Whitening has always been an immediate need for Chinese women, so how can cosmetics properly promote whitening under Chinese cosmetic regulations? The National Institutes for Food and Drug Control has issued two announcements, Technical Guidelines for Research on Whitening Cosmetics (Draft for Comments) and Technical Guidelines for Research on Efficacy of Whitening Cosmetics and Whitening Ingredients (Draft for Comments). The two announcements regulate and guide the general principles of the preliminary research phase of whitening cosmetics and whitening ingredients, intending to encourage and support the industry to carry out cosmetic research and innovation. According to a senior industry source, "After nearly three years of comprehensive regulation, the industry's next phase of development may focus on the high-quality level. The recent release of several guidelines for special cosmetic research may be the first step taken." Whitening cosmetics belong to special cosmetics in China and are managed under a registration system. In 2021, the Cosmetic Supervision and Administration Regulation (CSAR) (hereinafter referred to as "the new regulations") came into force. Then China established a new regulatory and technical system with relevant supporting regulatory documents released. At the same time, in order to encourage and support cosmetic research and innovation, higher requirements were placed on the quality, safety and supervision of cosmetics. The National Medical Products Administration believes that it is necessary to conduct systematic research and discussion on relevant technical issues and to develop special technical guidelines for regulating and guiding the research and evaluation of whitening cosmetics. It aims to meet the needs of high-quality development of the industry and regulation in the context of the new conditions. Therefore, The National Medical Products Administration and The National Institutes for Food and Drug Control drafted The Technical Guidelines for the Research of Whitening Cosmetics (Draft for Comments) (hereinafter referred to as the Guidelines for the Research of Whitening Cosmetics). The Guidelines for the Research of Whitening Cosmetics consists of eight parts, which summarise the technical points and technical principles that need to be paid attention to, mainly around the general principles of whitening cosmetics, product attributes, formulation design, product safety assessment, production process and quality control, evaluation of efficacy claims and product labeling. It is clearly stated that in the research process, the first thing that should be done is to position the whitening cosmetic, clarify its product attributes, develop and design around the product attributes and carry out corresponding research. In addition, the applying body part of the cosmetic that can be used for whitening should not include "lips and mouth". The group of people who can use it should not include "infants" or "children". In addition, products to improve acne marks caused by pigmentation are classified as blemish-whitening cosmetics according to the Cosmetic Classification Rules and Catalogs. Products that only improve skin brightness or accelerate the renewal of keratin by increasing hydration, cleansing and exfoliation are not spot-whitening cosmetics because they are different from the main mechanism of whitening cosmetics. For ingredients with whitening efficacy, The Guidelines for the Research of Whitening Cosmetics state that the focus should be on possible risk substances, as well as information on the quality of ingredients. For non-single ingredients such as plant extracts used as whitening ingredients, the safety information should generally include characteristic control indicators that indicate the quality of the ingredients, such as quantitative requirements for specific efficacy ingredients, to ensure long-term stability and reliability of product safety and efficacy. The Guidelines for the Research of Whitening Cosmetics then required that claims about the efficacy, mechanism of ingredients and others should be consistent with the basis for the efficacy of the ingredients in question. "Medical terminology or words that imply the cosmetics have medical efficacy shall not be used, such as removing melasma, removing freckles, removing pigmented moles, anti-inflammatory, etc. Exaggerated or absolute claims shall not be used, such as whitening immediately, eliminating melanin, blocking melanin transport, going straight to the bottom of the skin, and intelligently targeting to suppress darkness, etc." The Guidelines for the Research of Whitening Cosmetics defines ingredients with whitening efficacy for the first time. Ingredients with whitening efficacy are those ingredients that are reported in the product formulations of whitening special cosmetic products as "spotting agents", "whitening agents" or the ingredients that have the whitening efficacy. They do not include ingredients that work by physical masking, and new cosmetic ingredients with spot-lighting and whitening functions. In addition, ingredients that are filled in the form of compounding in the formula refer to the ingredients that specifically play a role in spot-removal and whitening. In other words, if an ingredient has multiple efficacies but the filer doesn’t register the ingredient as a whitening agent, it can be added to ordinary cosmetics even if it comes with a whitening efficacy. For example, niacinamide has whitening, emollient, antioxidant and acne-fighting efficacy and can be added to ordinary cosmetics. However, ingredients like Symwhite 377, which are mainly used as a whitening agent, cannot be added to ordinary cosmetics. It is worth mentioning that The Guidelines for the Research of Whitening Cosmetics state that confusion with other purposes of use should also be avoided through the mechanism of action studies. For example, sun protection, which reduces external UV damage and the corresponding skin response, may ultimately also have some preventive/reducing efficacy on skin darkening or sun spots. But it should be a secondary result of sun protection and should not be a direct spot whitening efficacy. The use of "exfoliators" may help to promote the removal of melanin-containing stratum corneum from the skin surface. But there is a difference between this method and the primary mechanism of spot whitening action. To avoid confusion, the relevant ingredients should not be used as spot-whitening agents. Products that can improve skin brightness by improving hydration, and cleansing still have a difference between this and whitening efficacy. In other words, sunscreen, exfoliation, cleansing and other related products are not allowed to claim whitening efficacy. A cosmetic ingredients professional, who did not want to be named, said, "In general, this is a guiding refinement document for the development, safety and efficacy evaluation, manufacturing and quality supervision of whitening and spot-removing cosmetics. It also focuses on answering questions about whether whitening efficacy can be claimed if it relies on moisturizing, exfoliating, sun protection and other means to obtain whitening efficacy."

German chemical giant BASF said it plans to cut 2,600 jobs worldwide, with nearly two-thirds of the cuts in Germany, in light of a sharp drop in earnings in 2022 and a heavy burden from the energy crisis, some media sources said. BASF reported a decline in its earnings due to changes in global demand and the loss of cheap Russian gas, which has been the company's mainstay for decades. At the same time, BASF also said it would cut its €3 billion share buyback program, which starts in January 2022. The main reason for this is the impact of changes in the global economy. In addition, in 2022, due to high energy costs and the economic slowdown in Europe, BASF announced a cost-cutting plan targeting an annual cut of €500 million ($527.8 million) outside of production from 2024, half of which will be achieved at its Ludwigshafen headquarters. BASF currently employs more than 111,000 people worldwide, including around 39,000 at its headquarters. The cost reductions will focus on the service, operations and R&D departments as well as the corporate headquarters. Martin Brudermueller, Chairman of BASF's Executive Board, said in a statement on the same day that competitiveness in Europe is increasingly being affected by excessive regulation, slow and cumbersome approval procedures and, above all, high costs for most factors of production. For many years, these factors have inhibited growth in the European market. In addition, high energy prices are a drag on profitability and competitiveness in Europe. Recently, BASF also announced its financial figures for 2022. The financial report shows that BASF's total sales for 2022 will be €87.3 billion ($92.2 billion), an increase of 11.1% year-on-year. However, based on current corporate performance, BASF expects sales in 2023 to be between €84 billion ($88.7 billion) and €87 billion ($91.8 billion). By segment, sales to third parties in the Nutrition & Care segment rose by €1.624 billion ($1.7 billion) to €8.066 billion ($8.5 billion) in 2022. This was primarily attributable to the Care Chemicals division, which recorded sales growth of €1.18 billion ($1.25 billion) to €5.619 billion ($5.9 billion). In the Nutrition & Health division, sales rose by €444 million ($468.7 million) to €2.447 billion ($2.6 billion).

Hair growth, hair removal, breast beautification, bodybuilding and deodorant products in the original special-purpose cosmetics will be adjusted to the general cosmetics management category. Recently, the National Medical Products Administration issued a notice Regulations on the Supervision and Administration of Cosmetics announcing that the five categories of hair growth, hair removal, breast beautification, bodybuilding and deodorant products in the original special-purpose cosmetics will be adjusted to the general cosmetics management category. This means that these products no longer enjoy the management treatment of special-purpose cosmetics, but need to be produced, sold and supervised in accordance with the management requirements of ordinary cosmetics. Specifically, these five types of products will no longer be able to use the original promotional words. For example, hair growth products can no longer claim to prevent hair breakage, and breast beauty products can no longer claim that they can achieve breast shape by tightening the breast skin. This is because these promotional words are inconsistent with the management requirements of ordinary cosmetics. In addition, cosmetics for hair growth, hair removal, breast beautification, bodybuilding, and deodorant that have been registered before the implementation of the Regulations on the Supervision and Administration of Cosmetics and whose registration certificates are still valid at the time of implementation can continue to be marketed and circulated. However, after December 31, 2025, these products will not continue to be marketed and circulated, and enterprises should stop production, import and sales. During the transition period, after the validity period of the administrative license approval documents for these five types of products expires, they can still be produced, imported and sold. However, after the transitional period expires, production, import and sale shall not continue. If these five types of products still need to be produced, imported, and sold after the transition period expires, enterprises can choose to file for general cosmetics or apply for drug registration according to different management methods. After the general cosmetics filing or drug registration, enterprises can produce, import or sell their newly filed or registered products in accordance with relevant regulations without being restricted by the transition period. It should be noted that these adjustments will affect the production, sales and supervision methods of relevant enterprises. Therefore, enterprises need to adjust product promotion and labeling as soon as possible, and carry out production and sales in accordance with the new management requirements, so as to ensure the legal operation of the enterprise. In short, with the development of the cosmetics market, the supervision of cosmetics is becoming more and more important. When purchasing cosmetics, consumers should pay attention to check the production date, shelf life and compliance with national standards of cosmetics to ensure their own rights and health and safety.

Caroline Andreotti was previously General Manager of the China Luxury Business Unit of Coty Group. According to BUSINESS WIRE, Coty announced yesterday (March 30) the appointment of Caroline Andreotti as Chief Commercial Officer (CCO), effective April 1. Caroline is said to have over 20 years of experience in the beauty industry and has been with Coty for 15 years. She is currently EVP global premium skincare for the Coty Group and was previously General Manager China Luxury at Coty in China. Having worked in Asia for most of her career, she has deep expertise in the Asian market and has an excellent track record in fragrance, skin and body care and color cosmetics. Notably, Caroline successfully opened the first ultra-premium fragrances counters, Chloé Atelier des Fleurs counters. At the same time, Chloé Atelier des Fleurs counters became Coty's number-one fragrance brand in travel retail in Asia Pacific and Sephora's number-one artisanal fragrance in China. Sue Y. Nabi, CEO of Coty, said Caroline has been an important contributor to broadening the brand's channels and advancing its products. She is also an expert in the Asian beauty market, which is perfect for the company's market advancement and strategic placement in China. In her new role as Chief Commercial Officer, Caroline will continue to strengthen the Group's position in the global premium fragrance market, accelerate innovation in premium color cosmetics and drive growth in its skincare business. In addition, in the second fiscal quarter that ended December 31 last year, Coty Group sales fell 3% year-on-year to $1.523 billion, while net revenue jumped 24% to $235 million. Coty said that the first half of the fiscal year results showed strong growth in almost all market needs, particularly in premium fragrance products. Based on current exchange rates, Coty continues to set adjusted EBITDA for FY2023 at $955-$965 million, with revenue growth trending at approximately 6%-8% in the second half of the fiscal year.

In 2022, BIOHYALUX and QuadHA at Bloomage Biotech achieved revenues of 1.385 billion yuan ($201.6 million) and 1.368 billion yuan ($199.1 million) respectively. Both of them exceeded one billion yuan. Today, Bloomage Biotech announced its financial results for 2022. According to the financial results, Bloomage Biotech's revenue reached 6.359 billion yuan ($925.6 million) in 2022, an increase of 28.53% year-on-year. Its net profit increased 24.11% year-on-year from the previous year to 971 million yuan ($141.3 million). Meanwhile, during the reporting period, its net profit attributable to owners of the parent company, excluding non-recurring gains and losses, increased by 30.06% year-on-year. CHAILEEDO noted that its performance has been growing steadily in the past three years and the net profit increase in 2022 was the highest in the past three years. Functional skincare products business revenue reached 4.6 billion yuan ($669.6 million) Public information shows that Bloomage Biotech is a well-known biotechnology company and biomaterials company, mainly focusing on the development and industrialization of functional sugars, proteins, peptides, amino acids, nucleotides, natural active compounds and other bioactives that contribute to life and health. The company's business currently covers bioactive ingredients, medical end products, functional skin care products. For the growth, Bloomage Biotech clearly pointed out in the financial report, "The overall revenue scale of the company achieved steady growth. The scale effect gradually emerged. The company's profitability was further enhanced. During the reporting period, the whole industry chain integration model was further developed, supported by the underlying research and development capabilities, manufacturing and industrial transformation capabilities. The functional skin care products business continued to grow. " According to the financial report, Bloomage Biotech functional skincare products business operating income rose 38.80% year-on-year to 4.607 billion yuan ($670.6 million) in 2022. CHAILEEDO found that Bloomage Biotech functional skin care products has achieved three consecutive years of growth. The business accounted for the company's total operating income in 2022 has been more than 70%. The official website shows that the company currently has several brands BIOHYALUX, QUADHA, MEDREPAIR, Bio-MESO, BLOOMCARE. The product range includes single-use serum, various types of creams and lotions, masks, hand masks, eye masks, sprays, mother and baby care, scalp care and some make-up products. According to the financial results, the revenue of BIOHYALUX, QUADHA, MEDREPAIR and Bio-MESO were 1.385 billion yuan ($201.6 million), 1.368 billion yuan ($199.1 million), 605 million yuan ($88.1 million) and 898 million yuan ($130.7 million) respectively in 2022. It is worth mentioning that Bio-MESO was the only brand with a growth rate of over 100% this year. It enjoyed year-on-year increase of 106.4%. In a previous investor communication, Bloomage Biotechlogicals also revealed that "Bio-MESO is a fermented skin care brand with bio-actives as its core ingredient. This year's rapid sales growth, mainly relying on the brown rice series, has resulted in a significant increase in consumer love. Its revenue was driven by the repurchase rate and significant growth." The financial results also disclosed that ingredients business of Bloomage Biotech achieved revenue of 980 million yuan ($142.7 million) in 2022, an increase of 8.31% year-on-year, accounting for 15.41% of the company's main business revenue. Bloomage Biotech has also disclosed that "three new cosmetic ingredients have been filed in 2022, namely N-acetylneuraminic acid, zinc hydrolyzed hyaluronate and calcium hydrolyzed hyaluronate." The sales ratio on Douyin (Chinese version of TikTok) increased to about 31% It is understood that, at present, Bloomage Biotech functional cosmetics are mainly knotted offline and online two channels for its sales. The online channel mainly adopts the direct sales model, including the platform cooperation model and its own platform model. The offline channel adopts a distributor sales-based model, selling products to distributors who then sell to end customers separately. During the reporting period, Bloomage Biotech perfected its omni-channel deployment by opening offline physical shops and stationing offline counters to achieve multi-scene user reach. "Sales on Douyin currently account for 31% of the functional skin care business, an increase of 14%." Bloomage Biotech said, "In order to further optimize the channel structure, the company will strategically increase the share of the brand's direct channels, improve the stability of sales in channels such as the official flagship shop, brand live streaming, private domain and offline shops. The company will strategically increase daily sales at the same time, as well as develop differentiation strategies." As for the main channel building direction, Bloomage Biotech also revealed the future development direction of the functional skin care business. It pointed out that the company would focus on "differential ingredient combinations", "active substance delivery control technology", "active substance efficacy extension in formulations", "biotechnology packaging materials" and "process and technology innovation" to continuously enhance the technological barriers and market competitiveness of its products. In terms of functional cosmetic branding, on the one hand, Bloomage Biotech will consolidate its heroic single products or series, making them the brand's basic foundation and enhancing user stickiness. On the other hand, the brand will launch new products with more strategic focus to enrich the existing product line.

Parfums de Marly saw strong growth of 60% in Asia in 2022 and expects to open a new shop in Shanghai in 2023. (Credit: Parfums de Marly website) Today, French niche fragrance brand Parfums de Marly announced revenues of €262 million ($280 million) for FY2022, up 51% year-on-year. According to public information, Parfums de Marly was founded in 2009 by Julien Sprecher. It is an independent company, which is part of the Sprecher Berrier Group. Inspired by the history, culture and art de vivre of French royalty represented by the Château de Marly, the brand's products also include the high-end perfume brand Initio Parfums Privés and distributes other niche perfume brands. By region, its retail sales soar in 2022, with the sales growing by 50% in America. The US market accounted for 50% of Parfums de Marly's total revenues. Its sales grew very strongly in Asia at 60%. Julien Sausset, CEO of Parfums de Marly and Initio Parfums Privés, said the growth was driven by new milestones and boutiques in the US, Asia. New shops are expected to open in Shanghai and Sydney by the end of 2023, the report said. And Parfums de Marly is hiring new staff and expects to open an office in Asia by the end of the year, expected to be located in Hong Kong. CHAILEEDO understands that Parfums de Marly entered the Chinese market in 2021 with the opening of its first shop in Shanghai. Currently, the brand has opened 13 directly-managed counters in nine cities, including Beijing, Chengdu, Wuhan and Guangzhou, with pricing ranging from 900 yuan-2000 yuan ($131-$291) for its fragrances. The brand is also available online through its flagship shop on the Chinese e-commerce platform Tmall. (Credit: from an online shop on Tmall) According to Sprecher, Parfums de Marly recently announced that it has joined hands with an actor-influencer named Theo Zhu to launch a campaign in China. The spot gained 7 million views in its first two days. Commenting on the results made by Parfums de Marly in 2022, Julien Sausset stated “We are the worldwide leader of feminine niche fragrances. The brand equity and the brand awareness are the priority for us in the coming two to three years.” Parfums de Marly recently launched a four-year business plan that will see the brand reach sales of nearly $300 million by the financial year ending March 2027.

Estée Lauder said that the center will be the largest cutting-edge technology research center in the Estée Lauder Group's international markets by 2025. Today, the Estée Lauder Companies (ELC) first Innovation Day in China officially opened its new China Innovation Labs (the Labs), with the unveiling of two important sections of the Labs, the Labs’ new Global Advanced Technology Center (GATC) and Men’s Beauty Center of Excellence (MBCoE). According to Estée Lauder, the two centers will focus on the needs of Chinese consumers and look at the global market in order to achieve new heights in the field of innovation. At the event, Fabrizio Freda, President and CEO, The Estée Lauder Companies said, "Through breakthrough products, superior formulations and cutting-edge technologies, the China Innovation Labs will enable faster speed to market for our products, while also continuing our company’s commitment to providing high-quality products focused on effectiveness and safety to consumers in China and around the world." During today's event, Estée Lauder also introduced the two new research centers. GATC is an important part of the Company's global research on frontier technologies. It will be dedicated to providing breakthrough technological solutions for Chinese and Asian consumers in the areas of anti-aging, skin science, i.e. the biological, physiological and morphological characteristics of the skin. Estée Lauder said that by 2025, the center will be the largest cutting-edge technology research center in the ELC's international markets by 2025. The company also unveiled that the Labs will serve as ELC’s Men’s Beauty Center of Excellence, focusing on scientific research, product development and packaging innovation for men's beauty products, as well as conducting clinical tests for Chinese male consumers. This will help ELC to better understand the needs of Chinese male consumers and empower the development of its men's skincare brands, such as Lab Series, to help men of all ages to rejuvenate their skin and achieve a healthy complexion. The MBCoE will also cover categories such as make-up and fragrance. According to Estée Lauder's latest financial results, Estée Lauder reported net sales of $4.62 billion for its second quarter ended December 31, 2022, a decline of 17% from $5.54 billion in the prior- year period. Net sales in Asia Pacific, where China is located, were down 17% from $1.57 billion in the prior-year period, due to other factors including the epidemic. However, Estée Lauder expects China sales to rebound in the third quarter of 2023 due to the easing of controls in the country. It is worth mentioning that ELC visited Hainan Free Trade Port on 23 March, which was the first time in three years that the company visited China. It is reported that Estée Lauder has exhibited at China International Consume Products Expo (CICP) in Hainan for two consecutive years. At the second edition of the CICO, the ELC exhibited for the first time as a group with its 13 high-end brands. “Creativity and innovation are at the heart of what we do at The Estée Lauder Companies, and we have an incredible 30-year history providing Chinese consumers with prestige beauty products and services that uphold our company’s commitment to quality, consumer need, sustainability, and innovation,” said Joy Fan, President and CEO, The Estée Lauder Companies China. “With more local innovation investment, we remain firmly committed to China’s consumers, whose expectations we aim to exceed–and whose lives we aim to enhance and touch.”

In February this year, Global New Materials participated PCHi (Personal Care and Homecare Ingredients). The company brought global premiere of its new product "Qatar Red" and received wide attention from the exhibitors. On March 29th, Global New Material (also known as CHESIR), a leading manufacturer of pearlescent pigments, released its 2022 financial results. Its revenue was 917 million yuan ($133.2 million) in 2022, up 36.9% year-on-year. Its net income was 237 million yuan ($34.4 million), up 39.9% year-on-year. From the perspective of its major products, it can be seen that pearlescent pigment product revenues were approximately 851 million yuan ($123.6 million), up 27.4% year-over-year. Its revenue from mica functional fillers and related products was approximately 66.12 million yuan ($9.6 million), up over 30 times year-on-year. In addition to the business in China, products of Global New Material are also sold in Europe and Africa. Last year, sales in Europe amounted to 6.455 million yuan ($937,300) and sales in Africa amounted to 6.967 million yuan ($1 million). According to public information, Global New Material is mainly engaged in high-end materials such as pearls and synthetic mica. The related products are widely used in cosmetics, automobiles and new energy batteries. In the field of cosmetics, pearlescent pigment is an indispensable raw material. It can be used in lipstick, eye shadow, foundation, eyeliner, eyebrow pencil, nail polish, hair cream and many other products. As the revenue scale of Global New Material, it claims to be the largest manufacturer of pearlescent pigments in the Chinese market. The financial report said that with the new standards of various industries in China, such as UV-curable Coatings for Cosmetic Packaging Materials, the requirements, test methods and inspection standards of the coatings will further increase the application of pearlescent pigment products in cosmetics and other fields. It is worth mentioning that in February this year, Global New Materials brought a variety of new products to the PCHi, in this exhibition, the company's global debut of new products "Qatar Red", received wide attention from the exhibitors. According to Euromonitor and Qianzhan.com, the size of China's colour cosmetics market reached 71.595 billion yuan ($10.4 billion) in 2022, an increase of 9.05% year-on-year. China's colour cosmetics market size is expected to reach 111.3 billion yuan ($16.2 billion) in 2028, growing at a CAGR of 7.5% from 2023 to 2028. Benefiting from the rapid growth, the upstream pearlescent pigment market will see great potential, the financial report said. In addition, in January this year, Global New Material acquired part of the shares of CQV, the largest pearlescent material company in Korea, for approximately 470 million yuan ($68.2 million). Global New Material is the largest shareholder of CQV. Meanwhile, CQV enjoys a strong R&D and design team and a synthetic mica-based product system. This acquisition will further open up the integration of the upstream and downstream industry chain and is expected to usher in a new period of performance growth. Mr. Su Ertian, Chairman of the Board of Directors of Global New Material, said that looking ahead, the company will continue to follow the strategic goal of "endogenous development and outward expansion" established by the Board of Directors and accelerate the strategic deployment of the Group. It will focus on expanding the production capacity of pearlescent pigment products and strengthen the R&D capability and the synergistic integration of CQV in Korea. It will continue to seek channels with good cooperation bases and advanced technologies, and further enhance our core competitiveness through international acquisitions.

Ingredients information submission is an important part of the product registration record. On March 27, the National Medical Products Administration issued a "Notice on matters relating to the further optimization of safety information management measures for cosmetic ingredients (hereinafter referred to as Notice No. 34 of 2023)", which extended the reporting period for ingredient safety information to January 1, 2024. Previously, the policy stipulated that the deadline for former product ingredient information replenishment was May 1, 2023, which meant an additional eight-month buffer preparation period for companies. According to the Cosmetic Supervision and Administration Regulation (CSAR) and other regulations and technical specifications, cosmetic registrants and filers should conduct safety risk assessments of cosmetic ingredients and fill in the information on the safety of ingredients used in product formulations during the registration and filing process. As this is a new requirement in the CSAR, companies need time to adapt to the process and prepare information. Coupled with technical confidentiality concerns, ingredient suppliers are not very motivated to report ingredients. It has become a major constraint on cosmetic manufacturers, and brands' product registration for the record. Previously, many parties have called on the regulatory authorities to give clear guidance to have “soft-landing” for related practitioners. It is understood that the new announcement is clear on two main points: First, the way to report, the registrant filer can fill in the reporting code. If there is no reporting code, the registrant can fill in the ingredients' safety-related information materials and upload the paper information stamped with the seal of the registrant, the filer scanned copies. Secondly, a transitional period is delineated. From 1 January 2024, the registrant needs to fill in the raw material safety information for all the raw materials used in the product formulation. The former product information filing was previously required to be completed before May 1, 2023. The new announcement extended to January 1, 2024, equivalent to an additional 8 months buffer period. As can be seen, the former product supplement is for specific ingredients, such as quality specifications required for ingredients, anti-corrosion, sun protection and other functional ingredients. Other ingredient information only needs to be ready to check, which will significantly reduce the time of enterprises to enhance efficiency. Ingredients information submission is an important part of the product registration record. To a large extent, the efficiency of ingredients submission may also directly affect the efficiency of product filing. Relevant personnel from a filing service agency also told CHAILEEDO, "There is more preparation time for new products, and many enterprises are happy to learn this news." Another person in charge of a filing consultancy from Guangzhou also said that the longer buffer period is beneficial to the efficiency of some enterprises. In the opinion of Shen Yingjie, assistant general manager of COSMAX(China), the extension of the transition period is more significant for older products compared to that. He said that people are basically preparing the ingredients information for the new products first, "I think it is good for the former products because they are going to have problems if they are not made up again within the original time limit." If the previous time limit is followed, the former product registrant filer should provide additional safety-related information on all ingredients in the product formula by May 1, 2023. If the filer doesn’t submit the information of ingredients in time, they will be written off. The product will not be able to continue to be produced and sold. According to incomplete statistics from CHAILEEDO, about 270,000 cosmetic products were canceled last year in Guangdong, Hebei and Fujian. One of the most important reasons for this is that many companies had to choose to cancel their old product records because of the time-consuming and laborious nature of the information. A number of industry insiders agree that companies have more time to prepare and former products are relatively easy to make up for the record, "More time means more a chance of survival." Shen Yingjie also said bluntly, "It is good for manufacturers and brands. After all, the workload is still quite a lot. But now there is sufficient time, so it is conducive to information perfection."

On March 27, Giant Biogene released its first financial report since its IPO. The company's revenue in 2022 was 2.364 billion yuan ($343.4 million), up 52.3% year-on-year. Its net profit reached 1.002 billion yuan ($145.6 million), up 21% year-on-year. It is worth noting that one of its brands, Comfy, achieved sales to 1.5 billion yuan ($217.9 million). Combined with information from the prospectus that Giant Biogene released previously, its revenue from 2019 to 2021 will be 957 million yuan ($139 million), 1.19 billion yuan ($172.9 million) and 1.552 billion yuan ($225.5 million) respectively, with a net profit of 575 million yuan ($83.5 million), 827 million yuan ($120 million) and 828 million yuan ($120.3 million) respectively. This means that the company has achieved constant increases in revenue and net profit in four consecutive years. "Our overall growth in revenue was primarily driven by the growth of sales and revenue of professional skin treatment products, among which, the revenue from functional skincare products demonstrated a faster growth due to our continued efforts to strengthen marketing activities in our omnichannel sales and distribution network, and the successful launch of new products, resulting in the further enhancement of our brand and product influence." Giant Biogene said in its latest financial report. By business segment, in 2022, Giant Biogene's functional skin care products business revenue was 1.562 billion yuan ($226.9 million), up 66% year-on-year, accounting for 55.5% of its main business. The sales from medical dressings were 760 million yuan ($110.4 million), up 32.2% year-on-year, accounting for 41.3% of its main business. By sales channel, in 2022, Giant Biogene's revenue from direct sales channels was 1.402 billion yuan ($203.7 million), accounting for 59% of total revenue. Among them, online direct sales revenue through DTC shops was 1.214 billion yuan ($176.4 million), up 51.3% year-on-year. Its online direct sales revenue through e-commerce platforms was 125 million yuan ($18.2 million), up 5.3% year-on-year, and offline direct sales revenue was 63 million yuan ($9.2 million), up 2.7% year-on-year. By brand, its key brands in the functional skincare segment, Comfy and Collegene, both achieved growth in 2022. In particular, Collegene generated revenue of $618 million. This represents a 26.2% year-on-year increase. Comfy performed particularly well, with revenues reaching 1.613 billion yuan ($234.3 million) in 2022, a 68.2% year-on-year increase. It is worth mentioning that, according to data from the prospectus that Giant Biogene released previously, from 2019 to 2021, the revenue of Comfy is 290 million yuan ($42.1 million), 421 million yuan ($61.2 million) and 898 million yuan ($130.5 million). And now its revenue exceeds 1.6 billion yuan ($234.3 million), which is rapid growth. In its financial report, Giant Biogene explained that the product category of Comfy has been expanding from medical devices to functional skincare products. It also launched a number of new products such as the Human-like Recombinant Collagen Restoration Single-Use Essence, Recombinant Collagen Repair Essence Emulsion and Recombinant Collagen Renewing Soothing Essence Mask. As we all know, recombinant collagen is one of the hottest sectors in the cosmetic industry since 2022. Giant Biogene itself is a pioneer in this sector. Furthermore, Giant Biogene's strategy works well, which is focusing on R&D and sales. According to the financial report, the cost of sales of Giant Biogene in 2022 was 369 million yuan, an increase of 86.3% year-on-year, and the selling and distribution expenses were 706 million yuan, an increase of 104% year-on-year. In this regard, Giant Biogene said that the increase in the cost of sales was mainly due to the increase in product sales. The cost of ingredients increased from 144 million yuan ($20.9 million) in 2021 to 265 million yuan ($38.5 million) in 2022, with a corresponding increase in manufacturing and freight costs. In addition, in order to expand the scale of production, the company increased the number of production staff, thus directly leading to an increase in labour costs. The increase in sales and distribution expenses was mainly due to the rapid expansion of online direct sales channels, which led to an increase in online marketing expenses. Despite this, Giant Biogene didn’t reduce its investment in R&D. In 2022, Giant Biogene's R&D investment reached 44 million yuan ($6.4 million), an increase of 76.5% year-on-year, while its R&D investment accounted for 1.9% and 1.6% of its total revenue in 2022 and 2021 respectively, showing an increasing trend. However, it should also be noted that, Giant Biogene has eight major brands, which can be overly dependent on Comfy for performance according to the prospectus as of December 31. By 2022, Comfy has accounted for 68% of Giant Biogene's revenue. How to synergise multiple brands is a problem that Giant Biogene also has to face. In the face of 2023, Giant Biogene's plans are also clear, namely to increase investment in research and development. It means it will rely on synthetic biology platforms to carry out basic research and continue to develop new recombinant collagen and other bioactive ingredients. It stated that it would continue to polish new products and iterate on existing products with high standards to meet the diversified needs of consumers.

Recently, nearly six investors have recently submitted a letter of intent to buy 59.2% of the shares of Korean cosmetics group Able C&C. The competition for a controlling stake in Able C&C is intensive. It is understood from public information that Able C&C is one of the three major cosmetic groups in South Korea, with brands such as MISSHA, A’PIEU, CHOGONGJIN and Stila Cosmetics. According to other media reports, IMM, a Korean capital management company, became the largest shareholder of Able C&C with a 40 billion won ($30.8 million) stake back in 2017. Six years later, the company is seeking to exit its stake. Including the operating rights, the deal is valued at about 100 billion won ($76.9 million). Notably, L'Oreal, Estee Lauder and LVMH P&C, the cosmetics and fragrance subsidiary of the LVMH Group, are among the companies that have also participated in the bid. IMM is reportedly planning to announce the bidders in the coming weeks, with the final bidding to be held in May. In addition, according to Able C&C's financial report, the company's total sales were 247.8 billion won ($190.6 million), down 5.74% year-on-year in 2022. Its net profit was 6.338 billion won ($4.9 million), down 86.08% year-on-year. The company's sales in South Korea fell 20.48% year-on-year. One of its main brands, MISSHA, had closed its Korean stores in large extent. According to Able C&C's financial report, MISSHA lost a total of 3.167 billion won ($2.4 million) in fiscal 2022. However, it is worth noting that Able C&C's sales in Japan increased by 34.01% year-on-year. In China, its sales increased by 4.8%. According to other media reports, investors are closely watching Able C&C's growth potential. Despite the disruption of fierce competition and epidemics, it gained optimistic growth in markets outside Korea in recent years. Meanwhile, thanks to its strong growth in international performance, Able C&C's share price has soared about 24% in the past six months. Just earlier this month, Kim Eugene, CEO at Able C&C told the media that he was confident in the company's growth potential, saying it would continue to explore international markets and improve profitability.

Perfumers need to rely on a lot of experience when mixing fragrances and AI technology is more like playing the role of a perfumer's assistant. As we all know, fragrance has become one of the hottest sectors in the last year. According to forecasts from qianzhan.com, the size of China's fragrance market is expected to exceed 53.9 billion yuan ($7.8 billion) in 2028, with an average annual growth rate of 20% from 2023 to 2023. The fast-growing market reflects Chinese consumers' desire for more fragrances. Flavours and fragrances are essential ingredients for making fragrances. Swiss company Givaudan is a world-renowned fragrance company with a history of over 250 years. According to its latest financial results, Givaudan's Fragrance & Beauty generated sales of CHF 3.256 billion ($3.5 billion) in 2022, up 5.5% year-on-year. "We are very pleased with our solid performance in 2022, despite the challenging environment that we have faced throughout the year." Gilles Andrier, CEO of Givaudan, commented. Having been in China for many years since 1988, Givaudan has a deeper understanding of Chinese consumers. In response to current market trends and the demand for new benefits, Givaudan has done extensive consumer research, market surveys and consumer validation. In an exclusive interview with CHAILEEDO, Dr. Huang Juan, Technical Manager of Givaudan Fragrance & Beauty North Asia, said that the rise of ingredient-centric consumers in the Chinese market in recent years represents a more comprehensive awareness of how consumers think about fragrance products, rather than just blindly following big brands. This also means that brands need to focus more on the product itself. Scientists at Givaudan have discovered the relationship between the brain nerve and fragrance molecules. Givaudan has developed a series of rules and emotional fragrance technologies for different markets, consumer backgrounds, habits and cultural contexts, bringing added emotional value to products based on extensive basic research data, statistical data analysis and consumer validation. Examples include Emotional Flavours, Sleep Comfort Flavouring Technology and Happy Flavouring Technology, all of which can be offered in customized designs, regardless of product type or dosage form. When describing Givaudan’s basic research, Huang Juan said "We translate our research findings into technologies that are better suited to the Chinese market, both in terms of raw materials and neuroscience. We tailored them to be more relevant to our market needs. In today's environment, we have a very strong scientific backing of data support and technical background behind these technologies. We can provide more technical support to brands as a claimed support backing to help them integrate into the DNA of their products and become a classic product." AI technology is currently developing at a rapid pace and playing a more diverse role in the industry. When talking about whether AI is likely to replace the position of the perfumer, Huang Juan believes that AI may be more like playing the role of a perfumer's assistant. "AI it can help us to do some front-end information search and integration. But perfumers need to rely on a lot of experience when mixing fragrances, which will also include a lot of emotional perception, including a sudden inspiration at a certain time of your life. It is unrepeatable. The process of mixing fragrances will pour personal emotions into it." But Huang Juan also affirms the innovative use of AI in the field of formulations, which can make them "more interesting and more technological". "We hope to collaborate more deeply with the platform and work with them to create fragrances and develop ingredients for products that fit the DNA of the product." At the end of the interview, Huang Juan expressed her views on the beauty market this year, "In a recovering economy, I believe the beauty industry will have a bright future in 2023."