L'Oréal signed memorandum of cooperation with Alibaba and Oriental Beauty Valley Group to accelerate its expansion in China. On April 6th, at the 5th meeting of the China-France Business Council, L'Oréal signed memorandum of cooperation on two strategic projects, The "French Start-up and SME Incubation Platform" with the Business France and the Oriental Beauty Valley Group, and the "Digital Circular Economy Model for Beauty Industry" with Alibaba Group. These two forward-looking projects signify L'Oréal's commitment to further unleash and gather "new beauty momentum," continuously enhancing the level of the Chinese market within the group's global innovation map, supporting China's modernization in the new era, and helping to promote new heights in innovation and sustainable development cooperation between China and France. The “French Start-up and SME Incubation Platform” originated from the “L'Oréal BIG BANG Beauty Tech Innovation Camp”, which has been successful held in China for three sessions. BIG BANG was co-organized by L'Oréal China, the Business France, and the Oriental Beauty Valley Group, BIG BANG has opened a “French Channel” for French small and medium-sized enterprises and start-ups which are interested in expanding their business in China for two consecutive years. The "French start-up and SME incubation platform" will provide comprehensive support for start-up companies, including marketing strategy, technology, product development and brand management. L'Oréal stated that through this signing, L'Oréal China, the Business France, and the Oriental Beauty Valley Group intent to further integrate their new resources and platforms on the innovation value chain, increasing support for French innovative enterprises to communicate and cooperate, incubate projects, and invest in China, while also providing a new window for Chinese innovative technology enterprises to go abroad and expand cooperation on the international stage. With a dual push of "bringing in" and "going out", they will create a solid bridge for deep integration and coordinated development of the Sino-French innovation ecosystem. It is worth mentioning that COROEBOS, the winning company of the 2022 BIG BANG "French Channel", also came to China as a member representative of the French delegation. Another cooperation project - the "Beauty Digital Circular Economy Model" signed with Alibaba Group is the first breakthrough of China's beauty industry in this field. Alibaba has also customized a complete set of digital supply chain solutions for French cosmetics group L'Oréal, to ensure that it can provide services to consumers more efficiently. L'Oréal and Alibaba have jointly established a "digital circular economy model for cosmetics" project. The project aims to manage the entire lifecycle of cosmetics through the Internet and mobile technology, promoting advanced and efficient cosmetics consumption experiences for Chinese consumers. To achieve this goal, the two parties will jointly develop and promote the "digital circular economy model for cosmetics," helping consumers save time and improve their quality of life. In the past years, the two parties have jointly created many successful practices in terms of high-quality consumer experience; in the future, they will continue to work together to seize China's unique digital ecology and promote the upgrading and transformation of sustainable consumption in the beauty industry.

Once changed, a solution emerges. As the saying goes, "The only constant in this world is always changing". In this fast-changing generation, if you want to stand firm in today's competitive environment, you should keep thinking and reacting. The National Bureau of Statistics released the retail sales data of consumer goods from January to February 2023. Among them, the retail sales of the cosmetics category were 65.6 billion yuan ($9.53 billion), up 3.8% year-on-year. As the consumption upgrade is implemented, the growth of cosmetics also reflects the rebound of the confidence of consumers, which makes many industry players have more expectations for the recovery of cosmetics. On this occasion, the 3rd China International Consumer Products Expo (hereinafter referred to as CICPE) was held in Haikou, Hainan from April 11 to April 15, bringing together more than 3,000 high quality brands including L'Oréal, Estée Lauder, Shiseido, Coty and others. So, what did beauty companies change? And what trends in beauty industry were shown? International beauty giants focus on high-end brands L'Oreal, Estee Lauder, Shiseido and Coty are four "old friends" of the CICPE. All of them brought their own high-end brands to the site in CICPE. L'Oreal is the world's largest beauty group. It also firmly occupies the top of China's market share of beauty companies. In the CICPE, it only displayed its French high-end men's skincare brand Biotherm. At France Pavilion, Biotherm built a 15-square-meter immersive booth with 10 of Biotherm's star products on display, including Biotherm Homme Force Supreme Lotion, Biotherm Homme Force Supreme Blue Serum, Biotherm Homme Aquapower Cleanser, etc. (Biotherm) Estee Lauder and its 14 high-end brands participated in CICPE and launched its high-end hair care brand Aveda, which has just entered the Chinese travel retail market. The brand showed consumers the products including efficacy like perm repair, hair growth, nourishing the scalp and so on. (Aveda) Shiseido presented its 11 popular brands at CICPE, focusing on the travel retail exclusive product sets and three hot-selling iconic products. Among them, Shiseido Future Solution Lx series made its debut at CIIE and its high-end perfume Serge Lutens brought the La fille de Berlin 10th Anniversary Limited Edition to its offline debut in Mainland China. (Serge Lutens) In an exclusive interview with CHAILEEDO, Caroline Andreotti, Coty's Global Chief Commercial Officer, said that Coty has now become a group with three major beauty brands and balanced development of categories. With the theme of "Garden of the Future", Coty Group brought nine of its iconic brands to the show. These brands include Gucci Beauty, Burberry Beauty, and high-end perfume brand Tiffany. (Left: Caroline Andreotti, Coty's Global Chief Commercial Officer) In addition, as the key to boosting the Group's business growth in China, Coty is continuing to make efforts in the skincare category. In this year's CICPE, Lancaster, the high-end skincare brand of Coty, came with the new "Royal Face Series". The debut of the ultra-prestige skincare brand Orveda was also an important preview of the brand's official entry into the Chinese market in the second half of this year. It fully demonstrates Coty's ambition to win in China with its professional skincare experience and ability to gain the empathy of Chinese consumers who love skincare products and have rich knowledge. Furthermore, CHAILEEDO also interviewed a personalized niche perfume brand Maison 21G. Johanna Monange, the founder of Maison 21G, said that Chinese consumers are very cautious when shopping for new niche perfumes. They look at factors such as brand and founder's background. Niche perfume brands need to ensure their brand quality and professionalism are excellent if they want to capture young consumers. As a first-time participant in the CIPE, Maison 21G hopes to focus on Generation Z and meet the needs of this group who have a unique personality and want to express themselves. (Right: Johanna Monange, founder of Maison 21G) Sustainability is still a long-lasting topic This year, sustainability is still an inescapable topic for beauty groups. Last year, Coty showcased its technology for making sustainable alcohol from captured carbon emissions by partnering with LanzaTech, a leader in next-generation green and sustainable ingredient production. It set a goal to use sustainable alcohol derived from carbon capture in most of its fragrance products by 2023. At the opening ceremony of the pavilion this year, Chen Min, General Manager of Coty China, said the event featured the first fragrances made with sustainable alcohol ingredients. In addition, ingredients developed jointly by Coty and leading global suppliers of sustainable ingredients are expected to be available to Chinese consumers soon. (Chen Min, General Manager of Coty China) L'Oréal's men's skincare brand Biotherm held a ceremony to launch the Product Environmental Impact Information and Rating Labeling System in China. It is understood that in March this year, Biotherm officially launched the system with four major e-commerce platforms: Tmall, JD, Douyin (Chinese version of TikTok) and WeChat. The system informs consumers of the environmental impact of the products they buy throughout their product life cycle in five ways: environmental impact rating, manufacturing, the environmental impact of packaging and social impact of the product, intuitively and comparably. Biotherm shines in this system, with 87% of its products rated A or B, "which can help consumers make more sustainable choices." Yi Li, brand director of Biotherm, said at the launch. (Yi Li, brand director of Biotherm) The use of interchangeable packs for products is also a sustainable part of the equation. Shiseido has a long history of developing replacement packs, having launched its first replacement pack as early as 1926. Now it offers more than 800 replacement packs worldwide. In this year's CICPE, Shiseido exhibited 16-star replacement products offline. This year, Shiseido plans to provide more than 150 replacement products in the Chinese market to promote green growth and help the circular economy. It is worth mentioning that Shiseido China has entered into a strategic partnership with the Ministry of Ecology and Environment of China and Alibaba Group respectively and is dedicated to promoting the trend of replacement set consumption. It advocated green consumption and helped the sustainable development of the beauty industry. In 2022, Shiseido China, the Ministry of Ecology and Environment of China and Alibaba Group jointly released the beauty industry's first White Paper on Beauty Replacement Consumer Research. (Shiseido) Focus on Hainan and embrace changes The Hainan Free Trade Port has implemented a tax-free policy for imported goods which allows consumers to enjoy tax-free treatment when purchasing imported goods in Hainan. This policy will not affect consumers’ travel and shopping in Hainan, but will also allow them to enjoy more benefits of free trade port policies, which will promote consumers’ travel intentions. “L’Oreal has many partners in Hainan and has brought 20 international brands to the Hainan market to meet the needs of tourists there.” According to Fabrice Megarbane, L'Oreal North Asia President and China CEO, tourists behave differently when traveling and have more time to “expose themselves”, “expose service” and “expose products”. (Fabrice Megarbane, meeting with the media) Estee Lauder has also been acting frequently in Hainan recently. The new office of Estee Lauder Tourism Retail has been established in Haikou, and the world's largest Est é e Lauder brand flagship store and Sea Blue Mystery brand flagship store have also been unveiled in Hainan, demonstrating the group's continued expansion of its business in Hainan. 2023 is the 30th year for Estee Lauder to enter China. At the opening ceremony of the exhibition hall, Fan Jiayu, President and CEO of Estee Lauder China, stated that China is the second largest market for the group, and the Chinese market has important strategic significance for the group. In the future, Estee Lauder will closely follow the needs of consumers and provide consistent high-quality product services and experiences across all channels, including online, offline, and duty-free channels. (Fan Jiayu, President and CEO of Estee Lauder China) Are Not only overseas giants aware of the huge opportunities in Hainan but also the leading Chinese hyaluronic acid company BLOOMAGE BIOTECH attaches great importance to Hainan. According to the booth staff, this year's regenerative medicine segment of BLOOMAGE BIOTECH brought AOF MSC Expansion Culture Medium (MIFI), which is produced in Hainan. During the CICPE, BLOOMAGE BIOTECH officially opened in Haikou's Science and Technology Industrial Park today. It is reported that the industrial park mainly carries three business segments: medical devices, regenerative medicine and international business. It will establish an international business center of BLOOMAGE BIOTECH medical beauty segment, register and produce innovative products of multiple categories of medical devices and medical beauty segment, and sell them to domestic and overseas markets. (BLOOMAGE BIOTECH) The masks have disappeared and the number of people has increased, which is a common impression among visitors. But compared to surface changes, the trend of beauty in the market is more noteworthy. Every year's exhibition is a vision for the future, and how to adapt to the changing trends of generations is a topic that every exhibitor cannot avoid.

Dencare Oral, the first stock of anti-sensitivity toothpaste listed on the main board of Shenzhen Stock Exchange on 10th April. The company’s core brand " Lesening " has a market share of around 60% in the anti-sensitive toothpaste market. On 10th April, Dencare (Chongqing) Oral Care Co., Ltd. (hereinafter referred to as Dencare Oral), the parent company of toothpaste brand Lesening, was listed on the main board of Shenzhen Stock Exchange. Public information shows that Dencare Oral mainly engages in the research and development, production, and sales of oral care products, and owns oral care brands such as "Dencare", " Lesening ", and "Yiyan". The main products include oral hygiene products such as toothpaste, toothbrushes, and mouthwash, electric oral care products such as electric toothbrushes and water flossers, oral antibacterial ointments, oral antibacterial care liquids, as well as oral medical devices such as desensitizing agents for teeth. The core brand " Lesening " has a market share of around 60% in the anti-sensitive toothpaste narket, making it the leading brand in the Chinese anti-sensitive toothpaste market. From a financial perspective, Dencare Oral has maintained a steady upward trend in revenue and profit. The revenue of Dencare Oral in 2022 reached 1.313 billion ($190.94 million), with an increase of 14.95% compared to 2021, while its net profit in 2022 was RMB 119 million ($17.31 million), a year-on-year increase of 13.25%. From the perspective of revenue distribution, adult basic oral care products are the main source of revenue for the company. According to the prospectus, from 2019 to the first half of 2022, the revenue of the company's adult basic oral care products was RMB 886 million ($128.74 million), RMB 947 million ($137.72 million), RMB 1.026 billion ($149.2 million), and RMB 552 million ($80.27 million), accounting for 94.12%, 92.17%, 90.00%, and 90.38% of the main business income, respectively. Compared with other companies in the same industry such as Yunnan Baiyao Group Co., Ltd, Liuzhou Liangmianzhen Co., Ltd, Perfect Group Corp., Ltd, and Lafang China Co., Ltd, Dencare Oral's operating income is also in the leading position. According to the prospectus, its toothpaste market share ranks fourth in the industry and second among domestic brands. Its core brand " Lesening " has maintained a stable offline retail sales market share of around 60% in the sub-segment of anti-sensitive toothpaste. In addition, for the company's future development, it is expected that with further increases in sales volume and unit price of its main products, the company's operating income in the first quarter of 2023 will reach approximately RMB 326 million ($47.41 million) to RMB 343 million ($49.88 million), a year-on-year increase of 5.27% to 10.76%, the net profit attributable to the parent company is expected to be between RMB 31 million ($4.51 million) and RMB 33.5 million ($4.872 million), a year-on-year increase of 9.04% to 17.83%, and the profitability level will continue to steadily grow.

According to the strategic cooperation memorandum, the two companies will collaborate on low-carbon commodities, low-carbon logistics, low-carbon marketing, and consumer education. On April 6th, Alibaba Group and L’Oréal Group signed a strategic cooperation agreement to jointly create the industry's first "Beauty Digital Circular Economy Model", focusing on green and low-carbon new standards, new products, and new consumption concepts. According to the strategic cooperation memorandum, the two companies will collaborate on low-carbon commodities, low-carbon logistics, low-carbon marketing, and consumer education. Innovate green commodity supply based on digital technology, explore full chain solutions for green recycling such as warehousing, packaging, distribution, and recycling, and advocate sustainable lifestyles among consumers to enhance their awareness of green consumption. A year ago, Alibaba and consumer brands jointly launched the "Carbon Reduction Friendly Action" initiative. Currently, 24 companies have participated, including L’Oréal and Danone from France, to jointly promote green consumption. Zhang Yong, Chairman and CEO of Alibaba Group, believes that Chinese and French companies see the same digital and intelligent future. In the field of cloud computing, facing the global digitization process, Alibaba Cloud is deeply cooperating with many French enterprises in terms of comprehensive cloud technology architecture, big data platform construction, intelligent carbon reduction, and supporting their digital business development in the Asian and European markets. “In the winter of 2022, Alibaba, as the official partner of the Olympics, successfully supported the comprehensive cloud launch of the core system of the Beijing Winter Olympics, achieving a green Olympics,” Zhang Yong said, “We are very looking forward to 2024, the historic moment of the 60th anniversary of the establishment of diplomatic relations between China and France, to support the Paris Olympics through digital measures." It is worth mentioning that in 2022, L’Oréal led the establishment of the EcoBeautyScore alliance and established a Product Impact Labeling system (PIL) to conduct a quantitative analysis of product sustainability. Over the past year, L’Oréal has been continuously communicating with the government and relevant institutions to analyze the current situation of sustainable development in the Chinese consumer market and promote the implementation of labels in China. In 2023, L’Oréal will introduce this label to Asia, with China being the top choice in the region. In addition, in the 2022 financial report, L’Oréal China's online channels achieved double-digit growth, especially in the 2022 Double Eleven, where its offline and online market share achieved strong growth. Among them, L’Oréal brand ranks among the top in multiple beauty categories on Tmall. L’Oréal stated, "In China, the luxury division surpassed 30 percent market share in 2022.”

This Babywell Check testing service enables parents to gain knowledge about their child's skin condition and the suitable measures to ensure their child's healthy development. Kao officially announced that it will conduct a "Baby Skin Barrier Test" with Health Care Systems to examine the impact of changes in parents' skin care awareness and behavior on the baby's skin. The new venture, called Babywell Check, will provide parents with a non-intrusive way to collect sebum and obtain information on the barrier functions of their babies' skin. It is reported that this experiment will be carried out in Gamagori City, Japan in April. Using Kao's developed sebum RNA monitoring technology to conduct a skin barrier test during a one-month-old baby's health check-up. A second test will be conducted when the baby reaches seven months, and the skin's condition will be compared. Kao is set to expand into the health testing field and will begin by launching this service. They will utilize sebum RNA monitoring technology and other proprietary technologies developed in-house. Kao has created a method for preserving and transporting SSL-RNA obtained from sebum, which would otherwise break down due to enzyme activity if not handled properly at room temperature. This makes it possible to collect SSL-RNA from sebum in any location, including homes, and send it to a testing facility for analysis. Healthcare Systems is a venture capital firm that was established by Nagoya University. They specialize in developing and selling mail-in test kits that aim to prevent future diseases and maintain good health. They will work with Kao to collect and analyze RNA data. Studies have shown that sebum contains around 10,000 RNA expressions that can help identify various skin and body conditions. With this technology, early detection of childhood atopic dermatitis or Parkinson's disease may be possible. Kao stated that when the skin barrier function is impaired, the risk of developing atopic dermatitis is high, and atopic dermatitis that occurs during infancy may be the main cause of food allergies and asthma. Therefore, it is necessary to detect skin barrier damage early and provide moisturizing care. Gamagori City stated that parents should figure out the baby's skin condition, raise skin care awareness and develop exclusive skin care habits at an early stage.

Some cosmetic practitioners believe that there are now many alternatives to talcum powder. But due to its high cost effectiveness, there are currently no ingredients that can completely replace talcum powder in every aspect. On April 4, US-based Johnson & Johnson said it plans to pay $8.9 billion in compensation over the next 25 years to settle claims related to the alleged carcinogenicity of its baby powder and other products containing talc. Johnson & Johnson said in a statement that LTL Management, the subsidiary involved in the claims, had re-filed for Chapter 11 bankruptcy protection with a view to entering into a reorganization plan that would "fairly and efficiently" resolve the claims against its talc-containing products. Johnson & Johnson's offer of $8.9 billion is a significant increase from the $2 billion promised by LTL Management when it first filed for bankruptcy in October 2021. The settlement has been pledged by more than 60,000 claimants, the statement said. Johnson & Johnson, however, still denies allegations that its talc-containing products caused cancer. The statement said that neither the first nor the second bankruptcy filing by LTL Management is an admission of wrongdoing. Johnson & Johnson's position on the safety of its talc-containing products remains unchanged. Stop selling baby powder made with talcum powder by 2023 In recent years, Johnson & Johnson's baby powder and other products have been repeatedly caught up in the cancer controversy. Some consumers have accused its baby powder and other talcum powder products of containing asbestos, causing cancer in long-term users. According to CHAILEEDO, as early as 2012, Johnson & Johnson was sued several times for causing cancer from talcum powder-related products. In 2016, an Alabama woman sued Johnson & Johnson for ovarian cancer allegedly caused by using Johnson & Johnson baby powder. Johnson & Johnson was eventually awarded $72 million. In 2018, Johnson & Johnson was ordered to pay $4.69 billion in damages to 22 women, one of the largest personal injury judgments in US history. In February 2019, Johnson & Johnson USA also received a subpoena from the US government over baby talcum powder. In 2019, Johnson & Johnson recalled more than 33,000 bottles of its own baby powder for the first time over asbestos. Wells Fargo had said that the recall would lead to more lawsuits and prompt Johnson & Johnson to seek a broader settlement. A settlement could cost Johnson & Johnson between $2 and $6 billion. In the wake of this incident, the company has said it will stop selling talcum powder baby powder in North America by 2020. In response, Johnson & Johnson is also undertaking a series of measures. According to public information, Johnson & Johnson split out its LTL Management as a new subsidiary in 2021. It transferred $2 billion to its subsidiary to protect Johnson & Johnson's parent company from talcum powder lawsuits. Then LTL Management filed for bankruptcy to settle such lawsuits. However, the approach was challenged and rejected by the US Court of Appeals in January 2023, which ruled that bankruptcy was not the right way to resolve the issue. In 2022, Johnson & Johnson said it would stop selling talc-based baby powder worldwide in 2023 and would replace asbestos with corn starch. Meanwhile, Johnson & Johnson's stance on the safety of cosmetic talcum powder remains unchanged, despite a decade of controversy over the carcinogenic nature of talcum powder. Johnson & Johnson has repeatedly stated that all of its products have been tested repeatedly in laboratories. It said that the talc used by Johnson & Johnson is cosmetic-grade talc, each batch has been tested and did not contain the cancer-causing ingredient asbestos. There is no risk in terms of safety. They have insisted on appealing in the face of claims. Today, CHAILEEDO asked Johnson & Johnson’s official flagship shop on Tmall. The customer service responded that the products have no quality and safety issues and comply with relevant laws and regulations to. Independent scientific analysis by medical experts around the world has confirmed that Johnson & Johnson baby powder based on cosmetic talc is safe, asbestos-free and non-carcinogenic. (Credit: The response from Johnson & Johnson official store on the Chinese e-commerce platform Tmall) Talcum powder cannot be completely replaced However, the lawsuit allegations suffered in recent years have also affected the reputation of the century-long brand and the growth of its baby care business. The financial figures for Johnson & Johnson's baby care segment between 2018 and 2022 show that its growth of sales was only achieved in 2021. According to the latest 2022 fiscal year figures released by Johnson & Johnson, the baby care segment recorded $1.461 billion, down 6.7% year-over-year (reported). (Credit: data from financial results of Johnson & Johnson) The company paid $7.4 billion in litigation costs between 2020 and 2021, according to an annual filing. Johnson & Johnson said that talcum powder litigation was the main source of its legal expenses during those years. In response, some people involved in the cosmetics industry believe that the poor performance of Johnson & Johnson's baby care business is also linked to the lawsuits that have been filed against Johnson & Johnson in recent years. Disputes over talcum powder-induced cancer cases cannot be ignored. The discontinuation of talcum powder by brands is also objective. Especially in the field of baby powder, talcum powder has been retreated. So what impact will it have on the cosmetics industry? "No significant impact." Li Jianyu, Chief Engineer of Guangzhou Zaomengying Biotechnology Co Ltd, said, "There are already many alternatives to talcum powder. But talcum powder has a strong combination of properties like good compaction, smoothness, gloss and thixotropy, all of which are valued by powder products. There is no raw material that can completely replace talcum powder in every aspect. " He further adds, "Even with such an alternative ingredient, there can be a huge difference in price. So the products whether they used talcum powder in the market have a huge price gap. Changing out the talcum powder may result in a change in cost. As for whether there will be an impact in terms of makeup effect and experience, it depends on the specific formula architecture." As companies abandoning talcum powder, Liu Chao, president of operations for Japan's make-up makotokamata China, said, "Many companies abandoning talcum powder are more likely to be trying to show the safety of the ingredients. But the fact is that for mineral-based cosmetic additives, similar mineral powders and synthetics should be added despite talcum powder. What really needs to be done is to ensure a compliant manufacturing process and make sure the ingredients meet the standards." CHAILEEDO asked Johnson & Johnson officials whether they would abandon talcum powder in the future and whether they would look for other ingredients to replace it, but did not receive a response by press time. In light of that, talc still has its place. But as the concept of clean and sustainable skincare continues to permeate, the search for better solutions and the phasing out of talc will be a trend.

Italian beauty brand Kiko Milano delivered a remarkable performance in 2022 with an increased by 42% to €671 million ($732.55 million) in net revenue. The company aims to achieve net revenues of € 1.250 billion ($ 1.365 billion) by the end of 2027. Kiko Milano, the Italian beauty brand, reported a 42% increase in net revenue to 671 million euros in 2022 compared to 2021, and a 14% increase compared to 2019. All business segments and geographic area have made contribution to the company’s outperformance. The CEO of Kiko Milano, Simone Dominici, credited the transformation from a regional makeup store chain to a global beauty brand in over 60 countries for the strong performance. "Kiko Milano's 2022 results were the best ever, beating all records of the main economic-financial indicators prior to the pandemic, thanks to the transformation from a chain of mainly regional make-up stores to a global beauty brand present in more than 60 countries.” Simone Dominici said. The American market saw the highest growth of 55%, with Brazil doubling sales, and the United States returning to double-digit growth due to e-commerce. Europe grew by 46%, the UK experienced the highest growth of 60%, and Asia and the Middle East saw increases of 21% and 90%, respectively. Kiko Milano experienced a 46% growth in Europe, driven by France (up 58%), Spain (up 50%), and Italy (up 40%), while the United Kingdom had the largest growth of 60%. Despite challenges in China, Asia saw a 21% increase, and the Middle East experienced a 90% increase. Kiko Milano successfully entered new markets such as Thailand and the Philippines. In addition, the company expanded its presence in Africa by entering Egypt and Morocco, with results that exceeded expectations. Simone Dominici stated that Kiko Milano plans to open 120 more stores by the end of 2023, increasing its total number of stores to over 1,100 in 75 countries. In the second half of the year, the company will introduce a new unified commerce platform to improve customer service and enhance customer experience and drive growth. Moreover, Kiko Milano's development plan includes reaching 2,000 stores by the end of 2027, expanding into new markets and strengthening its presence in Asia, Latin America, and Africa. The company aims to achieve net revenues of € 1.250 billion ($ 1.365 billion) by the end of 2027 through this expansion plan.

China's National Medical Products Administration issued the " Supervision and Administration Measures on Cosmetics Network Operations", which will be implemented on September 1 this year. China’s National Medical Products Administration (NMPA) issued the " Supervision and Administration Measures on Cosmetics Network Operations ", which will be implemented on September 1 this year. The NMPA issued an announcement stating that in order to further strengthen the supervision of cosmetics network operations, standardize cosmetics network operations, and ensure the quality and safety of cosmetics, according to the " Cosmetic Supervision and Administration Regulation ", "Supervision and Administration Measures on Cosmetics Manufacture and Operation ", etc., The NMPA formulated the " Supervision and Administration Measures on Cosmetics Network Operations ", hereinafter referred to as the "Administration Measures", which will come into force on September 1, 2023. The "Administration Measures" are divided into four chapters: general principles, management of cosmetics e-commerce platform operators, management and supervision of cosmetics operators on the platform. In terms of management of cosmetics e-commerce platform operators, cosmetics e-commerce platform operators should set up a cosmetics quality and safety management organization, or to have full-time and part-time quality and safety management expert. Cosmetics quality and safety management institutions or quality and safety management expert are responsible for establishing and implementing cosmetics quality and safety management systems, and organizing daily inspections of cosmetics operators on the platform. The "Administration Measures" propose that operators of cosmetics e-commerce platforms should require cosmetics operators applying to enter the platform to submit real information such as identity, address, and contact information, conduct verification and registration, establish registration files, and verify and update them at least every 6 months. Cosmetics e-commerce platform operators shall keep the identity information of cosmetics operators on the platform for no less than 3 years from the date of their withdrawal from the platform. In terms of the management of cosmetics operators on the platform, the cosmetics operators on the platform should establish and implement a purchase inspection record system, check the relevant information of direct suppliers, and if they operate children’s cosmetics, they should also check the signs of children’s cosmetics and check them. In addition, cosmetics operators on the platform should fulfill the obligation of cosmetics information disclosure, and cooperate with cosmetics e-commerce platform operators to carry out quality and safety management activities such as daily inspections and self-examination of regulatory disclosure information. The "Administration Measures" propose that if cosmetics operators on the platform find that the cosmetics they sell have quality defects or other problems that may endanger human health, they should immediately stop their operations and notify the relevant cosmetics registrants and filers. Cosmetics registrants and filers shall implement recalls according to law. If the cosmetics registrant, filing person, or cosmetics operator on the platform fails to implement the recall or stop the operation in accordance with the law, the department in charge of drug supervision and management shall order them to implement the recall or stop the operation.

Revlon received restructuring approval and is expected to emerge from bankruptcy with approximately $285 million of liquidity. Upon its emergence from bankruptcy，Revlon will be delisted from New York Stock Exchange. Revlon announced that the company’s plan of reorganization has been confirmed by the United States Bankruptcy Court for the Southern District of New York. Revlon said the company is to emerge from bankruptcy in late April, which is consistent with the timeline announced at the beginning of the restructuring. Revlon said the company is expected to emerge with approximately $285 million of liquidity, to be funded through an equity rights offering, a new money senior secured credit facility, and new asset based loans. Upon its emergence from bankruptcy, more than $2.7 billion in debt will be reduced from its balance sheet, with approximately $1.5 billion of debt outstanding. Under the terms of the Plan, Revlon will emerge as a private company and will delist from New York Stock Exchange (NYSE) or subject to public company reporting requirements. The majority of the company’s equity will be owned by its former lenders. In 20th Oct 2022, NYSE announced that NYSE Regulation has determined to suspend trading in the Class A Common Stock of Revlon from NYSE. Trading in the Company’s Class A Common Stock was suspended after the market close on the NYSE on 20th Oct 2022. “The plan confirmation is a critical milestone, and positions Revlon to emerge from the restructuring process with a greatly simplified capital structure that will support the business going forward,” said Debra Perelman, Revlon's President and Chief Executive Officer. “We know this financial restructuring has been challenging for our employees, vendors and partners, and we thank them all for their support. Our new capital structure and increased liquidity will enable us to continue to animate our brands in the market and we look forward to the future of Revlon.” The 91-year-old US cosmetics maker declared bankruptcy in June 2022. Revlon said global supply chain disruptions, vendors demanding upfront payments, inflation as well as labor shortages led to a decline in the performance of the company. Moreover, Covid-19 pandemic has also impacted delivery times, increasing the cost of shipping freight. Lockdowns in Shanghai, China and the Russia-Ukraine conflict have contributed to additional supply chain disruptions. In fiscal year 2022, Revlon’s net sales decreased by 4.7% to $1.98 billion, gross profit reached $1.145 billion, with and decrease of 6.9% compared to 2021. Operating profit decreased 22.6% to $80 million. Revlon delivered $674 million in net loss. In terms of regions, North America is still the largest market for Revlon, with net sales reached $ 973.6 million, accounting for almost half of Revlon's net sales. Followed by EMEA, delivered $ 470.9 million in net sale. Revlon also stated that the three countries outside the U.S. with the highest net sales were China, Australia and the U.K., which together accounted for approximately 17% of the Company's 2022 net sales.

L'Oréal believes that Aesop will be the next brand to join L’Oréal Luxe Billionaire brands club and will help Aesop achieve massive growth in the Chinese market. According to official news from L'Oréal, on April 4th, Natura & Co announced an agreement with L'Oréal to acquire Australian beauty brand Aesop. L'Oréal has estimated the enterprise value of Aesop at $2.525 billion and the deal is expected to close in the third quarter of 2023. Founded in 1987, Aesop is a minimalist aesthetic brand with strict adherence to plant-based ingredients and zero cruelty to animals. It has always been a "rebel" in the beauty sector, according to Suzanne Santos, co-founder and chief customer officer of Aesop. "As more and more brands move in a cleaner, greener and more inclusive direction, it's time to start redefining Aesop again." Aesop's parent company intended to split out Aesop as early as last year Natura & Co has been considering a partial or full sale of Aesop, which would be used to help reduce its debt burden. It hopes to focus on turning around other businesses into profit. Commented on the selling of Aesop, Fábio Barbosa, Chief Executive Officer of Natura &Co, said that the separation of Aesop marks the beginning of a new phase of development for Natura & Co. The Group will focus more on its management in Latin America and be able to concentrate more on improving the alignment of The Body Shop and Avon's international. Looking back at the history of Aesop, in 2013, Natura & Co acquired a 40% stake held by Harbert Private Equity and a 25% stake in the founder in a deal totaling approximately A$68.3 million ($46.13 million), making it the largest shareholder in Aesop. In 2016, following a number of acquisitions, Aesop was acquired by Natura & Co. As a wholly-owned brand. In October 2022, Natura & Co attempted to spin off Aesop for an IPO. After that, several major international cosmetics groups such as L'Oreal, LVMH and Shiseido subsequently showed interest in acquiring Aesop. This Brazilian cosmetics giant stated that it was "still evaluating the feasibility of selling its stake in Aesop, as one of the strategic options", which would allow the group to finance Aesop's growth and create more value for its shareholders. Shortly after, it was announced that Brazilian beauty giant Natura & Co was working with Bank of America and Morgan Stanley to sell a minority stake in its Australian skincare brand, Aesop, with potential bidders including Shiseido Group, L'Occitane Group and private equity giant CVC Capital Partners. The deal valued Aesop at around $2 billion. The announcement comes just days after news that Chinese investment management firm Chunhua Capital was involved in a bid for a stake in luxury beauty brand Aesop. It is said that this Chinese investment firm has completed its latest round of bids for a stake in Aesop. (Credit: The physical store of Aesop in China) Aesop is the only brand at Natura & Co to achieve positive growth CHAILEEDO found that Natura & Co, the former Aesop parent company, has been underperforming in recent years. According to Natural & Co's latest financial results, in fiscal 2022, the Natura & Co group achieved net revenues of R$36.35 billion ($7.18 billion), down 9.5% year-on-year. While its gross profit reached R$23.2 billion ($4.59 billion), down 11% year-on-year in Brazilian real terms compared to the previous year. Its net loss attributable to controlling shareholders amounted to R$2.86 billion ($564.7 million), a significant drop of 372.9% year-on-year. (Source: Natura & Co financial report) However, despite the sharp decline in the results of its parent company, Aesop has continued to grow at a higher rate each year. After reviewing the last five years' results, CHAILEEDO found that Aesop has consistently recorded positive growth from 2018 to 2022, with a maximum growth of 50.6% (in terms of net revenue). (Summary of Aesop's five-year performance by CHAILEEDO) In its 2022 results, Natura & Co said that Aesop had achieved double-digit growth in all regions, despite a challenging external environment. Its fragrance sales grew more than twice as fast as the overall growth rate, which was in line with Aesop's category diversification strategy. Aesop fits in well with L'Oréal China strategy CHAILEEDO found that in the official documents announcing the acquisition, Nicolas Hieronimus, CEO of the L'Oréal Group, made special mention of Aesop's growth in China. He says: "L'Oréal will contribute to unleashing its massive growth potential, notably in China and Travel retail." This means that L'Oréal pays special attention to the bright performance of Aesop in China. It will help Aesop to capture the Chinese market with its strong background. Notably, in its 2022 financial report, Natura & Co also recognized Aesop's excellent growth in the Chinese market. According to Natura & Co, Aesop's first shop in China opened in Shanghai in November 2022, followed by Aesop's second shop in Shanghai a month later. The two physical shops achieved better results. At that time, against the backdrop of an uncertain consumer environment, Aesop's big move into China was seen by outsiders as the biggest confidence and bet on the Asian market. In response to the impressive performance of Aesop, Natura & Co said that the launch of its business in China was a very crucial step in Aesop's strategy. Although Aesop is still in its infancy in China, the two shops have already exceeded expectations, with sales in the Top 1 and Top 2 of Aesop's global signature shops. The leading beauty giant, L'Oréal, enjoys the strength of its finance and growing trends in recent years. So it may help Aesop better development. According to the full-year 2022 financial data released by L'Oréal Group, L'Oréal Group sales reached 38.261 billion euros ($41.8 billion) in 2022, up 18.5% year-on-year. It was a new high in its performance in the past 12 years. And in terms of the Chinese market, L'Oréal even recorded double-digit growth in online sales despite the impact of public health restrictions. This impressive success led to strong growth in both offline and online market share for the year. During the Chinese Double 11 Shopping Festival, L’Oreal ranked top in the beauty category on the Chinese e-commerce platform Tmall. In this way, the leadership position of L'Oréal was further reinforced. The positioning of the Aesop brand suggests that it belongs to L'Oréal Luxe division, which has been a key area of the group. According to L'Oréal Group's latest financial results, L’Oreal Luxe sales revenue in 2022 was 14.638 billion euro ($16 billion), up 18.6% year-on-year. In the group's fourth quarter of 2022 and from the full year of 2022, L’Oreal Luxe division accounted for the top share of L’Oreal’s sales. It is reported that four major brands in L'Oréal Luxe division, Lancôme, YSL Beauty, Armani Beauty and Kiehl's, are currently among the billionaire brands club. 2022 China's Double 11 shopping festival saw Lancôme enter the Tmall Top 15 brands list for skincare, and YSL, Armani and Lancôme enter the Top 10 brands list for colour cosmetics. Aesop is also considered by L'Oréal to be the next premium cosmetic brand to join the L’Oréal Luxe Billionaire brands club. In the acquisition, Cyril Chapuy, President of L’Oréal Luxe, said, "We have great confidence that Aēsop will join the L’Oréal Luxe Billionaire brands club and therefore contribute significantly to the growth of the Division in the years to come." Aesop has been growing steadily in recent years and it has been gaining popularity among Chinese consumers right after its arrival in China. Therefore, if L'Oréal wants to maintain its leading position in China in the future, the acquisition of Aesop may help it to do so.

The French beauty giant L'Oréal announced it has signed an agreement with Natura & Co to acquire the Australian luxury beauty brand Aēsop. The French company finally wins the bidding for Aesop from multiple potential bidders. L'Oréal has announced the company has reached an agreement to acquire Aesop, the Australian luxury beauty brand which is widely renowned for its skin, hair and body products. The transaction values Aēsop at an enterprise value of $2.525 billion. Founded in 1987, Aesop’s objective has always been to formulate skin, hair and body care products of the finest quality. Aēsop has evolved into a global super brand available across luxury retail, beauty, and hospitality locations around the world. In the announcement, L'Oréal stated Aēsop currently operates around 400 points of sale across the Americas, Europe, Australia, New Zealand, and Asia. In 2022, Aesop launched two physical stores in China, along with the Aesop.com platform and a domestic T-Mall operation. Aesop became part of Natura & Co in 2012 and became wholly owned by Natura & Co in the year of 2016. Then Aesop delivered remarkable growth. According to the financial result of Natura & Co，the gross sales of Aesop increased from $28 million to $537 million between 2012-2016. And in 2022, the brand posted sales of $537 million. “I am very excited to welcome Aēsop and its teams to the L’Oréal Groupe family. Aēsop is the epitome of avant-garde beauty, whose products are not only made with great care and exceptional attention to detail; they are a superb combination of urbanity, hedonism and undeniable luxury. Aēsop taps into all of today’s ascending currents and L’Oréal will contribute to unleash its massive growth potential, notably in China and Travel retail.” Nicolas Hieronimus, Chief Executive Officer, L’Oréal Groupe said. “My Team and I are thrilled to have Aēsop join the L’Oréal Luxe portfolio of iconic global brands. Aēsop holds a very unique positioning on the global luxury beauty market thanks to its design led brand essence, its highly efficacious and sensorial products as well as its customer-obsessed retail philosophy.” Commenting on the acquisition, Cyril Chapuy, President of L’Oréal Luxe, added, “We have great confidence that Aēsop will join the L’Oréal Luxe Billionaire brands club and therefore contribute significantly to the growth of the Division in the years to come.” Fábio Barbosa, Chief Executive Officer of Natura &Co, said: “The divestment of Aēsop marks a new development cycle for Natura &Co. With a strengthened financial structure and a deleveraged balance sheet, Natura &Co, exercizing strict financial discipline, will be able to sharpen its focus on its strategic priorities, notably our investment plan in Latin America. We are confident that Aēsop’s growth story will continue under the ownership of L’Oréal and wish Aēsop continued success in this new chapter.” Several international beauty companies and investment arm showed interest in acquiring the Australian luxury beauty brand since its parent Natura & Co began working with Bank of America and Morgan Stanley to sell Aesop. And finally L’Oréal wins the bidding. The acquisition is pending regulatory approval and is expected to close in Q3 2023.

Estée Lauder set to accelerate its expansion in China to tap into the growing demand for fragrance products. The first Le Labo store in mainland China will be located in Shanghai. Le Labo's WeChat official account "LE LABO FRAGRANCES" also released its first announcement. Established in New York in 2006, in addition to perfume products, Le Labo also provides skin care, body care, hair care, hand sanitizer, body wash, facial cleanser, hair mask and shampoo products. Estée Lauder acquired Le Labo in 2014. Estée Lauder's financial report shows that in fiscal year 2022, group net sales increased by 9% to $17.737bilion, while net profit decreased by 16% to $2.408 billion. The Fragrance segment is the only one with a double-digit growth rate, with an increase of 30% to $ 2.508 billion, the sales of skin care products increased by 4% to $ 9.886 billion. Net sales grew across every region and every fragrance brand, led by Jo Malone London, Tom Ford Beauty and Le Labo. Net sales from Le Labo also rose strong double digits with growth in all regions, reflecting the recovery of brick-and-mortar, improved retail traffic, and targeted expanded consumer reach. Despite the decline in other segments, fragrance segment of Estée Lauder became the only segment delivered growth for the group in the fiscal year of 2022. Estée Lauder realizes the importance of the fragrance business to the company's performance. Estée Lauder acquired minority stake in British fragrance brand Vyrao in March 2023, through its early-stage venture and incubation arm New Incubation Ventures. Founded by Yasmin Sewell, Vyrao provides a series of unisex fragrances. The opening of first Le Labo mainland China Store in Shanghai, Estée Lauder is set to accelerate its expansion in China to tap into the growing demand for fragrance products. According to the data of the 2022 China fragrance Industry Research White Paper released by Eternal, It is estimated that by 2026, the sales of the overall Chinese perfume market will reach 37.13 billion yuan ($ 539 million), and the compound annual growth rate of the market in the next five years will remain at around 22.3%.