Recently, Church & Dwight, a leading US personal care manufacturer, announced the acquisition of Hero Cosmetics, a US skincare brand specializing in acne-prone skin for $630 million. Hero Cosmetics, founded in 2017, is an American skincare brand whose well-known products are hydrocolloid acne patches - Mighty Patch. With about 70% of customers starting to use the brand through Mighty Patch, which currently includes the original night patch, nose, full face, and invisible day patch, prices are from $12.99 to $32. In addition, the brand has acne repair cream, acne skin sunscreen, cleanser, cleansing spray, body wash, body scrub, and other multi-category products. Hero Cosmetics reportedly achieved 300% growth in 2020 only. Sales revenue of approximately $100 million in 2021 and net sales of $115 million for the 12 months ended June 30, 2022, and is expected to obtain $140 million in sales in 2022. Its products are currently available in about 8,000 stores in the US, including retailers such as Target, Ulta Beauty, CVS Pharmacy, Bloomingdale's, Kohl's, Urban Outfitters, Neiman Marcus, and its online stores. Hero Cosmetics currently sells skincare products on the brand's official website as well as on Amazon and Target. It has not entered the Chinese market yet, and is only available in some of the reseller stores on Taobao and other platforms, and can also be searched for on Xiaohongshu and other recommendation platforms for sunscreen, acne patches, and other products. The acquirer of this transaction, Church & Dwight, is a well-known US manufacturer of home care and personal care products, founded in 1846, started with the production and sale of baking soda, and now the products have been extended to clothing care, home care, personal care, and other categories, with Arm & Hammer, OxiClean, Batiste, Viviscal, Nair, and other leading brands. The transaction is also Church & Dwight's first acquisition of the year, having bought alcohol-free mouthwash brand TheraBreath for $580 million last year, and after the acquisition, Hero Cosmetics founder Ju Rhyu will continue to serve as the brand's chief operating officer and chief design officer. Commenting on the acquisition, Matthew T. Farrell, Church & Dwight Chief Executive Officer, said,"The Mighty Patch brand is efficacious and has a strong position in a growing category. The brand skews towards younger consumers and consistently has a high level of brand loyalty and repeat purchase.” Rhyu also said she hopes to use Church & Dwight's resources to help Hero Cosmetics accelerate growth plans such as expansion in the US and internationally.

With an investment of over 70 million yuan ($10.095 million) in a single store, is it an opportunity or a challenge? On August 31, S'Young International officially announced the launch of a new high-end beauty digital retail collection store - Shuiyangtang. In recent years, new beauty collection stores such as HARMAY and THE COLORIST have become popular among young Chinese consumers. Compared with traditional beauty collection stores like Watsons and Sephora, new beauty stores have become a new consumption and social place for young people by creating an instagrammable-style shopping scene. In these years, China's beauty collection store market is accelerating the reshuffle, what are the advantages of S'Young international entering at this time? Bubble on one side, prosperity on the other Although it caters to young users and development speed, the new beauty collection store is slightly better, in the most fundamental source of goods, they are less advantageous than the traditional stores. According to an industry report by iiMedia, for price control, avoiding direct competitors, and other considerations, the international brands usually do not supply directly to the new beauty collection stores, which leads to new collection stores’ unknown sources of goods. Many new beauty collection stores, including HARMAY and THE COLORIST, need to use big brand samples for traffic. HARMAY CEO, Ju Chunmao, said in an interview by 36Kr that the sourcing channels of big brand samples sold by HARMAY are mainly from counters and trading companies. However, in February this year, Harmay was also fined 887,000 yuan($127,900) for 35 fake big brand samples. It's not the only case, according to public media reports, in January 2021, Only Write, a beauty collection store in Hangzhou was reported by consumers, and the local administration for market regulation contacted the customs department to assist in the investigation and seized nearly 3,000 pieces of cosmetics suspected of being smuggled into the store, most of which were samples of big brand cosmetics. The sample business of beauty stores is obviously risky, and the future of this type of business is hardly bright. Furthermore, offline retail stores have not had a good time affected by the pandemic in these two years. In the first half of 2021 alone, THE COLORIST franchise closed 59 stores. And according to news, WOW COLOUR also shut down 60 stores in 2021, and HAYDON's two stores in Hangzhou and Xi'an officially closed in 2022. Even though many beauty collection store brands have started to downsize their stores in recent years, and the media has previously claimed that the bubble of beauty collection stores is about to burst, its market is still looking good from the data of financing and market research. It is worth noting that the potential space for beauty collection stores in China is still large. According to a report released by iiMedia, the market size of China's beauty collection store industry will be 41.9 billion yuan ($6.043 billion) in 2020, of which new beauty collection stores will account for 7.6%. As the new beauty collection store industry transitions from the budding stage to the stable development stage, its market share is projected to increase to 15.8% in 2023, and the market size is expected to reach 13 billion yuan ($1.874 billion). In summary, S'Young international still has great potential to enter the beauty collection store industry. Relay on S'Young, attracting traffic by the exhibition Major capital entry, making the beauty collection store area gradually crowded, then, how does Shuiyangtang stand out? First of all, Shuiyangtang relies on S'Young, and S'Young international is an independent brand operation platform under S'Young, providing multi-dimensional solutions for partner brands in China in terms of marketing, sales, and channels. Its cooperative clients include overseas brands such as mesoestetic, KIKO, Dr.Ci:Labo, and Neutrogena. It is worth mentioning that in July this year, S'Young international acquired EDB, a French high-luxury anti-aging brand, and completed its investment in PierAuge, a French light luxury brand, and acquisition of its Chinese business. Therefore, owning the resources in terms of channels, supply chain, and capital, the competitiveness of Shuiyangtang is evident. In addition to the strong capital strength, S'Young also pioneered the "one show, one store" new retail model in each city, showing a new pattern in the scene. For a long time, scene marketing is the new retail brand "standing out" tip. HARMAY and HAYDON, which also position themselves as high-end beauty collection stores, have turned themselves into "big brand sample collection stores", with big brand samples becoming the main attraction. At the same time, they use the design style of "one store, one theme" to strengthen their own popular attributes, attracting young consumers to have a visit. Shuiyangtang, on the other hand, takes a different approach by using exhibitions to attract traffic and stores to convert, introducing consumers to the unique concepts, stories, and product advantages of global beauty brands, creating a high-end brand tone and a rich brand image. This will attract beauty and art lovers in each target city and more precisely target high-end Chinese consumers. Although the construction of the consumer scene brings customers to the store, how to keep them is the most important, which requires abundant and unique products to enhance competitiveness. From the current product side, Shuiyangtang selects high-end niche beauty brands from around the world that balance efficacy and storytelling, and selects 999 high-end niche salon fragrances globally, in addition to creating 9 high-end beauty brands’ exclusive cooperation models for the global debut. The Fragrance Product Insight Report 2022 released by CHAILEEDO shows that the Chinese fragrance market is expected to reach 16.9 billion yuan ($2.437 billion) in 2022, and by 2025, the retail sales revenue of the Chinese fragrance market is projected to be 30 billion yuan($4.326 billion), which is expected to become the second largest market in the world. It is worth noting that the report mentions that nearly half of the consumers prefer salon fragrances. Thus, it seems that Shuiyangtang also has a lot of advantages in terms of goods. In the future, in the general environment of the beauty collection store market, whether Shuiyangtang owned strong capital can stand firm in the beauty collection store area, still need to be tested in the market later.

Florasis brand overseas marketing company "WOTOKOL" received tens of millions of yuan A round of investment from Junpin Capital and Netjoy. At present, WOTOKOL has a database covering 3 million global internet celebrities and offers services to more than 2,000 brands such as SHEIN, Perfect Diary and Florasis. On April 26, Beijing time, WOTOKOL, a Chinese overseas marketing company, announced that it had received tens of millions of yuan of A round investment from Junpin Capital and Netjoy. It is understood that WOTOKOL was established in 2015 and is a technology-driven data service, focusing on cross-border influencers’ marketing promotion services in China's new internet company. It also created an overseas red data marketing analysis platform - WOTOKOL. At present, WOTOKOL has a database covering 3 million global internet celebrities, offering services to more than 2,000 brands such as Perfect Diary, Florasis and MAOGEPING. When WOTOKOL was helping the Chinese makeup brand Perfect Diary to increase the exposure of new products on YouTube and promote sales revenue in Vietnam, WOTOKOL chose a Vietnamese beauty blogger with an outstanding appearance and huge following on social media. First of all, the blogger showed the makeup co-branded by Perfect Diary and CGO to the camera, and then the blogger also wore the makeup outside after making the makeup teaching video, which intuitively showed the effect of makeup. Finally, many Vietnamese users on YouTube interacted with bloggers, saying they were impressed by Perfect Diary's new product. While offering service to another Chinese makeup brand, Florasis, a completely different strategy was adopted by WOTOKOL. To enhance the influence of the Florasis brand in Europe and the United States and increase brand publicity, WOTOKOL first invited a large number of KOLs and KOCs to launch Florasis marketing videos on YouTube, Ins, TikTok and other platforms. These celebrities used the traditional makeup box exclusively designed by Florasis to apply makeup, try products, display makeup as well as beauty teaching in the form of video or live streaming, which visually displayed product characteristics, help Florasis achieve content placement and improve the brand voice. After the completion of this round of financing, WOTOKOL will expand the scale of overseas internet celebrities who are signed exclusively, update the WotoHub internet celebrity marketing platform and promote the ecological business based on the TikTok social media platform. Although there are many overseas service platforms in China now, the advantage of WOTOKOL is that it can provide customers with over 150,000 overseas celebrity resources in 27 languages in 103 countries around the world, including many vertical internet celebrity resources, which are not available in other Chinese companies engaged in overseas internet celebrity marketing. In addition, WOTOKOL also created an overseas celebrity data marketing analysis platform–WOTOKOL in 2018, which can empower Chinese brands to go overseas through the exchanging, screening, labeling operation and marketing of global internet celebrity resources to realize the data, customization and convenience of overseas celebrity marketing. Nowadays, WOTOKOL has become a SaaS tool WotoHub covering overseas celebrity search, business value analysis, marketing automation, competitor data insights and product sales promotion data monitoring. In terms of accuracy, the celebrity data on WotoHub is real, effective, real-time updated and has a strong connection with the celebrity, and also is directly authorized by the celebrity. From the perspective of practicality, WotoHub optimized the marketing scenario of celebrities before the WOTOKOL network. For instance, WotoHub can directly give tools in communication, and can also teach you how to quickly cooperate with celebrities through emails. In everyday situations, it can also help you understand the situation after different products are launched. When this round of capital injection is finished, Wotohub is going to embrace the update of a third version.

The German premium beauty retailer has a platform strategy, which comprises e-commerce, marketplace and stores. German premium beauty retailer Douglas reported Tuesday that sales in the fourth quarter of its most recent fiscal year made advances, driven by e-commerce and reopened brick-and-mortar stores. The company's sales in the three months ended Sept. 30 reached $852 million, up 3.4 percent in reported terms and 7.3 percent on a like-for-like basis versus the same prior-year period. Douglas' online sales grew 16.7 percent to $239 million . While the group's in-store revenues declined 0.9 percent in reported terms, they advanced 3.7 percent on a comparable basis to $609 million. “Thanks to our consistent digitalization strategy #FORWARDBEAUTYDigital First, we managed to sustain robust growth in e-commerce in the fourth quarter even after the stores reopened, gaining further market shares and outperforming the market as a whole,” said Tina Müller, Douglas Group chief executive officer, in a statement. “After months of lockdowns in the previous quarters, the stores have now bounced back well. At the same time, we’ve augmented our operating results and, thus, also our profitability by a significant degree.” Douglas' operating results rose 25 percent to $32 million in the fourth quarter.

It is reported that the scale of cosmetic botanical ingredients can reach 100 billion yuan(about $14.4 billion). International brands on the plant ingredients remains popular. In recent years, there are also more and more Chinese skincare brands focusing on plant ingredients emerge. In 2021, along with the official implementation of new regulations such as Standards for Cosmetic Efficacy Claim Evaluation, trend of efficacy skincare in China starts a new era where safety and efficacy become important standards of products. At the same time, the market size of cosmetics that focus on plant extracts is gradually expanding in recent years as the concept of natural skincare and safe skincare is gradually gaining popularity. Therefore, the application of plant actives is a brand new trend in the personal care industry and continues to grow rapidly. Global botanical ingredients scale reaches 100 billion Euromonitor data show that the international beauty and personal care ingredients market will consume 19.98 million tons in 2021, up 1.9% year-on-year, with a CAGR of 2.3% from 2016 to 2021. The size of the ingredients market of the international beauty and personal care is estimated to be $16.706 billion in 2021, corresponding to about 111.3 billion yuan( $16 billion). Currently, the Chinese cosmetic market has shown three major trends: natural, green and skincare with efficacy, all of which have a strong demand for cosmetic botanical ingredients. According to market research data released by Euromonitor, the demand for plant-sourced ingredients in the cosmetics market will grow at a CAGR of 3% from 2015 to 2020. China has extremely rich characteristic plant resources. According to statistics, the number of plant species exceeds 30,000, while the number of cosmetic ingredients that have been applied involves only about 3,000 plant species, so there is great room for development. For Chinese cosmetic brands and ingredients companies, it will be the focus of Chinese cosmetics to achieve ingredients originality and get rid of import dependence relying on the rich characteristic plant resources, ingredients development and application. The Inventory of Existing Cosmetic Ingredients in China 2021 issued by China contains more than 3,400 kinds of used cosmetic plant ingredients. As of May 2021, the website of National Medical Products Administration has a total of about 350,000 cosmetic products containing plant ingredients. Among them, about 190,000 imported special cosmetics, about 60,000 imported ordinary cosmetics. And there are 50,000 Chinese special-purpose cosmetics and 50,000 Chinese ordinary-purpose cosmetics. The data from the Beauty Data also shows that the use of plant extracts accounts for as much as 60%, far ahead of other ingredients. This phenomenon also reflects that cosmetics made of plant-based ingredients are increasingly favored by companies and consumers. The Use of Botanical Ingredients in International Brands Skincare products with botanical ingredients as their main selling point are sought after by Chinese consumers, and skincare products with natural botanical ingredients, which are the main focus of international brands, have been gaining popularity in China. For example, Kiehl's Calendula Herbal-Extract Toner has sold 1 million+ units in total in Kiehl's flagship store on Chinese e-commerce platform Taobao. In the Chinese sharing platform Xiaohongshu, there are 10,000+ notes about Kiehl's Calendula Herbal-Extract Toner. Many Chinese consumers responded that the product has good oil control and moisturizing effect and has some effect of repairing redness and sensitivity. And Caudalie is also always adhere to use natural plant ingredients in its skincare products. It is reported that Caudalie main series contains stable efficacy of grape seed polyphenols. And some Chinese consumers also said that because the brand focus on natural plant ingredients, so the brand seemed more reliable for consumers to buy. Its highest selling skincare product in the Chinese e-commerce platform Tmall is Caudalie Eau de Raisin with total sales of 5,000+ units. Many consumers comment that the product has a better moisturizing effect and will repurchase many bottles, etc. In addition, the popularity of brands that focus on plant-based ingredients in China has attracted the attention of international ingredients manufacturers. Just recently, German company BASF announced on its official website that it had formed an innovation partnership with Chinese startup Ingredi and signed a cooperation agreement. Founded in 2017, Ingredi is said to focus on innovative, highly active and sustainable plant-based ingredients obtained from species native to the pan-Himalayan region. L'Oréal Group has set up a team dedicated to researching the efficacy of high purity plant extracts in China. While approximately 71% of L'Oréal's products add or use ingredients from natural plant extract sources in skin care, the Estée Lauder Group also adds botanical ingredients to nearly 98% of its products. "The in-depth development of botanical ingredients is an important breakthrough for Chinese cosmetics." said Bing Han, a well-known Chinese skin care expert and founder of Bing Han Laboratory. To sum up, international companies have long been focusing on the application of plant-based ingredients in cosmetics. Chinese companies are also stepping up their efforts in the market for plant-based ingredients with Chinese characteristics. Plant-based skincare products are gaining popularity as regulations are gradually improved Recently, various policies introduced in China are also promoting the development and application of plant-based ingredients with Chinese characteristics. Article 9 of the Cosmetic Supervision and Administration Regulation (CSAR) states, "Encourage and support the use of modern science and technology to research and develop cosmetics in conjunction with China's traditional advantages and special plant resources." Based on the industry's basic law’s support, Beijing, Shanghai, Guangdong, Shandong and other provinces and cities have also been enacted in accordance with local conditions. It has issued relevant policies on the development and application of special plant resources to give some support. For example, the Beijing Municipal Bureau of Medical Administration promulgated the Measures for the Administration of Cosmetic Production Licenses in Beijing, which clearly states that support measures such as early intervention and priority approval will be taken for cosmetic companies that combine traditional Chinese advantageous items and distinctive plant resources for production. At the same time, the new regulations also implement a combined registration and filing system for new ingredients, streamlining the process and shortening the cycle, promoting the pace of research and development and application of Chinese specialty plant ingredients. The most intuitive response to the rise of plant-based ingredients is the sales of "plant-based ingredients" brands. For example, the Chinese sensitive skin top brand Winona. One of the star products of Winona - Natural Skin Care Anti-Sensitive Moisturizing, fully reflects its scientific research strength of plant materials. According to BTN's financial report, Winona's sales in 2021 was nearly 4 billion yuan(about $575 million). In this year's "hardest Chinese 618 Shopping Festival ever", Winona's star product Natural Skin Care Anti-Sensitive Moisturizing single product sales of more than 100 million(about $14.4 million). The product's two core botanicals, one is Prinsepia Utilis Royle growing in Lijiang, Yunnan from the high altitude and low latitude and the other is Portulaca oleracea, ext. from the Yunnan Yunnan Dianzhong plateau. Another excellent case is the original Chinese plateau botanical skincare brand SHELOG, established in 2020. Its core ingredient is the pine mushroom from Shangri-La. SHELOG has purposely established a pine mushroom ecological research area to ensure the quality of the mushroom from the source. Pine mushroom comes with the label of regionality and scarcity, which can naturally guide users to associate with the cultural attributes behind this ingredient. Based on this, SHELOG has achieved a GMV of over 100 million(about $14.4 million) in just one year. In addition, traditional herbal skincare brands such as CHANDO, Pechoin, INOHERB, Herborist and so on are also strengthening the brand's new technological herbal power. The rise of innovative brands such as Forest Cabin, Simpcare and PMPM is also inseparable from the characteristic plant ingredients to build brand awareness. The road of upgrading China's local plant ingredients is still in progress. With the standardization of the market and the emphasis of Chinese consumers on traditional culture, Chinese local botanical ingredients will also become an important support point for Chinese brands towards high-quality development. It is believed that in the near future, there will be more publicly recognized botanical ingredients with a "new look" highlighting in the cosmetics market.

China's cosmetics imports rose in both tonnage and value in August from a year earlier, as the overall rebound continued. On September 7, China's General Administration of Customs announced China's import and export customs data in August. According to customs statistics, from January to August this year, China's total import and export value was 27.3 trillion yuan (＄3.92 trillion), an increase of 10.1% over the same period last year. Among them, exports were 15.48 trillion yuan ($2.22 trillion), up 14.2%, and imports were 11.82 trillion yuan ($1.7 trillion), growing 5.2%. The trade surplus was 3.66 trillion yuan ($0.53 trillion), expanding by 58.2%. In August, China's total import and export value was 3.71 trillion yuan ($0.53 trillion), up 8.6%. Among them, exports of 2.21 trillion yuan ($0.32 trillion), an increase of 11.8%, and imports of 1.59 trillion yuan ($0.23 trillion), a growth of 4.6%. The trade surplus of 535.91 billion yuan ($76.93 billion), an expansion of 40.4%. According to customs statistics, ASEAN continues to maintain its position as China's top trading partner. In the first eight months, China's trade with ASEAN was worth 4.09 trillion yuan ($0.59 trillion), growing 14%, accounting for 15% of China's total foreign trade. China's trade with the EU was worth 3.75 trillion yuan ($0.54 trillion), up 9.5%, accounting for 13.7%. The total value of trade between China and the U.S. was 3.35 trillion yuan ($0.48 trillion), an increase of 10.1%, accounting for 12.3%. The total value of trade between China and South Korea was 1.6 trillion yuan ($0.23 trillion), climbed 7.8%, accounting for 5.9%. Among them, the import value and tonnage of beauty cosmetics and washing&care began to decline again in August after stopping the decrease in July. Specific data are as follows: beauty cosmetics and washing&care imported 41055.1 tons in August, basically the same as last year, a slight decline of 0.03%. The import value was 12.82 billion yuan ($1.840 billion), down 6.42% year-on-year. The cumulative import from January to August was 281,691.6 tons, a slip of 7.3% year-on-year, and the import value was 97.26 billion yuan ($13.962 billion), a decline of 4.6% year-on-year. However, from the Month-on-month trend, in August, beauty cosmetics and washing&care import value and import tonnage maintained to grow, including import tonnage increased by 12.12%, import value rose 7.10%, and the overall import trend continues to rebound.

Yatsen, the parent company of Perfect Diary, practiced the concept of green development and low-carbon operation, issuing the first environmental, social and governance report (ESG Report): The company completed in 2021 the carbon footprint verification of the core product of Perfect Diary, slim lipstick. The carbon footprint of one Perfect Diary slim lipstick is 507g CO2 equivalent. The price of Perfect Diary slim lipstick series ranges from $13.3 to $113.4 on Tmall, a Chinese e-commerce platform. On May 16, Beijing time (all times in this article are Beijing time), Yatsen e-commerce, the parent company of China's beauty brand Perfect Diary, released its first ESG report, which is also the first ESG report released by China's new beauty consumption industry. The report includes the information and data of Yatsen from January 1 2021 to December 31, 2021 (hereinafter referred to as the "reporting period"). In 2021, Yatsen ushered in its fifth anniversary and its first year as a listed enterprise. Since its establishment in 2016, Yatsen has been committed to fulfilling its commitment to consumers, employees and society, integrating ESG concepts into the company's decision-making, and continuously improving ESG management level in the process of promoting green development and practicing social responsibility. Founded in 2016, Yatsen owns several famous brands such as Perfect Diary, Little Ondine, Galenic, EVE LOM and so on. In November 2020, Yatsen was officially listed on the New York Stock Exchange(NYSE), becoming the first Chinese cosmetics group to be listed on the US stock market. Yatsen adheres to product innovation driven by research and development. Its c integration of the world's leading scientific research resources to construct an innovative ecological R&D system - Yatsen Open Lab, which takes Yatsen e-commerce as the leading core and includes the world's top partners such as raw material end, R & D end and production end. In 2021, the annual R & D investment of Yatsen exceeded $21 million, with a year-on-year increase of 1.2 %, and the R&D expense rate reached 2.43%. The report also revealed that as a fast-growing multi-brand and omni-channel beauty platform, the average age of Yatsen employees is 27, of which 78.6% are female employees. At present, Yatsen has a research and development center in Guangzhou, China covering an area of 1,896 square meters -- Yatsen Research and Development Center, with cell, physical and chemical, sensory, efficacy, stability, makeup, skin care and other advanced laboratories. In March 2021, Yatsen cooperated with COSMAX CHINA.INC to build a large manufacturing center and R&D base in Guangzhou. During the reporting period, with the strong support of the Open Lab R&D system, Yatsen has successfully implemented a number of technological innovations and application achievements, such as SmartLock technology jointly developed with the Chinese Academy of Sciences, which can directionally adsorb the excess oil secreted by the skin and achieve oil absorption without makeup absorption. In 2021, Yatsen had a total of 114 suppliers in terms of access and annual audit, including 141 direct suppliers and 7 core suppliers in China. In addition, Yatsen has carried out 48 annual and flight inspections on cooperative finished product suppliers, and the qualified rate is 100%. For cooperative suppliers, Yatsen will conduct a regular assessment of suppliers, including price, quality, delivery, cooperation services, etc. For suppliers who continue to be poor, Yatsen will temporarily terminate cooperation and set a rectification period; For suppliers who still fail to pass the assessment after rectification, Yatsen will immediately terminate the cooperation to ensure the supply quality. With the promotion of China's "Double Carbon" strategic goal, the green transformation of enterprises has become a hot topic in the industry. As the youngest listed beauty company in China, Yatsen strives to practice the concept of green development and low-carbon operation, and continuously reduce carbon emissions through climate change response, product carbon verification, sustainable procurement, sustainable packaging and efficient operation. In 2021, Yatsen selected the core product of Perfect Diary, Slim Lipstick, as the beginning of product carbon footprint assessment, and invited a third party organization to conduct carbon emission verification while obtaining the product carbon footprint certificate, as the first step to reducing product carbon emissions. According to the certificate, the carbon footprint of a Perfect Diary Slim Lipstick (Colour L02 and L04) is 507g of CO2 equivalent. (Note: Equivalent refers to the amount equivalent to a specific or popular value). In terms of product packaging, Yatsen and its brands are actively exploring environmental protection packaging materials through measures such as green packaging, lightweight and recycling: 95% of Abby's Choice products adopt FSC certified environmental protection paper; The packaging of Eve LOM products is 100% recycled, and the materials selected for some products can be 100% biodegradable; Galenic products are printed with FSC certified environmental protection paper and green environmental protection soybean ink; Improving the packaging process of Dr.Wu brand, to promote the reduction transformation of packaging, and strengthen the recycling of packaging, and reduce the impact of product packaging on the environment. Yatsen’s emphasis on green environmental protection is also reflected in the whole production cycle of its products. In February 2022, Yatsen officially became a member of the Roundtable on Sustainable Palm Oil (RSPO), and pledged to prioritize sustainable palm oil procurement in the future to increase the proportion of products using sustainable palm oil, while promoting green procurement to improve the environmental impact of the supply chain. Notes: Core suppliers:：The suppliers that account for 70% of the total purchase amount of Yatsen in 2021.

Brazilian cosmetic giant Natura&Co has suspended its plans of going list on the New York Stock Exchange, for the Russian/Ukrainian war and interest rates soared bringing violent volatility to global stock markets. The group had acquired a 76% stake in Avon for $2 billion to accelerate its presence in the Chinese market. On March 23rd Beijing time, Brazilian cosmetic giant Natura&Co has suspended its plans of going list on the New York Stock Exchange, for the Russian/Ukrainian war and interest rates soared bringing violent volatility to global stock markets. Previously, Natura&Co reported its results announcing a reversal of losses in 2020 and consolidated net revenues of R$40.1 billion (about $7.98 billion) in 2021, achieving a net profit of R$1 billion (about $199 million). As the seventh largest cosmetics group in the world and Brazil's largest cosmetics company, Natura&Co set a goal: it aims to surpass L'Oréal Group, Unilever and Estée Lauder Group to reach the No.1 in the global cosmetic companies in the future." Joo PauloFerreira, CEO of Natura&Co, has said, "On the way to become the top global cosmetics company, the Chinese market is inevitable for Natura&Co Group’s growth." As a bunch of uncertainty in the global market due to the pandemic. the Chinese market is much more stable due to the management of the pandemic in China. The Chinese market has a large population and the penetration rate of cosmetics is still lower than that of developed countries such as Europe and the United States. Judging on the factors such as the rapid growth of the Chinese skincare market and the high market potential, many cosmetic giants tends to accelerate the extend of the Chinese market. It is reported that the group had acquired 76% shares of Avon for $2 billion in May 2019 to accelerate the presence of the Chinese market. And the acquisition of Avon was completely completed on January 3, 2020 for nearly R$13.4 billion (nearly $2.78 billion). The acquisition of Avon is an important step for Natura & Co to occupy the Chinese market. In recent years, Avon relies much more on the Chinese market. It is understood that Avon has sold its majority stake in Japan and the U.S. business one after another over the years. It was successively withdrawn from markets such as South Korea, Vietnam and Ireland. For example, in 2015, Avon sold its North American subsidiary to private equity firm Cerberus Captial Management LP for $170 million. In May 2018, Avon sold its Japanese operations (Avon Japan) to Ginza Stefany, a Japanese subsidiary of South Korean consumer goods and beauty products company LG, for $96 million. In September 2018, Avon also announced that it would consolidate its US operations into Suffern, New York. At the same time, Avon has repeatedly stated that the Chinese market will be an important market for Avon to rise. At one time, a Chinese economist analyzed that the reason that Natura&Co Group acquired Avon is that Avon had developed in the Chinese market for many years. That means it has certain advantages in channels, customer resources and brand influence. With the advantages of Avon in the Chinese market, Natura&Co Group could increase the extend of its other brands in the Chinese market. Previously, the group has entered China with its two brands The Body Shop and Aesop. They are currently sold in China through Alibaba's Chinese cross-border e-commerce platform Tmall Global. Among them, The Body Shop Ginger Shampoo has total sales of 20,000+ units with monthly sales of 4,000+ units. It was priced at $15.6 in Tmall's The Body Shop overseas flagship store, making it the highest selling product in the store. If Natura&Co Group's brands achieve growth in the Chinese market, it can support its expansion in the Chinese market. Roberto Marques, CEO of Natura&Co Group, said to the public, "After the termination of the listing plan in the United States, the next step of Natura&Co Group is mainly to vigorously develop the Chinese market and accelerate the development of Avon's transformation." However, as the extend of the Chinese market for Natura&Co Group, only relying on Avon is far from enough. In August 2020, the CEO of Brazilian cosmetic group Natura&Co Group said that the company was seeking to increase its business in China. He also revealed that the group was currently communicating with the relevant authorities in Shanghai to expand the market share of its brands in China under the condition that no animal testing is conducted. Natura&Co, founded in 1969, is a global personal care cosmetics group base in Sao Paulo, Brazil. It owns Brazilian skincare brand Natura, British organic skincare brand The Body Shop and Australian organic skincare brand Aesop. In addition to its own brand Natura, Aesop and The Face Shop are brands acquired from other groups. In the year following the acquisition of The Body Shop, Natura&Co released financial data for fiscal year 2017 with net sales increasing by 24.5% and net profit soaring 117.5% for the year.

The explosive growth of the cosmetic contact lenses market has ushered in strong regulation. Recently, the National Medical Products Administration official website issued a "notice on the special rectification campaign to regulate the production and operation of decorative cosmetic contact lenses" (hereinafter referred to as "Notice"), decided that since September 1, 2022, a three-month nationwide organization to regulate the production and operation of decorative cosmetic contact lenses special campaign (hereinafter referred to as "special campaign "). Several industry sources pointed out that this means that the blindfolded and mixed market will usher in a period of purging. Tightening inspection As early as June this year, the State Drug Administration's official website issued a popular article on tips for buying and using decorative colored flat contact lenses (cosmetic contact lenses), clearly stating that "cosmetic contact lenses" are contact lenses with a decorative function, the professional name of which is "corneal contact lenses". The article emphasizes that "cosmetic contact lenses" are managed as a Class III medical device in China, and need to pass safety and effectiveness evaluations before they can be marketed, and can only be produced, sold, and used after obtaining a medical device registration certificate, and that manufacturers need to acquire a medical device production license and businesses operating such products need to obtain a medical device operating license. It is known that the special campaign will crack down on the production and operation of unregistered decorative cosmetic contact lenses, illegal sales online, no medical device production and operation qualification, and actions such as operating beyond the scope. And from the specific content of the Notice, the special campaign has a wide range of inspections and detailed audits. For an instant, the special campaign includes all medical device registrants, production and operation enterprises and the whole industry chain of enterprises and subjects of network trading services third-party platforms involving the production and sales of cosmetic contact lenses in the scope of the inspection. It is worth mentioning that the "Notice" also places special emphasis on the main responsibility of the third-party platform for online trading services and the display of information on online sales enterprises. Not only that, but the special campaign will also focus on checking whether the third-party platform of a medical device online trading services strictly fulfills the legal obligations of qualification information audit, commodity information monitoring, and disposal of violations, and whether the online sales enterprises are required to display production and operation licenses and product registration certificates, whether the relevant information released online is consistent with the registered content. The explosive market needs to regulate the order For decorative colored contact lens production and business practices of special rectification action, more from the explosive growth of the cosmetic contact lenses market also need to strictly regulate the market order. According to the Tmall Cosmetic Contact Lenses Industry Insight White Paper, the year-on-year growth rate of colored contact lenses will be 20%, 45 and 83% from 2019 to the first half of 2021 respectively, while Mob Research Institute predicts that the market size of China's Cosmetic contact lens industry could reach 50 billion yuan in 2025, which is expected to become the most important market in the world. The rapid growth of the cosmetic contact lenses market has also attracted the attention of capital and many brands. From 2020 to 2021, 4iNLOOK, Moody, COFANCY, and Kilala several popular cosmetic contact lenses brands, have received external financing several times. Some public data shows that there were 33 financing events in the beauty sector in 2021, raising about 6 billion yuan, of which the cosmetic contact lenses brand took 2 billion yuan. It is worth noting that the Perfect Diary, which focuses on color cosmetics, has launched the "Star&Moon" series of cosmetic contact lenses. Beauty agency operation company Lily&Beauty operates a Korean cosmetic contact lenses brand OLENS, CHIOTURE, Judydoll, Colorkey, and other cosmetics brands also try to cooperate with the cosmetic contact lenses brands, cosmetic contact lenses and beauty show a trend of cross-border integration. On the consumer side, this is even more evident, with most consumers regarding cosmetic contact lenses as part of their makeup and a trend toward the beauty of cosmetic contact lenses. According to the Chinese cosmetic contact lenses beauty consumer trends insight released by the CBNData, after the pandemic, young people's attention to eye makeup rose by 66%, while color contacts are seen as the punchline to their eye makeup look, with 40% of consumers wearing them for the primary purpose of enhancing their beauty. Furthermore, cosmetic contact lenses are also considered to be a profitable industry. Zhao Wei, the founder of COFANCY, has publicly revealed to the media that the gross profit margin for a 10-pack of daily disposable cosmetic contact lenses is up to 50%. Some media reports said that compared to lipstick's 20% repurchase rate, the repurchase rate for cosmetic contact lenses is as high as 30% to 50%. Correspondingly, cosmetic contact lenses are included in the third category of medical device management in China, which is the highest level of medical devices and belongs to the same category as implantable cardiac pacemakers, prosthetic heart valves, and single-use sterile syringes. Cosmetic contact lenses sellers must hold a business license and a medical device license to operate legally, and if they sell on an e-commerce platform, they also need an Internet drug information service qualification certificate. "It must have been a serious crackdown." The most confusing gray area of the industry, according to the aforementioned senior personnel, is actually a variety of cosmetic contact lenses agents, shoppers active in the WeChat friend zone, which is often called "cosmetic contact lenses purchasing agents". He claimed that, on the one hand, the production threshold for cosmetic contact lenses is extremely high, and it is difficult for overseas brands to enter the Chinese market, and online and offline sales also require a business license, on the other hand, the market demand for cosmetic contact lenses is strong and the gross profit is high, and this characteristic determines that they are easy and suitable for development into a "Wechat business" model. Some related people in the cosmetic contact lenses industry believe that the "special campaign means that the gray area of Wechat business selling cosmetic contact lenses must be seriously cracked down, and Class III of medical devices strict management system is unlikely to allow the use of gray tactics to sell goods in the friend zone." The cosmetic contact lenses brand Moody presented to Chaileedo, for illegal violations, unlicensed production operations, and other illegal and business with poor quality, they will be investigated and punished, meanwhile, teach cosmetic contact lenses wearing knowledge, to prevent consumers from buying poor quality products, but also conducive to the standardized and healthy development of the industry. Obviously, the fast growth of demand for cosmetic contact lenses has given rise to many new brands, but also exposed numerous problems in production and operation. As regulation and enforcement continue to be refined, each link in the cosmetic contact lenses industry chain will be subject to strict regulations, and various non-compliant phenomena and businesses will be purged one by one.

From the perspective of China's industrial development, cosmetic industry clusters are a product of the cosmetic industry's development to a relatively mature stage. What kind of development trend in the beauty industry is revealed by the beauty industry clusters that have blossomed all over China? From Oriental Beauty Valley in Shanghai to BeauteVille in Zhejiang, Guangzhou Baiyun Beauty Bay, TaZhuang Beauty Valley in Chengdu. With the rapid development of China's cosmetics industry, it has become a major trend through the establishment of industrial parks to facilitate industrial clusters. 15 "beauty valley" emerged showing the beauty industry clustering into a trend With the development of China's cosmetics industry to date, industry clustering has become an unstoppable trend. On the one hand, China's cosmetics market is about to reach the trillions-yuan market. On the other hand, the development of industry clustering is more conducive to the beauty industry becoming bigger and stronger with the maturity of the entire cosmetics industry chain. Driven by both policy and capital, beauty industry clusters are on the rise. According to CHAILEEDO incomplete statistics, at present, 15 cosmetic industry clusters that the government focuses on have been disclosed, of which, Oriental Beauty Valley in Shanghai, Baiyun Beauty Bay in Guangzhou, BeauteVille in Huzhou has developed into the country's three major cosmetic clustering center. In addition to Shanghai, Guangzhou and the Yangtze River Delta region of Jiangsu, Zhejiang and Shanghai where cosmetic industries developed well, nine industrial clusters have begun to deploy or start construction since 2020. The current industry clustering has formed situations like Oriental Beauty Valley in the east, BeauteVille in the west, Baiyun Beauty Bay and Beauty Huangpu in the South, Future Beauty in the north and Beauty Valley in the center of China, Changsha. With the gradual improvement of infrastructure and policies, the number of well-known enterprises in beauty industry clusters around the world is increasing. For example, the Oriental Beauty Valley was established in 2015. A number of well-known Chinese and international cosmetics enterprises have gathered such as Shiseido, COSMAX, JALA Group, Chicmax Group, Mariedalgar, etc. There are 82 licensed cosmetic manufacturers in the clusters with the scale of the cosmetics industry nearly 70 billion yuan(about $10 billion). The industrial output value of above-standard enterprises is nearly 40 billion yuan(about $5.7 billion). As the largest beauty industry park in Guangzhou, the Beauty Huangpu has been deployed since 2020 and currently, there are 59 licensed cosmetic manufacturers in the cluster. The Beauty Valley, located in Changsha, Hunan Province, has introduced and nurtured nearly 30 cosmetic companies and medical equipment companies, led by Oubiao Cosmetics and Benmei Bio, which are expected to achieve an output value of more than 10 billion yuan(about $1.44 billion) in 2022. Among them, the cosmetic upstream and downstream enterprises include Oubiao Cosmetics, Benmei Bio, E&H Biotechnology, Weitai Bio etc. It can be seen that China's cosmetic industry has experienced the process from OEM to the rise of local brands, and then to the gradual gathering of industries to form cosmetic industrial parks. From ingredients to factories, packaging materials and brands, from research and development, manufacturing to the market, the competitiveness is even stronger when the pace of the whole industry is accelerating more and more. Focusing on new technologies, new raw materials and new marketing For now, accelerating the industrial infrastructure, and improving and upgrading the existing cosmetic industry clusters are the key points that each local regional government and Beauty Valleys are making efforts for. After analysis of these 15 cosmetic industry clusters, CHAILEEDO reveals that their development also presents some commonalities, trends and points of difference. Firstly, they attach importance to the supply chain of cosmetic raw materials, promote the process of localization of raw materials, and focus on the R&D and the key of cosmetics. Plant-specific resources and synthetic biology are the main development direction. For example, Shenzhen released Measures to Promote the High-Quality Development of Health Industry Clusters in Shenzhen, which encourages innovation in cosmetic raw materials, formulations, processes, efficacy assessment and safety assessment and highlights the importance of plant resources with Chinese characteristics. Shandong cultivates cosmetic industry clusters around hyaluronic acid, alginate, polyglutamic acid, peony, rose, burdock and other special products or resource advantages. With technology as the core, it is contributed to building the "Northern Beauty Valley". Second, improve the industrial supply chain support. The above-mentioned ten cosmetic industrial clusters have created industrial integration public service platforms, such as R&D platform, technology platform, testing platform, marketing platform, live streaming platform, etc.. It aims to solve the problems of enterprises in acquiring cutting-edge technology, ingredients and talents, supply chain, etc. For example, Beauty Valley in Changsha has gradually improved the industrial chain, supply chain and enhanced value chain. The only electronic gas pedal irradiation station in Hunan Province, the first cosmetic efficacy evaluation center and ingredients testing platform in Hunan Province and package material supporting enterprises. All of them have been introduced to provide local supporting support for beauty enterprises. Beauty Valley in Changsha is expected to form an output value of 30 billion yuan(about $4.3 billion) in the 14th Five-Year Plan. Third, to alleviate the bottleneck of talent shortage and accelerate scientific and technological innovation. In recent years, major cosmetic industrial clusters have taken multiple measures to actively introduce cosmetic professionals with the support of local governments. For example, Ningxiang Economic Development Zone and Hunan Chemical Vocational Technology College have joint hands to build a modern beauty and ingredients industry college. It is the first modern beauty and new materials industry college in central China officially settled in Changsha Beauty Valley deepening the integration of production, learning and research. Fourth, the transformation and upgrading of OEM enterprises, the development of intelligent manufacturing, flexible manufacturing transformation to enhance production efficiency. Baiyun Beauty Bay develops intelligent manufacturing, flexible manufacturing. It constantly improves the supply of ingredients and packaging materials and other upstream and downstream industries. It also involves financing and leasing, financial services, e-commerce, logistics and distribution and other production services and the introduction of a cosmetics testing center to provide third-party testing services and realize the enterprise cost reduction and efficiency. In addition to commonalities, major cosmetic industrial parks are also adapting to local conditions, combining local characteristics and showing inclusiveness and differentiation in cluster development. Shanghai's "Oriental Beauty Valley" is characterized by fashion and high-end, attracting famous brands such as Pechoin, Shiseido and L'Oreal. Chongqing's Western Beauty Valley has the advantage of clustering high-end beauty and cosmetic industries, developing natural Chinese herbal extracts as ingredients for the cosmetics industry. The "Future Beauty City" focuses on six major areas such as cosmetics with special plant resources, customized production pilot, and new cultural creation of beauty, and develops related products and services with the Beauty Health Industry Innovation Demonstration Base as a carrier. With the simultaneous promotion of several initiatives, the construction of the cosmetic industry clusters has brought into play the advantages of economic agglomeration growth: in 2021, the core area of Shanghai Oriental Beauty Valley achieved a total industrial output value of 8.13 billion yuan(about $1.2 billion), an increase of 12% year-on-year. Among them, the output value of above-standard enterprises is nearly 7.56 billion yuan(about $1.1 billion), an increase of 10.4% year-on-year. As of March this year, the industrial scale of Guangzhou's "Southern Beauty Valley" has exceeded 80 billion yuan(about $11.5 billion), accounting for about half of the total scale of Guangzhou's cosmetics industry. Driven by the collective atmosphere of the industry clusters and relying on the advantages of the supply chain within the industry cluster, the industrial transformation and upgrading of China's cosmetic industry from simple and crude to leading technology and large-scale development will be accelerated.

Clean beauty is one of the trends in these two years. Following the entry of Mamonde into clean beauty, Amore Pacific recently made a bid to acquire a clean beauty brand in the United States with a transaction amount of about RMB 851 million(about $122.9 million). In addition, CHAILEEDO found that 17 acquisitions or investments were launched by Chinese local and international head players this year. This also presents a new trend in the industry. 17 acquisitions in 8 months, head players open a new game Looking back at the history of beauty giants such as L'Oreal, Estee Lauder and P&G, acquisitions are their regular practice for expansion. Compared with the establishment and cultivation of innovative brands, the acquisition of brands is straightforward. The market insights and loyal consumers accumulated by the acquired brands will be directly used by the acquirer. When Chinese companies reach a certain level, they also join the snapping-up war by acquiring high-end brands to further enrich the product mix and drive the brand upward. In this year's recurring epidemic and the overall environment is downward, the beauty sector did not truce. According to the incomplete statistics of CHAILEEDO, a total of 17 acquisitions/investments (including a pre-acquisition) were launched from 11 international giants and 4 Chinese head enterprises such as L'Oreal, Estee Lauder, Shiseido and others this year. The total amount exceeded 30 billion yuan(about $4.3 billion), and investment acquisitions are unveiled every month. Unilever and S’Young have made the most frequent acquisitions. Unilever acquired a majority stake in the U.S. hair care brand Nutrafol and invested in Chinese natural skincare brand Shanchuan in February and May this year but the amount of both acquisitions and investments have not been disclosed. S’Young also acquired the French high luxury brand EviDenS and light luxury brand PierAuge Chinese business to fill the blanks of the company's high-end market and increase the company's profits. From the point of view of the acquisition amount, Estee Lauder is reportedly in talks to buy the Tom Ford brand for $3 billion. If the transaction goes smoothly, it is expected to become the largest acquisition in the history of Estee Lauder Group. The next is the acquisition of Swedish fragrance brand Byredo by Spanish perfume giant PUIG Group. The deal is valued at about 1 billion euros. In terms of brand categories, skincare brands have become the main acquisition targets. Skincare as the core brand accounted for 9 of the above cases or 52.9% of the total categories. Along with the gradual penetration of scientific skincare concepts, the new generation of consumers is paying more and more attention to product ingredients and efficacy. The market scale of efficacious skincare is expanding. According to public information, the industry estimates that the global skincare market will grow at a CAGR of 4.7% to reach $169 billion by 2025. Global brands flock to China with their characteristics CHAILEEDO has found that the actions of acquisition/investment from international giants and head brands this year mainly show the following characteristics. Clean beauty is sought after. From the above statistical cases, we can find that four of the brands acquired all focus on the concept of natural, non-additive, naturally nourishing products, i.e. positioning in clean beauty. For example, Tata Harper, an American skincare brand acquired by Amore Pacific, features clean, natural, additive-free, green and organic skincare products. Grown Alchemist, the Australian skincare brand that L'Occitane Group is interested in, also focuses on natural skincare. This acquisition also means that L'Occitane will further expand in the clean beauty sector. While the clean beauty industry is still controversial due to the lack of clear definitions and regulatory standards, the share of this segment has been growing as consumers become more aware of cosmetic ingredients and more health conscious. According to the CHAILEEDO report, the global clean beauty market size will be about RMB 41.469 billion(about $6 billion) in 2021, up 10.48% year-on-year. It may reach a 100-billion market in the next decade. With the head companies scrambling to layout, the clean beauty market may rapidly usher in a major explosion in the near future. Synthetic biology is the focus. Along with technological advances, synthetic biology has climbed to global fever and is known as one of the key technologies that will change the future of humanity. More and more companies are focusing on this emerging field and are actively making moves. This year, Shiseido invested in the Chinese company Trautec, which focuses on the research and development of recombinant collagen based on synthetic biotechnology. Laying out high-end to create new growth points. Despite the repeated local outbreaks in the first half of the year that put pressure on the retail market, international giants and Chinese top enterprises also find new incremental growth by tapping potential brands and introducing them to the Chinese market. The acquisition of Tata Harper by Amore Pacific is likely to be a major increment to China's performance as well although it is laid out in North America. Jinpyo Lee, chief strategy officer of Amore Pacific, said, "With the addition of Amore Pacific's R&D capabilities and infrastructure, we expect Tata Harper to achieve significant expansion in the Western European and Asian markets." In recent years, high-end skin care has become an important engine driving the growth of cosmetic products such as L'Oreal, Estee Lauder and P&G. Aware of this, S’Young has acquired two high-end brands in a row within a month to drive performance growth. Among them, EviDenS enters the Chinese market in 2019 and grow sales in China by more than 700% in 2020. Recently, S’Young International opened a high-end beauty collection store brand "SHUIYANGTANG", which also reflects the group's high-end strategy. Start the 2.0 era of snapping-up war The "snapping-up war" in the cosmetics industry is becoming more and more intense. In the past two years, with the Chinese market and the outbreak of Chinese local brands, foreign beauty groups began to cooperate and incubate. From the acquisition of foreign brands in favor of Chinese companies and innovative brands to tap Chinese companies, the 2.0 era of snapping-up war completely started. As early as 2020, the international giants began to see a positive trend of local emerging brands. In 2020, L'Oreal launched the BIG BANG beauty technology creation camp in the Chinese market. Unilever's incubator also debuted in China. In 2021, Beiersdorf launched the gas pedal program NX China in the Chinese market. Shiseido also launched the first international beauty group in mainland China with a special investment fund. In May this year, L'Oreal Group and Shiseido even announced the establishment of the first investment company in China to do VC direct investment in China and the first investment in Shiseido China has been landed. Local Chinese head companies are also catching up. For example, Shanghai Jahwa established a brand incubation center in 2021 to serve and invest in outstanding Chinese emerging brands with "Chinese genes, digital intelligence, beauty and health". Recently, Shanghai Jahwa has invested in the fragrance brand Qi Jie He Zi, which is also the first time Shanghai Jahwa invested in the fragrance field. Right now, investment and acquisition of Chinese and international potential beauty brands, ingredients companies, and beauty technology companies have become the key in the battle for the brand. As L'Oreal North Asia President and CEO of China Fabrice believes, China will be the leader in the new round of global beauty technology explosion.

With over 10 yuan million investment, will medical skincare be the next big thing? Recently, Songyang, a dermatology company, announced that its sub-brand Dermdoc has received a 10 million yuan seed round of funding from S'Young. Official information shows that Dermdoc is a skincare brand of Songyang Biotechnology Technology Co., Ltd, which is developed with the participation of dermatologists, mainly for the skin medical market, and its products focus on post-operative repair, etc. Dermdoc products are based on the concept of "immune repair", which means that the skin is repaired and rebuilt by its own immune system. The products are based on Songyang's patented biological technology and formulated in a minimalist ratio to improve skin conditions and relieve skin sensitivity. It is claimed that Dermdoc products are added with the proprietary ingredient Euthanin, which can awaken the immune regulatory mechanism of Langerhans cells, promote collagen synthesis and skin cell division and proliferation, rebuild the skin's stratum corneum, and allow damaged skin barrier and sensitive skin to be repaired quickly. Dermdoc's current products include cold compresses, soothing and repairing creams, reordering dressings, and repairing sprays, priced from 178 to 398 yuan ($25.54 to 57.11). Data show that, in the first half of the year, S'Young achieved revenue of 2.201 billion yuan ($316 million), a year-on-year increase of 3.89%, and net profit attributed to shareholders of the listed company was 82.816 million yuan ($11.8832 million), a year-on-year decline of 6.88%. The same A-share cosmetic companies, BOTANEE and Marumi, both of which have a revenue scale less than that of S'Young, but a much higher net profit than S'Young. In the latest Top 15 of China's domestic mask brands in the first half of 2022 released by iiMedia Gold List, the mask brands, such as MIHOO and UNIFON under S'Young, all fall out of the top 10 of the list. Increasing revenue without increasing profit, S'Young began to look for the next potential market. Frost & Sullivan reports that the market size of dressing products of the medical devices in China grew from 230 million yuan($33 million) in 2016 to 4.18 billion yuan ($599 million) in 2020, at a CAGR of 105.7%. The market size is expected to reach 20.14 billion yuan ($2.886 billion) by 2025, with a CAGR of 37% from 2020 to 2025. It can be seen that the market for device dressings is still promising. It is worth noting that S'Young itself has years of accumulated experience in the facial mask market, and has a natural advantage in making dressing products. However, the market regulation of medical device cosmetics is more stringent compared to other cosmetics, and it is still unknown whether this field can become the next bigger thing in the future.