In the second Sustainable Consumption Forum, established enterprises such as Tmall, L'Oréal, Kose and Coty have shared respective insights on the era of sustainable consumption.

Abstract: At the China International Consumer Product Expo (abbreviated as CICPC) of 2022, Song Yiwu, deputy director of duty-free channels of Eternal, an omni-channel brand management operator in China's beauty and eyewear industry, attended the high-end consumption forum and interpreted the current trends of high-end perfume.

Abstract: On August 18, Estee Lauder Group published its annual report for fiscal year 2022 (July 2021-June 2022).So far, top 10 beauty companies including Estee Lauder, L'Oréal, Unilever, Procter&Gamble and Shiseido have released their figures for the first half of 2022.

Abtract: In July, the total retail sales of consumer goods in China was $528.54 billion, of which the total retail sales of cosmetics was $3.72 billion, an increase of 0.7 percent over the same period last year. Affected by channel diversion and the 618 Shopping Festival, Ali GMV was under pressure in July.

Abstract: China's sunscreen leader, COSMOS Chemical, reported total revenue of 820 million yuan ($121 million) for the first half year of 2022, up 61.29% year-on-year. Among them, the revenue of cosmetic active ingredients and their raw materials business with sunscreen as the main product soared 101.61% year-on-year.

Abstract: Pientzehuang 2022 achieved revenue of 4.423 billion yuan in the first half year, up 14.91% year-on-year. Among them, the Cosmetics and Daily Chemical Industry achieved revenue of 350 million yuan, down 19.08% year-on-year. Recently, Zhangzhou Pientzehuang Pharmaceutical Company Limited (hereinafter referred to as "Pientzehuang") released 2022 interim financial data. In the first half of the year, Pientzehuang achieved revenue of 4.423 billion yuan, up 14.91% year-on-year. Operating profit was 1.598 billion yuan, up 18.73% year-on-year; net profit attributable to shareholders of the listed company was 1.314 billion yuan, up 17.83% year-on-year. Basic earnings per share are 2.18 yuan/share. Public information shows that Pientzehuang's Cosmetic business includes multiple brands such as "Pientzehuang" and "Queen", among which the "Queen" brand has started the high-end upgrade brand to build an affordable luxury Herbal skincare brand. In addition, its Daily Chemical business also includes the company's holding subsidiary Zhangzhou Pientzehuang Shanghai Jahwa Oral Care Co., Ltd., which mainly promotes Pientzehuang toothpaste and launches toothpaste and mouthwash categories with "heat-clearing" as its core positioning. The financial report shows that in the first half year, Pientzehuang Cosmetics and Daily Chemical Industry achieved revenue of 350 million yuan, down 19.08% year-on-year; operating cost was 122 million yuan, down 7.55% year-on-year; gross profit margin was 65.2%, down 4.34 percentage points compared with last year. It is worth mentioning that the financial report shows that the construction in progress of Pientzehuang in the first half year is 40.5171 million yuan, rising 171.17% year-on-year, mainly due to the increase of investment in the Pientzehuang Science and Technology Building Construction Project and Pientzehuang Cosmetics Phase III Project. The projects are divided into two projects of Pientzehuang Great Health Intelligence Manufacturing Industrial Park and Pientzehuang Health Beauty Park. Among them, the product scheme of the Healthy Beauty Park project is special efficacy skin care products such as Skin Whitening Flawless Moisturizing Series, Age-locking Firming Series, Barrier Repairing Moisturizing Series, and Queen Series (cream type). In fact, Pientzehuang's footsteps of increasing investment in the cosmetic business have never stopped, and its total equity investment in the first half year is 340 million yuan, up 1751.27% year-on-year, including 158 million yuan invested in subsidiary Pientzehuang Cosmetics and sub-subsidiary Fujian Pientzehuang Cosmetics Co., Ltd., accounting for 46.65% of total investment in the first half of the year. As early as 2014, Pientzehuang proposed to focus on traditional Chinese medicine production and extend to two major fields of Daily Necessities Cosmetics and Food and Health products. At present, Daily Necessities and Cosmetics roughly account for 10%-15% of the company's revenue and 13%-18% of gross profit. Of course, the "Time-honored brand" is a resource, but it may also become an obstacle to the brand revival. In fact, Pientzehuang also noticed this point and tried to reshape its brand image by increasing marketing investment. In 2020, its sales expense is 646 million yuan and its R&D expense is 97.55 million yuan, accounting for 1.50% of total revenue. In 2021, its sales expense was 650 million yuan and R&D expense increased to 199 million yuan, accounting for 2.49% of total revenue. The online channel has now become the main position of Pientzehuang Cosmetics. Focusing on brand rejuvenation and upgrading, in terms of spokesman matrix, besides Qin Hailu, the spokesman of Pientzehuang Cosmetics, Queen Cosmetics signed Chen Shu and Bai Lu as spokesman in 2021. On August 10, Pientzehuang Cosmetics officially announced Chen Du Ling as the spokesman of the Age-locking Firming Series. At the same time, at the end of last year, Pientzehuang launched a new product of Men's Oil-controlling Fresh Series again after 25 years of precipitation in the men's cosmetic field to expand its share in the men's market. In fact, the brand awareness and brand heritage of century pharmaceutical enterprises are advantages that new brands cannot buy with money. But in order to have a breakthrough in the cosmetics industry, it is important to develop more good products.

Abstract: Recently, P&G released the fiscal year 2022 (July 2021-June 2022) sales of $80.18 billion, up 5% year-on-year. According to CHAILEEDO, in addition to the release of the fiscal year 2022 data, the fourth quarter results were also announced one after another. The financial report shows that from April to June 2022, P&G's net sales were $19.51 billion, up 3% year-on-year and net profit attributable to the parent company was $3.05 billion, up 5% year-on-year. P&G's businesses across all divisions also grew. Net sales of health care products grew the fastest, up 9 percent year-over-year to $10.8 billion. However, the beauty segment, which includes brands such as SK-II and OLAY, and men's grooming had the lowest growth, up only 2%. The earnings report explained that the slowdown in the beauty segment growth was mainly due to low single-digit growth in hair care products due to price increases, partially offset by a pandemic-related blockade in Greater China and lower sales due to reduced business in Russia. The financial results show that P&G achieved 8% organic sales growth in the U.S. market in fiscal 2022. In stark contrast, P&G's organic sales in Greater China declined 4% year-over-year. Jon Moeller, P&G's president, and CEO said P&G's decline in China was heavily impacted by the pandemic outbreak in Shanghai. "The location of manufacturing operations had a significant impact on the ability to supply the market. We were severely impacted by some of the areas where production was shut down, like Shanghai, where we have production centers and significant contract manufacturers." He said when questioned by the media. But P&G remains confident in the Chinese market. Andre Schulten, CFO of P&G, noted that the Chinese market offers P&G very attractive growth rates and value creation opportunities. It still is seeing progress as liquidity returns. As department stores reopen, capabilities in the digital channel continue to improve and refocus the business on its core brand assets, the progress can be seen as improved. While progress remains relatively slow as liquidity is only just beginning to return. But it remains very confident. It is reported that in recent years, P&G its is continuously expanding its skincare footprint through acquisitions and independent incubation. Currently, the two main brands in the P&G skincare category are SK-II and OLAY, and its new brands in recent years happen to be differentiated and complementary to these two brands such as high-end beauty Tula Skincare and Aio which mainly focuses on clean beauty. Compared to SK-II and OLAY, the pricing of the products of these two new brands is more popular. At present, Tula Skincare's "TULA Overseas Flagship Store" has been opened in Tmall and TikTok China, which means it entered the Chinese market. It was unveiled at the recent China International Consumer Products Expo. Aio is exclusively available in Watsons' offline stores and online channels in mainland China, Hong Kong China, Taiwan China, and other Greater China regions. Combined with the current earnings data and P&G's actions, although China has declined due to the pandemic, but its move to force the skincare sector may give P&G a new growth space. In recent years, P&G has opened up frequent acquisitions and own incubation of new and emerging brands. Combing the common points of these brand integration can be found, P&G tends to look for brands that form a differentiated complement to the existing SK-II and OLAY. Without exception, these new brands pay more attention on social media, which means more youthful and up-to-date.

Abstract: Mamonde launched its first clean beauty product line - Smart Clean Re-Balancing Series, claiming to add unique black yeast extract from Jeju Island in Korea, Ganoderma lucidum, and other herbal extracts respectively. The set is priced at $42.7 in its flagship store on the Chinese e-commerce platform Tmall. Mamonde claimed that the new product will be launched in the first batch of 4 new products, which will not add risky ingredients and contain more than 90% natural ingredients. For the product's efficacy, Mamonde said that it can quickly soothe the skin stimulated by the outside, improve the skin temporary redness and maintain the skin balance state. The series is currently available in China. It is sold in Chinese e-commerce platform Tmall and Mini Program on Chinese social platform Wechat. CHAILEEDO learns that Mamonde comes from the Amore Pacific. In 2019 and 2020, Amore Pacific launched a new brand of gentle skincare that promotes clean beauty, "SOON+" and a pragmatic lifestyle brand, "Enough Project". This is also a change strategy that Amore Pacific is seeking for new growth points. Judging from the market data, clean beauty is on the rise. The global clean beauty market is expected to reach $6.01 billion in 2021 and $11.56 billion by 2027. Clean beauty is expected to reach $100 billion in the next decade. Data from NPD, a leading market research firm in the United States, shows that beauty product sales fell 14% during the epidemic. But sales of clean beauty products rose 11% against the trend. This shows that the future development prospects of clean beauty can be described as good and the market demand for this category of beauty products will also continue to further expand. In recent years, Shiseido, L'Oreal and other major giants in Europe, the United States, Japan and South Korea entered the game in the clean beauty market. For example, Drunk Elephant acquired by Shiseido in 2019 focused on clean beauty makeup entered the Chinese market in September of the same year. Currently, in Drunk Elephant's flagship store in the Chinese e-commerce platform Tmall Global, the highest sales of its product is Drunk Elephant B-Hydra Intensive Hydration Serum which is priced at $59 with the total sales volume of 20,000 +. L'Oreal has also made a commitment to shift to clean and sustainable beauty by 2030 with 95% of its ingredients coming from renewable plant sources. And for the popular sector of clean beauty, Chinese companies are also taking advantage of the trend. However, there are not many Chinese brands that focus on clean beauty, such as My ClorisLand, LAN and Dewy Lab. But their brand proposition and product performance are all noteworthy. It is reported that LAN has completed two rounds of financing in the past one and a half years with a total of $29.6 million for product development and brand system improvement. As for Dewy Lab, the highest-selling product in Dewy Lab's official flagship store on Tmall is Dewy Lab concealer palette. It is priced at $27.9 with total sales of 100,000+. The entry of Mamonde into this promising clean beauty market may indicate the brand's intention to reverse its unfavorable situation in China. In fact, in recent years, the performance of Korean cosmetics in China has been declining year by year. According to the Korea Cosmetic Industry Institute, from 2013 to 2016, the growth rate of Korean makeup exports to China was as high as 66%. But the figure began to decline in 2017 dropping to 20% in 2018 and again to 14% in 2019. Euromonitor International data shows that against the backdrop of the continuous decline, Korean makeup will have a share of only 3.6% of the Chinese market in 2021. Korean makeup in China was initially driven by the trend of Korean and Korean dramas. But Korean companies have not kept up with the changing consumer philosophy in China. Furthermore, the rise of Chinese brands in recent years has led to the decline of Korean makeup in China. Since its entry into China in 2005, Mamonde has taken the department store channel as its entry point. At the same time, it laid out franchise outlets. With certain advertising campaigns, it maintained high growth in the early stage. Data show that in 2011, Mamonde has 650 department store counters and 2200 franchise outlets in China. As of now, Mamonde's official public account on the Chinese social platform WeChat shows that the brand has registered 345 offline department store counters and 831 Watson's counters. Its parent company, Amore Pacific Group, is underperforming with the latest Q2 earnings report showing a 39% decrease in sales in Asia and a loss of $3.4 million. Mainly due to a decline in the Chinese market, it accounts for over 50% of the Asian business. China's clean beauty market is promising and has attracted major international brands to enter the market. Amore Pacific branching out its brands to the clean beauty market may intend to ease the group's loss pressure through this sector. But whether Chinese consumers accept it still remains to be seen.

Abstract: Brazilian cosmetics giant Natura&CO's anti-animal experiment skincare brand Aesop opened its first store in Dongping Road, Shanghai, signaling the brand's official entry into the Chinese market and maybe more anti-animal experiment brands for China in the future. On July 30, Brazilian cosmetics giant Natura&CO's anti-animal experiment skincare brand Aesop announced to open its first store in Dongping Road, Shanghai. Aesop, founded in Australia in 1987, is known for its combination of "scientific development + herbal formula". According to figures from Natura&Co's financial report, the combined net income of the Group is $ 1.627 billion, down by 12.7% year on year. Among its four brands, apart from Aesop's net income rising by 9.6%, the net income of Natura, Avon and The Body Shop all registered negative growth, down by 8.4%, 22.1% and 22.9% respectively. Over the last three years, Aesop has doubled its sales under operation of Natura&CO. In 2019, 2020 and 2021, its sales grew by 23%, 50% and 33.4% respectively, reaching $ 503 million by 2021. Aesop boasts 269 offline stores worldwide, an increase of 22 in 2021 with total offline sales accounting for 76.5% of the total, showcasing the great importance of its offline channels. Aesop entered Tmall Global in 2018 and opened its Tmall overseas flagship store in March of the same year. As of July, its Tmall Global flagship store enjoys nearly 700 thousand followers.In fact, Aesop has already been popular in the market of buying agents in China, with Aesop Parsley Seed Antioxidant Serum as a hit item. The long-awaited offline in China has something to do with the standards of companies banning animal testing. In the past, mainland China imposed strict laws requiring imported beauty products to be tested on animals. As early as July 2018, CFI launched a new scheme with consultancy Knudsen&Co and Fengpu Industrial Park in Fengxian, Shanghai to take steps to exempt animal testing for imported cosmetics from in China, which was backed by parties involved including the Chinese government. This is a material signal of "some cruelty-free import cosmetics brands will be expected to enter China" across the industry. Bulldog, a men's skincare brand selected by CFI in the new scheme, has entered the Chinese market through this approach, available in stores of Watsons in Shanghai. The pilot is a positive sign for brands opposed to animal testing. Until last March, the National Medical Products Administration noted in the interpretation of The Provisions for the Administration of the Registration and Recordation of New Cosmetic Raw Materials: "Take full account of and adopt the suggestion that some countries and regions shall impose a ban on the brands using animal testing and allow no submission of documents of animal testing, and accept the toxicological test data of animal alternatives conditionally. "This has enabled Aesop featured by "ardently opposed to animal testing since inception" to enter the Chinese market. According to National Medical Products Administration, in the past three months, Aesop has filed a number of imported general cosmetics such as body cleanser, shampoo, cleanser, essence and so on. showing that its active preparation for the opening of its Shanghai store. The chief executive of Natura&Co Holding SA also said China has a market of huge potential, thus the company has been seeking ways of business expansion within the country. Many brands have suffered in the Chinese market due to the recurrence of the pandemic and the squeezed offline channels under the rapid development of Chinese e-commerce. In recent years, brands canceled their counter operation in China in succession, including Maybelline, which has been in China for 2 decades. According to Euromonitor, the outbreak of the pandemic in 2020 has boosted the speedy development of online channels of global cosmetics, accounting for 74.4% compared to 24.8% of the offline ones. Amore Pacific Group's Innisfree withdraws over 80% of its stores and HERA of the same group also chooses to close down offline counters in China orderly. The growing online marketing competition, coupled with consumers’ increasingly prudent choice of cosmetics, is no small challenge for Aesop to enter China this time. Unlike brands with large-scale store layouts, Aesop's offline stores are more than just for product display, more of a channel for conveying its brand idea with all stores decorated in line with local conditions. The new store is more like a trial in the Chinese market. Unlike most of the local beauty brands in China focusing on online channels, Aesop lays more emphasis on the interaction with consumers offline. For the cosmetics industry, an offline store is best for users to reach the products directly. It's a time of dynamic change, Aesop relies on specialty stores to shape brands and create value, a slow but more solid method. Whether the brand can fit in going forward, is the what Aesop needs to figure out by itself. For the Chinese cosmetics market, the arrival of Aesop is also indicating more anti-animal experiments brands for China in the future.

Abstract: Another niche perfume enters China's $30 billion fragrance market. According to sources, Estee Lauder Companies has started to officially file for its perfume brand Le Labo in China’s National Medical Products Administration, which means the brand will enter the Chinese market and carry out the omnichannel layout in China in the form of general trade (not cross-border e-commerce). CHAILEEDO learned that Le Labo was founded in 2006 in New York by Edouard Roschi and Fabrice Penot from Paris, France. Its initial goal is to sell four bottles of perfume per day. But its Normcore style led the brand’s performance to the opposite trend. In its fourth year of existence, the brand's annual sales reached $4.5 million. It was later acquired by Estee Lauder Group in 2014, subsuming it into the group's high-end fragrance category. Throughout Estee Lauder's financial report, CHAILEEDO found that since Estee Lauder acquired Le Labo in 2014, Le Labo was mentioned in the 2016 financial report and 2017 financial report as pulling perfume business growth. In fiscal 2019, net sales increased from Le Labo due to the success of existing products and targeted expanded consumer reach globally, which led to the strong growth of the brand in its freestanding store and department store channels. In fiscal 2020 (during the pandemic), strong growth from Le Labo partially offset losses in Estée Lauder's fragrance business. And in fiscal 2021, Estee Lauder mentioned that the increase in fragrance net sales was led by higher net sales from Le Labo and another 2 fragrance brands, combined, of approximately $317 million. As seen in Estee Lauder's historical financial report, Le Labo has been growing since the acquisition, even when other brands were in the red in fiscal 2020 (during the epidemic). According to Eternal Group, an omnichannel brand management operator in the Chinese beauty and eyewear industry, the Chinese fragrance market is expanding rapidly year by year with a CAGR of 14.9% from 2015 to 2020 and an expected CAGR of 22.5% from 2020 to 2025. The Chinese fragrance market is expected to reach $4.4 billion in retail sales in 2025. And the global market will grow at a CAGR of about 7% in the next 5 years and will reach $64 billion in 2025. From this data, the growth rate of the Chinese perfume market will be about three times that of the global market and will be the main driver of the global market in the future. The core segment driving the Chinese perfume market is the high-end perfume segment, which has increased its share in the perfume market from 70% in 2015 to 91% in 2020. It will be the mainstream choice for consumers in the coming period. In recent years, high-end niche perfume brands have been performing well in China. According to data released by Alibaba, imported perfumes grew 70% year-on-year in 2020 on Tmall Global. Niche fragrances rose the fastest showing 3-digit growth year on year. According to the list of niche perfumes during the Chinese 618 Shopping Festival on the Chinese e-commerce platform Tmall, the brands and niche perfumes ranked on the list are: CREED Aventus, Serge Lutens Perfume, SMN Fresia. Serge Lutens is from Shiseido. It has entered an overseas flagship store on the Chinese e-commerce platform Tmall Global. Its two series of fragrances, Collection Noire and Gratte-Ciel, have achieved high explosive growth in this year's Chinese 618 Shopping Festival. Moreover, it made its offline debut in mainland China at this year's China International Consumer Products Expo. The huge market for fragrances in China has attracted major beauty groups to enter the market and the entry of Estee Lauder Group's Le Labo into the Chinese market may help the brand and the group achieve further sustainable growth trends.

Abstract: On August 3, Kao Group released its financial results for the first half of 2022. Its total net sales in the first half were $5.4 million, up 8.7% year-on-year with its operating income fell 23.9% to $397million. CHAILEEDO learned that in its earnings report, Kao said that in the first half of the year, the market environment remained vague with high prices of raw materials, especially petrochemicals. Difficulties such as sharp fluctuations in exchange rates, the situation in Ukraine, and COVID-19 have still existed. All made a negative impact on the Kao Group's production and operations. Its operating income has also never returned to positive growth in 2020 and continues to decline. However, in the case of its cosmetics business, it has maintained positive growth since turning around last quarter. Specifically, Kao's consumer products business reported net sales of $4.1 billion, up 2.3% year-over-year and operating income of $246 million, down 20.1% year-over-year. Its operating margin decreased to 6%. Net sales growth rates of major companies (like-for-like growth) in China is -11%. The decline in profits was mainly affected by high prices of ingredients, rising logistics costs, and the lockdown policy in China. The Kao Group took simultaneous measures to minimize the impact by raising prices and reducing costs. The four major businesses in the Consumer Products Business are Hygiene & Living Care, Health & Beauty Care, Life Care, and Cosmetics, all achieved low-single-digit growth. Among them, the cosmetics business sold $858 million with a YOY growth of 1% and operating income achieved $16 million with a growth of $20 million, a turnaround from the same period last year. Although its market recovery was still below However, its market recovery is still lower than expected. However, in China, despite strong growth in Q1. The cosmetics business decreased by 5% year-on-year in the first half of the year due to the closure of the COVID-19 in Q2. In Kao’s Household and Personal Care Business, its sales achieved $3.3 billion with 1.9% decrease year on year and operating income was $230 million with a loss of $168 million. In Asia region, Kao stated that gained strongly in Q1 but the substantial impact from lockdowns in China in Q2. In the second half of the year, the Kao Group expects price hikes in overseas regions to bring earnings growth of about $1.48 million and about $2.6 million in Japan. However, with the rapid growth of high-end cosmetics due to consumer upgrade, the Kao Group did not seize the opportunity of high-end brands in the Chinese market like Shiseido, Kose and other Japanese companies. Lagging international processes combined with sales hindrances and soaring materials from the epidemic have seen Kao's profits decline year on year. Its net profit fell from $1.5 billion in 2017 to $811 million in 2021. On May 11, Kao announced its financial results for the first quarter of 2022. The company reported net sales of $2.7 billion, up 8.2% year-on-year and its operating income was $146 million, down 28.4% year-on-year. In fact, the Asian market, especially China, has become a growth region emphasized by the Kao Group. In the 2020 financial report, the Kao Group said that it has increased its investment in China's e-commerce platform and its sensitive skincare brands Freeplus and Curel are performing well. During the China International Consumer Products Expo and China International Import Expo in 2021, the Kao Group's high-end cosmetics brand SENSAI was exhibited for the first time. On September 7, 2021, Kao announced the official launch of its high-end brand SENSAI in China. Last month, Kao's Curél launched Curél's first Chinese-made product to address the skin concerns of young people with dry and sensitive skin for the Chinese market. According to the Kao Group, this product is the first anti-wrinkle product launched for Chinese consumers. Kao, which missed the windfall, said it is accelerating its layout and will focus on its high-end brands and strengthen its promotion in China to further increase its market share in China in the next step by 2025.

Abstract: Shiseido is the first cosmetic brand company that filed ingredients in China this year. Recently, according to the official website of the National Medical Product Administration, Shiseido completed the filing of two new cosmetic ingredients, respectively, "piperidinepropionic acid" and "hydroxyethyl imidazolidinone". CHAILEEDO learned that the two ingredients are currently entering the monitoring period. According to technical requirements released by Shiseido in the National Medical Product Administration show that the piperidine propionic acid is white to light yellow or red in color. Its texture is a powder with a special odor. Hydroxyethyl imidazolidinone is white in color. Its texture is a powder with a special odor. The main purpose of the two new raw materials is moisturizers, suitable for all types of cosmetics. Among them, the safe use amount of "piperidinepropionic acid" is less than or equal to 3%. The safe use amount of "hydroxyethyl imidazolidinone" is less than or equal to 1.5%. According to CHAILEEDO, this is the first new raw material record completed by Shiseido. In China, the National Medical Products Administration has clear regulations for the filing of new ingredients. According to the Cosmetic Supervision and Administration Regulation (CSAR) stipulates that "the expiration of three years without safety problems of new cosmetic ingredients, it can be included in Inventory of Existing Cosmetic Ingredients in China 2021 released by the National Medical Products Administration." Ingredients are one of the core dynamics driving the development of the entire cosmetic industry. Compared with the abundance of cosmetic raw materials owned by international companies, there is still a large gap in the research and development of cosmetic raw materials in China. According to public information, during the 10 years from 2009 to 2019, only four new cosmetic ingredients were approved for listing in China and few new cosmetic ingredients have been approved in China over the years. In order to change this dilemma, the national "14th Five-Year Plan" in 2021 for the first time raised the cosmetics industry to a strategic level. The 14th Five-Year Plan clearly points out that we should cultivate high-end brands in the field of cosmetics and other FMCG products in China and promote the development of high-end cosmetics in China. In the past two years, with the promulgation and implementation of the Provisions for Management of Cosmetic Registration and Notification Dossiers, Provisions for Management of New Cosmetic Ingredient Registration and Notification Dossiers, and Inventory of Existing Cosmetic Ingredients in China 2021, the regulations on the use of cosmetic ingredients and the transparent control of formulations have become more stringent. At the same time, the speed at which new ingredients are approved for filing has increased significantly. To date, a total of 21 new ingredients have been filed. Although the number of new ingredients on record is increasing, it should not be overlooked that after the implementation of the Cosmetic Supervision and Administration Regulation (CSAR), the state has set stricter regulatory requirements for the safety management of new ingredients. New ingredients are clearly marked with a "monitoring period" in the filing information. Whether internationally or in local China, the continued increase in new cosmetic ingredients has injected a "booster" into the development of the ingredients market and promoted technological innovation in the cosmetic industry as well as change and upgrading of the industry. With the continuous breakthroughs in cosmetic R&D technology, more new ingredients with broad commercial potential will come to market providing more possibilities for cosmetic diversification and segmentation of end-use applications. It is worth noting that most of the companies that carry out cosmetic ingredients are dominated by international ingredients giants DSM, Dow or Chinese ingredients companies, and biopharmaceutical companies. CHAILEEDO observed that among the 37 cosmetic ingredients announced by the National Institute for Food and Drug Control in 2021, in addition to the brand company Shiseido, Estee Lauder has also applied for filings for cosmetic ingredients. The two companies have applied for "Methylaminomethylcyclohexylamine Carboxamide HCL" and "Rhodiola Rosea Root Extract" respectively. Shiseido's application for cosmetic ingredients filing may indicate that the brand is focusing on raw materials and R&D directions in addition to cosmetics sales.