UNISKIN has published several papers in international journals describing Chinese skin type, skin sensitivity, and the causes that affect skin aging. Credit：UNISKIN ANTI-AGING RESEARCH AND APPLICATION FOR CHINESE As the largest organ, the aging changes of skin reflect the overall aging process of humans. Skin physiology and living conditions vary among different ethnic groups, and the skin aging of the Chinese has its own characteristics. Research shows that Chinese consumers are increasingly concerned about skin aging, with more than 77% of them aged 18-49 already using skincare products with anti-aging effects, and 79% are aware of the need to anti-aging as early as possible. The trajectory and research on skin aging for Chinese people are still slow in progress, and there is a slight lack of relevant research results. There is no unified standard for evaluating aging methods, and there is a great variation in measurement methods and parameter selection in clinical operations and scientific studies, which affects the development and communication in this professional field. The development and validation of anti-aging products suitable for Chinese people still need more experiments and data. To respond to the above-mentioned problems in the field of professional R&D, and to keep up with the market development and consumer demands, UNISKIN has conducted a series of studies on the aging of Chinese people, elaborating on the Chinese skin type, skin sensitivity, and the causes that affect skin aging. Among Chinese people, combination skin accounts for the majority Skin texture is the foundation of skincare, of which sebum secretion (dry-oily skin) and sensitivity are the two most important aspects. Through a large-scale study on Chinese women's skin texture, UNISKIN has quantified the oil secretion and sensitivity of Chinese skin and explored the factors behind the different skin types. In order to accurately differentiate the types of skin texture in China, UNISKIN collected 2173 sebum samples and related questionnaires from Chinese women to quantify and characterize their skin texture in different areas and at different ages. The study was published in the Journal of Cosmetic Dermatology, an international journal. Credit：UNISKIN ANTI-AGING RESEARCH AND APPLICATION FOR CHINESE Data show that among Chinese people, combination skin accounts for the majority and the proportion of up to 70% or more. This is followed by dry and oily skin, each accounting for about 10%. Finally, the least proportion is normal skin at less than 10%. Credit：UNISKIN ANTI-AGING RESEARCH AND APPLICATION FOR CHINESE In terms of the facial area, the oil content of the forehead is generally twice as much as that of the cheek and there is a rapid decline in oil secretion in both cheek and forehead areas for Chinese women around the age of 40-50. Credit：UNISKIN ANTI-AGING RESEARCH AND APPLICATION FOR CHINESE In order to gain an in-depth understanding of the skin sensitivity of the Chinese people, UNISKIN conducted a deep analysis of over 20,000 people's questionnaires and its findings were published in the international dermatology journal, Clinical, Cosmetic and Investigational Dermatology. Credit：UNISKIN ANTI-AGING RESEARCH AND APPLICATION FOR CHINESE First of all, overall Chinese women show a decreasing trend in the proportion of sensitive skin as their age increases. The younger the age the higher the proportion of sensitive skin. This trend may be related to the fact that younger female consumers are using more different skincare products and paying more attention to their skin condition. A side-by-side comparison of data from different country populations shows that the average percentage of women with sensitive skin is higher in China and East Asia than in Europe and US. If considering only the younger consumers (under 40 years old), the overall percentage of sensitive skin will be even higher. Credit：UNISKIN ANTI-AGING RESEARCH AND APPLICATION FOR CHINESE The data shows that 4 main factors that contribute to sensitive skin: length of sleep, time to sleep, emotional stress, and makeup removal measures. This also means that if one wants to reduce the likelihood of sensitive skin generation, people need better quality sleep, less emotional stress, and proper daily makeup removal measures. Credit：UNISKIN ANTI-AGING RESEARCH AND APPLICATION FOR CHINESE Aging starts first from the eyes In order to understand the overall aging of Chinese women in more dimensions, UNISKIN used not only optical instruments, but also skin ultrasound and consumer questionnaires to further analyze and expand from the face to the neck and hands. For the first time, the study applied an aging analysis model to define the "premature aging" of Chinese women. It mapped the aging trajectory of different parts of them and analyzed the factors associated with aging. Credit：UNISKIN ANTI-AGING RESEARCH AND APPLICATION FOR CHINESE The data show that in the process of skin changes in the Chinese facial region, aging starts first from the eyes (blue), followed by accelerated aging of the cheeks (red), and finally the forehead enters a period of accelerated aging (green). Credit：UNISKIN ANTI-AGING RESEARCH AND APPLICATION FOR CHINESE After analyzing the data, UNISKIN obtained a chart of Chinese women's aging trajectory and found that Chinese women's aging accelerates from the age of 24. Rapid aging begins at age 27 and ages 30 to 35 are the fastest. Credit：UNISKIN ANTI-AGING RESEARCH AND APPLICATION FOR CHINESE Comparing lifestyle habits and aging indices of different parts of the body, the study discovered that sleep is one of the most vital factors affecting aging with late sleep causing an increase in aging indices of the face, neck, and hands. Meanwhile, a high sugar diet and excessive use of electronic devices were strongly correlated with the aging performance of different parts of the body. Credit：UNISKIN ANTI-AGING RESEARCH AND APPLICATION FOR CHINESE On August 27, the 1st China Skin Anti-Aging Summit Forum was held in Hangzhou, where UNISKIN released the first Human Skin Aging Evaluation Standard in China. "As the English name UNISKIN explains, we are committed to starting from studying the uniqueness of each person's skin." Dr. Du Le, the founder of UNISKIN, said in the forum. UNISKIN expressed its hope to deliver the complete research results on human skin aging accumulated for years to the market and industry, and help the anti-aging industry to develop healthily.

The Body Shop, owned by Brazilian beauty giant Natura&Co, ranked top 1 achieving the highest score for its website in an analysis of 500 of the largest online retailers according to the latest UK Digital Retail Index. Moreover, its parent company Natura&Co is extending its business in China. The Body Shop is leading the way in e-commerce experience, according to the latest UK Digital Retail Index. The cosmetics retailer achieved the highest score for its website in an analysis of 500 of the largest online retailers, which used four key metrics such as accessibility, search engine optimization (SEO), user experience (UX) and site speed. The Digital Retail Index is compiled by e-commerce specialist Remarkable Commerce using Google’s Lighthouse tool to track web performance. The Body Shop achieved a score of 381 out of 400, having gained full marks for its accessibility as well as 98 out of 100 for its SEO, surpassing household brand names such as Asos, which came 196th, and Amazon, which came 253rd. The Body Shop was previously part of the L'Oréal Group. Looking back on its 11-year career under the L'Oréal Group, The Body Shop has performed poorly since its acquisition with annual financial data showing a slight increase or even a decline in sales, which seems out of step with the Group's overall rapid development. According to incomplete statistics, more than ten years under L'Oreal, The Body Shop's performance data fluctuate. From 2011 to 2017, the brand's annual sales grew by an average of 2.6% year-on-year, compared with an average increase of 4.4% for other brands under L'Oreal. The Body Shop, which had high hopes, was thus reduced to the group's worst-performing brand and was subsequently sold by L'Oréal to Brazilian beauty giant Natura&Co Group. After acquiring The Body Shop,Natura&Co Group began a radical reinvention of the brand with a more aggressive approach to strengthen its connection with younger consumers, not only hiring a former L'Occitane executive as CEO for the brand, but also building a team dedicated to repositioning the brand, researching disruptive innovations for new products and concepts internally, and working with suppliers externally to understand global trends. After the completion of Natura&Co's acquisition of The Body Shop in 2017, Robert Chatwin, Vice President of Natura&Co Group, clearly expressed his desire to enter the mainland China market. Due to animal testing, The Body Shop's mono-brand stores are not currently located in mainland China for the time being. With the Natura&Co Group's layout in the digital online sales section, The Body Shop has also increased its investment in the e-commerce section. The Body Shop now covers over 54 e-commerce platforms in its direct sales channel, the financial report noted. In the first quarter of this year, Natura&Co Group's e-commerce sales grew by nearly 250% compared to the same period last year, while The Body Shop's e-commerce sales grew by 300%. Earlier, Natura&Co reported results announcing the reversal of losses in 2020, reaching consolidated net revenues of R$40.1 billion (approximately $7.98 billion) and achieving a net profit of R$1 billion (approximately $199 million) in 2021. However, the brand's Tmall overseas flagship store was officially launched on August 2, 2019, and the store currently has 270,000 fans, with total sales of the hottest selling The Body Shop ginger shampoo reaching 200,000+ bottles and monthly sales of 2,000+. In fact, Natura&Co announced last month that Natura&Co announced the suspension of its NYSE listing plans, mainly due to the dramatic volatility in global stock markets caused by the Russia/Ukraine war and soaring interest rates. The group had acquired a 76% stake in Avon for $2 billion in May 2019, just to accelerate its presence in the Chinese market. And on January 3, 2020, the acquisition of Avon was completely completed for nearly 13.4 billion Brazilian reais (nearly $2.78 billion). The acquisition of Avon is an important step in Natura&Co Group's layout of the Chinese market. It is understood that Natura&Co, founded in 1969, is a global personal care cosmetics group headquartered in Sao Paulo, Brazil, which owns Brazilian skincare brand Natura, British organic skincare brand The Body Shop (The Body Shop) and Australian organic skincare brand Aesop and other brands. At present, Natura&Co has three brands under its umbrella, in addition to its own brand Natura, Aesop and (hereinafter referred to as "The Body Shop") are both acquired brands. In the year following the acquisition of Beauty Shop, Natura&Co released financial data for the fiscal year 2017, with net sales increasing 24.5% and net profit jumping 117.5% for the year.

Beiersdorf appoints Emily Coleman as the new CEO of Chantecaille. Chantecaille Beaute Inc, the beauty brand officially acquired by Beiersdorf Group in February this year, has appointed Emily Coleman as its new CEO, replacing the founder Sylvie Chantecaille, who will report directly to Patrick Rasquinet, a member of Beiersdorf's Executive Committee. Coleman worked for L'Oréal for 20 years before joining Chantecaille, where she gained experience in a wide range of areas including digital marketing, travel retail, retail operations, and supply chain, and was senior vice president of the Urban Decay brand before leaving L'Oréal, according to the company. Patrick Rasquinet said Chantecaille plays a central portfolio role in Beiersdorf's brand planning, with the brand's skincare and cosmetics products complementing Beiersdorf's portfolio in the high-end beauty segment. The appointment of Emily as CEO is expected to take the brand's prestige to a new level with her extensive experience in skincare and cosmetics. Publicly available information shows that Chantecaille, founded by founder Sylvie Chantecaille in 1997, has been known for its luxury skincare and cosmetics with natural herbal extracts. In China, Chantecaille is famous for its primer cream, and in 2021, its global sales revenue exceeded $100 million. In August 2018, Chantecaille first entered the Chinese market and opened its official sales channel in the form of a Tmall overseas flagship store. Subsequently, Chantecaille opened its offline channel through its presence in BONNIE & CLYDE, a collection of imported beauty and luxury products. Although it has only been 4 years since it entered into the Chinese market, Chantecaille has already noticed the potential and is using it as vital leverage to find potential partners. According to public media reports, the re-lifting of Chantecaille's sales was partly beneficial to the rapid growth in the Chinese market. Moreover, the skincare division also performed well. It is reported that, on December 21 last year, Beiersdorf announced the acquisition of the luxury beauty brand Chantecaille, valuing the company at between $590 million and $690 million for an undisclosed amount. Vincent Warnery, CEO of Beiersdorf, has said: "With the acquisition of Chantecaille, Beiersdorf is strengthening the Group's portfolio in premium beauty and reinforcing its position, particularly in markets such as the US, China, and South Korea, as a key step in the Group's C.A.R.E.+ strategy. " Furthermore, Chantecaille will operate as a separate business from Beiersdorf, receiving help in terms of marketing resources and sales network to expand into the North American and Asian markets. Judging from Emily Coleman's resume, Beiersdorf will continue its previous planning arrangement for Chantecaille.

The Safeguard official announcement of the first 10,000 units of the fragrance will be online on September 6, but it is not sold separately. According to CHAILEEDO's observation, the hashtag #Safeguard really launches perfume on Weibo has generated 1.402 million reads as of noon on Sept. 6. In this sense, the launch of Pure White Perfume by Safeguard can be said to be in line with the trend, taking advantage of the market's popularity and fan demand, to create awareness of Pure White Perfume, while also hoping to help the brand soap and other mainstream products. Regarding the Pure White Perfume of Safeguard, Chaileedo checked the record information platform of the State Medical Products Administration for Chinese general cosmetics and found that the perfume had been completed for recording on August 16 this year. The record information shows that the filer is Guangzhou P&G Co., Ltd. and the product is produced by Shanghai Jiaheng Daily Chemical Co. It also noticed that previously, on the Tmall platform, Safeguard was mainly sold through the official P&G flagship store. Perhaps to welcome the brand's 30th anniversary and better focus on localization in China, it opened a brand Tmall flagship store. Customer service also told CHAILEEDO that it was indeed a newly established store, but the specific opening time was not informed. Although the release of the Pure White Perfume is to commemorate the 30th anniversary of the brand, for the question of whether the brand will plan a perfume line, CHAILEEDO first contacted the brand, and they replied that there is no such plan, for the time being, the perfume launched this time is the 30th anniversary of Safeguard commemorative peripheral, in the form of gifts in Tmall and Tiktok China online. From the standpoint of Safeguard, this is to satisfy the sentiment of fans and as a marketing exercise, and in terms of the industry, it also reflects that the Chinese perfume market is receiving more attention. On the one hand, the international top enterprises continue to increase investment in the Chinese perfume market. Only this year, it is known that L'Oreal will introduce Prada Beauty, which contains perfume products. And in August, LVMH Group's fragrance brand MFK opened its first store in Nanjing, China. On the other hand, local perfume brands are increasingly coming into the line of sight of capital and top enterprises. Recently, Shanghai Jahwa invested in a national trendy fragrance and aromatherapy brand Timingbox, the first foray into the field of fragrance. Before that, news of financing for new brands in the fragrance market such as To Summer, YoungBeast, ScentLibrary, Scentooze, etc. has also been emerging. The person in charge of the cosmetics chain brand believes that perfume represents a certain taste in life and is an attitude to enjoy a good life. From this perspective, high-end perfume is obviously more in line with the tone of people's pursuit of high quality of life. She went on to say that its offline stores are also selling basically big-name perfumes. According to a report by iResearch, China's perfume market size accounted for only 2.5% of the global size in 2021 but is growing rapidly with an average annual growth rate of 26.8% year-on-year since 2017. Some believe that China is likely to become the second largest perfume market in the world in 2030. The outbreak of new consumption of national trends has saved and emerged many national brands, penetrating the area of beverages, cosmetics, and apparel, and the next area may be the fragrance market.

The dispute over the trademark of Tongrentang was again put forward. On August 30, 2022, the listing committee of Shenzhen Stock Exchange canceled the application of Tianjin Tongrentang to be listed on GEM. A public analysis suggests that this may be related to the trademark infringement lawsuit against it. Last year, two months after Tianjin Tongrentang filed its prospectus, Beijing Tongrentang took Tianjin Tongrentang to court for "infringement of registered trademark and unfair competition dispute". According to public information, "Tongrentang" is an old brand of Chinese medicine with a history of more than 350 years. In the opinion of a senior industry insider, Beijing Tongrentang publicly announced to sue Tianjin Tongrentang for trademark infringement, which should be intended to warn the industry of the brands using "Tongrentang". The most "well-known" of Tongrentang in the cosmetics industry is the market chaos brought by the trademark licensing business. CHAILEEDO found that there are three long-established companies with the name "Tongrentang" in the market, including Beijing Tongrentang, Nanjing Tongrentang, and Tianjin Tongrentang. Among them, Tianjin Tongrentang is less involved in the cosmetics business. Unlike Tianjin Tongrentang, Beijing Tongrentang and Nanjing Tongrentang's cosmetics OEM business is in full swing. In the Pinduoduo platform alone, there are 25 "Beijing Tongrentang Cosmetics" or "Nanjing Tongrentang Cosmetics" with sales exceeding 100,000 and the hot categories are mostly eye creams, beauty spot removal creams, anti-hair loss shampoos, etc. Although many businesses claim that they sell genuine products, the majority of "Tongrentang" cosmetics sold on the market are OEM products. A Guangzhou distributor who was the agent of Beijing Tongrentang cosmetics in 2017 has openly said, "Many companies want to obtain the brand license of these Tongrentang enterprises, because this brand has long been deeply rooted in Chinese, so the production of beauty, tea, and other single products, if labeled on the 'Tongrentang' related brand, sales are certainly great." However, the proliferation of pharmaceutical companies’ labeling has led to a lack of assurance of product quality and has been criticized by many consumers. On the Xiaohongshu, there are several bloggers calling on their fans to avoid pharmaceutical cosmetics, and in the comments section of the relevant notes, there are also netizens reflecting that the pharmaceutical products they buy are "not effective" and "much false propaganda”. "In the past, pharmaceutical companies faced problems with cosmetics such as authenticity and quality control. But not anymore, the State Medical Products Administration has explicitly banned dual trademark products. Whether it's Renhe, Tongrentang, or Baiyunshan, cosmetic labeling is no longer feasible." a senior regulatory professional told CHAILEEDO. There are still a lot of "dual trademarks" cosmetic products that are marketed under the name of pharmaceutical companies. However, in light of the general trend of deepening consumer education and stringent regulation, the business of pharmaceutical company labeling may no longer be long-term.

Apparel brand MLB has announced that it will launch its beauty products on Tmall. Recently, MLB released product preview information on multiple platforms such as Weibo, Xiaohongshu, Tiktok China, and WeChat, teasing the launch of MLB beauty products, and the MLB beauty flagship store will soon be available on Tmall. According to Xiaohongshu, WeChat official account, and other platforms, the "MLB Beauty" account belongs to Shanghai Fankou Cosmetics Trading Co. The company is a wholly-owned subsidiary of F&CO Corporation and is part of the F&F Group in South Korea. Its brands include the makeup brand Banila, etc., and the makeup remover Zero has a monthly sales volume of over 9,000 pieces in its Tmall flagship store. According to Jiemian News, MLB Beauty will make its debut in China's online e-commerce, with the brand's Tmall flagship store set to open on Sept. 5th. The brand is positioned as an Asian highstreet trendy makeup brand, and its debut product serie covers three fragrances as well as two air cushion compacts. The perfumes are priced at 580 yuan ($83.68) per 50ml bottle. The air cushion compacts are available in two colors, High Street Black and Wild Berry Barbie. Its case is sold separately from the replacement, with the former costing 160 yuan ($23.09) and the latter costing 200 yuan ($28.86). From the product diagram released on its official Weibo, the air cushion outer packaging is leather texture, and the main body of the product still continues its apparel product features, printed with the iconic "N" and "Y" patchwork brand logo. The perfume is divided into three colors: black, blue, and red, and the bottle and cap are also printed with the MLB brand logo. It is reported that MLB comes from Major League Baseball and its apparel products are authorized by MLB and operated by a third-party company. The South Korean apparel company F&F Group is one of the authorized agents of MLB, which founded the apparel brand MLB KOREA in 1997, and the MLB-related apparel products in China are currently represented by F&F Group. It is worth noting that the MLB baseball caps seen on the market are basically from MLB authorized by another American company New Era to produce. According to the report of Jiemian news, F&F Group's entry into the beauty industry is undoubtedly an attempt to make MLB KOREA a multi-lifestyle brand image, thus separating it from other licensees such as New Era that focus on the baseball apparel cap line. Despite MLB KOREA's rich experience in the Chinese market, South Korean cosmetics have been experiencing a chill in the Chinese market in recent years, with brands such as Innisfree and ETUDE HOUSE closing stores frequently. Referring to Euromonitor data, the market share of South Korean cosmetic brands in China has gradually declined in recent years to 3.6% in 2021 after peaking at 3.9% in 2019, and they are constrained by the relationship between China and South Korea to achieve large-scale marketing of their brands. Furthermore, the South Korean makeup market has been further squeezed by the accelerated rise of new local Chinese beauty brands in recent years. According to Euromonitor statistics, the Chinese market share of local beauty brands has increased from 8.9% in 2011 to 26.8% in 2020. South Korean makeup emerged from the "Korean wave", but was also implicated by the "Korean wave". The F&F Group has launched MLB makeup in the Chinese market, whether Chinese consumers are willing to pay for it, it needs to be tested in the subsequent market.

Recently, the Shanghai Medical Products Administration issued a notice showing that two products of RAINOLOGY, a makeup brand created by beauty blogger "rainology Brother Yu", were detected as carcinogens. On the same day, the brand announced on Weibo that it would close down soon. On August 29, the Shanghai Medical Products Administration released the 2nd issue of cosmetic supervision and sampling quality notice in 2022, which showed that the products of 2 shades of RAINOLOGY glossy water-based nail polishes were sampled for 1,2-dichloroethane, of which the test result of "RAINOLOGY glossy water-based nail polishes WG17" was <2.0μg/g (quantitative concentration 2.0μg/g), and the "RAINOLOGY glossy water-based nail polishes WG10" test results for 6.232μg/g. Public information shows that RAINOLOGY is a makeup brand created by the beauty blogger and makeup artist Brother Yu in 2018, the brand product design focuses on minimalist Chinese style, and its packaging is based on simple and light, clean and soft color style. Currently, “rainology Brother Yu” has 911,000 followers on Weibo. In response to the detection of carcinogens in the above-mentioned 2 shades of glossy water-based nail polishes, the brand released an announcement on Weibo and Xiaohongshu this afternoon (September 1st), saying that all the products in question were removed from the shelves on January 18, 2022, and returned to the manufacturer for scrap destruction. At the same time, the brand also conducted a batch-by-batch inspection of its glossy water-based nail polish products and did not find the ingredient (1,2-dichloroethane) announced in the notice. RAINOLOGY also said that before January 18 this year, consumers who purchased the glossy water-based nail polished WG17 and WG10 can contact the brand promptly and will be offered a return and exchange processing and recall of the products for destruction. On the same day that the Shanghai Medical Products Administration issued the above notice, that is, August 29, rainology Brother Yu posted on his Weibo that the RAINOLOGY will soon be closed. "The decision to close the brand was made in June of this year, and some of the new products that were previously spoilered will no longer be available." However, before closing the brand, Rainology will finally upload a new set of makeup set brushes. According to CHAILEEDO, in the past five years since its launch, the brand has gained a wave of loyal fans, but it does not have a strong presence in the entire makeup field. Just take the Xiaohongshu platform for example, there are only 6900 notes related to RAINOLOGY, only 200 fans on Xiaohongshu, and less than 100,000 fans on its official Weibo. The fact that carcinogenic substances were detected in the RAINOLOGY products also illustrates the inadequacy of its quality control. In the past 3-5 years, a large number of new beauty brands have emerged, whether it is well-known or unknown, as many as the hair on an ox. Compared to skincare, the survival rate of new makeup brands seems to be lower, even if there are beauty bloggers or celebrities aura, most of them can not escape the fate of shutting down in 5 years. According to the incomplete statistics by CHAILEEDO, about 20 celebrities/influencers have launched beauty brands in China, involving facial masks, makeup, skincare, and many other categories, but most of these brands have been closed or the brand status is not as great as before. As a senior industry insider said, good products and brands can withstand the test of the changing environment, and the brands that can stay after the baptism of the pandemic can go further.

The first half of the year was particularly strong for the Cosmetic Injectables and Dermatology product categories at Galderma. Recently, the parent company of the Cetaphil brand and leading global skin health care company, Galderma, announced its 2022 interim financial report, showing net sales of $1.914 billion, up 15% year-over-year. The first half of the year was particularly strong for Galderma's cosmetic injectables and dermatology product categories, which grew 32% and 31% respectively at constant exchange rates, according to the report. It believes that demand for quality products remains strong despite the global macroeconomic downturn. Specifically, in the injectable aesthetics segment, growth was driven by neuromodulators, fillers, and biostimulants, which achieved double-digit growth in their key markets. In Europe, Galderma launched the first ready-to-use liquid botulinum toxin type A product, "Botox Alluzience®" in the first half of the year, to relieve moderate to severe frown lines between the eyebrows. In terms of dermatological cosmetics, 8 out of the top 10 markets in this product category achieved double-digit growth. Cetaphil continued to perform strongly, driven by e-commerce and new product launches in China and other Asian markets, and buoyed by expansion in India and volume and revenue gains in the US. As for the products, it launched the Optimal Hydration line in Asia, including three new products powered by hyaluronic acid and the exclusive HydroSensitiv Complex for moisturizing and improving sensitive skin. From a geographic perspective, markets achieved balanced net sales growth across all regions. On a constant currency basis, the US grew 14% year over year and the International Division grew 16% year-over-year, with accelerated growth in select markets such as China, India, and Brazil. In China, despite static management in certain cities due to COVID-19, Galderma maintained accelerated growth, achieving double-digit year-over-year performance growth in the injectable aesthetics and daily skincare segments. In addition, in January, Galderma completed the acquisition of Alastin, a professional aesthetics company dedicated to developing innovative and clinically tested physician-dispensed skin care products. In the first half of the year, Alastin launched two new products, the one is ReFORM & RePAIR COMPLEX, an innovative formulation using TriHex Technology® to aid in surgical skin recovery, and another is HA Immerse Serum®, a new moisturizing hyaluronic acid formula that helps enhance the skin's natural ability to produce hyaluronic acid. In the future, Galderma expects to achieve 12% to 14% year-over-year constant currency-based net sales and core EBITDA growth in 2022. Despite pressures such as inflation, it is confident that it will remain profitable due to significantly higher sales volumes, a pricing strategy based on product value, and high margins generated by new products that deliver significant consumer benefits.

China's beauty brands have made further progress in the world ranking. According to the Brand Finance Cosmetics 50 2022 released recently, the ranking of Chinese beauty brand PECHOIN has increased further compared with last year, successfully surpassing international brands such as Maybelline, Clarins, and SK-II, jumping to 14th place and becoming the only Chinese brand on the top 15. Facts have proved that Pechoin’s strategic positioning of "new herb of science and technology" of oriental herb driven by modern science and technology has been effective, which can be seen from the global ranking. In the Brand Finance Cosmetics 50 2022 (hereinafter referred to as the top 50 list), it has successfully surpassed Clarins, SK-II, Olay, and other international brands and ranked 14th. Pechoin has been on the top 50 list since 2019, who jumped from 23rd in 2019 to 19th in 2020 and then to 15th last year. At that time, it was the only Chinese brand on the TOP15 list. This year, Pechoin went one step further, surpassing Maybelline, which ranked 13th last year, to join the top 14, continuing the record of the only Chinese brand in the TOP15. As a global independent third-party brand valuation and consulting agency, Brand Finance's core evaluation criterion is brand strength, which consists of three parts: current performance, customer evaluation, and future expectations. The strength of Pechoin is also highlighted in these aspects. It is worth mentioning that Pechoin has never slackened its investment in science and technology, thus having won many awards in the international market in recent several years, so as to continuously consolidate its scientific and technological power. At the 26th IFSCC last year, Zuo Jinhui, a scientist from Pechoin, broke through the barrier and won the Young Scientist Award for his research on the anti-aging new way of skin care products, from skin physiology to skin "psychology". This study mainly focuses on oriental women and discusses "how cosmetics upgrade from skin physiology to skin 'psychology'" from three aspects: the interaction between skin aging and emotion, mindfulness and skin aging, and the skin psychological effect of cosmetics. "As a scientific research team of Pechoin, we will always explore the science and technology of beauty by making continuous breakthroughs and pursue new possibilities of scientific skin care." Zuo Jinhui also said when winning the award that they will further bring more in-depth, specialized, and customized age care solutions to oriental women. IFSCC, fully known as the "International Federation of Societies of Cosmetic Chemists", enjoys a high reputation in the cosmetics academic community. With a history of more than 60 years, over 16000 global well-known brands, raw material companies, and scientific research institutions related to the cosmetics technology industry in 74 countries around the world would discuss and share the latest beauty research achievements at this grand meeting. Founded in 1931, Pechoin has been long accompanying the growth of generations and deeply engraved in the life and memory of the Chinese people in its 91-year development process. However, Pechoin did not remain complacent. Instead, it adhered to change and forge ahead in the torrent of the times and became the "post-90s" who had the courage to explore and innovate. It is reported that during the Tiktok Super Brand Day in December 2021, Pechoin launched an all-channel interaction with the topic of national support, and the whole network exposure in China exceeded 450 million; Stars were invited to enter the Douyin live broadcasting room, and the peak number of online people exceeded 10 thousand; During the event, the new customer rate of the store exceeded 95%, and the brand even made use of Douyin members' refined operation, succeeding in making an average of 1 thousand new members joining the club every day and over 2 million member transactions. In addition, Pechoin also joined hands with popular Chinese artist Wang Yibo to launch a new single product "Youth Active Resilence Repairing Cream", covering the target consumer groups through diversified forms such as hot broadcasting variety shows and shooting microfilms; This year, Pechoin launched “Call tomorrow” Co-create Challenge on Chinese short video platform Douyin to explore the charm of science and technology jointly with a number of KOL, which has won wide resonance among consumers. In the future, whether from the R&D aspect, brand aspect, or marketing aspect, Pechoin is gradually completing the transformation from a "long-history" brand to a "long-lasting" brand. Pechoin is obviously stronger than we thought. Notes: Brand Finance： Brand Finance is a global independent third-party Brand valuation and consulting agency, whose business covers Brand strategy consulting market research, and other fields. Every year, Brand Finance calculates the value of approximately 10,000 brands across geographies and industries and publishes Brand rankings in the media to enhance the public perception of these brands as valuable business assets that need to be managed and invested in. Brand Finance also publishes industry research reports on brands and intangible assets, such as Brand Finance Cosmetics 50, Brand Finance US 500, and Brand Finance China100.

Under the pandemic, XieFuchun, a century-old Chinese beauty brand, is having a tough time. The Chinese beauty brand Xie Fuchun has a history of 192 years, which has shone and survived a century of storms, but in today's beauty market, its figure is fading out of consumers' view. CHAILEEDO summarized the financial reports of XieFuchun and KOPHENIX in the past years and found that they are all the same Chinese century-old beauty brands that started with the production of fragrance powder, KOPHENIX's losses improved year by year after the pandemic, while Xie Fuchun's net profit was on a downward trend year by year. The business performance of XieFuchun and KOPHENIX are different as night and day It is known that around 2000, XieFuchun once faced a crisis of production suspension, then it began to restructure and figured out a set of development strategies to rely on tourist stores for market expansion. Since 2011, XieFuchun has established several franchised chain stores and directly operated stores in major famous tourist attractions throughout China, and 80% of its products are sold to tourists around the world through these stores. Before the pandemic, XieFuchun's strategy of laying out tourist stores did work, and in 2019, it achieved sales revenue of 13.51 million yuan ($1.954 million) from just one new directly operated store, up 1.98% year-over-year. From the perspective of previous year's financial reports, XieFuchun's operating income has been significantly reduced by half since the black swan event of the pandemic. According to the financial report, XieFuchun's operating income in 2020 dropped 57.41% directly year-on-year. The first half revenue in 2022 still fell sharply, mainly due to the impact of the pandemic. Offline stores are set up in China's major tourist attractions, the first half of each province and city tourist routes are not back to normal, resulting in offline physical channel sales decreasing by 8,384,100 yuan ($1,122,600), with a 67.37% drop, making the "tourist bonus" supply chain directly missing. However, KOPHENIX showed the exact opposite trend from XieFuchun. 2020 semi-annual report showed that the company's directly operated stores and franchised channels experienced a sharp drop in customer flow as a direct result of the pandemic, and led to a significant decline in sales, therefore it phased shutdown of some directly operated stores. In addition, the agency and distribution channel due to the addition of nearly 4 million disinfection and antibacterial products, resulted in significant growth in revenue. In fact, many Chinese and overseas beauty brands during the pandemic turned to the production of pandemic prevention supplies, such as CHANEL, DIOR, CHANDO and other brands, but this innovative self-help approach is not a long-term solution. So, with the traditional offline channel growth weak, XieFuchun and KOPHENIX are beginning to look for business growth from the online channel. In 2020, XieFuchun established a beauty e-commerce company to expand online sales channels. Although it brought some growth to XieFuchun in 2021, due to the recurring pandemic in the first half of 2022, logistics disruptions leave products stranded and orders lost. Meanwhile, flow on the Tmall platform shrank significantly, leading to a decrease in online sales of 2.78 million yuan ($402,100), down 37.41% year-over-year. In 2021, KOPHENIX followed in XieFuchun's footsteps and also created an e-commerce company. In its financial report in 2021 and the first half financial report in 2022, it mentioned that the company's direct retail channel grew sharply due to the huge growth of online channels such as Tmall and Pinduoduo, and etc. In 2021, the combined revenues of the Tmall and Pinduoduo platforms soared 258.52% year-on-year, and in 2022, the company continued to focus on its e-commerce platform and the combined revenues of this channel grew 384.64% year-on-year in the first half, contributing the company's revenue to the year-on-year growth of 146.85%. It is worth noting that after the pandemic, KOPHENIX shut down some of its stores, and the revenue share of its offline business was relatively small, so it had a low impact on the company's overall revenue growth trend. However, XieFuchun chose to carry out various promotional activities to maintain its sales market share as opposed to curtailing its offline business, so the impact of the pandemic had a greater influence on XieFuchun than on KOPHENIX. Marketing is a driving force, quality is the root By comparing the sales of XieFuchun, KOPHENIX and Pechoin's Tmall and Pinduoduo flagship store, CHAILEEDO found that, as the same old national brand, Pechoin's star products are obviously much more than XieFuchun and KOPHENIX. Even if the Powder of Duck’s Egg Type is the most famous product of XieFuchun for 100 years, the monthly sales in the flagship store of Tmall were only over 700 pieces. KOPHENIX relies on the ingredient of portulaca oleracea to occupy a place in the mind of consumers, and horsetail hydrating spray has become its main product, with more impressive sales figures compared to XieFuchun. In fact, century-old brands have been caught in the whirlpool of "selling sentiment" in marketing. Because of the long history and culture as the heritage, XieFuchun, and KOPHENIX, these old brands have their own brand story and connotation. But nostalgia marketing market size is limited, relying on the brand story alone is not able to support the new market. In recent years, many old local Chinese brands are getting rid of their old image and towards rejuvenation through marketing methods such as co-branding crossover and IP. For instance, in 2018, Maxam and White Rabbit Creamy Candy jointly launched the Maxam® White Rabbit Creamy Candy flavored lip balm, 920 pre-sale sets of products on the shelves were sold in seconds, and the official additional 20,000 pieces were also sold out in three minutes. In the same year, Liushen and Rio launched Liushen Floral Water Flavored Cocktail, which was packaged in Liushen' classic glass packaging, and 5,000 bottles were snatched up in 17 seconds on Tmall. In 2020, XieFuchun had also launched a cosmetics palette in conjunction with the Jade Dynasty online game, but the monthly sales in the Tmall flagship store are only 100 +, only two pieces in Pinduoduo, and 7 notes in Xiaohongshu, in which even had consumer complaints. Some consumers said bluntly: "If you have the sentiment, you can buy, but in terms of practicality, indeed is not recommended. Gone are the days of "just buy the formula of the foundry, change package design, and then tell a good brand story, it can sell great". Nowadays, consumers are becoming more and more professional and will check the record through the National Medical Products Administration, the ingredients formula from the professional platforms and other methods to determine the strength of the brand and the product safety and quality. This also forces China's local beauty brands to continuously innovate in technology and develop Chinese ingredients. For example, the green thorn fruit of Winona, the ProVTA of Pechoin, the pearls of OSM, the super yeast Hymerin of CHANDO, through the composition of their own creation and upgrade, constantly renew the consumer's understanding of the brand. For XieFuchun and KOPHENIX, the lack of broad product lines, low R&D investment and the difficulty in producing new products are the most prominent problems. Compared to Shanghai Jahwa's 163 million yuan($23.58 million) and Proya's 76,583,600 yuan($11,076,400) in 2021, XieFuchun's R&D expenditure in 2021 was only 1,967,500 yuan($284,600) and KOPHENIX's R&D expenditure in 2021 was only 981,800 yuan($142,000). Empty talk about national sentiment may be able to impress consumers in the short term, but in the long period, the essence is still inseparable from the clarity of the brand positioning, excellent core technology and continuous investment in scientific research. Marketing is a driving force, quality is the root, and brand power and scientific research capability is undoubtedly the key to the success of beauty products breakthrough.

Naris, Byphasse, Ziaja, Gifrer, Casmara and other overseas cosmetics brands, including beauty brand third partner Larami, has formally submitted the prospectus. According to CHAILEEDO, beauty brand third partner Guangzhou Lalami Information Technology Co., Ltd (hereinafter referred to as "Lalami ") formally submitted the prospectus yesterday (July 7, China Standard Time) for listing on the main board of Shenzhen Stock Exchange, adding one more member to the rank of beauty brand third partners. According to the prospectus, in 2021, Lalami's total revenue was 840 million yuan, up by 7.25% year-on-year, with revenues of the top five brands accounting for 89.84%. Compared with Lily&Beauty, Winchance and other companies, Lalami stands in the mid-level of the industry. According to the prospectus, Lalami was formerly the Guangzhou Changqin Trading Co., Ltd with its inception in 2012. Then it was renamed Guangzhou Lalami Information Technology Co., Ltd. in 2015. As a comprehensive e-commerce service provider for overseas cosmetics, its main business covers Internet retail service and offline distribution, offering services like sales planning, store operation, promotion and so on. At the moment, Lalami has successfully bred Naris, Byphasse, Ziaja, Gifrer, Casmara and other overseas cosmetics brands in the Chinese market. As of 2021, the total number of cooperative brands reached 28, including those of facial care, body care, mother and baby products, sunscreen, cosmetics and other categories. The prospectus shows that the revenue of Lalami from 2019 to 2021 was 761 million yuan, 784 million yuan and 840 million yuan respectively, with the net profit being 64 million yuan, 58 million yuan and 60 million yuan respectively. Overall, Lalami's performance is on a steady rise. From the business composition, its main part of revenue comes from the Internet retail service. Among them, the income of the distribution business of Lalami e-commerce was 372 million yuan, 370 million yuan and 441 million yuan respectively from 2019 to 2021, accounting for 48.90%, 47.27% and 52.52% respectively; Offline distribution also increased from 7.24% in 2019 to 11.76% in 2021. However, the share of e-commerce retail business has declined from 43.58% in 2019 to 35.31% in 2021. In 2021, the company's e-commerce retail revenue fell 10.67%, mainly due to the fierce competition in some make-up removers such as Byphasse and the decline in related product revenue, Lalami explained in the prospectus. According to the prospectus, the total income of the top five brands of the company from 2019-2012 was 658 million yuan, 711 million yuan and 755 million yuan respectively, accounting for 86.44%, 90.80% and 89.84% respectively, and the concentration of brand sales was relatively high.The top five brands are Naris, Byphasse, Avene, Gifrer, and Ziaja, securing these places for the past 3 years already, but with different rankings each year. Among them, the sunscreen brand Naris has become an important engine to drive performance. From 2019-2021, its sales proceeds reached 189 million yuan, 272 million yuan and 352 million yuan respectively, accounting for 24.83%, 34.73% and 41.86%, being undoubtedly Lalami's "Trump card" for two consecutive years. To report, the IPO of Lalami is proposed to raise 578 million yuan, of which 380 million yuan will be invested in the brand incubation and operation & promotion construction project with the aim to introduce and develop four non-local cosmetics brands in the four years to come. And this will mean a further increase in the promotion investment in the company's existing cooperative brands such as Naris, Byphasse, Ziaja, Gifrer and Casmara. In recent years, with the establishment of flagship stores entering China's major e-commerce platforms, the value-added services of Chinese e-commerce integrated service providers have been well-received by the market. It is expected that going forward, the number of Chinese cosmetics E-commerce service enterprises will increase further, the market competition will intensify in a gradual manner, and the service types targeted will be more segmented; At the same time, leading enterprises in the industry will continue to expand their competitive edges with market concentration redoubled and leading effect more prominent. With the popular "good-looking-oriented economy" and the consumption upgrading, consumer demand for cosmetics take up a more refined and specialized trend, and the segmentation of consumption demand directly impacts corresponding cosmetic products. Whether Lalami can break away from market and category restrictions, and escape the growth curve presents both challenges and opportunities ahead.

On September 2, BASF announced on its website that it has formed an innovation partnership and signed a cooperation agreement with Chinese startup Ingredi, which includes BASF's strategic equity investment in Ingredi. Although traditional Chinese herbs are well known to consumers, the application of herb-related botanical actives is still a new trend in the personal care industry and continues to grow rapidly. Founded in 2017, Ingredi reportedly focuses on the development and production of innovative, highly active and sustainable botanical ingredients obtained from species native to the Pan-Himalayan region to provide innovative natural active ingredients and total market solutions for the personal care industry. Ingredi is said to be rapidly expanding its business based on a strong R&D platform and in-house testing facilities. According to its website, it now has a traceable green ingredient supply chain starting from cultivation and a 1,200 square meter class 100,000 cleanroom. BASF's equity investment will be used to continue the expansion of its production line. BASF says this partnership will allow BASF to use its expertise to find and commercialize new solutions to the global personal care market by applying these actives in personal care formulations. Dr. Zhou Ji, Chairman and Founder of Ingram Bio China, said, "We are honored to be recognized by BASF as such a valuable industry partner. The cooperation with BASF will help us benefit from BASF's industry experience and from the expertise of both parties." Dr. Robert Parker, Director of New Business Development and Digital Officer, BASF Care Chemicals, said, "BASF is committed to providing innovative solutions for the personal care market and building an ecosystem of partners that support our customers. We are proud to partner with Inger Bio to grow our business and achieve mutual benefits." The partnership between BASF and Ingredi is another example of BASF's Care Chemicals division's efforts to meet the challenges of the future. Sustainability, digitalization, innovation and a new collaborative approach are the key building blocks of Care 360° - the solution for sustainable living.