The so-called "milk exosomes" are actually composed of milk extracts and other ingredients. Recently, the milk exosome raw material developed by Tianjin Exosome Technology Co. was officially approved to be included in the International Cosmetic Ingredients (INCI) catalog under the trade name "Milk Exosomes" with the INCI number "35079", and the reporting code of the National Medical Products Administration (NMPA) for cosmetic ingredients: 138313-04375-2440. It is reported that the relevant research paper Research on the effect of milk exosomes on skin barrier of Tianjin Exosome Technology Co. has been published in the core journal of the Chinese cosmetic industry China Surfactant Detergent & Cosmetics. The paper elaborates on the remarkable effect of milk exosomes on skin barrier repair through scientific experimental evidence. The experimental study found that milk exosomes can enhance the skin barrier and realize the influence on the skin barrier function by regulating the intercellular tight linkage pathway, which has a greater potential for application in repairing damaged skin and soothing allergies. According to public information, Tianjin Exosome Technology Co., Ltd. is a biopharmaceutical high-tech enterprise focusing on exosome medication loading and targeted delivery. The company has strategically operated three business segments: exosome medication delivery and targeted delivery platform construction, exosome raw material development, and medical device innovation research and development, focusing on building an EXC medication delivery platform with efficient and stable medication coupling patent technology as the core, and a TAD medication delivery platform with exosome self-assembly targeting guidance technology as the core, to establish a competitive barrier in the exosome industry. As a key substance to transmit information during cellular communication, exosomes play a role in promoting tissue repair and regeneration and maintaining skin elasticity and moisture. Amore Pacific, Clarins, and Kao Group have also published research results related to exosomes and skin. However, previously, many industry sources told CHAILEEDO that successful applications of exosomes in cosmetics are currently rare, and the concept is greater than the actual efficacy. From the perspective of regulations, in the revised Catalogue of Already-used Cosmetic Raw Materials released by the NMPA in 2021, no cosmetic ingredients with the name "exosomes" were included. Earlier this month, the Guangdong Medical Products Administration issued a statement that "exosome cosmetics" is a pseudo-concept. However, Tianjin Exosome Technology has publicly announced that the "milk exosome" raw material it developed has obtained the cosmetic raw material submission code. According to CHAILEEDO's investigation, the so-called "milk exosomes" are actually composed of milk extract and other raw materials. Obtaining the raw material submission code is neither equal to new raw materials, nor is it equal to being recognized by the state. Some industry insiders believe that there are still many pharmaceutical companies that believe that the threshold of the cosmetic industry is low, so they will introduce some products that are controversial in the pharmaceutical field or have insufficient experimental data in the cosmetic industry, but this is not the case in reality. Even if the raw materials are effective in the pharmaceutical field, whether they can be used in cosmetics requires further efficacy and safety verification.

From this year to next year, content marketing will gradually develop towards better practical effect, that is, the efficacy. The beauty industry has encountered various challenges this year. The total retail sales of consumer goods in China for cosmetics was 245.3 billion yuan(about $34.1 billion) from January to August 2022, down 6.4% year-on-year. However, China's efficacy skincare market has been growing rapidly in recent years, with a compound annual growth rate of 23.4%, and is expected to reach 41.1 billion yuan(about $5.7 billion) in 2022. CHAILEEDO invited Cheng Yingqi, founder and CEO of Guangzhou Blispring Cosmetic Technology Co., Ltd. to share with us the cosmetic trends in China. CHAILEEDO: What is the next big thing of the live streaming channel? Cheng: The next big thing of live streaming lies in two aspects. One is the organic combination ability of live broadcast of influencers and brand self-broadcast. The other is the ability to create best selling products. That is to say, brands need to do a good job in the effective combination of influencers live broadcast and brand self-broadcast at the same time, to launch the phased best selling products. CHAILEEDO: How to do content marketing next year? Cheng: I think the core will shift from good-looking and fun to good-use. Previously, the core of content marketing lies in good appearance and interest. From this year to next year, content marketing will gradually develop towards better practical effect, that is, the efficacy. CHAILEEDO: In the post-top (super top streamers) era, what is the new brand to break through? Cheng: In the post-top era, new brands need to improve the promotion ability of the whole category and the operation ability of the whole channel. Omni-category means not sticking to a single category, but the ability to operate multiple categories in the industry. Omni-channel also means online and offline. Specifically, online refers to the combination of traditional channels and emerging channels. Offline lies in the combination of traditional terminal channels and new trend channels.

The next breakthrough point for efficacy cosmetics is to be more efficient, safer, more stable, more targeted, more segmented. The beauty industry has encountered various challenges this year. The total retail sales of consumer goods in China for cosmetics was 245.3 billion yuan(about $34.1 billion) from January to August 2022, down 6.4% year-on-year. However, China's efficacy skincare market has been growing rapidly in recent years, with a compound annual growth rate of 23.4%, and is expected to reach 41.1 billion yuan(about $5.7 billion) in 2022. CHAILEEDO invited Yi Dewei, president of CABIO, to share with us the cosmetic trends in China. CHAILEEDO: What is the trend for new ingredients next year? Yi Dewei: Ingredients have constant processes of turnover, and any active ingredient has its own life cycle. From the initial budding period, the popularization of concept, application expansion, maturity, to the final stage of decline. From the perspective of brand customer demand in downstream and consumer preference trends, as high efficacy continues to white-hot, high efficacy ingredients also maintain a very high degree of enthusiasm in recent years. For example, CABIO owns the new ingredient N-Acetylneuraminic Acid 001, which has completely independent property rights. It has very obvious effects in anti-wrinkle, promoting collagen production, soothing, etc. It is one of the representatives of Chinese new ingredient technology, which is also the outstanding advantage of this ingredient, and becomes a very important reason for Chinese and international brands to choose this ingredient. In addition, consumer demand for refinement is also expanding. As new trends such as emotional beauty and emotional cosmetic gradually begin to take root in China, there will be a very good trend for related ingredients in the future. CHAILEEDO: Will synthetic biology replace plant and animal extracts? Yi Dewei: The significance of application of synthetic biology in the field of personal care is divided into three main categories. First, replacement. That's one-to-one replacement of ingredients of plant and animal extracts or chemical extracts. Second, creation, synthetic biology can purposefully create new structures and new substances, which is one of the important reasons why people say "synthetic biology is the core driver of innovation in the cosmetics industry". Third, green sustainability. It avoids the ecological damage of some extraction methods. As to whether it can be completely replaced former ingredients, it ultimately depends on whether the product is of better quality or lower cost, as well as other factors such as green sustainability and ethics. Synthetic biology is still in the development stage, and in most cases, the products produced by synthetic biology have better efficacy. For example, synthetic collagen has smaller molecular weight, easier to absorb and fewer allergens, and squalane has higher purity, etc. But the cost is not guaranteed to be lower for all products, so it is still a process of spontaneous selection by brands. CHAILEEDO: Where is the next breakthrough point for efficacy cosmetics? Yi Dewei: The next breakthrough point for efficacy cosmetics is to be more efficient, safer, more stable, more targeted, more segmented, and to create technical barriers through development, production or compounding to improve these properties of cosmetics.

Win in efficacy, welcome the future. On September 22, The 5th CHAILEEDO Conference on China’s Cosmetic Trends hosted by CHAILEEDO was held in Hangzhou. At the conference, Zhu Hong, General Manager of CENKONG gave the keynote speech of "Criteria of A Good Factory". Good morning, guests and friends! The theme I am sharing today is "Criteria of A Good Factory". The word "efficacy" has been very popular in the past two years. Why? In fact, efficacy is not a new term. We have been pursuing it since the day we started making cosmetics. The popularity of this word is due to the promulgation of The Cosmetic Supervision and Administration Regulation (CSAR)(hereinafter referred to as new regulation). The promulgation of new regulation is a disruptive change and a system-wide upgrade for us in the cosmetics industry for more than 20 years. Because cosmetic brands used to cost nothing to talk about efficacy but now every efficacy has to cost money. First, the impact of the new regulations on the brand Just now I said the impact of the new regulations. What impact that new regulations on us? Briefly, under the new regulations, the filing time must be long. Because all the ingredients should do efficacy. Each conversion of a ingredients, the efficacy should do it again. So the product development cycle has become longer, the corresponding product development costs have also become longer. In such a context, how to find a reliable factory, how to find a reliable partner, this is the following to talk to you. Second, why do we need to find a reliable factory? Under the new regulations, the link between factory and brand is getting closer and closer. In the past, when a product was launched, the brand would find a processing factory to make a product. It would take one and a half months if it was fast, or three months if it was slow. But now it is different. Now we two are bundled together to do the marketing. We are highly integrated with a mutual stake.. There are two aspects to a brand's growth. The first 50% is the ability to marketing and sales. Marketing and sales are completely different. The latter 50% is product development, research and development and supply chain capabilities. If you can’t do well in these four capabilities, a brand can not grow. In this way, even if you have good brand positioning or strong endorsement, the brand you want to create would not be successful. Positioning is only a foundation. Third, abilities that a good factory needs On this basis of how to find a reliable factory, we have our own 8 criteria. 1.Tax security. About the ability to comply, as a brand partner, the first anti-risk ability of cooperation factory should has is tax security. If a company earns 500 million but only pays 500,000 yuan in taxes, this partner will close down in minutes. Does the cooperation with this company take high risks? The answer is absolutely yes. 2.Environmental safety. Environmental protection should be complied. If the supervisors on environment came your factory for inspection and you close down, how to talk about long-termism. 3. Fire safety. Any fire can make you go up in smoke. Fire safety is that your fire facilities should be full and withstand the fire inspection. The emergency escape drills is also required. This is the most basic. 4.Production safety. Does your production meet the requirements of Chinese safety regulations? If supervisors from safety bureau find that your factory is not in line with related regulations, your factory will be closed down. How can you engage in production? Have you done EHS safety management system. If the management system to run in accordance with that, is there any dedicated staff to do this in your factory? 5.Employment. Have you bought social security for employees? If you have 500 employees, are you buying social security for these 500 employees? Or you only buy 100 of 500? This is employment safety. 6.Quality. The third party to factory inspection is often very serious about quality and safety. Some factories tested a lot, but many items in front are ignored. Quality safety is to run with what quality system, your quality system is reliable? Is not in accordance with the quality system in the implementation, or write a bunch of documents set aside in the cabinet to cope with the inspection. 7.Ability to innovate. We often say "black technology". we worship black technology when creating products. However, there is not too much black technology in producing cosmetics, black technology are grafted out of the black technology, to do a good job on the product. We now use more than 99% of the raw materials are normal raw materials, black technology raw materials are actually very little. 8. The ability to provide resources. The first is the hardware standard, the ability to provide resources including hardware capacity, plant, building. The second is the capital capacity, hardware standards above is the capital capacity, how much unused security liquidity on the account, this money is not moving, used to resist risk. The third is the ability to protect human resources. Under the new regulations, there are several personnel to do the regulations, a person absolutely not, a good factory at least three to five people to do the job. This is what I just said "8 safe", "8 safe" based on how a good factory to create a product with efficacy, to assist in the promotion of the brand. Under the new regulations, the factory to help the brand product efficacy breakthrough, we have "6 selection", "3 fixed". How to make cosmetics effective in the efficacy of the product to produce better market results? We use the function of the precise crowd scene development strategy, that is, "6 selection": 1.Choose the channel. What is your selling channel? E-commerce, CS channels, or offline? Different channels are absolutely different, because different channels determine the product development standards are different. 2. Select the targeted audience. Your targeted audience is definitely not the same. For example, high school students, college students, or people who did not accept high education. All of them are young people, they have different needs for the product. 3. Find the efficacy. On the basis of these two, you can choose what kind of efficacy to what group in what channel. 4. Choose the packaging. Packaging is humane. You should not think about what your products should fill in big bottles or small bottles. You should consider what packaging to what scene, what kind of people. 5. Selection of ingredients. On top of the previous four bases is the selection of ingredients. 6. Choice of endorsement. You have to prove that what you say and do is real, and at the same time is the least amount of money to ensure that this money spent can get the endorsement. Endorsement can decide what the brand can say, not what can be nonsense, but what to say in the case of not being fined. Today I here also hope that the brand owners and builders can get some inspiration. When your existing factories and cooperation factories can not meet the brand upgrade or can not meet the needs of the future development of the brand, welcome you to visit CENKON. Q&A: How can brands avoid the homogenization of the same OEMs? Zhu Hong: In fact, the problem of OEM homogenization is quite easy to solve. The above I talked about “6 selections” has provided answers. Because the positioning of different brands must be different. When the positioning is not the same, the selected channels must be different. You will definitely have a different group in different channels, and do not do the same group. At the beginning of a brand, in fact, we cut into the market is small. Do not compare to those big brands, including international brands, in fact, they have no relationship with you. You first let yourself live in a market segment, your group is yours. You should consider what strategy you will choose and what thoughts you apply. Many people wonder how L'Oreal do marketing. In fact, you do not need to learn marketing from them first, there is no such volume when we do brand actually do not need to think so big, and do not care too much about themselves. Please remember, your purpose now is to survive first, walk through 0 to 1, walk through 1 to 10, walk through 10 to 100, at least walk through 1 to 10 later, before talking about how to do. There is no homogeneity. It is just saying that you are in different channels, different products, different people, how you serve people, so that he can pay for the first time to buy, the second can pay to buy. How much proportion that people who buy the first and second time. This is what I just said, the brand's service capacity, but also the factory's service capacity. This service capacity is very difficult to do, is the ability to allocate human resources. If this service capacity can not meet and can not convince people to pay to buy, even this differentiation is not done what to talk about homogenization, so in fact there is not much homogenization. Q&A: What is the difference between efficacy cosmetics and cosmeceuticals? Zhu Hong: The difference is very simple, efficacy cosmetics are cosmetics, not drugs. The starting point of a drug is very different from that of a cosmetic. The starting point of a drug is to use it under the guidance of a doctor, and the goal of using it is to achieve results. In the pursuit of effectiveness, patients will tolerate side effects. It is the doctor who is responsible for solving the side effects so that the patient can achieve the maximum effect of the treatment. For example, you have to choose whether you want to cure the cancer to save your life or lose your eye. If you can live by curing cancer at the cost of possible blindness, which one you choose, not a good choice, right? Cosmetics must be on the basis of safety before talking about the effect. If a cosmetics can not pass the efficacy test, can not pass all the efficacy evaluation of the risk test, it can not be launched. Cosmetics have risks. So in the new regulations to start at the same time, cosmetic adverse reactions to the monitoring system to start again on October 1. It is to monitor the side effects of cosmetics. In addition, cosmeceuticals is a foreign word. Chinese cosmetics do not have this word, which is a pseudo-concept. (The moderator added that "cosmeceutical" is an illegal claim under the existing regulations)

Geoskincare plans to introduce more unique new ingredients into China to provide Chinese consumers with more choices in natural-efficacy skin care products. The 32nd IFSCC Congress was held in London, UK, from September 19-22, 2022. Geoskincare presented the latest research results of New Zealand's special plant KUNZEA leaf at this congress. The paper reported the unique skin care mechanism and efficacy of the KUNZEA leaf. The IFSCC, which is "The International Federation of Societies of Cosmetic Chemists", was founded in 1959 and headquartered in New York. and 74 countries and regions have joined the IFSCC. It is the most authoritative and largest cosmetic industry scientific and technical organization in the world. This IFSCC London conference has over 1000 cosmetic researchers from different countries and regions around the world, including many international cutting-edge cosmetic companies such as L'Oreal, Shiseido, and Kao, as well as internationally renowned raw material manufacturers such as BSDF, SiIab, and Symrise. It is known that KUNZEA is a traditional herb growing in New Zealand, which has excellent antibacterial and antiviral effects and is usually used to treat the symptoms of body infections. Geoskincare has been dedicated to the research of special plant ingredients from New Zealand and the South Pacific Ocean. At present, it has 60+ products in its flagship store on Tmall in China, of which the best-selling product premier has monthly sales of over 30,000. And on the Xiaohongshu platform, there are more than 20,000+ notes related to Geoskincare. This time, Geoskincare, together with Japanese raw material manufacturer Technoble, conducted a study on the mechanism of skin care efficacy of KUNZEA leaves through modern leading extraction technology. They found that it can inhibit the production of inflammatory vesicles, thus solving all kinds of skin problems caused by inflammation at the root, and applied it to skin care products. It has been the key strategy for the development of Geoskincare to develop best-selling products + omnichannel strategy. It is understood that, currently, Geoskincare has arrangements in all channels. First, the self-operated stores in the main e-commerce channel with JD, Tmall, and TikTok China. The second is to create one or two star products based on the Taobao distribution model. The third is the main KA channel represented by Watsons and the new CS and department store channels. In terms of R&D, Geoskincare has set up a joint R&D center with South Korea Kolmar and NBC, and a joint laboratory with a number of Chinese Academy of Sciences academicians. 2021 also saw the signing of strategic cooperation with Shanxi Jinbo Bio-pharmaceutical Co. to continue its efforts in natural skin care. In addition to KUNZEA, Geoskincare also researches a variety of local natural ingredients in New Zealand and has developed special raw materials and technologies such as Manuka fermented honey and black fern. It also plans to introduce more unique new ingredients into China to provide Chinese consumers with more choices in natural-efficacy skin care products.

"In terms of industry scale and volume, recombinant collagen will definitely surpass hyaluronic acid." The beauty industry has encountered various challenges this year. The total retail sales of consumer goods in China for cosmetics was 245.3 billion yuan(about $34.1 billion) from January to August 2022, down 6.4% year-on-year. However, China's efficacy skincare market has been growing rapidly in recent years, with a compound annual growth rate of 23.4%, and is expected to reach 41.1 billion yuan(about $5.7 billion) in 2022. CHAILEEDO invited Qian Song, CEO of TRAUTEC to share with us the cosmetic trends in China. CHAILEEDO: What are the trends of new ingredients next year? Qian: With the progress of technology, the development of synthetic biology also brings new changes and new trends to the cosmetic industry. It solves the problem of the difficulty of extracting some ingredients, while it can avoid the over-exploitation of natural ingredients, such as squalane from Amyris, and most importantly, it can replace some synthetic chemicals with safety risks. At the same time, "Promote the innovation of synthetic biology technology" was also written into the "14th Five-Year Plan" for bio-economic development released by the National Development and Reform Commission in May this year. CHAILEEDO: Will recombinant collagen become the next hyaluronic acid? Qian: In terms of industry scale and volume, recombinant collagen will definitely surpass hyaluronic acid. Under the promotion of national policy, the recombinant collagen industry has been developing rapidly. Collagen has better physical and chemical characteristics, and with the development of technology, the application in medical field will be expanded, not only in Aesthetics Medicine, but also in oral, orthopedic, reproductive and other fields. From a scientific point of view, recombinant collagen and hyaluronic acid are a good combination, and the two substances have complementary advantages rather than substitution. CHAILEEDO: What is the most important initiative for companies in the face of regulation changes? Qian: TRAUTEC is a technology-based company with synthetic bioscience-related research and production technology as its core. In the face of regulatory changes, firstly, at the level of industrial foundation and development, we will increase investment in R&D, make full use of our own bio-intelligence platform, and conduct basic research on ingredients in conjunction with universities to further improve the analysis of the safety and efficacy of our products for cosmetic and medical use, so as to build a solid industrial foundation. Secondly, in the strategic development direction of the company, we will continue to be oriented towards medical purposes and demand products with quality higher than regulations. Thirdly, in terms of marketing and sales strategy, we will strictly follow the requirements of the NMPA to promote the industry to become bigger and stronger, and to promote the internationalization of new Chinese ingredients and products.

Recently, Chinese food and beverage company Wahaha disclosed a variety of daily chemical products at its mid-year meeting, including children's toothpaste, adult toothpaste, laundry pods, etc. CHAILEEDO query found that Wahaha washing&care series is produced by Hangzhou Wahaha Misheng Daily Chemical Co. Tianyancha shows that the company was established in August 2021, and its business scope includes sales of daily product sales, daily necessities sales, and wholesale of cosmetics. The company is invested by Hangzhou Wahaha Hongzhen Investment Co. CHAILEEDO found a store named "Wahaha Chenghang Specialty Store" in Tmall selling Wahaha daily chemical series and other products. There are 5 products on the shelves, including Wahaha children's toothpaste and baby laundry pods. From the perspective of the channel arrangement, the daily chemical series has not yet been widely shopped offline, only on the e-commerce platform to promote the sale. It is known that some of Wahaha's daily chemical products are formulated with food ingredients. Take children's toothpaste for example, the product selects plant extract raw materials, using probiotics with AD calcium, with 3 fresh tastes including orange, strawberry, and milk. From the perspective of the products launched so far, Wahaha has focused on the children's market this time to crossover. Its children's toothpaste, not only along the Wahaha trademark, while adding the AD Calcium IP. Wahaha AD Calcium Milk has been on the market for more than 20 years. In recent years, it has promoted the IP-based creation of AD Calcium Milk through various ways such as crossover co-branding and classic rejuvenation. According to the information publicly released by Wahaha Group, the IP-based creation of star products is one of its important strategies, and AD Calcium Milk is one of the most active single products exploring IPization. This is not the first time that Wahaha has crossed over to the cosmetics field. As early as 2018, it launched an eyeshadow palette. However, at that time, the eye shadow palette was only used as a complimentary gift for its Nutrition Express brand. And this time, Wahaha is obviously prepared and will officially enter the daily chemical industry. In 2013, Wahaha set a record high revenue of 78.28 billion yuan ($10.835 billion), after which it began to take a diversified route. Including children's clothing, liquor, milk powder, real estate, and milk tea stores, Wahaha has been trying to find the second growth curve of the enterprise, but the market is generally responded. From the market perspective, with the improvement of the economic level, consumers pay more and more attention to their quality of life, and the current demand in the daily chemical market is surging. There is also a precedent for beverage companies to enter the cosmetic industry. In 2017, Yangshengtang, the parent company of Chinese drinking water brand Nongfu Spring, announced its entry into the cosmetics industry. Its products were sold on birch tree juice and launched a moisturizing liquid, as well as hydrating and moisturizing masks, which went overseas to Japan within a year of its launch. Although Wahaha has been uninterruptedly trying to crossover for many years, the final report performance are not very satisfactory. Whether this entry into the daily chemical industry can be successful, remains to be seen.

After the basic cleansing needs of Chinese consumers are fully satisfied, the demand for refined health&personal care and hair repair will continue to increase. The beauty industry has encountered various challenges this year. The total retail sales of consumer goods in China for cosmetics was 245.3 billion yuan(about $34.1 billion) from January to August 2022, down 6.4% year-on-year. However, China's efficacy skincare market has been growing rapidly in recent years, with a compound annual growth rate of 23.4%, and is expected to reach 41.1 billion yuan(about $5.7 billion) in 2022. CHAILEEDO invited Zheng Rujin the founder and CEO of Spes to share with us the cosmetic trends in China. CHAILEEDO: From your perspective, what are the biggest trends in the cosmetic industry next year? Zheng Rujing: From the top sector of hair personal care, user demand is driving the iteration of head wash products to efficacy wash. On the one hand, the sector of hair care will be more segmented like the face, and the classification for different hair and head skin textures will be more refined. The demand for the ingredients of the health & personal care is also increasingly increased, and the awareness of the facial care grade ingredients is strengthening. The consumption growth rate of the hair care with useful ingredients in the field of hair care will continue to be high. The efficacy-centric group concerned about hair care will be wider. On the other hand, with the strengthening of regulatory standardization, it also provides the basis for the hair care market upgrading to the efficacy. This also forces brands to pay more and more attention to the investment in product development, forming a healthy competition for the industry. Like Spes, we will go deeper into the ingredients for formula innovation when developing products, and focus on self-sufficiency of core formula. On the other hand, we support the innovation and R&D of Chinese ingredients and explore the localization of core ingredients, so as to build a product barrier from ingredients to formulations. CHAILEEDO: How should the innovative cosmetic brands go offline? Zheng Rujing: The offline channel is very "heavy" for new brands, and because it is "heavy", it can form long-term brand compound interest. When developing offline channels, we should focus on the core channels first, so that we can exercise our team's combat ability and have a certain voice in the core channels before we have the opportunity to expand other channels. Spes began to layout offline channels at the beginning of the brand's establishment in order to build a healthy channel structure. It has successively reached cooperation with channels such as Freshippo, Watsons, Mannings, CenturyMart, China Resources, KKV and The Colorist, and now covers more than 10,000 stores in core shopping areas in more than 90% of provinces and cities nationwide. Many innovative brands rely on the keen insight of new groups of people and new needs. The brands need make the niche category to the extreme. A brand can get rapid growth online, but when it enter offline channels, the product must also consider the strong connection with offline consumer groups and consumption scenarios. It is not enough just to display the goods offline, how to promote sales and repurchase is the key. Take Spes Washing-free Hair Spray as an example, we will form a closed loop of product development and content marketing, such as in the subway, hot pot restaurants, offices and other scenarios, to show its product power to quickly remove oil from hair, to avoid embarrassment in social, so that consumers form brand associations in specific scenarios, the online advantage into offline momentum, this product in the global head retailer a month later, quickly jumped to the TOP 1 in sales in the no-wash spray category one month after its entry into global head retailers. CHAILEEDO: Which categories are you optimistic about next year and why? Zheng Rujing: Categories need to be seen in the context of user demand. After the basic cleansing needs of Chinese consumers are fully satisfied, the demand for refined health&personal care and hair repair will continue to increase, promoting the innovation of various new forms and textures of hair repair categories.

Winning in Efficacy, Welcome the Future. On September 22, the 5th Conference on China’s Cosmetics Trends, hosted by CHAILEEDO, was held in Hangzhou with the theme of "Winning in Efficacy". In the Round Table Talk, CHAILEEDO founding partner Li Huihua acted as the moderator and discussed with Dr. Jeff, former Harvard dermatologist and acne director/dermatologist of the First Affiliated Hospital, College of Medicine, Zhejiang University, on the theme of "Efficacy Skin Care and Scientific Communication". The following is the transcript of the speech： Moderator: The theme of this conference is "Winning in Efficacy", and efficacy skin care is a key category for "Winning in Efficacy". The era of efficacy has not only raised the professional threshold of cosmetics but also improved the overall level of scientific research in the industry. However, cosmetics are ultimately a mass consumer product, so how to convert the professional and obscure scientific language into a popular and compliant product language that consumers can understand depends on the combined efforts of scientists, marketing, and media to do a good job of scientific communication. First of all, please say hello to everyone and introduce yourself briefly. Dr. Jeff: Hello, my name is Jeff, I am a dermatologist. I have been a doctor for ten years, for the last five years I was the director of the acne at Harvard, and returned to China last year. Now I'm a dermatologist, and I'm happy to be here with you to discuss the efficacy of skin care. Moderator: First question: What are the characteristics of efficacy skin care in brand marketing? Dr. Jeff: I have always felt that skincare products are inherently efficacious, such as cleansers for cleansing and sunscreens for sun protection. As consumers become smarter and more knowledgeable, they will want to understand why the star product can achieve such a good effect, is it a certain ingredient, a certain combination, or a certain soothing technology? As consumers become more knowledgeable, they are forcing skincare brands to start promoting more scientific stuff. Ten years ago, a brand might have needed a star product, but now more and more consumers want to know why they should buy this product and why it can be sold at such a high price. Moderator: What Dr. Jeff shared is the main contradiction of the moment, that is, the contradiction between consumers' growing product knowledge and the unchanging product promotion. Then the second question, what are the key links in the science communication chain of efficacy skincare? What is the role of the scientist in it? Dr. Jeff: The idea as a doctor is that this disease needs to be solved with this medicine. When efficacy skincare came out before, brands were going in that direction. It was more about promoting the efficacy of the ingredient. After I returned to China, I found that the "ingredient-centric group" had emerged, but of course, it started abroad first. Many experts started to communicate some very complicated ingredients, raw materials, and principles to more consumers. I found that Chinese consumers are smarter than foreign consumers because they are in an involution environment. Chinese consumers must know a lot to not be so easily cheated. How to spread the word? No matter on TikTok China or Xiaohongshu, these experts will talk more about technology-related content, that is, this ingredient is through which method to solve the problem. Now more "ingredient-centric groups" will talk about technology, such as soothing technology, wrapping technology, in addition to ingredients. Through new media, bloggers and fans can interact and learn more. I think we can go towards the field. Moderator: That is to say, scientists play a role in further spreading knowledge to every ordinary person. Dr. Jeff also mentioned what are the specific differences between American and Chinese consumers in terms of efficacy skincare claims, and what are the biggest differences in scientific communication for Chinese consumers, as well as for American consumers. Dr. Jeff: Chinese skin is different from American skin in many ways. When the Chinese skin barrier was not as thick and strong, the efficacy skin care we used, whether it was Vitamin A or fruit acids, had a higher flop rate. In China, it has more sensitive skin, so there will be a lot of sensitive skin brands out there. Repairing and moisturizing are big in the Chinese skincare system, Americans also do moisturize, but the Chinese will have 7 steps to moisturize, Americans may just use cream and call it a day. The skin barrier is different and so are the products used. Repairing products are a bit hotter in China than in foreign countries. In addition, there are cultural differences. Chinese people pursue whitening and have the saying "white covers all the ugly", but Americans pursue the darker the skin seems to be the healthier it is, so whitening essence will be hotter in China. In foreign countries, we emphasize some brightening, and the demand for whitening is not that big. In terms of sun protection, when I was abroad, 1 in 5 people would get skin cancer, so before each patient left, I would give him sunscreen to take home. But instead, many people in China already have a lot of sunscreens, and they ask me more about how to wash them off. So I think the knowledge they know is a little bit different, too, and Chinese consumers are smarter and know a lot more. Many people in the U.S. would question whether applying sunscreen would cause cancer, whereas the Chinese know that they must protect themselves from the sun and wear hats in addition to sunscreen. The two have different needs and different points of knowledge. I find that Chinese skin problems are more likely to be acne, while Americans are more likely to be peeling and red, and the symptoms are different between the two groups. Many people in China get acne not because of puberty or hormonal factors, but because they have been using the wrong products. Giving them acidic products will instead aggravate the skin symptoms, instead should give them some repairing products. As for scientific communication, brands have to figure out to who they are communicating. In China, we care more about repairing, moisturizing, and whitening. When doing science communication abroad, more emphasis is placed on sun protection because they don't do it well enough. Also, many people in China have seborrheic dermatitis and rosacea, in greater numbers than people abroad. Science communication is more about Chinese problems, which are somewhat different from foreign countries. Therefore, you have to know who the users are first, and then give some scientific advice to them. Moderator: In the category of efficacy skin care, American brands do not have an advantage over Chinese brands, rather our Chinese efficacy skin care is more suitable for Chinese people with their skin characteristics. Dr. Jeff: About the ingredient-centric group, they started to focus on higher concentrations, before it was 10% niacinamide, and then came out with 12% niacinamide, or even 15%. In foreign countries, this is OK, because their skin barrier is more tolerant, and with a high concentration of acid is OK. But once the Chinese use it, they do not adapt. I found that many Chinese people will not buy European and American brands when they go to the US because they think the efficacy is too strong, they will prefer to buy some Asian brands, especially Japanese and South Korean brands. Now there are also more European and American brands that are optimistic about the Chinese market and are starting to experiment in China and in South Korea, which is also quite a good phenomenon. Chinese brands have been doing research in China for a long time, no matter in terms of skin feeling, or efficacy, each has its own benefits. Moderator: Last question, please Dr. Jeff shares a case study to summarize the importance of scientific communication for efficacy skin care. Dr. Jeff: I returned to China in 2018, and at that time, I asked many friends around me why I didn't see Vitamin A products in the market, and they said that Chinese skin is not suitable for Vitamin A and that is only suitable for Americans. As a doctor, I had seen multiple patients, including Chinese, Americans, and black people who have all used Vitamin A, all of them are OK, but of course, need to adjust the concentration to use. At that time I had a colleague who specialized in studying Chinese skin. Why some people do not adapt to Vitamin A and some people do? After using different vitamin A derivatives together, they found that could achieve the same effect and reduce irritation. I think that more and more science concentrate on different ingredients and how to match, and a large number of KOL to spread knowledge will make the whole field forward.

Enterprise should address the immediate problems of consumers' concern. The beauty industry has encountered various challenges this year. The total retail sales of consumer goods in China for cosmetics was 245.3 billion yuan(about $34.1 billion) from January to August 2022, down 6.4% year-on-year. However, China's efficacy skincare market has been growing rapidly in recent years, with a compound annual growth rate of 23.4%, and is expected to reach 41.1 billion yuan(about $5.7 billion) in 2022. CHAILEEDO invited Jin Xuekun, general manager of Shanxi Jinbo Bio-Pharmaceutical Co., Ltd. to share with us the cosmetic trends in China. CHAILEEDO: What's the trend for new cosmetic ingredients next year? Jin Xuekun: Used for years abroad, the ingredients verified by the international market that bears prominent efficacy will be the bellwether of new ingredients in China. This comes first. Second is the ingredients produced by biotechnologies. China's biotechnology is advancing with each passing day, especially the the taking off of synthetic biology technology over the recent years, which enable microorganisms to efficiently produce active ingredients of all sorts needed by human beings through specific design, and is simultaneously in compliance with the green, low-carbon and sustainable development strategy of our country. We believe that, with the help of such state-of-the-art technology, more new cosmetic ingredients will be released before long. CHAILEEDO: Will recombinant collagen get established and make it as the next hyaluronic acid? Jin Xuekun: Although there is a gap between collagen and hyaluronic acid, the gap also means opportunity. Quantity-wise, people who weighs 50kg contains 3 kg collagen or so while for the hyaluronic acid content, the figure is merely about 4g. Function-wise, hyaluronic acid is inert overall while the well-structured collagen is a kind of active protein. Category-wise, collagen can be divided into 28 categories, with each bearing unique physiological function, while hyaluronic acid has a relatively single structure and function. Collagen precedes hyaluronic acid in discovery and application by two decades, the use of it, however, was subject to limitations due to safety and cost issues concerning animal protein extraction. But the booming technology such as gene recombination protein technology and protein structure prediction technology will untie the above-mentioned Gordian knots step by step. I believe there are bright prospects for the collagen market. CHAILEEDO: What's the next breakthrough in efficacy cosmetics? Jin Xuekun: I figure that it lies with addressing the immediate problems of consumers' concern, be it the efficacy, skin touch, smell, basic research shall be carried out carefully on segmented sector, thus producing excellent Chinese ingredients to emerge as a trustworthy brand for consumers in China.

At present, we need person who have ideas to iterate and those who can break through traditional thinking in offline channels. The beauty industry has encountered various challenges this year. The total retail sales of consumer goods in China for cosmetics was 245.3 billion yuan(about $34.1 billion) from January to August 2022, down 6.4% year-on-year. However, China's efficacy skincare market has been growing rapidly in recent years, with a compound annual growth rate of 23.4%, and is expected to reach 41.1 billion yuan(about $5.7 billion) in 2022. CHAILEEDO invited Pan Bingli, general manager of Zhejiang Xiya Cosmetics Co., Ltd. to share with us the cosmetic trends in China. CHAILEEDO: Will it be more difficult for offline cosmetic agents next year? Pan Bingli: The hard ones will be more difficult, but those who have ideas to iterate and those who can break through traditional thinking will see the light. As far as agents are concerned, their core value is the goods and personnel in the warehouse, and maximizing the activation of this value is the key. I personally think that at present, between the couple stores(couple stores refers to a small store jointly operated by a husband and wife) and the traditional top 100 chain stores, there is a vacancy that many people do not see, such as a single store with a new mode called “Qian Dian Hou Yuan”(Qian Dian Hou Yuan refers that the front part of the store where products are displayed and sold, and the back part is the place where services or sales services are provided for customers who buy products.). From a business point of view, the couple store relies on contacts, the traditional top 100 chain stores rely on traffic, but now CS channels relying on traffic and clientele is less reliable, because their stickiness with customers is no longer. Because of this, the gap between the couple stores and the traditional top 100 chain stores came out. Therefore, agents who tend to develop customers or transition to open stores, should go in this direction, which is a little opportunity that my Wenzhou company seizes. In addition to the original goods and personnel resources, I think to do the efficacy of the product to do a good job as an agent. First, the efficacy of the product channel is relatively narrow, they will not do all channels. Second, because the channel can be controlled, so the price control is better. Furthermore, such brand products have a large added value. For example, the reason that a product of brand can be sold at more than 10,000 yuan per unit is that its ability to meet the needs of the store members want to become beautiful. More importantly, this product can increase the customer unit price of the store. Moreover, such products are not sold in shopping malls and traditional top 100 chain stores, because they need shopkeepers to slowly promote to customers and ask them to experience the product. It should be said that there is no way to break the fixed mode of traditional agents. But in the long run, I am still more optimistic about offline, especially after the online e-commerce and offline have done. Because we are more clear where they are associated with each other. Now it is meaningless for us to be agents of some cosmetic brands. We should think that how to make efficacy cosmetics gaining more popularity. Then the products can be sold in offline channels. Consumers now do not have a lot of time to listen to you in the sale of goods, but they are willing to go to the cosmetics store to take care of their skin. This is where the Internet can not be replaced. What we need to do is to build trust in the product through service. Through the efficacy of the product to build future repurchase and stickiness, which is also a step that offline retail stores should think about.

The road to the IPO of Jinbo Bio is full of twists and turns. On September 29, Jinbo Bio-pharmaceutical released an announcement that it had suspended its listing review by the Beijing Stock Exchange (BSE) due to the need to update the financial information cited in the prospectus. According to the announcement, the financial statements quoted in the prospectus are valid for 6 months after its latest cut-off date, according to the Rules for Reviewing the Public Offering of Shares to Unspecified Qualified Investors and Listing on the Beijing Stock Exchange (for Trial Implementation). Under special circumstances, the issuer may apply for an appropriate extension, which may not exceed 3 months at most. The latest audited financial statements in the prospectus of Jinbo Bio are due on December 31, 2021, which will reach 9 months by September 30, 2022, so the company needs to update the financial information quoted in the prospectus. At present, Jinbo Bio has submitted an application for suspension of review to the BSE. The BSE has adjusted the review status of the company's public offering to unspecified qualified investors and listed on the BSE to suspend review in its business system. It is known that Jinbo Bio mainly focuses on the research and development of functional protein as the core driver, constantly developing various innovative functional proteins and upgrading and perfecting the developed functional protein technology. And its main business is divided into two sales modes: OBM and ODM. According to the previously announced 2022 interim report of Jinbo Bio, the company recorded revenue of 154 million yuan ($20 million) in the first half of the year, representing a year-on-year increase of 50.68%. The net profit attributable to shareholders of the listed company was 36,345,700 yuan ($4,630,200), an increase of 43.36% year-on-year. It is worth mentioning that, as early as June 1, 2020, Jinbo Bio sent an application for listing on the Sci-Tech innovation board (STAR Market). However, at the end of the same year, Jinbo Bio submitted another Application for Withdrawal of Application Documents for Initial Public Offering of Shares and Listing on the STAR Market to the SSE, probably due to liquidity problems of the NSS. It claimed that "due to the company's strategic adjustment, the company decided to withdraw the application for the initial public offering of shares and listing on the STAR Market on its own initiative", thus ending the road to the listing. The company's IPO was launched on June 7 this year, aiming at the "first collagen stock" and BSE, which sent its first inquiry letter at the end of June, asking about Jinbo's prospectus from business and technology, financial and accounting information and management analysis, and the use of proceeds respectively. Prior to the suspension of the review, it received a second round of inquiry letters from the BSE on September 8. The inquiry letter asked about the sales revenue of its partner DNUTRI MAGECARE, the authenticity of the sales revenue of recombinant humanized collagen implant, the composition of revenue, product details, compliance operation, and fund-raising investment.