at affordable prices. With the rise and upgrade of the Chinese consumer market, they have achieved rapid expansion. Objectively speaking, fast fashion brands have a natural channel advantage and supply chain advantage in the cosmetics business due to their mature offline store network. In the past, the main way for fast fashion brands to sell cosmetics was often to rely on their own existing brand channels and crowd assets to sell cosmetics. CHAILEEDO has learned that although there are already notes on platforms such as Xiaohongshu about cross-border cosmetics brands such as H&M Beauty, most of these cross-border brands have not yet opened official online flagship stores in China and have not carried out large-scale marketing and promotion. The purchase channels can only be through overseas purchasing agents and cosmetics counters in offline brand stores. Correspondingly, Chinese fast fashion brands such as HLA only treat cosmetics as an accessory and have not made sustained investment and operation, which has led to a lack of competitiveness in the cosmetics field. “For fast fashion brands, the brand’s own design capabilities and supply chain capabilities are its core competitiveness,” an industry insider said . “The lack of marketing capabilities, cosmetics research and development capabilities, and operational capabilities is the fatal shortcoming of fast fashion brands.”

Many insiders have stated that the main reason for the small number of new anti-hair loss products is due to high barriers and strict regulation. According to survey data from the National Health and Health Commission of China, the number of people with hair loss in China exceeds 250 million, with an average of 1 in 6 people experiencing hair loss. The 2022 Personal Care Trend Report released by JD Supermarket also shows that the sales volume of anti-hair loss shampoo and hair care products has increased by more than 80%. The ‘baldness’ crisis is sweeping young people, and anti-hair loss and hair growth have become popular demands, driving the prosperity of the anti-hair loss market. A research report from GUOSHENG SECURITIES pointed out that the current industry scale of the domestic anti-hair loss and hair growth industry is around 11.4 billion yuan ($1.64 billion). Even so, the registration volume of anti-hair loss cosmetics has not increased with the surge in market demand.” Since 2022, there have been only 17 new anti-hair loss products in China, including both domestic and imported products, covering two categories of shampoo and essence. In terms of brands, only Adolfo and RYOE have a certain market reputation among these new products. In addition, CHAILEEDO has consulted the Product Formula Ingredients and Purpose of Use of all anti-hair loss new products published since 2022 and found that all domestic anti-hair loss products use Platycladus orientalis leaf extract as the anti-hair loss agent. The anti-hair loss ingredients added to the two imported anti-hair loss products are Achyranthes bidentata root extract and ginseng root extract. Consumer demand remains high and the market potential is obvious. Why are there so few new anti-hair loss products? Many insiders have stated that the main reason for the small number of new anti-hair loss products is due to high barriers and strict regulation. From the perspective of regulatory regulations, before 2021, the industry implemented the Regulations Concerning the Hygiene Supervision over Cosmetics (hereinafter referred to as the Old Regulations), in which hair growth belongs to special-purpose cosmetics. The Cosmetic Supervision and Administration Regulation (hereinafter referred to as the New Regulations) implemented from January 1, 2021 also included ‘anti-hair loss’ in special cosmetics, and anti-hair loss is still one of the efficacy claims that must undergo human efficacy evaluation tests. It is not difficult to see that whether it is the old regulations or the new regulations, anti-hair loss and hair growth products belong to special cosmetics with greater difficulty in obtaining approval. Shu Tingting, general manager of ZMUNI, also told CHAILEEDO that there have always been relatively few registration certificates for anti-hair loss products, and even before the new regulations, few hair growth products could be registered. Overall, the new regulations have strictly distinguished and managed anti-hair loss and hair growth, and the efficacy claims of anti-hair loss must also be well-founded. This has also triggered a new round of market reshuffle, and the anti-hair loss and even the entire shampoo and hair care market will usher in new changes.

An industry insider said, there are not many types of makeups in offline beauty stores and there are not many good brands to sell. Offline channels will become a turning point for cosmetics. In the second half of 2021, the Chinese cosmetics market fell into a slump. Among them, cosmetics brands such as Benefit and Maybelline tightened their offline presence and even withdrew from offline. Online, the cosmetics market is not optimistic either. Data from O&O Consulting shows that from June 2021 to June 2022, online facial makeup sales exceeded 37 billion yuan ($5.34 billion), a year-on-year decrease of 4.89%. Many practitioners believe that cosmetics are really not working. However, with the retreat of the epidemic and the recovery of the industry, offline cosmetics finally ushered in a turning point this year. According to data from iResearch Consulting Group, in the next three years, the Chinese cosmetics market is expected to have an increase of 22.9 billion yuan ($3.307 billion), still the second largest market after skincare products. In response to the topic of “Can makeup category become popular again offline?”, CHAILEEDO interviewed the owners of several CS retail stores in China. Most people said that it is not easy for makeups to become popular again through retail stores. Changing the status quo is difficult and requires a certain period of time. There are mainly three reasons. Firstly, with the implementation of the Cosmetic Supervision and Administration Regulation and related supporting regulations, it means that cosmetics supervision will become increasingly strict. A cosmetics retailer in Hangzhou told CHAILEEDO that after the new cosmetics regulations were introduced, the industry still needs some time to figure out the content of the regulations. “We need to adjust the entire brand and supply chain in accordance with the regulations, and consider the adaptability of all aspects to the regulations. Therefore, it will take quite a long time for cosmetics to recover,” he said. Secondly, cosmetics is a category that urgently needs heavy education. “Unlike skincare products, cosmetics require immediate results. However, a considerable number of consumers do not have the ability to quickly apply makeup and contour,” said the aforementioned cosmetics retailer in Hangzhou. They believe that it will take long-term market education to make consumers proficient in and accustomed to applying makeup. Thirdly, cosmetics products often have the ‘80/20 rule’, where out of 10 shades of a product, only 2-3 shades may be hot sellers. ‘Imagine a chain store with 30 stores. If one shade has 3 inventory stocks and there are 10 shades, that adds up to 900 inventory stocks. How much inventory pressure is that?’ said Li Feng, former general manager of the marketing center of cosmetics chain Yisha, revealing the dilemma of cosmetics stores. “The current offline beauty shops have few cosmetics categories and not many good brands to sell. The offline channel will become a turning point for cosmetics.” An industry insider believe that future “emerging makeup brands” have three clear positioning. First, strict control of prices online, preferably at the standard retail price. Second, driven by professionalism offline, without discounts. Third, the products need to meet high quality, high appearance value, and high repurchase rate.

From the overall environment of live-streaming sales, the current salary reduction of live-streaming salespeople may be just one of the initial manifestations of the standardized development of the live-streaming industry. “This year, the salaries of live streamers have decreased significantly, with a decline of at least 30% to 40%. “ Recently, several industry insiders have reported to CHAILEEDO that since the beginning of this year, the salaries of live-streaming salespeople have generally declined. Some industry insiders have revealed that since the Double 11 event last year, the salary levels of a large number of live streamers on the Taobao platform have shown signs of decline. “Many live streamers who used to earn a monthly salary of 20,000 yuan($2,888) can now only earn just over 10,000 yuan($1,444).” he said. According to the 2022 Double 11 E-commerce Talent Data Report, in 2022, the recruitment budget of e-commerce industry-related employers decreased, the demand for positions increased by 9% compared to the same period last year, while the average monthly salary decreased by 5% year-on-year. Public data shows that in 2021, the total size of China’s live-streaming e-commerce industry reached 1201.2 billion yuan ($173.46 billion) and is expected to reach 2137.3 billion yuan ($308.64 billion) by 2025. CHAILEEDO DATA shows that in 2022, the number of beauty influencers increased by 40% year-on-year, total voice volume increased by 74% year-on-year, and total interaction volume increased by 78% year-on-year. It is well known that since 2016, China’s online live-streaming industry has experienced a period of rapid development and has gradually matured. Video teams are showing a trend of centralization and specialization. With the joint supervision of national authorities in recent years, the introduction of multiple regulatory regulations, and the spontaneous promotion of leading MCN organizations, the live-streaming industry is facing a new development turning point. On the other hand, with the development of AI technology, live-streaming salespeople also need to have a sense of crisis. Currently, AI and Chat GPT have become the focus of investment institutions, and in the future, the number of companies using artificial intelligence to replace human live streamers will increase significantly. It is reported that Helena Rubinstein’s JD Mall has already tested the waters with AI live streamers. From the overall environment of live-streaming sales, the current salary reduction of live-streaming salespeople may be just one of the initial manifestations of the standardized development of the live-streaming industry. As the standardization of the live-streaming industry deepens, the live-streaming e-commerce industry will inevitably upgrade to a professional development stage.

Last year, several e-commerce platforms including Kwai and Douyin introduced management regulations for cross-border beauty products, further standardizing the development of cross-border beauty. After two years, Tmall Global has once again updated its Tmall Global Cosmetics Platform Standards , which took effect on April 19th. It is understood that in these Standards, Tmall Global has for the first time specified that when the validity period of regular products, samples, and gifts is less than one year, the expiration date of the product must be indicated. According to customs data, the import value of cosmetics in 2022 was 149.35 billion yuan ($21.57 billion), a year-on-year decrease of 7.3%. Although it declined for the first time after years of continuous growth, it still remains high. CHAILEEDO has noticed that in recent years, the relatively free and loose cross-border beauty market has shown signs of tightening. Especially last year, several e-commerce platforms including Kwai and Douyin introduced management regulations for cross-border beauty products, further standardizing the development of cross-border beauty. On May 10th, Douyin released new implementation rules stating that there are currently three business forms on the platform: domestic e-commerce business, global purchase cross-border e-commerce business, and Hainan duty-free business. In October of the same year, Kwai e-commerce also released an announcement on the upgraded management of cross-border beauty brand products on the Kwai import e-commerce platform. The announcement stated that “in order to optimize the business environment of the Kwai import e-commerce platform, the platform will optimize the management of cross-border beauty control brand products.” Earlier this month, the National Medical Products Administration issued the Measures for the Supervision and Administration of Online Distribution of Cosmetics (2023). As the first regulation specifically established for the online distribution of cosmetics, although it is not applicable to cross-border e-commerce retail imported cosmetics, it also reflects that the supervision of e-commerce platforms selling cosmetics by national regulatory authorities has entered a new stage. This update of the Tmall Global Standards also reflects its further refinement and standardization of requirements for cross-border cosmetics.

In the fiercely competitive global environment, ESG can help companies demonstrate stronger sustainable growth capabilities and gain favor from more consumers and investors. In 2004, the United Nations Global Compact first formally proposed the concept of ESG. Specifically, ESG stands for Environmental, Social, and Governance. It is an investment philosophy and corporate evaluation standard that focuses on a company’s environmental, social, and corporate governance performance rather than traditional financial performance. Nowadays, ESG and sustainability concepts have become an indispensable part of international corporate disclosure. In the fierce global competition environment, ESG can help companies demonstrate stronger sustainable growth capabilities and gain more favor from consumers and investors. As early as 2020, L’Oreal proposed a new sustainable development commitment for the next decade, gradually transitioning to a sustainable business model and actively addressing social and environmental issues. Estée Lauder released its social impact and sustainability report in fiscal year 2021, showcasing its progress in social impact, sustainable development goals, and achievements. As China’s capital market continues to integrate with the international market, and with the continuous promotion of policy forces and the improvement of corporate self-requirements, the ESG concept has also begun to take root in China. According to relevant data statistics, as of the end of September 2022, among the 5000 listed companies in China’s A-share market, 1459 companies disclosed ESG reports, accounting for 29.45% of all listed companies. According to PROYA GROUP’s ESG report, in 2022, PROYA GROUP’s greenhouse gas emissions per 10,000 yuan of revenue were 12.42 kg of carbon dioxide, a decrease of 31.69% compared to the same period last year. In addition, PROYA GROUP also proposed that the proportion of clean energy used will reach 50% by 2025, achieving its own peak carbon emissions and achieving net zero emissions in its own operations by 2030. BOTANEE GROUP implements the ESG concept in its green supply chain, using a holistic systems perspective to integrate the green supply chain into business processes such as product research and development, design, procurement, manufacturing, warehousing and logistics. In 2022, BOTANEE GROUP continued its empty bottle exchange program in offline chain pharmacies, accumulating a total of 183,800 empty bottles recovered and effectively raising consumer awareness of environmental protection. According to a CITICS Securities Sector Commentary report, the beauty industry naturally has ESG characteristics of low pollution and low energy consumption, with a focus on marketing and research and development. Therefore, in fulfilling their environmental responsibilities under the ESG concept, beauty companies pay more attention to the efficiency of energy use and the management of carbon emissions. Secondly, green and environmentally friendly packaging is also a characteristic issue in the beauty industry. An industry insider once said, “Annual financial reports summarize a company’s past, while ESG reports plan for a company’s future.” All signs indicate that practicing the ESG concept has become an unstoppable development trend for companies. In addition, as Chinese beauty companies continue to grow and develop, the development of a multi-brand matrix and multi-regional layout will become an inevitable trend. Especially for some domestic beauty giants that hope to go global, increasing investment in ESG construction will promote the company to a higher level of governance and gain recognition from overseas investment institutions, laying the foundation for groupization and going overseas.

YATSEN, once known for its colored cosmetics brand Perfect Diary, has seen its makeup decline year on year and its skin care rise. On the evening of April 26, YATSEN (NYSE: YSG) released its 2022 annual results report. According to the announcement, YATSEN achieved revenue of 3.71 billion yuan ($536.7 million) in 2022, gross margin for the year increased 1.2 percentage points year-over-year to 68.0%, and Non-GAAP net loss narrowed 53.8% year-over-year. In November 2020, YATSEN, the parent company of the famous beauty brand "Perfect Diary", was listed on the New York Stock Exchange after only four years of its founding. In addition to Perfect Diary, YATSEN E-Commerce's beauty brands include Little Ondine, Abby's Choice, Galenic, DR.WU, and EVE LOM. From the financial report, the narrowing of net profit was due to a series of "cost reduction and efficiency improvement" on the one hand, and a significant increase in revenue from the skin care business on the other. YATSEN skin care business grew strongly. 2022 skin care business achieved revenue of 1.24 billion yuan ($ 179.4 million), up 45.2% year-on-year, accounting for 33.5% of total revenue. Its three mid-to-high-end skin care brands' net revenue increased 99% year-on-year in 2022. On the other hand, the color cosmetics business is still declining. 2022 annual color cosmetics revenue was 2.4 million yuan ($347.2 million), down 36.5%. According to YATSEN in its earnings report, color cosmetics sales were impacted by the following factors: continued weak market demand for color cosmetics products, increased industry competition from domestic and international brands, a decrease in the number of offline experience stores, and our decision to limit discounts and promotions as our brand building strategy is geared towards sustainable growth. Color cosmetics continue to decline CHAILEEDO found that the profitability of the color cosmetics segment, which helped make it famous, has been declining year by year according to the financial reports of YATSEN in the past three years. And, the color cosmetics part of the company's revenue ratio is also declining year by year. According to the data, in 2020, the net revenue of the color cosmetics section of YATSEN was 4.92 million yuan ($ 711.8 thousand), accounting for 94%. In 2021, the net revenue of the color cosmetics section fell to 4.87 million yuan ($704.6 thousand), accounting for 83.4. In 2022, its percentage even fell to 65.2. The iconic brand in the color cosmetics segment of YATSEN is Perfect Diary. Once the Perfect Diary product layer was all the rage. Just one year later, the brand broke 100 million yuan ($14.5 million) in sales during Chinese Double 11 Shopping Festival in 2018. From January to December 2019, Perfect Diary took the top 1 in the color cosmetics category in the Tmall annual promotion. In the 618 shopping festival in 2020, Perfect Diary won the top 1 in the color cosmetics category on the JD platform. There are many reasons for the loss of the color cosmetics part of YATSEN. One of the more striking ones is the brand's excessive investment in marketing. The data shows that from 2019 to 2021, the marketing expense ratio of YATSEN climbed from 41.27% to 68.59%, and the proportion of marketing expense to revenue was 41.27%, 65.20% and 68.60% respectively. The high marketing investment has directly led to the decline in overall net profit. 2018-2020, YATSEN R&D expenses are only 2.641 million yuan ($382.1 thousand), 23.18 million yuan ($3.35 million) and 66.51 million yuan ($9.6 million). In an interview with China Entrepreneur, the founder of YATSEN said that the main reason for the company's marketing expenses of 4.006 billion yuan ($579.6 million) in 2021 is that industry-wide competitors have increased their marketing investment resulting in higher marketing expense levels. Scaling back operating expenses Since 2022, the cosmetics industry as a whole has been under pressure to move forward. According to data from the National Bureau of Statistics, retail sales in the cosmetics category were negative for nine months throughout 2022, with the cosmetics category in year-over-year decline throughout the fourth quarter. For the year as a whole, China's beauty retail industry declined 3.2% year-on-year, the lowest level in the past five years. Clearly, last year was more of a challenge than an opportunity for most beauty companies. Against this backdrop, in May last year, YATSEN firmly proposed and began to promote its "New Five-Year" strategic transformation plan, steadily promoting "fat reduction and muscle building" and shifting to high-quality development. Judging from the company's fourth quarter results, the effect of YATSEN's transformation strategy of "reducing costs and improving efficiency" is more obvious. The financial report shows that during the reporting period, the company's operating expenses fell 47% year-on-year, benefiting from the optimization of revenue structure and efficiency improvement, the company's gross margin continued to rise, and the gross margin in the fourth quarter steadily increased to 71.1%, up 6.1% year-on-year and 2.1% year-on-year. According to the financial report, in the fourth quarter of 2022, Yat Sen's total operating expenses decreased to $792.9 million from $1.49 billion in the same period of the previous year, down 47% year-over-year; while sales and marketing expenses decreased to $535.2 million from $1.08 billion in the same period of the previous year, and the sales and marketing expense ratio decreased to 53.2% from 70.7% in the same period of the previous year. In response, Yang Donghao, Director and CFO of YATSEN, said, "The phased results of the company's strategic transformation have been verified by the market. With three consecutive quarters of positive net cash flow from operating activities, we are confident that we will further realize our strategic transformation plan this year." The financial results show that YATSEN E-Commerce generated net cash from operating activities of 110 million yuan ($15.9 million) in the fourth quarter. As of December 31, 2022, the company had 2.63 billion yuan ($380.5 million) in cash, restricted cash and short-term investments. Skincare segment becomes major growth curve And, YATSEN, which lost in the color cosmetics segment, turned to the skin care segment. The financial report shows that the company's skin care business achieved revenue of 470 million yuan in the fourth quarter of 2022, up 42.4% year-on-year, accounting for 46.9% of total revenue, and the skin care business grew by more than 30% for three consecutive quarters. For the full year of 2022, YATSEN's skin care business recorded revenue of 1.24 billion yuan ($179.4 million), up 44.8% year-over-year, and accounted for 33.5% of total revenue. In other words, the performance of YATSEN's skin care segment now accounts for more than 30%. It is worth mentioning that YATSEN has also continued to increase its investment in R&D to ensure continuous product innovation. On the same day of the above-mentioned earnings release, YATSEN also simultaneously announced the company's new Chief Scientific Officer, Cheng Jing, who was previously the Vice President of Research and Development at Estee Lauder Group's Asia Pacific Research and Development Center. The financial report shows that the company's annual R&D investment in 2022 will total 130 million yuan ($18.8 million. The R&D expense ratio continued to increase from 2.4% in 2021 to 3.4% in 2022, with the R&D expense ratio continuing to rank in the top tier of global levels. As of December 31, 2022, YATSEN E-Commerce had applied for 174 patents worldwide, 43 of which were invention patents (some of which were in the process of being transferred). At the earnings meeting, YATSEN stated that its transformation strategy is divided into three major steps: first, improve gross profit margins and achieve positive operating cash flow. Second, continue to adjust the category structure, increase the proportion of skin care, adjust the channel structure and improve operating efficiency. Third, achieve profitability and the company enters a new growth phase across the board. "At present, we have completed the first two steps, and for the third step, we have completed the first half of the step. Next, we will focus on building a new growth model." From this point of view, YATSEN has transformed from a "color cosmetics company" to a dual race track company of color cosmetics + skin care. From the current financial report data, YATSEN E-commerce skin care category performance is also relatively bright. In the future, whether the "New Five-Year" strategic transformation plan will be successful or not is still to be tested by the market.

Previously, the debate over “who will be the next top male and female livestreamers” has never ceased since the rise of livestream e-commerce. However, it now seems that the era of ‘big livestreamers’ is coming to an end. Currently, in the livestream e-commerce industry, the phenomenon of ‘de-superstarization’ has begun to emerge. Viya(薇娅), Simba(辛巴), Sydney(雪梨), Luo Yonghao(罗永浩)... Whether voluntarily or involuntarily, these names that once led the livestream trend are gradually fading away and de-superstarization has become the consensus among platforms and institutions. Previously, the debate over ‘who will be the next top male and female livestreamers’ has never ceased since the rise of livestream e-commerce. However, it now seems that the era of ‘big livestreamers’ is coming to an end. This is not unrelated to the successive ‘incidents’ of many top livestreamers. This has also made platforms and brands start to re-examine this livestream business model that overly relies on top livestreamers. “At present, the supply chain has become the key that MCN/livestreamer institutions are striving to compete for,” said an industry insider who wished to remain anonymous. “As more and more people enter the livestream e-commerce market, price advantage will become the only competitive difference between major livestreamers in the future. No matter how it changes, the most critical factor that ultimately allows consumers to pay is still in terms of low prices and good quality, authentic sources of goods, and after-sales service. Therefore, the core of livestream e-commerce competition is ultimately the supply chain.” It can be seen that top livestreamers and MCN institutions are both consolidating their own supply chain systems. For example, jiaogepengyou has established cooperative relationships with many well-known domestic and foreign brands such as P&G, Xiaomi, Midea, Listerine, Moutai, Lancôme, and Shiseido to create a rich supply chain product pool. It is reported that most of the goods sold in jiaogepengyou’s livestream room are linked to merchants through its own self-built SaaS platform. With a stable and reliable supply chain, its cost advantage is increasingly highlighted while efficiency is improved.” The first item in Dongfang Zhenxuan’s business plan is to optimize the supply chain, strictly select products, and shape the reputation of Dongfang Zhenxuan. Then, continue to output high-quality content and improve the supply chain. Finally, it plans to launch its own products and create its own brand to convert traffic dividends into a normalized fan base with high-quality goods.” Obviously, the competition in livestream e-commerce will become more intense.

Yunnan Baiyao has released its Q1 2023 financial report. From January to March, Yunnan Baiyao's overall revenue was 10.513 billion yuan ($1.52 billion), a year-on-year increase of 11.49%. The net profit attributable to shareholders of the listed company was 1.518 billion yuan ($219.56 million), saw growth of 66.01%。 Yunnan Baiyao has released its Q1 2023 financial report. From January to March, Yunnan Baiyao's overall revenue was 10.513 billion yuan ($1.52 billion), a year-on-year increase of 11.49%. The net profit attributable to shareholders of the listed company was 1.518 billion yuan ($219.56 million), saw growth of 66.01%; the non-recurring net profit was 1.403 billion yuan ($202.88 million), a year-on-year increase of 6.29%. According to previous reports, Yunnan Baiyao's overall revenue in 2022 was 36.488 billion yuan ($5.28 billion), a year-on-year increase of 0.31%. The net profit attributable to shareholders of the listed company was 3.001 billion yuan ($434.07 million), saw growth of 7%. Yunnan Baiyao toothpaste maintained its position as the industry leader with a market share of 24.4%. In 2022, Yunnan Baiyao Group's subsidiary, Yunnan Baiyao Group Health Products Co., Ltd., which specializes in the production and sales of oral hygiene products, recorded a revenue of 6.03 billion yuan ($872.14 million), a year-on-year increase of 2.03%. However, its net profit was 2.183 billion yuan ($315.74 million), a year-on-year decrease of 3.45%. Yunnan Baiyao has formed four major business units, including pharmaceuticals, health products, Chinese medicine resources, and Yunnan Province Pharmaceutical Co., Ltd. In 2022, all four business units saw varying degrees of revenue growth. The health products business unit, which focuses on daily use products, exceeded 6 billion yuan ($867.80 million) in revenue for the first time. Within this unit, oral care and the Yongyangqing brand products saw strong growth, and the market share of the toothpaste category increased to 24.4%, up from over 23% in 2021. Yunnan Baiyao continues to hold the top position in the toothpaste market, with a brand penetration rate of over 30%. In the financial report, Yunnan Baiyao stated that the company will upgrade its organizational capabilities, improve management requirements, provide professional support, and effectively control risks. The company will optimize and improve its organizational structure from the aspects of organizational structure design, business management team configuration, and business integration optimization, and re-determine the group's organizational structure for 2023.

Oprah Winfrey, the US famous talk show host, had invested in a skin care brand Dr. Barbara Sturm, specific term of this investment was not disclosed. During an interview with a German aesthetics doctor, Oprah Winfrey, the US famous talk show host, announced on Thursday that she had invested in a skin care brand, but did not disclose the amount. She also mentioned that she was introduced to the products by designer Stella McCartney and was so impressed that she called up the founder, Dr. Barbara Sturm, to express her interest in investing in the company. Winfrey noted that she had never invested in a company before, which speaks to the high quality of the products. Dr. Barbara Sturm, a beauty doctor who has also received training in sports medicine, introduced her Molecular Cosmetics collection under the brand name Dr. Barbara Sturm on Net-a-porter in 2014. Two years after that, Sturm collaborated with actress Angela Bassett to launch a product line called Darker Skin Tones by Dr. Barbara Sturm. Dr. Sturm's products are based on molecular science and have been developed to target common everyday skincare problems. They are designed to produce visible results and are carefully formulated to meet the unique needs of different demographics. The show also mentioned other products from Dr. Sturm's line, such as the Darker Skin Tones Hyaluronic Serum ($300), V Wash ($75), and V Drop ($100). In addition, Dr. Sturm has recently launched a new Anti-Aging Body Scrub ($110), which is a full body exfoliator that promotes fresh, blemish-free skin. “It was Stella McCartney actually,” says Winfrey to the audience in an interview: “She sent me some of the [Dr. Barbara Sturm] products and I was like, ‘what is this? what is this?’ And I love it so much that I then called up Dr. Barbara Sturm, and said ‘I want to invest in your company.’ And I have never done that before. Ever. So, that’s how good the products are.”

Consumer products giant Unilever reported its turnover in 2023 Q1 increased by 7% to €14.8 billion ($16.36 billion). Unilever said the underlying sales growth (USG) accelerated to 10.5%, driven by progress against strategic priorities and the underlying price growth (UPG) was 10.7% in Q1. Consumer products giant Unilever reported its turnover in 2023 Q1 increased by 7% to €14.8 billion ($16.36 billion). Unilever said the underlying sales growth (USG) accelerated to 10.5%, driven by progress against strategic priorities and the underlying price growth (UPG) was 10.7% in Q1. Unilever said growth in Q1 was broad-based across Business Groups and geographies and price growth remained elevated at 10.7%, with an improved quarter-on-quarter volume performance at (0.2)%. Unilever said the number of billion+ Euro brands reached 14, accounting for 54% of Group turnover, delivered underlying sales growth of 12.1%, led by strong performances from OMO, Hellmann’s, Rexona and Lux. Unilever now expect its underlying sales growth for the entire year of 2023 will be at least as high as the upper end of its previous multi-year range of 3-5%. The underlying price growth is expected to remain high during the first half of the year and gradually decline as the year progresses. In terms of business segments, the Beauty & Wellbeing sector saw a 9.3% increase in underlying sales, with 6.5% attributed to price growth and 2.6% to volume growth. Hair Care saw growth in all regions, with high single-digit growth and positive volume growth due to the rollout of the Sunsilk relaunch. TRESemmé also experienced strong growth, while the new Clear Anti Hair Fall product in China performed well. Core Skin Care achieved mid single-digit growth, with strong performances in South Asia and South East Asia, but a double-digit decline in North Asia due to decreased sales of AHC. Vaseline and Pond's saw double-digit growth, driven by innovations with additional consumer benefits, such as the premium Gluta-Hya serum that revitalizes skin overnight and boosts skin elasticity. Prestige Beauty and Health & Wellbeing sectors achieved double-digit growth for another quarter, with significant contributions from Paula's Choice, Hourglass, and Liquid IV. Personal Care saw a 12.7% increase in underlying sales, with 9.4% attributed to price growth and 3.0% to volume growth. The growth was widespread, with strong performances in Latin America, South Asia, Europe, and North America. Deodorants achieved high double-digit growth driven by Europe and the Americas, with volumes boosted by the recovery in service levels and associated pipeline fill. Rexona's strong performance was accelerated by the premium and superior 72-hour protection technology. Axe Fine Fragrance range, which combines odor protection with fine fragrances and freshness, contributed to double-digit growth for the brand. Oral Care achieved mid single-digit growth led by strong pricing. Close Up saw double-digit growth with good performance in South Asia and Africa. In terms of geographical areas, Underlying sales growth was 9.9% with 9.5% from price and 0.3% from volume for Asia Pacific Africa, with China saw low single-digit growth, which was driven by a mix of volume and price. The growth improved throughout the quarter as Covid restrictions eased. In North America, underlying sales saw an 8.1% growth, with 7.2% attributed to price growth and 0.9% to volume growth. Nutrition achieved double-digit growth with strong price growth and negative volume, driven by Dressings, while Personal Care growth was led by a very strong performance in Deodorants. In Latin America, underlying sales growth grew double-digit at 18.7%, with price growth of 18.4% and positive volume growth of 0.2%. Europe saw strong underlying sales growth of 9.2%, with 12.6% attributed to price growth and a decline of (3.0)% in volume. Personal Care, Nutrition, and Beauty & Wellbeing all achieved double-digit growth, while Home Care and Ice Cream only grew modestly as volumes declined.

On April 26th, the parent company of Dettol, Reckitt Benckiser Group, announced its Q1 2023 financial results. The report shows that the company's net revenue for the first quarter was £3.917 billion ($ 4.33 Billion). On April 26th, the parent company of Dettol, Reckitt Benckiser Group, announced its Q1 2023 financial results. The report shows that the company's net revenue for the first quarter was £3.917 billion ($ 4.33 billion), a year-on-year increase of 7.9%, with growth recorded in all business sectors and sales regions. The net revenue from e-commerce increased by 9%, accounting for 13% of the group's total net revenue. In the hygiene products sector, overall sales in the first quarter increased by 2.0% to £1.591 billion ($ 1.76 billion). The detergent brand Finish, stain remover brands Harpic and Vanish showed strong growth, and the performance of disinfectant brand Lysol met expectations. In the health sector, the net revenue for the first quarter was £1.643 billion ($1.82 million), a year-on-year increase of 12.5%. Dettol maintained its growth by launching plant-based products and introducing new long-lasting antibacterial products. In terms of regional performance, the European market achieved double-digit growth in the first quarter, driven by an increase in sales of health-related products. The North American market grew by 5.2%. In developing markets, revenue in the first quarter increased by 4.8% year-on-year, driven by Latin America, Africa, the Middle East, and South Asia. China is expected to be a growth driver this year. Reckitt Benckiser Group stated that the strong start to Q1 2023 was due to the company's recent product innovations. The company expects a year-on-year increase of 3% to 5% in net revenue for the group in 2023. Nicandro Durante, Chief Executive Officer, said:“We have made a strong start to the year across each of our business units and geographies reflecting further delivery from the investments we have made. In particular, our innovation programme has seen good early success across multiple launches, including Air Wick Active Fresh and Air Wick Vibrant, Finish Ultimate Plus All-In-One, our Dettol long-lasting germ protection platform, and Durex Invisible. Further innovations are planned for the upcoming quarters.” Source: Reckitt