Cosmetic companies need to reduce costs while also enhancing product efficacy. On September 22nd, the 5th Conference on China’s Cosmetics Trends held by CHAILEEDO located in Hangzhou, with the theme of "Winning in Efficacy". CHAILEEDO invited Zhu Hong, General Manager of Guangzhou Zhongtong Biochemical Products Co., Ltd. to talk about the future trend of cosmetics in China. Guangzhou Zhongtong Biochemical Products Co., Ltd., a supplier of efficacy skincare products solutions, has been engaged in professional OEM business since 1996 and has 26 years of product development experience. Its customers include DR PLANT, Carslan, Hanhoo, HARUKI, RIBECS, etc. Last year, the Cosmetics Supervision and Administration Regulation were officially implemented. Cosmetics ushered in the most stringent regulation in history. Zhu said the impact of the new regulations on the brand is multi-dimensional, including product filing time, the difficulty of replacing raw materials or product development cycle, efficacy testing costs, etc.. The rapid iteration, small-scale trial approach is no longer applicable currently, because the regulations require clear efficacy of the product. In addition, he believes that after the implementation of the new regulations, brand and commissioned processing plants will increase the degree of relevance, forming a bundled relationship. So, how to find a reliable factory? He said that a good factory, the ability is divided into two parts, one is the ability to comply, and one is the ability to operate. And the first anti-risk ability of the factory is tax security. Zhu also claimed that in the future, for each efficacy product, the net development cost is around 100,000 yuan ($14,100). This is the most vital change of the new regulations for the product. Therefore, Zhu claimed that cosmetic companies need to both reduce costs and enhance product efficacy at the same time. This requires companies to optimize the organization's staff structure, hire professionals that future regulatory requires, and companies need to build their core strengths capabilities. Mask is one of the main production categories of Zhongtong Biochemical. About the opportunities in the mask market next year, Zhu believes that companies need to develop different varieties of mask products according to the different functional needs of consumers, in order to meet the needs of different breast groups. He said that there are still many opportunities for micro-innovation in facial masks in terms of mask materials, processing technologies, usage methods, and the enhancement of the efficacy of matching essences. For efficacy cosmetics, Zhu Hong agreed that Zhongtong Biochemical is still at the primary level and has a wide space to develop. There is only better and no best efficacy products, so the existing Chinese efficacy products can actually be upgraded completely. It is reported that Zhongtong Biochemical invests 10% of its annual turnover in new product R&D, and now has a professional development team of over 30 people.

Recently, Swiss fragrance giant Givaudan announced on its website the launch of its new vegan purple cosmetic pigment New Purple 2364. New Purple 2364 is mainly derived from Raphanus Sativus L. This pigment is part of the same family of natural pigments as New Red 1805, which was launched by Givaudan in 2020. Considered by Pantone® as the 2022 Color of the Year, purple has become one of the hottest shades in makeup formulations and one of the most flattering for all skin tones, Givaudan claimed. Purple has long been seen as a color that represents elegance, awareness, and strength in different cultures, including China. Data from the Givaudan survey showed that 88% of respondents thought New Purple 2364 was a color with a sense of style, and 84% thought it would go well with their skin tone. The pigment is described as 100% vegan and natural ingredients, certified by ID Pack. New Purple 2364 has now passed performance tests and when its concentration is 10%, it shows excellent stability to temperature exposure and light radiation. Clinical evaluations on three different skin tones (African, Asian, and Caucasian) have also shown significant results when applied to the lips, eyelids, and nails. Its color is vibrant, intense, and uniform. Moreover, it said that in keeping with the multifunctional trend, the new New Purple 2364 also provides antioxidant, anti-glycation, and anti-hyaluronidase protection for skin and nails. It can be used in makeup formulations, waterless makeup, lipsticks, lip care products, eye shadows, nail polish, nail care products, soaps, and more. The same series New Red 1805 that was available in 2020 was also made from Raphanus Sativus L. This radish is produced in Yunnan Province China, hence the collaboration between Givaudan and the Farmers' Cooperatives in Yunnan Province. New Red 1805 is said to have been developed for natural color cosmetics, especially lipsticks. It also has antioxidant properties that protect the skin of the lips from free radical damage. According to Grand View Research, the world market for vegan cosmetics is growing at an average annual rate of 6.3% and is expected to reach $20.8 billion by 2025. Thanks to the "millennial generation's" concern for the global environment, vegan, green, and other environmentally friendly, sustainable beauty is increasingly becoming the future trend of cosmetics.

Austin Li's official comeback will be a booster in the Chinese beauty market, with some beauty brands continuing to be beneficial. At 19:00 on the 20 September, the Taobao super-toped influencer "Lipstick King" Austin Li, whose live streaming has been suspended for 109 days, finally started re-live streaming, and view counts exceeded 60 million within 2 hours. Brands such as Florasis, CHANDO, and Curel all appeared in this live streaming. The performance is still brilliant Austin Li, wearing a black vest with a white shirt, showed up in the live streaming with his assistant Wangwang. He officially returned after 109 days of "disappearance". At the beginning of the live streaming, Li first previewed the products, including a variety of household goods and beauty products. The beauty products cover the Nivea Extra White C&E Vitamin Lotion, CHANDO Clay Purifying Mask, QuadHA Multi Moist HA Soft Essence, Curel cream, Florasis eyebrow pencil, etc. Many netizens said, "still familiar scenario". It is reported that the first product in his live streaming is Mr. Lei's cell phone holder, which was sold out in 3 seconds. In this live streaming a total of 26 goods on the shelves, GMV nearly 130 million yuan ($18 million) May the double 11 shopping festival recover? On the night of June 3, Austin Li's live streaming was suddenly interrupted. After that, he suspended his live streaming and his Weibo was not updated again. 10 days later, on June 13, TikTok China influencer Luo Yonghao officially announced that he would fade out of the live e-commerce. Moreover, last year, the Kwai influencer Xinba and Taobao influencer Viya have been banned for "cubilose event" and "tax evasion". So far, on the Taobao, TikTok China, and Kwai three platforms, four super-toped influencers for various reasons collectively "disappeared". Compared to the other influencers, Austin Li has a deeper relationship with the beauty industry. After the failure of Viya, Li became the only remaining top influencer. Take last year's 618 shopping festival as an example, there are more than 180 beauty products in his live streaming. Among them, there are as many as 40 new/Chinese beauty brands, such as Flower Knows, KIMTRUE, Xunyunji, etc. In the first 618 beauty event on May 26 this year, he also had a lot of new brands in the e-commerce, such as Into You, Judydoll, Joocyee, UNISKIN, etc. Public data shows that on the first day of this year's Tmall 618 event, the highest number of live viewers in Austin Li's live streaming reached 150 million. In the original preview from June 5-10, it was expected that a number of beauty products would also be online. However, everything was disrupted by the suspension, which means most beauty brands lost the opportunity in Tmall 618. Since Austin Li's leave, the new emerging brands that were deeply bound to Austin Li also faded out with his silencing. As a Taobao super-toped influencer, he had created the achievements of the industry that is also evident to all, from consumers to brands, most of them are waiting for his comeback. Due to the pandemic and other factors, the economic situation this year is not good. As the Double 11 approaches, beauty companies that should be busy preparing goods are not as lively as usual. Among them, some industry insiders believe that the absence of the big influencer not only has a greater impact on some brands but also led to a decline in the aggregation effect, which to a certain extent affects the heat of the double 11 and the enthusiasm of the brand. And after the official comeback of Austin Li, many industry insiders are excited, remarks like "good news" and "producers must do their best to work overtime to ensure supply" are incessant. Some industry professionals believe that his official comeback will be a booster in the market, in particular, the significance of the promotion of some beauty brands will be more obvious. "However, the core reason for the downturn in the beauty industry today is that the overall economic environment is bad, and consumer confidence is low. It may be difficult to save a market with just Austin Li alone. But a certain degree of confidence to enhance the industry can still be." An industry source said so. Austin Li's "new rival" Austin Li's re-live streaming brought a great shock to the Chinese beauty industry. But in terms of the live streaming, in this period of his leave, his competitors are also emerging. The first is the brand self-live streaming. In the absence of super-toped influencers during this period, the initiatives of some beauty brands can also be seen, they tried to get rid of the constraints brought by over-reliance on super-toped influencers through a variety of strategies. Beauty brands are beginning to strengthen their e-commerce. For example, this year's 618 promotions, including Marumi, Herborist, Dr. Yu, Forest Cabin, CHANDO, and other brands have taken on sales responsibilities, becoming an important sales channel for the brand. In August, among the sales TOP20 list of TikTok China beauty stores, Estee Lauder, Olay, Erno Laszlo, and nearly half of the brands on the list ranked first among all the brand's cooperative influencers in terms of e-commerce performance. In fact, as early as last year's Double 11, Austin Li and Viya both stopped cooperating with L'Oreal Paris, the "invisible war" between the top influencer and the brand for pricing power also surfaced, and the matter also accelerated the development of brand self-live streaming. The Oriental Selection on the TikTok China platform also became popular during Li's leave. At present, the number of fans of Oriental selection has reached 25.706 million. This business model of weakening the individual influencer and highlighting the IP of the live streaming can minimize the impact of the individual IP on the whole industry. Recently, Oriental Selection has also reached out to the beauty area. In July this year, the matrix number of Oriental Selection "Oriental Selection Beauty Life" has been officially launched, covering beauty, skincare, and personal care. For the brand, the super-toped influencer channel is a way for exposure and publicity, due to large discounts, and high commission, the profitability is more general. The TikTok China self-live streaming channel, on the other hand, is a manner to build private domain traffic and achieve conversion, which is expected to achieve stronger profitability. However, for emerging brands, super-toped influencers still have an important significance for the promotion of their influence and visibility cannot be ignored.

In the future anti-aging market, consumers will gradually prefer orally taken and external applications. THAI HO Group is one of the world's leading international cosmetic manufacturing groups with more than 40 years of experience in R&D and manufacturing in the cosmetics industry. Currently, its partner brands include L'Oreal, LVMH, Shiseido, Proya, Perfect Diary, etc. CHAILEEDO invited Guo Xiangying, co-founder of THAI HO Group, to talk about the future trends of cosmetics in China. She predicted that the trend of the cosmetic industry next year is slowly moving towards Dameiye (Beauty industry integration plan). This means that in addition to cosmetics, the overall solution of orally taken and external application will also be valued by the industry. Guo Xiangying said that it has become a general consensus that cosmetics cannot slow down the aging process. Therefore, in the future, consumers' expectations and perceptions of enhancing facial value and retaining youth will gradually tend to be orally taken and external application. In addition, natural and efficacy Chinese herbs are also a trend. In Ta-pieh Mountain, an important area for Chinese herbs, THAI HO has set up a raw material extraction plant, a cosmetic plant, a pharmaceutical plant for related medical devices, and a special medical food plant. It is worth noting that Guo Xiangying was the one who judged that next year the efficacy makeup will become a popular trend. Since makeup has only a finishing effect, skincare can only be done after removing makeup. And if makeup also has a role in skincare, then it can be done both during the day and at night. In the past, without the constraints of regulations, perhaps many people treat efficacy makeup as a gimmick to tell stories. But now, cosmetics promoting efficacy must have an efficacy evaluation report, including color cosmetics. Therefore, she thought that the era of "efficacy makeup" would come, and THAI HO is now advancing towards efficacy. But for the efficacy cosmetics, she also said several points that must be considered. The first thing to consider is what kind of product efficacy is the most accurate way to do its scientific proof. At present, there are various methods of evaluating cosmetic efficacy claims. The highest level is the human efficacy assessment, but the cost is so high that there are not many cosmetic products that choose to do this assessment. Second, many of the efficacious activators in cosmetic formulations today are plant extracts. The key effective element of a plant extract addition depends on its activity. Among them, is the addition of 5 thousandths of plant extracts, if there is no active substance or only a trace of activity, then its effectiveness will be relatively low. So, in the competition of brands, that have more exclusive raw materials with high activity, the barriers that can be built up will be higher. This is also the breakthrough point of whether the brand will be able to fight its own way in the efficacy skincare section in the future. On September 22, the 5th Conference on China’s Cosmetics Trends will be held in Hangzhou, China. CHAILEEDO will be live streaming the entire event, register now to book a live stream: https://www.chaileedo.com/events.

On September 20, Bawei announced that it will lower some of the performance appraisal index of the 2021 Restricted Stock Incentive Plan. Public information shows that Guangdong Bawei Biotechnology Corporation was listed on the New Third Board on May 13, 2016, and is a cosmetic manufacturing enterprise integrating professional planning, research and development, testing, and production. It also has an independent third-party testing organization, whose clients are Unilever, Thanmelin, Lafang China, HBN, GIALEN , Renhe Jiangxin, etc. CHAILEEDO analyzed through the financial data of Bawei in the past 5 years and found that it has achieved year-on-year growth in operating revenue. Especially in 2016, revenue increased by 86.41%, and net profit also surged significantly, hitting a highest record of 106.42%. The announcement released by Barwei shows that the second release of the restriction period, it changed its original target of 50% growth in revenue and 40% growth in net profit in 2022 to 40% growth in revenue and 30% growth in annual net profit in 2022. For the reasons of the downward adjustment, Bawei explained in the announcement that at the beginning of 2022, pandemics were outbreak frequently in China and aggregated pandemics occurred in some areas, and residents' travel and consumption activities were significantly reduced, which had a big impact on the consumer market. The shutdown of production and suspension of logistics in some parts of the country led to a major influence on the upstream and downstream of the cosmetics industry. Among them, the offline sales channels of cosmetics faced severe challenges and the normal operations of some company's customers were seriously affected. Meanwhile, the company participated in China cosmetic exhibitions for business promotion as an important means of customer expansion. However, due to the impact of the pandemic prevention and control policy, they were unable to participate in the exhibition activities normally during the year. In addition, under the dual influence of the more complex and severe international environment and the effects of the pandemic in China, which led to abnormal fluctuations in the prices of cosmetic raw materials, as well as a series of uncertainties such as the increase in international logistics fees and longer international logistics transportation time, the company was scheduled to vigorously promote the foreign trade business of cosmetics during the year, which was now also affected as a result. Bawei proclaimed that since the beginning of the year, the influence of the COVID-19 on the company, customers, and the entire cosmetics industry has completely exceeded expectations, the company's business environment in 2022 has been Announcement No.: 2022-074, which has changed significantly compared to 2021 when the stock incentive plan was formulated. The company-level performance appraisal index set in the original incentive plan for 2022 can no longer match the current market development trend and environment, if the company insists on implementing the original performance assessment targets, it will weaken the incentive of the plan. After considering the above unfavorable factors, Bawei believes that it is more important to fully mobilize the motivation of the incentive recipients in this special period. Therefore, they decided to adjust the 2022 company-level performance appraisal index in the 2021 Restricted Stock Incentive Plan.

Annual sales exceeded 1 billion yuan ($142 million) just two years after launch. PMPM is a new Chinese lifestyle brand. The brand was founded at the end of 2019 by former P&G brand director Shan Shuo, and its annual sales exceeded 1 billion yuan ($142 million) in two years since its launch. CHAILEEDO invited PMPM co-founder Guo Wenci to talk about how new Chinese cosmetic brands should breakthrough. In her opinion, the breakthrough has to be arranged in two directions: brand power and product capability. PMPM has outlined a golden triangle of brand building to establish a brand that transcends cycles and geographies. This golden triangle refers to the innovation of product research, the expression of aesthetic proposition, and the communication of brand spirit. She believes that product capability is the core competitiveness to be built by the brand. The gap in time accumulation between new consumer brands and big international brands is objective. PMPM's product positioning is "an innovative solution for young Chinese skin", and it wants to have a dialogue with Chinese consumers to discover unmet skin care needs, and improve solutions. In addition, Guo also said that brand power is indispensable. Infinite brands are solving a limited number of problems, and when brands satisfy efficacy needs, consumers will follow them for a long time, which actually follow a spirit, an emotional value that the brand represents. The ultimate mapping is who the consumers themselves are and what kind of person they want to be. The rise of new Chinese brands cannot be separated from the traffic. Facing the current situation where traffic is getting more and more expensive, Guo firmly believes that innovation is the key to build a brand, and as a skincare brand, better solving consumers' skin problems through product innovation is the foundation. Since its inception, PMPM brand has built its brand R&D center and global raw material database, and strategically cooperated with Chinese and overseas authoritative scientific research forces such as Ashland and Jiangnan University to carry out applied research on raw materials, developing RosaRepair™ Chiba Rose precise positioning extract, TruDiamond™ White Truffle precise positioning extract, PMPM EquilYeast Yeast Lysate Extract, and other exclusive ingredients. In the third year of its establishment, the brand has 17 patents.. Against the backdrop of the "oil skincare" trend in the past 2 years, PMPM has developed the Chiba Rose Oil Extract for people with pan-sensitive skin, which can be used all year round. The repurchase rate of this product is over 60%. Lastly, Guo claimed that PMPM will continue to insist on three-dimensional expression in the content next year. From the professional-oriented content of product composition science, gradually shift to brand-oriented content. It will communicate with consumers and help them solve problems, so that they can have a deeper understanding of product ingredients and identify with the cultural values of the brand. On September 22, the 5th Conference on China’s Cosmetics Trends will be held in Hangzhou, China. CHAILEEDO will be live streaming the entire event, register now to book a live stream: https://www.chaileedo.com/events.

At 19:00 on September 20, China's "Lipstick King" Austin Li officially resumed live streaming. As a Taobao super top anchor, Austin Li’s live streaming has been suspended for 109 days. This time, in his comeback to Taobao live streaming, more than 60 million people watched in nearly 2 and a half hours. Brands such as Florasis, CHANDO, and QuadHA all appeared in this live streaming. In his first re-live streaming, he once again proved his ability for e-commerce. The first item on the shelves was a cell phone holder, and 40,000 pieces of the stock were sold out in one minute. According to China Cosmetics News, a total of 26 items hit the shelves in this live streaming, with a GMV of over 130 million yuan ($18 million). Austin Li was thought to be the last surviving super top anchor after another Taobao super top anchor Viya was banned for tax issues last December. However, on the night of June 3 this year, his live streaming was suddenly interrupted. Since then, Austin Li's live streaming has been suspended and his personal social media platform has not been updated. From then on, after Austin Li's "disappearance", the rumors about his comeback have never stopped. This year's 618 shopping festival, in the situation where there is no super top anchor for live streaming e-commerce, many beauty brand’s performance has been greatly affected. Industry professionals have confessed that "the performance of 618 shopping festival is very dismal". A Chinese brand then claimed in its 2022 semi-annual report that the impact of the pandemic on the supply chain in the first half of the year, superimposed on the impact of the lack of super top anchors, made the skin care category revenue fall by 34.84% year-on-year. From Perfect Diary to Florasis, and the QuadHA under Bloomage Biotechnology, Austin Li has brought many Chinese national brands to go viral. "5,000 KOC trial recommendations + 2,000 KOL Q&A + cooperate with Austin Li or Viya = a new brand" was also the growth formula for many new brands. Therefore, for many new brands, the loss of Austin Li means the loss of an important sales channel. Previously, Ali has officially announced that the "2022 Tmall Double 11 Global Carnival Season" will open pre-sale at 8 pm on October 24. However, several industry sources reflected to CHAILEEDO that the performance of this year's Double 11 shopping festival is not optimistic. "The previous Double 11 festival traffic was huge, but now it has been scattered. And without the top anchors, the aggregation effect has decreased. Originally, the festival was a matter of losing money to gain more attention, but now brands can't afford it and have to pursue profits," Li Daoyang, the general manager of Guangzhou Liji Packaging Technology Co., Ltd. analyzed it like this. According to the Taobao anchor sales list, in 2021, in the Double 11 shopping festival pre-sale live streaming on the first night, Austin Li’s sales achieved 10.653 billion yuan ($1.512 billion), and view counts reached 250 million. Some industry insiders believe that Austin Li's official re-live streaming will be a booster in the market, especially the driving meaning for some beauty brands will be more obvious. From the popularity of the first re-live streaming, with Austin Li's comeback, may also drive some consumers' revenge consumption.

It is reported that the market size of China's industry of skincare for men is expected to reach 20.7 billion yuan(about $3 billion) in 2026. International brands Unilever and Shiseido have entered the men’s skincare market in China this year. The importance of male consumers in the cosmetics market is becoming more and more prominent. The Research Report on “He” Economy[1] 2021 shows that the proportion of male users who buy beauty and skincare products in a year is more than 50%. The average frequency of purchase is more than 2 times per quarter reaching 70%. Their amount of purchase in a year is more than 50% of 900 yuan(about $128.3). More and more men are joining the team of "face value" consumption, driving the rapid development of the men's cosmetics market Many male consumers also said that they began using facial cleansers, toner and cream products in high school. After work, they began using sunscreen, lip balm, BB cream and so on. The male friends around will also use more basic skincare products like toner and cream. Many will use beauty products. The rise of “He” Economy Recently, CHAILEEDO noticed that the Chinese sharing platform Xiaohongshu released the "Men's Beauty Care Industry Future Consumption Inspiration Chart" (hereinafter referred to as "Inspiration Chart"), showing the recent new trends in men's skincare on the Xiaohongshu platform. Xiaohongshu's male market has huge consumption potential. Data from the Xiaohongshu platform shows that as of November 2021, the monthly active users of Xiaohongshu have reached 200 million and the proportion of male users has risen to 30%. The huge number of active male consumers urgently needs to be reached by brands. The search index for men's skincare keywords is climbing and the search index rose 167% from April to May 2022. The overall volume of notes for the three categories related to the men's skincare industry is on the rise with an overall growth of 60%+. With the rising demand for men's beauty care content on the platform, more men's beauty care creators are being attracted to join. 2022 saw a year-on-year increase of 82% for men's skincare creators. The percentage of creators with more than 600,000 followers is 47%, and the percentage of creators with 100,000 to 600,000 followers is 47%, of which 17.5% of male followers are among the followers of bloggers who focus on men's beauty care. It is worth noting that male users now pay more attention to the actual efficacy of products, i.e. useful products. The search term "men's facial cleanser to control oil and eliminate acne" has increased by 732% in Xiaohongshu in the past six months. The term "what to do with large pores for men" is also a common search question for men. The term has increased 82% in the Xiaohongshu station in the past six months. The rising awareness of Chinese men's skincare has led to the rapid rise of the men's beauty care industry. Brands are still able to reach a large number of active male consumers on the Xiaohongshu platform alone. International brands are optimistic about the men’s skincare market in China According to a report by the Foresight Industry Research Institute, with the increase in Chinese men's skincare awareness, the demand for men's skincare products has been rising. Chinese men's skincare market reached 12.5 billion yuan(about $1.8 billion) in 2020 and the market size of the Chinese men's skincare industry is expected to reach 20.7 billion yuan(about $3 billion) in 2026, with an average CAGR of 15.88% from 2021 to 2026. The gradual release of market potential has also attracted many brands to enter the market and capture market share. International brands such as L'Oreal, Estee Lauder, Mentholatum, and Kiehl's all have their own exclusive brand lines for men. In the current Chinese market, the men's line is led by L'Oréal Group's Biotherm, as well as Estée Lauder Group's LAB SERIES and local Chinese brands such as df. For example, in the official flagship store of Biotherm on Tmall, the top-selling product is the Biotherm Homme Aqua Power Kit with 200,000+ sales volume and priced at 290 yuan(about $41.4). This year, international brands have also developed sub-brands that specialize in men. It is worth noting that recently there have also been brands launched specifically for Asian or Chinese men. For example, at the end of May, Unilever China launched EB39, a skincare brand specifically for high-end men. It is officially positioned as "Unilever China's first light luxury men's skincare brand, the first AI algorithm-driven formula development brand, and the first meta-universe artist skincare brand". A few days after the official launch of EB39, Shiseido Group announced the upcoming launch of Sidekick, a Gen-Z men's skincare brand. Sidekick claims to focus on providing products formulated with natural ingredients for Z-generation male consumers in Asia. Sidekick also made its Japanese overseas debut in China at the International Consumer Products Expo in July this year. Innovative men's skincare brands are also receiving capital attention. For example, the men's personal care brand Lan Seral completed a Series A round of funding of tens of millions of yuan earlier this year, led by Plum Ventures and followed by 9CCapital and JHF Capital. It has also received 6 rounds of financing, amounting to over 450 million yuan(about $64.2 million). The newcomer DearBoyFriend has also received three rounds of financing with a total amount of tens of millions of RMB. When the personalized consumption needs of Gen-Z are released, "He consumption" has become a boom. Brands are paying more attention to investing in men's skincare and other aspects. Men's high-end market still needs to be explored CHAILEEDO noted that both Unilever's EB39 and Shiseido's debut Sidekick are coincidentally targeting the high-end men's skincare market. EB39 said that the brand is the first luxury men's skincare brand launched by Unilever in China, priced between 268 yuan and 630 yuan(about $38.2-$90). Shiseido also emphasized that Sidekick will be the "new luxury" in skincare brands, dedicated to creating a new image of luxury for Gen Z. Juliangyinqin Research shows that men's skincare consumers are mainly concentrated in Tier 1 and Tier 2 cities. These geographies cover 60% of male consumers in China. mature elites in Tier 1 cities are a stonger consciousness of skincare. As male consumers pay more attention to product quality, young male beauty and personal care trends are becoming more and more high-end. The Xiaohongshu survey shows that male users have a higher willingness to pay and stronger spending power, making them a high-value, high-potential customer group. This means that high-end male skincare players are more likely to be successful in the male beauty care market. However, in the current Chinese market, there are no men's skincare brands that can fill the high-end needs of male consumers. Although both L'Oréal and Estée Lauder has their own men's brand lines, the pricing is lower compared to women's high-end skincare. For example, single products of L'Oreal's Biotherm enjoy a price range of 190 yuan to 990 yuan(about $27.1-$141.2) in its Tmall flagship store. While another high-end brand H from the same group has a price range of 390 yuan to 3,680 yuan(about $55.6-524.8) on the same platform. In addition to high-end, male skincare also has many refined needs. According to a survey conducted by the Hong Kong Trade Development Council, the demand of male consumers for skincare is varied. In addition to mainstream needs such as adjusting the skin's oil balance and eliminating blackheads and acne, they also want to get skin whitening, prevent air pollution, and make the skin smoother and more elastic. There are more niche needs through skincare. The current male skincare brands on the market are still positioned on pores, oil control, acne and the smell of cologne. Huang Weiqiang, the founder of Chinese men's skincare brand MAKESENSE, said, "China is not short of consumers at the moment. What is missing is the supply of professional brands and products based on male skin research." When the "He economy" starts to rise, Chinese men's demand for skincare, even high-end skincare, will become the next growth point of the beauty industry. PS: [1 ]“He” Economy: “He” economy is the male consumption, as opposed to the female consumption, which is the "she economy". The reason for this is White Valentine's Day, Father's Day, etc.

According to CHAILEEDO, on September 19, JWEL Global announced a strategic alliance with Italy's So.Di.Co Group. It is reported that JWEL Global will help So.Di.Co Group to promote the sales of its organic and natural personal care private brands and contracted global IP derivative products in the Chinese market. It will also expand its OEM and ODM supply chain to develop new products and increase production capacity for the Chinese market. So.Di.Co Group is a leading independent manufacturer of cosmetics, beauty, and personal health products from Italy, with products in Europe, the Middle East, and Africa through more than 1,000 premium retailers. So.Di.Co Group owns more than 10 brands, including skincare brand Naturaverde, scalp care brand Vitalcare, hygiene care brand Igiene+, and sun protection brand DS-Dermasensitive. Moreover, So.Di.Co Group has also invested in baby washing&care products for a long time in several countries over the past decade and is a licensed brand for many internationally renowned animation and film brands. At present, it has grown into a global comprehensive brand with 6 factories in Italy, 1 factory in Switzerland, about 300 employees worldwide, and product sales covering more than 60 countries. As a strategic partner, JWEL Global will do its best to promote the sales of So.Di.Co Group's products in China, said Xu Zhiwei, CEO and Chairman of JWEL Global, will also leverage its supply chain advantage in China to assist So.Di.Co Group in developing quality OEM and ODM suppliers, and jointly push forward its further development in the Chinese daily chemical market. Lauro Colomboni, CEO of So.Di.Co Group, said the partnership will broaden So.Di.Co Group's sales channels to meet the increasing demand for healthy and environmentally friendly products from Chinese consumers. JWEL Global operates JWEL Mall, an e-commerce platform for Longrich's cosmetics, health and nutritional supplements, and household products. In addition to offering its own branded products to customers, JWEL Global also sells and distributes other companies' health and nutritional supplements, cosmetics, and certain household products on the JWEL Mall platform. Furthermore, JWEL Mall allows third parties to open their stores on its platform. The Company sells its products domestically in China through authorized retail stores under the brand names "Aijia Mall" or "LHH Mall". As of March 31, 2022, the number of its VIP members was approximately 2.34 million. According to public information, JWEL also signed a contract with COTY Group in May last year to jointly develop the Adidas personal care market, and in November signed a strategic cooperation agreement with Unilever to become the exclusive seller of Unilever's Hazeline scented shower and body lotion.

MLB Beauty has chosen China as its debut market in Asia. The brand fully considers the individual needs of Chinese and Asian consumers in terms of product categories, appearance, and texture. Recently, the trendy clothing brand MLB launched "MLB beauty", and Tmall MLB beauty flagship store officially launched the MLB perfume series, MLB air cushion series products. From the pricing and brand concept, MLB beauty may intend to enter the mid-range market, and its positioning will continue the trendy style of MLB brand clothing. Fashion brands crossover beauty In 1997, F&F Group began to be responsible for the product design, sales, and brand operations of the MLB brand. In June 2019, the MLB brand officially entered the mainland China market and opened the official Tmall mall. As of May 2022, it has over 600 offline direct & authorized stores in mainland China. CHAILEEDO noticed that it has opened "MLB Beauty" accounts on Weibo, Xiaohongshu, TikTok China, and other platforms, and the official flagship store of MLB Beauty was also launched on Tmall in early September. It is understood that the newly launched MLB beauty brand is operated by F&F Group. The authentication information of MLB beauty's official account and qualification information of the operating store of Tmall MLB beauty's flagship store is Shanghai Fanco Cosmetics Trading Co. The company is a wholly-owned subsidiary of F&CO Corporation, which is part of F&F Group and is responsible for the operation of the group's beauty brand Banila and lifestyle brand KU:S in China. In other words, MLB beauty and Banila are operated by the same company. According to the official website of Shanghai Fanco, MLB Beauty is positioned as an Asian high-street makeup brand, which is an extension of the MLB brand in the field of beauty and aims to further deepen the lifestyle brand positioning of MLB as "Asia's fashion trendsetter". At present, the MLB beauty flagship store on Tmall has a total of two categories of MLB perfume series and MLB air cushion series products, priced between 160-580 yuan ($22.81-82.70). Among them, the highest-selling air cushion has sold more than 900 pieces. From the product packaging, MLB Beauty continues the sports fashion style of the MLB brand, with its logo as the main design element. It is known that MLB Beauty's 50ml size perfume is priced at 580 yuan ($82.70), while the air cushion products are sold separately with the box and powder core, with the box priced at 160 yuan ($22.81) and the powder core priced at 200 yuan ($28.52). It is reported that this time, China as MLB beauty in Asia's strong debut market, the brand from the product category, appearance, and texture to fully consider the Chinese and Asian consumer's "wear fragrance" attitude and foundation needs. CHAILEEDO noticed that several products on the flagship store of MLB Beauty on Tmall are all filed in May this year. In addition, Shanghai Fanco also filed several lipstick products in July this year, and some of the publicity of MLB beauty also appeared in lipstick. In other words, MLB lipsticks will probably be available soon. Probability of success? Entering the beauty market at a time when the consumer market is in the doldrums, can MLB Beauty create a successful path? First of all, from the product category, unlike the previous licensees, this time F&F Group launched MLB Beauty to enter the market with foundation and perfume products and has also filed lipstick. From this point of view, MLB beauty is obviously like other crossover beauty fashion brands, aiming at the makeup and perfume category. Some industry insiders said, compared to skincare products, the makeup, and perfume threshold is slightly lower, but also more emphasis on fashion sense, and fashion brand fit is higher. In Another look at the market environment, the Chinese fragrance market has developed rapidly in recent years. According to Euromonitor data, China's fragrance market is expected to grow at a compound annual growth rate of 14.9% between 2015 to 2020, and the market share is expected to reach 30 billion yuan ($4.278 billion) by 2025, a growth rate that will be about three times faster than the global market. This shows that MLB Beauty chose to launch perfume products, which also highly correlated with the market trend. It is worth mentioning that compared to the huge potential of the fragrance market, the situation of the Chinese makeup market has been relatively sluggish in recent years.CHAILEEDO noticed that MLB Beauty did not launch lipstick at the beginning like other fashion brands, but entered the Chinese market with air cushion, a base makeup product that South Korean brands are good at. It is not a piece of fresh news that fashion apparel brands crossover beauty areas. Forever 21, H & M, ZARA, etc. have all launched beauty products. This year, Dries Van Noten, the fashion brand of Spain's PUIG Group, also launched perfume and lipstick for the first time, officially entering the field of beauty. And streetwear brand Off-White's PAPERWORK beauty series also hit the shelves of luxury e-commerce platform Farfetch this year. There are media reports that Estee Lauder Group is also negotiating with luxury brand Balmain for a license to operate its beauty business. Furthermore, the South Korean makeup brand 3CE was first opened by the founder as a makeup line in addition to the clothing brand STYLENANDA, but it has grown rapidly since its launch and was acquired by L'Oreal Group in 2018. According to public information, during this year's "618 shopping festival" promotion, 3CE sales once again broke 100 million yuan, ranking 2nd in the Top 10 Tmall 618 makeup brands, second only to Yves Saint Lauren. The timing of MLB beauty's involvement in the Chinese market is far more intense than the competition faced by 3CE at that time. But from the market point of view, MLB beauty has the brand power of MLB clothing extension, and the operation team behind has rich insight and experience in the Chinese cosmetics market, so it undoubtedly has the basis for success. Therefore, MLB Beauty also has the opportunity to become the next 3CE if it makes every effort to hold the direction of long-term opportunities in China's beauty market.

Consumers bought whitening and spot-removing cosmetics with excessive mercury content, which led to large-scale production and sales of cosmetics with a serious mercury content exceeding the standard, involving an amount of more than ten million yuan. Recently, according to CCTV news and other media reports, a consumer in Jiangsu Province said that the "MEWSQUEEN" brand cosmetics purchased from a cosmetic store for 2400 yuan ($342.54) claimed can brighten skin and spot-removing, but after using the product, serious skin allergy symptoms occurred and the mercury content of the product was found to be seriously over the limit. The same cosmetics purchased from the MEWSQUEEN cosmetics store by law enforcement officers pretending to be consumers were found to have serious excess mercury content that exceeded the standard by a factor of 5,700. The labels of the two non-sale products only indicated the product name, whitening and brightening efficacy, and did not indicate the basic information such as manufacturer, batch number, and ingredients. In addition, it was also impossible to check the registration and file information of the two products. Law enforcement officials said that the brand's main sales model is to sell legal products but the effect is not obvious while selling non-selling products that are supposedly effective but have excessive mercury content. After extensive visits and investigations, law enforcement discovered the production and processing places of these cosmetics in Guangdong where the mercury levels were severely exceeded and seized a large number of cosmetics on the spot. It randomly sampled some of the raw materials and batches of cosmetics for testing, and the results showed that the highest mercury content was in the MEWSQUEEN Night Consolidation Cream which was the subject of the complaint, with one batch containing more than 40,000 times more mercury than the limit set by national standards. The investigated production site produced a total of 9,059 sets of cosmetics with excessive mercury content, and adopted the model of Wechat business agencies to sell them nationwide, purchasing the products for 48 yuan ($6.85) to 58 yuan ($8.28) per set, with the agents increasing the price through layers and layers, with the terminal selling price ranging from 500 yuan ($71.35) to 800 yuan ($114.15). In other words, the price of a set of products has increased approximately 10 times. Ultimately, the law enforcement authorities in the case investigated and destroyed 3 production spots and 1 sales spot of substandard cosmetics, seizing more than 10,000 pieces of substandard cosmetics and involving a total amount of more than 10 million yuan ($1,426,900). Before the implementation of the Cosmetic Supervision and Administration Regulation, the State Medical Products Administration reviewed whitening special certificate products based on whether microorganisms exceeded the standard, whether heavy metal content exceeded the standard, and whether they contained prohibited ingredients. After the new regulations, spot-removing and whitening cosmetics also added the requirement of the human efficacy evaluation test. In China, whitening has long been the second largest demand market after moisturizing. It is known that cosmetics with added mercury can achieve the effect of whitening in the short term. Therefore, some unscrupulous businesses aim at consumers' eagerness for beauty and add mercury and other heavy metal substances illegally to whitening and spot-removing cosmetics. When cosmetics with excessive mercury content are active in the market under the banner of "fast whitening", they not only seriously endanger consumers' health, but also affect cosmetic companies that operate in compliance. Therefore, removing the black sheep in the industry is fundamentally beneficial to the healthy and standardized growth of the industry.

The accumulated annual loss of nearly 1.4 billion yuan ($199 million) over the past 17 years. A few days ago, Liangmianzhen announced the resignation of Vice President Mo Shanjun. Just 45 days ago, the company's director and president, Wu Kun, also announced his resignation. In February, Yang Min, who had served as Liangmianzhen's securities representative for more than three years, announced his resignation, and his successor, Li Xiaojie, also eventually chose to leave after only six months in the post. The outside world will inevitably interpret the frequent senior resignations as a sign of the decline of Liangmianzhen. Liangmianzhen Toothpaste was the No.1 seller in China for 15 consecutive years. In 2004, the company was successfully listed on the A-share market with record revenues of 500 million yuan ($71 million) in that year. However, in the same year of the IPO, after obtaining a large amount of money in the capital market, Liangmianzhen began to diversify its investments. It s accumulated an annual loss of nearly 1.4 billion yuan ($199 million) over the past 17 years. A senior observer of the daily chemical industry once told the media, "It's not the talent, nor the commodity, the real problem of Liangmianzhen is the mechanism." As a Liuzhou state-owned enterprise, the long decision-making chain has affected its development. The difficulties of reality have made it gradually realize that perhaps returning to the main business is the right path. China's local toothpaste brands still hold a large share, But Liangmianzhen is no longer in the forefront. According to Nielsen retail research data, in 2021, YUNNAN BAIYAO, DARLIE, Lesening, and Saky ranked first, second, fourth, and sixth with 23.86%, 20.10%, 6.83%, and 4.88% market shares respectively. It is known that the share of Liangmianzhen does not exceed 1%. According to the latest financial report, Liangmianzhen divided its main business into two segments: daily chemical and pharmaceutical. The daily chemical segment is mainly engaged in the R & D, production, and sales of oral care products, personal washing & care, and hotel daily necessities, while the pharmaceutical segment is mainly engaged in the production and sales of pharmaceuticals. The financial report shows that Liangmianzhen is currently more influential in the field of economy hotels. According to multiple analyses, its main subsidiary, Liangmianzhen (Jiangsu) Industrial Company, is mainly engaged in the hotel supplies business, which currently has a stable market share and has firmly occupied the leading position in the hotel disposables section. Due to the impact of the local pandemic, as well as the promulgation of the Law of the People's Republic of China on Prevention and Control of Environmental Pollution, "Plastic Restriction Order", and other regulations and policies, Liangmianzhen (Jiangsu) Industrial Company’s revenue of 148 million yuan ($21 million) in the first half of 2022, down 35.08% year-on-year. The net loss was 11.1847 million yuan ($1.5937 million), compared with a net profit of 4.8305 million yuan ($688,300) in the same period last year. The toothpaste section is still expanding, and the whole oral care section, whether it is mouthwash, oral spray, dental floss, electric toothbrush, etc., is also renewed with new business opportunities. The Liangmianzhen that had half-beat late finally can not thrive any more.