Mayinglong Pharmaceutical Group Co., Ltd (MYL), the Chinese pharmaceutical manufacturer, delivered rapid growth in its cosmetic business. Recently, Mayinglong Pharmaceutical Group Co., Ltd (MYL) announced its 2022 financial performance. Last year, the company's revenue achieved 3.532 billion yuan ($469.71 mil), a year-on-year increase of 4.35%, the net profit attributable to shareholders was 470 million yuan ($ 68.24 million), a year-on-year increase of 3.10%. According to the financial report, MYL 's pharmaceutical industry segment has gradually formed a product structure with anorectal as the core and ophthalmology and skin as the pillars, covering medicines and general health products. Among them, its big health category structure is based on "Mechanical Food, Health, Cosmetic and Disinfection", which fully covers four categories: functional cosmetics, functional care products, functional food, and consumer products. Functional cosmetics include eye care, eye daily necessities, facial and body cleansing and care products. Regarding the increase in performance, MYL said that this is mainly due to the market foundation of the company's pharmaceutical manufacturing business, which has contributed to a relatively stable source of revenue and profit. In 2022, MYL pharmaceutical industry segment delivered 2.073 billion yuan (($300.99 mil) in revenue, with an increase of 11.6% over the same period last year. Revenue of the great health segment increase by 23.75% year-on-year. MYL said the rapidly growth is firstly due to its vigorous development of the eye health industry, focusing on eye cosmetics, health care, and treatment, and vigorously expanding its eye care business. During the year, the sales of ophthalmology categories increased rapidly with a growth rate of 24%. Secondly, its deep potential, with Dragon Ball Ointment as the core layout to develop skin health care business. In the future, the company will implement the development requirements of "industry needs speed", accelerate the development of emerging businesses such as eye and skin care, accelerate scale-up, and form lateral support. It will effectively implement the operating mechanism of "main body integration, integrated management, and optimization in operation", vigorously promote the development of the health business, optimize and improve industrial planning, promote category upgrades, and systematically improve the marketing system construction.

Proya Group, the Chinese beauty giant soars 37.82% in operating revenue to 6.385 billion yuan ($929.6 million) and ranked second in revenue among Chinese cosmetics companies. Proya Group, the Chinese beauty giant, released the 2022 annual financial results announcement. The company achieved a total operating revenue of 6.385 billion yuan ($929.6 million), with an increase of 37.82% compared to 2021. The company’s net profit attributable to shareholders reached 817 million ($126.5 million) yuan, a year-on-year increase of 41.88%. According to the annual financial results announcement, Proya Group attributes the remarkable performance to its further deepening on the "Multi-Brand, Multi-Category, and Multi-channel" strategy”. Due to the continuous "Hero Product Strategy ". the sales of the company’s main brand Proya have achieved steady growth, as well as other brands include Timage, Off&Relax, and Hapsode. The online channels of each brand also delivered steady growth. Proya Group, founded in 2006, the company listed on the Shanghai Stock Exchange main board in November 2017. Since Proya Group went public, Proya Group has achieved double-digit operating revenue growth for five consecutive years, and its total operating revenue and net profit have shown an overall increase. In the year of 2022, Proya Group’s operating revenue exceeded 6 billion yuan ($872.96 million). According to the annual financial report data for 2022, Proya Group ranks second among domestic cosmetics listed companies with a total operating revenue of 6.385 billion yuan ($929.6 million), only down to Shanghai Jahwa, which delivered 7.106 billion yuan ($1.034 billion) in operating revenue. In addition to the skin care brand Proya with the highest proportion of its main business, the company's color cosmetic brand Timage also achieved rapid growth, and has now became Proya Group's second growth curve. The 2021 financial report shows that among Proya Group's own brands, the skin care brand Proya delivered 3.829 billion yuan ($555.78 million) in operating revenue, an increase of 28% compared to 2020, accounting for 82.87% of total operating revenue. The operating revenue of the color cosmetic brand Timage achieved 246 million yuan ($35.79 million), a remarkable increase of 103.48% compared to 2020, accounting for 5.33% of the total operating revenue. In addition, in the third quarter financial report of Proya Group in 2022, the turnaround from loss to profit of its color cosmetics brand Timage made contribution to the growth of the company’s net revenue. According to the forecasts of several financial institutions, Proya Group’s operating revenue will exceed 9 billion yuan ($1.309 billion) in 2024 and is expected to hit 10 billion ($1.455 billion) in the following years.

China’s NMPA issued the Guidelines for the Registration of Radio Frequency Beauty Devices, the radio frequency beauty devices should be given a clear application part and purpose in the scope of application. On April 12, the Center for Medical Device Evaluation, National Medical Products Administration (NMPA) issued a notice on the guidelines for the registration review of radio frequency beauty devices, pointing out that in order to further standardize the management of radio frequency beauty devices, the Center for Device Evaluation of NMPA organized the formulation of the Guidelines for the Registration of Radio frequency Beauty Devices (hereinafter referred to as the guidelines). According to the guidelines, the radio frequency beauty devices should be given a clear application part and purpose in the scope of application. Depending on the intended use of the product, the following normative expressions are recommended as "for the reduction of (body, face) skin wrinkles", "for the treatment of acne", "for the treatment of (body, face) atrophic scars", "for the treatment of Reduce (abdomen, flanks) subcutaneous fat", etc. For special areas such as the eyes, cheeks, and neck, the available areas and forbidden areas should be clearly shown in the form of diagrams. For imported radio frequency beauty devices products, if they are not managed as medical devices in the country of origin, they should provide the corresponding regulatory basis and certification documents that allow the product to be marketed in the country of origin. The guidelines pointed out that the radio frequency beauty devices are mainly aimed at improving the appearance and aesthetics of the human body, rather than treating diseases. The applicable target is mostly healthy people, and the main benefits from the devices come more from psychological or social needs rather than physical health needs. Therefore, compared with traditional medical devices, the risk-benefit analysis of radio frequency beauty devices should focus more on safety requirements, and have a sufficient risk-benefit ratio under the premise of relatively sufficient safety. When necessary, a comprehensive evaluation should be made in combination with factors such as patient preference and alternative methods (such as sound, light and other cosmetic devices or cosmetics, etc.). The product manual of radio frequency beauty devices should specify the indications, contraindications and use restrictions of the product, and specify the applicable target and applicable parts. A schematic diagram of areas that can and cannot be used (e.g. specific areas such as eyes, cheeks, neck) should be given. From April 1 next year, radio frequency beauty devices will also be officially included in the management of third tier medical devices, and home-used radio frequency therapeutic devices (beauty devices) will also need to carry out human clinical trials as third tier medical devices.

International Flavors & Fragrances Inc, the US-based flavors, fragrances, and cosmetic actives manufacturer, announced that the company’s board chair Dale F. Morrison passed away at Age 74. International Flavors & Fragrances Inc (IFF), the global leading flavors, fragrances, and cosmetic actives manufacturer, announced that the company’s board chair Dale F. Morrison passed away at Age 74. IFF said Morrison served more than a decade as a member of the IFF Board, including as Chair since February 2022. Under his steadfast leadership, the company delivered on an ambitious global transformation, strengthening its position as an industry leader, setting new standards for innovation and R&D, and restoring a commitment to operational excellence. Morrison is non-Executive Chairman of the IFF Board and a founding partner of the private equity firm Twin Ridge Capital Management. Prior to Twin Ridge, he founded TriPointe Capital Partners in 2011. From 2004 to 2011, Morrison served as the President and Chief Executive Officer of McCain Foods Limited, an international leader in the frozen food industry. A food industry veteran, his experience includes service as Chief Executive Officer and President of Campbell Soup Company. Moreover, Morrison also played important roles at General Foods and PepsiCo and as an operating partner of the private equity firm Fenway Partners. “This is a profound loss of an exceptional man,” said Ferguson. “Dale and I have been partners and collaborators for nearly ten years, and I am so grateful for the many lessons he taught me along the way. One of Dale’s enduring ambitions for IFF to become a transformed, global leader, and I’m proud to credit him for so much that this organization has accomplished. Dale leaves behind an impressive legacy, and I will miss him greatly.” “We are deeply saddened to learn of Dale’s passing,” said Frank Clyburn, CEO of IFF. “Dale served as a mentor to many of us here at IFF, and we all will be forever grateful for his years of leadership and immeasurable contributions. Over the last year, Dale played a pivotal role in helping develop IFF’s refreshed strategic plan, and together, we will honor his legacy by continuing to deliver on his vision. Our thoughts are with his family during this difficult time.”

Jenny Cheah, the president of Bulgari Greater China, has now been appointed as the new managing director of Sephora Southeast Asia, Oceania and South Korea. Jenny Cheah, the president of Bulgari Greater China, has now been appointed as the new managing director of Sephora Southeast Asia, Oceania and South Korea. She will report to Sephora’s Asia president Alia Gogi. “I’m beyond excited to join Sephora at a time when we continue to reimagine, redefine and challenge the perception of beauty,” Cheah said in a statement from the company, “Our corporate purpose that is deeply anchored in empowering the extraordinary in each and all of us, is something that I profoundly believe in, and I can’t wait to work with my amazing teams across Southeast Asia, Oceania and South Korea to bring this to life.” Jenny Cheah graduated from the National University of Singapore. In 1999, Jenny Cheah joined DFS Group, a Hong Kong-based travel retailer of luxury products, as the luxury fashion divisional merchandising manager. DFS Group was founded in 1960, the company now operates luxury duty free store in 12 major airports and 23 downtown Galleria stores, as well as affiliate and resort locations. DFS Group became a subsidiary of LVMH in 1997. Jenny Cheah has been with DFS Group for 17 years. She worked as the luxury fashion divisional merchandising manager for about teen year and became the general manager of luxury fashion. Then Jenny Cheah was appointed as the global general manager of Gucci worldwide in 2010 and served as the role of fashion global director of merchandising in 2016. After 17 years with DFS Group, Jenny Cheah joined Bulgari as South East Asia and India managing director in 2016. She worked with Bulgari for about 7 years. Jenny Cheah served as the Bulgari 's president since 2021. “Jenny is joining Sephora at a truly exciting time as the prestige beauty market rebounds after COVID[-19]. With her robust knowledge of the prestige industry and Southeast Asia, she will play an instrumental role in our ambition to continuously elevate the Sephora experience to create the most loved beauty community in the world,” Gogi said in a statement.

If the cosmetic raw material is used in a product with a risk of inhalation exposure, the possibility of inhalation exposure should be clearly mentioned, and the health hazard effect of inhalation exposure should be considered. On April 13, the National Institutes for Food and Drug Control issued the Technical Guidelines for 28-day/90-day Repeated Dose Inhalation Toxicity Test (exposure draft)(hereinafter referred to as Guidelines), which formulated guidelines for issues related to repeated dose inhalation toxicity tests of cosmetics. corresponding technical guidelines. The Guidelines pointed out that cosmetics are applied to the skin, hair, nails, lips and other human surfaces by rubbing, spraying or other similar methods, due to the influence of some dosage forms and using methods or the feature of the raw materials some cosmetic raw materials may have inhalation exposure risks. According to the requirements of Technical Guidelines for Safety Assessment of Cosmetics and Regulations on the Administration of Registration and Filing Data of New Cosmetics Raw Materials, For cosmetic products that may have a risk of inhalation exposure, the possible health hazard effects of inhalation exposure on the human body should be evaluated. When the cosmetic raw materials or risky substance may be absorbed through the respiratory tract, the inhalation toxicity test data shall be provided. If the cosmetic raw material is used in a product with a risk of inhalation exposure, the possibility of inhalation exposure should be clearly mentioned, and the health hazard effect of inhalation exposure should be considered. Hazardous effects and the toxicology test data required in the registration and filing materials for new raw materials include "inhalation toxicity test (the test must be done when the raw material may be exposed to inhalation). Therefore, it is necessary to carry out systematic research and discussion on relevant technical issues, and formulate corresponding technical guidelines to standardize and guide the research and evaluation of repeated inhalation toxicity of cosmetics. The purpose of the Guidelines is to provide scientific recommendations for the repeated dose inhalation toxicity test research of cosmetic raw materials. The test results can provide a basis for repeated inhalation toxicity evaluation of cosmetics. The Guidelines apply to repeated dose inhalation toxicity test studies of cosmetic raw materials that may pose a risk of inhalation exposure. At the same time, it provides two test methods with different exposure periods: 28-day repeated dose inhalation toxicity test and 90-day repeated dose inhalation toxicity test. The principle of "concrete analysis of specific issues" should be followed, and according to the expected service life of the test substance, select the 28-day repeated dose inhalation toxicity test for short-term exposure, and the 90-day repeated dose inhalation toxicity test for long-term exposure. It is required to design an appropriate test method, and conduct a comprehensive evaluation of the test results in combination with other toxicological research information.

After experiencing the impact of general environment in recent years, Japanese and Korean brands are seeking to "innovate". Recently, CHAILEEDO found that in the first quarter of 2023, three well-known Japanese and Korean beauty brands, Innisfree, AHC and Freeplus, have updated their brand positioning. It may indicate that Japanese and Korean brands are finding their correct positioning and gaining growth. In March 2023, Innisfree announced the launch of a new brand logo. In response to this logo update, the official head of Innisfree publicly stated, "Innisfree will continue to meet new challenges with vigour and lead the way to create a global naturalistic beauty brand." (Left: before Right: now) Another Korean beauty brand, AHC, also changed its brand positioning in the start of 2023. Its slogan is "From the hospital, one bottle for renewal". And its customer is targeted at women aged 18-34, aiming to add a hospital-grade care experience to the products. Freeplus at Kao Group has also renewed its brand logo in 2023. The brand strategy is streamlining skincare routine. Following the launch of the Clean Beauty skincare concept for the Chinese market at the 2022 China International Import Expo, the Kao Group and Freeplus said that in 2023, the audience for Freeplus will mainly be Generation Z. Once “in the ascendant” All three brands were performing well. Innisfree was one of the first Korean cosmetics brands to enter China. It expanded the single-brand shop model in the Chinese market and once become the "No. 1 beauty single-brand shop in China". CHAILEEDO found that in 2015 and 2016, when it was popular, Innisfree performance grew rapidly, with annual net profit increasing by more than 50%. Since 2017, Innisfree performance began to gradually decline. In 2021, for the first time, there was negative net profit growth. It is worth noting that in 2022, Innisfree results began to turn around with net profit reaching $24.8 million. The above-mentioned Freeplus, which also had a respectable performance before the epidemic. Kao was specifically mentioned in the 2018 financial report released as driving growth in Asia to 36.6% in overseas markets outside of Japan due to the popularity of Freeplus. In this year, there was news that Freeplus' beauty collection shops in Japan were being significantly liquidated and discounted. Some users even questioned whether Freeplus was facing discontinuation in Japan. The head of Freeplus said that the brand's sales strategy deployment for the global market had been adjusted due to the impact of the pandemic in recent years, as well as changing consumer shopping habits. AHC, which was acquired by Unilever for €2.27 billion ($2.5 billion) in 2017, was also responsible for the performance of AHC, formerly part of Carver Korea, a subsidiary of Bain Capital and Goldman Sachs. It achieved sales of €321 million ($355 million) and pre-tax financial profit of €137 million ($151.5 millioin) in 2016. According to Unilever, AHC contributed 91.5% of the group's results. Japanese and Korean brands VS Chinese brands In the last two years, Chinese brands with the same advantages as Korean makeup such as good looking, high cost performance and fast product updates have sprung up. As one import brand agent said, with local Chinese brands making explosive products, the freshness and core competitiveness of Korean makeup brands become missing and consumers' demand for Korean makeup also starts to decrease a lot. The price of specific products, for example, Korean makeup such as the above-mentioned products Innisfree Green set was sold at the price of 194.4 yuan ($28.4)/set in its flagship shop on Taobao. The same positioning of CHANDO Super Nutrient Set is sold for 236 yuan ($34) / set onwards. The price gap is not large. Plus, after THAAD, the market share of Korean cosmetics in China has been decreasing year by year. According to public data, in the first five years of 2017, the annual average export rate of Korean beauty products in China exceeded 60%. In 2014, China became the largest cosmetic exporter of Korea. While in 2018, Korean cosmetics exports to China fell to 20%, and only 14% by 2019. Japanese cosmetics also have the same problems as Korean cosmetics. There are more and more cleansers with the same efficacy at the same price point in the Chinese market as Freeplus amino acid cleanser. For example, Zhiben Soothing Cleanser was sold at the price of 55 yuan ($8)/120g, which is cheaper than the Freeplus amino acid cleanser, which is priced at 68 yuan ($10)/100g. At the 2022 (5th) China Cosmetic Trends Conference held by CHAILEEDO, Xie Yong, Chairman of Beijing Dr Plant Biotechnology Co Ltd, said, "Innisfree was once particularly brilliant. After THAAD, it was a huge hit to them. While the fall in Japanese and Korean cosmetics was taken up by Chinese cosmetics companies.Both parties have similar target audiences and share the same philosophy of oriental skincare." In fact, Chinese beauty products are also gaining a degree of recognition from local consumers. According to Tencent's Chinese Beauty Insight Report, "Chinese makeup brands already account for 56% of the market share. In terms of consumers' willingness to buy, 42% of consumers prefer Chinese beauty brands, and 90% of consumers say they will buy Chinese beauty products again in the future." In China, "brands need to try to regain consumers" After all the difficulties in the past, three brands made the "coincidental" renewal of the brand positioning. CHAILEEDO noticed that all three brands have expressed the importance they attach to the Chinese market after updating their brand positioning. According to the 2023 China Sensitive Skin Anti-Aging Trends White Paper, the sensitive skin care market is on the rise, with the market size reaching 8.35 billion yuan ($1.2 billion) in 2022, outpacing the overall skincare market. With this in mind, AHC has introduced its new positioning of "Products with Affordable Aesthetic Medicine". Recently, AHC launched the B5 Pro Series and the Triple Anti-Aging Series, targeting Chinese consumers' needs for sensitive care and anti-aging respectively. As for the update of Innisfree, a senior industry figure has also previously pointed out to CHAILEEDO that "this logo makeover by Innisfree is not only for rebranding, but also for repositioning the brand in an attempt to regain consumers." Kao Group, the parent company of Freeplus, also made it clear at the conference on Freeplus launch last week that "China is one of the most important overseas markets for the Kao Group, and the Freeplus has always considered China as the most important overseas market. The brand will further increase its investment and research and development in the Chinese market, with a strategic focus on the Chinese market. We will continue to provide quality products and services to more consumers in the future." It is worth mentioning that at the brand launch, Senior Director, Brand Marketing, Freeplus, Li Wenji also said that Freeplus hopes to become the first Kao skincare brand to be the Group's NO.1 with a localisation strategy in China. Starting from the skin problems and substantial needs of Chinese girls, the localization strategy is tailored to expand the user population. As the times are fast moving, it is important to keep up with the times and quickly find the right path for your brand in order to stay alive in the Chinese market. It remains to be seen whether the collective "transformation" of Japanese and Korean beauty brands can reinvent their brand momentum.

In the first quarter of 2023, LVMH said that growth benefited in part from a rapid and strong rebound in Chinese consumption. On April 12, LVMH released its financial results for the first quarter of 2023. According to official figures, revenues of LVMH achieved €21.04 billion ($23.2 billion) for the three months ended 31 March, up 17% on the same period in 2022. LVMH said that it had started the year well, although the geopolitical and economic environment remained uncertain. LVMH Perfumes & Cosmetics achieved revenue growth of 11% in the first quarter of 2023. The group said it would continue its strategy of highly selective distribution. In the first quarter, Christian Dior continued to consolidate its leadership position with a strong performance. Its iconic Sauvage, Miss Dior and J'Adore fragrances were important growth channels. Make-up and skincare also contributed to the brand's performance. Guerlain benefited from the success of its Aqua Allegoria line, while Benefit expanded its The Porefessional skincare range, and Fenty Beauty benefited from strong visibility following its founder Rihanna's Super Bowl LVII halftime show, which drew an audience of nearly 119 million. Of the division's overall performance, LVMH concluded that "Makeup is doing well, but fragrances are doing even better and the skin care business if flattish," Personnel changes may boost the growth of LVMH's cosmetics business LVMH's ambition is to strengthen its cosmetics business and seek more growth possibilities. A glimpse of this may be seen in the personnel changes at LVMH this quarter. CHAILEEDO found that in March this year, LVMH appointed Stephane Rinderknech as Chairman and CEO of LVMH Perfumes and Cosmetics, who was in charge of 15 beauty brands including Guerlain, Fresh, Belle Epoque, Beauty, Fenty Beauty and Acqua di Parma. Stephane previously spent nearly 20 years at French beauty giant L'Oréal Group, where he was Director of L'Oréal Lancome North America in Miami in 2001. He moved to China in 2011 to head the Consumer Public Affairs and L’Oreal Luxe divisions before being promoted to CEO of L'Oréal China in 2016 and joining the L'Oréal Group Executive Committee two years later. Commenting on the change, Bernard Arnault, CEO of LVMH, said: “Stéphane has since his arrival guided the rebound of our hotel activities with considerable strategic agility, driving tremendous momentum across the entire organization,” Arnault continued. “This experience in a new industry confirmed his ability to adopt, his leadership and direct engagement with teams. His deep understanding of the beauty industry will help him leverage the unique assets of each of our maisons.” (Credit: Stephane Rinderknech, Chairman and CEO of LVMH Perfumes and Cosmetics） It is worth noting that Stephane's career shows that he has led L'Oréal USA, significantly driving the digital transformation of the region and affirming the company's values of diversity and inclusiveness. This coincides with LVMH's strategy for the future, as indicated in its earnings report. LVMH said that LVMH Perfumes and Cosmetics would continue to invest selectively in its areas of strength, such as brand appeal, accelerated innovation and digital initiatives, and a selective approach to its retail network, as the existing environment is rife with uncertainty. In the same month, Acqua di Parma announced that it had appointed Giulio Bergamaschi as its new Chief Executive Officer. Prior to joining LVMH, Giulio was Global President of L'Oréal's Biotherm and General Manager of International Product Development for L'Oréal China's mass cosmetics division. LVMH had this to say about Giulio: "Giulio is a seasoned and passionate beauty professional and leader. His deep sense of international markets and knowledge of the beauty category are critical assets for Acqua di Parma and the division,” Medioni said in a statement, adding that the new executive “will further elevate the Maison uniqueness and position as worldwide promoter of Italian lifestyle and craftsmanship." (Credit: Giulio Bergamaschi, CEO of Acqua di Parma） This quarter also saw CEO change at Make Up For Ever, Guerlain and Dior. Important decisions by leaders often influence the growth prospects of brands. With the talents such as Stephane and Giulio Bergamaschi taking on key roles, the newly appointed leaders perhaps playing an important role in achieving steady growth in LVMH Perfumes and Cosmetics this quarter. (Credit: A product of Acqua di Parma) A good rebound in China Looking specifically at LVMH business by region in Q1, Japan grew by 34% in the quarter, Europe by 24%, Asia (excluding Japan) by 14% and the US by 8%. Although Asia, where China is located, did not grow as much as Japan and Europe, but Jean-Jacques Guiony, LVMH's Chief Financial Officer, made a point of mentioning China's recovery in a video conference. He said: "We registered some pretty nice pick-up in China, which bodes well for the rest of the year, " "So we’re really back to where we were prior to the complicated period of 2022." According to WWD, Luca Solca, senior luxury industry analyst at leading international asset management firm Bernstein, said in a research note: "LVMH is making the most of sustained European and American demand growth, while reaping the benefit of a rapid and strong rebound in Chinese spend." The recovery of Q1 in China was previously predicted by LVMH, with Bernard Arnault, Chairman and CEO of LVMH, saying in his 2022 annual earnings report that the optimised adjustment of China's epidemic prevention and control policy in 2023 had given LVMH a strong start to the year. He was confident and optimistic about the Chinese market. Previously, a luxury market research report published by Bain & Company also suggested that the Chinese luxury market is expected to recover in the first to second half of 2023. It is worth mentioning that among the above-mentioned personnel changes in the first quarter, Stephane, the newly appointed Chairman and CEO of LVMH Perfumes and Cosmetics, and Giulio Bergamasch, CEO of Acqua di Parma, both have extensive experience in the China market. Stephane has led L'Oréal's China region to outstanding results. According to L'Oréal's previous annual reports, after 2017, when Stephane took over, L'Oréal turned things around in China and achieved impressive results with continued high double-digit growth in main business revenue. (Credit: Bernard Arnault, CEO of LVMH) Confident in the recovery of the Chinese luxury market this year According to the LVMH Group's FY2022 annual report released earlier, revenue performance in Asian markets outside of Japan, including China, was essentially unchanged from 2021. In the first half of the year, LVMH's revenue in Asia grew by 1% and declined by 2% in the second half of the year, ultimately resulting in China's share of LVMH's revenue falling from 35% in 2021 to 30% in 2022. In contrast, in Q1 this year, LVMH saw a recovery in the Chinese consumer market. In a global analyst conference call held by LVMH, the group's management said it was confident that the Chinese luxury market would recover this year as China continued to reopen. Bernard Arnault, LVMH's chief executive, had also said at the FY2022 financial presentation that affluent Chinese consumers are returning to its shops. And there is good reason to be confident, even optimistic, about the Chinese market. In addition to the personnel changes, LVMH is also expanding its own brand category and its promotional efforts in China. In February, Benefit announced that it would launch The Porefessional skincare range, making its debut in the skincare. In March, Make Up For Ever launched a velvet powder in China, containing 10 exclusive Asian shades. In March, Dior announced Diligeba as the brand's China make-up spokesperson; Givenchy Beauty announced Modern Brothers In March, Dior announced Diligaba, a Chinese well-known actress, as the brand's Chinese make-up spokesperson. Givenchy Beauty announced Liu Yuning as the spokesman of the brand. Earlier, at the end of 2022, LVMH also demonstrated its increased investment in the Chinese market. L Catterton, the world's largest consumer private equity fund under LVMH, completed the first close of its first RMB fund, which has a target size of 2 billion yuan ($290.9 million), exceeding expectations for the first close. The fund includes investments in eight consumer segments including going global, beauty and personal care, food and beverage, pets, healthcare, consumer technology, new retail and apparel and fashion. Li Jing, Head of L Catterton RMB Fund, has said that L Catterton has long been bullish on the development of China's consumer industry. The establishment of its first RMB fund in China represents a move to nurture more brands for China that can take a place in the international market in the future. Along with the Group's presence in China, it is foreseeable that the Chinese market will be a top priority for LVMH in the future. But whether steady growth of LVMH in the future can be achieved still need to be tested by discerning Chinese consumers.

The Japan beauty giant Shiseido Group has participated in the Expo for the third consecutive year, is set to accelerate its expansion in Hainan travel retail market. On 11th April, the the 3rd China International Consumer Products Expo (referred to as " Expo") officially kick off in Haikou, Hainan. Shiseido Group has participated in the Expo for the third consecutive year. At this year's Expo, under the theme of "Awakening Inner Beauty", Shiseido showcased its rich and balanced product portfolio to consumers, helping them to achieve holistic aesthetic enjoyment. At the same time, Shiseido's 11 popular brands under the group debuted new and limited-edition products at the Expo, demonstrating its continued efforts and confidence in accelerating its layout in Hainan and exploring the travel retail market. Shiseido introduced its Timeless Glassy Skincare Collection at the Expo, which made its debut at the event. As Shiseido's high-end luxury skincare series, the Timeless Glassy Skincare Collection continues to explore legendary and rare ingredients with exquisite craftsmanship, applying advanced technology to present consumers with exceptional skincare experiences and help women feel their beauty from the inside out. Last year, the upscale perfume and makeup brand Serge Lutens made its offline debut in mainland China at the Expo, receiving widespread attention and discussion. This year, Serge Lutens returned to the Expo and presented the "Berlin Girl 10th Anniversary Limited Edition" for its first offline debut in mainland China. In addition, as summer approaches, sunscreen has become a category of great concern to consumers. Anessa has partnered with "Doraemon" to launch a collaborative joint product, and the Consumer Goods Expo showcased the travel retail channel exclusive version of the "Doraemon" collaborative golden sunscreen milk. Shiseido said the product utilizes thermal energy black technology and an upgraded version of water-resistant sunscreen technology to achieve long-lasting and high protection against the sun's harmful rays, making it suitable for outdoor sports scenarios. In 2022, the net sales of Shiseido Group's travel retail business increased by 15.3% compared to 2011, and Hainan has become an important engine driving the development of the Asian travel retail business. Shiseido Group believes that the company has attracted consumers from various regions by deploying a diversified brand portfolio and entering multiple duty-free malls. In the future, Shiseido Group will promote business growth in Hainan by creating a seamless O2O journey and strengthening cooperation with long-term strategic partners, contributing to the development of Hainan as an international tourism consumption center.

The increase in sales was due to the increase in volume of Fine Fragrance with continued high levels of new business. On April 12, Givaudan, a Swiss essence and spice giant, announced its performance in the first quarter of 2023. In the first three months of 2023, Givaudan achieved sales of 1.773 billion Swiss francs, a year-on-year increase of 3.6%, and a decrease of 0.4% based on Swiss francs calculation. According to information on the company's official website, Fine Fragrance sales increased by 20.9% LFL against a high prior year comparable growth of 17.4%, Consumer Products sales increased by 3.0% LFL and sales of Fragrance Ingredients and Active Beauty increased by 5.1% LFL(1). The increase in sales was due to the increase in volume of Fine Fragrance with continued high levels of new business. In addition, all business departments have implemented pricing actions. All customer groups have achieved growth, particularly strong in high growth markets. “The Company aiming to achieve organic sales growth of 4-5% on a like-for-like basis and free cash flow2 of at least 12%, both measured as an average over the five-year period strategy cycle. “ Givaudan CEO Gilles Andrier said: The solid sales growth in the first quarter once again demonstrates the importance of Givaudan's balance between its different business units, regions and customer segments. The company will continue to focus on innovation to enable our customers to bring quality products to market. According to Reuters, J.P. Morgan analyst Celine Pannuti said in a note, "Overall, we believe the results mark a bottoming in volume deterioration seen since Q422 led by de-stocking, meanwhile pricing actions continue to be implemented to mitigate input cost inflation." (1)LFL (Like-for-like) is defined as: (a) sales calculated using the invoicing exchange rates of the prior year, (b) excluding sales of businesses acquired from the acquisition date until the period end date, up to 12 months from the acquisition date, and (c) excluding sales of the businesses disposed of from the disposal date until the period end date of the comparable prior period. Source: Givaudan

Clean beauty cosmetic products turnover in China soars 236% in 2022. Nearly 200 overseas brands specializing in clean beauty and cosmetics have entered the Chinese market through Tmall International. The 3rd China International Consumer Products Expo released the first import consumer trend, which is "Clean Beauty" cosmetics with a year-on-year growth of 236% in new brand transactions. On the second day of the Consumer Expo, nearly 100 clean beauty and cosmetics brands from multiple countries, including Farmacy, REN, Trilogy, and others, partnered with Tmall International to showcase their new products in the "Earth-Friendly" exhibition area. The concept of "Clean Beauty" originated abroad, and the definition of clean beauty and cosmetics in China mainly includes four aspects: "harmless and no additives in ingredients, environmentally friendly and no harm, animal-friendly and no cruelty, sustainable and no waste." A day in the life of a consumer who is enthusiastic about clean beauty and cosmetics may involve using animal-free clean makeup to start the day, replacing chemical sunscreens with physical sunscreens to resist the sun in the afternoon, and using skincare products labeled "suitable for sensitive skin" to give sensitive skin a break at night. Tmall International Market's head, Yu Huanhuan, introduced at the event that in 2021, Tmall International first introduced "Clean Beauty" as a platform identity to Chinese consumers. In the first half of 2021, the number of clean beauty and cosmetics brands increased by 106% year on year. Since then, nearly 200 overseas brands specializing in clean beauty and cosmetics have entered the Chinese market through Tmall International, releasing thousands of new clean beauty and cosmetics products, including brands from multiple countries such as the United States, France, Germany, the United Kingdom, and Japan. Clean beauty brand REN, known as the pioneer of "clean beauty," made its debut at the launch event and has been loved by beauty experts since officially entering Tmall International in March 2021. Its single product, the fruit acid mask, sold over 10,000 units in its first month online, and the brand's transaction volume in the first half of this year increased by 290% year-on-year. Another clean beauty brand from New Zealand, Trilogy, is also one of the earliest practitioners of Clean Beauty. Since entering Tmall International in 2017, it has consistently ranked in the top two of the Tmall imported essence list. With natural and organic certifications, Trilogy has attracted a lot of fans to purchase its products. At the new trend launch event, Tmall International also jointly released a new definition of clean beauty platform with cosmetics testing agency, which includes not using animal ingredients. This means that in the future, consumers on Tmall International can choose clean beauty products with more confidence and convenience.

Travel retail can help brands better communicate with consumers. Hainan has always occupied an important position in L'Oréal's business. L'Oréal said three years ago that Hainan's tax-free consumption and free trade port policies have stimulated consumption growth in the Chinese market and promoted the prosperity of China's beauty industry. "Integrating into the construction of the free trade port is undoubtedly an excellent opportunity to closely connect the L'Oréal brand with the open Hainan, and provide more consumers with high-quality products, services and quality experiences through Hainan's international platform." President North Asia Zone & CEO L'Oréal China Fabrice Megarbane once told the media. In 2023, L'Oréal is keenly aware of the recovery of Hainan's travel retail industry, and observed from the beginning of this year that "everyone started to go out and reconnect with the world around them". The resumption of social activities where people gather together has brought about a rapid increase in offline traffic and created a lot of business opportunities. "Hainan has played a very important role at the moment when offline travel and the flow of people are rapidly recovering." Fabrice said in an interview with the media including CHAILEEDO. Travel retail is part of brand communication Fabrice said the new seaport is a good example of entertainment retail, illustrating how retailers can provide consumers with a good experience and make consumers "returning customers". L'Oréal can provide consumers with more and better experiences and interactions in the retail sector, which will remain the same from now to the future. For consumers, if they have a good travel retail experience and establish a relationship with the brand during the trip, their loyalty to the brand will also increase when they return to their own city. Tourism does not mean that shopping behavior will definitely occur when going out, but it creates an opportunity and link for brands to interact with consumers. L'Oréal has been working in China's travel retail market for more than ten years. The CDF project of CDFG in Haitang Bay was the first to let consumers know. L'Oréal, as the first batch of customers to cooperate with, has witnessed the booming development of China's tourism market in the past few years. At present, L'Oréal has many partners in Hainan, and until now has brought 20 international brands to the Hainan market to meet the needs of many tourists here. Seize the opportunity in Hainan Recently, the customs sealing operation of Hainan Free Trade Port is already underway. After completion, consumers will be able to enjoy tax-free treatment for imported goods in Hainan. In addition, the customs closure will not affect consumers' shopping and travel in and out of Hainan, and they can enjoy more "dividends" from the free trade port policy, which will promote consumers' willingness to travel. Fabrice pointed out that Hainan's consumer market can be said to be a process of accelerated upgrading of the consumption and beauty market, so L'Oréal also very much expects that such a policy will bring new opportunities to the beauty market. It is true that this "market upgrade" is closely related to consumers. "High quality" can be said to be one of the most important concerns of Chinese consumers. Chinese consumers are eager for higher-quality products and services, and their demands are constantly rising, including personalized demands. Fabrice believes that because of the increasingly complex and escalating needs of Chinese consumers, especially the demand for cosmetics, and the market upgrades complement each other, a unique travel retail market in Hainan has been formed. Continuous innovation to respond to the needs of consumers Not only the dividends of the policy, L'Oréal also sees a huge opportunity in the consumer market. The middle class in China is very large, and because of Hainan's geographical advantage, this group of people has a strong willingness to spend in Hainan. "Such a large number of consumers, coupled with their very strong and very upgraded consumer demand, have promoted the continuous innovation of the market." Fabrice said. "Beauty makeup has given consumers exact confidence and strength." Chinese consumers not only need better efficacy, but also more personalized products to express themselves. Based on this, the trend of the beauty market will tend to be diversified and innovative. "This year's makeup market is very prominent, and everyone is pursuing a very diverse style of styling and makeup." This also means that L'Oréal must constantly innovate new products to meet the needs of consumers and the market. "We will continue to innovate along with the Hainan market. Because this market can serve so many Chinese consumers, it will eventually help us better understand and gain insight into Chinese consumers.”