Abstract: Swiss flavor and fragrance giant Givaudan recently announced its results from January to June 2022, saying that the group will adopt a strategy of price increase starting in the second half of the year. CHAILEEDO learned that, in the first half of 2022, Givaudan's net income decreased by 8.4% and sales grew by 8.3%. The group said that given the operating environment has been hit by adverse factors including higher input costs and supply chain disruptions, Givaudan plans to raise prices later this year. It is reported that Givaudan is the fragrance supplier of many first-tier brands such as Miu Miu, Prada and Dior. Givaudan's financial data for the first half of 2022 showed a relatively stable overall sales performance in the first half, with total sales of $3.8 billion, up 6.2% year-on-year, thanks to growth in perfume sales from a recovery in tourism and a rebound in the food market as more people dine out. However, Givaudan's first-half net profit fell to $453.5 million, with the operating margin dropping to 17.3 percent from 18.2 percent a year earlier. At the same time, the company's share price has fallen 30 percent this year. For the reason for the decline, Givaudan said that due to changes in the geopolitical environment led to the rise in raw materials, energy and transportation costs led to a significant increase in costs. Therefore, Givaudan's profitability is being squeezed. The cost of imported raw materials has become an unlimited hole due to the epidemic, increasingly strict customs and uncertain lead times. "Price increases are expected to accelerate in the second half of the year." Tom Hallam, Kivaton's finance director, confirmed that input costs are expected to increase by about 9% this year. On top of that, he added, "In terms of the inbound supply chain, we're seeing delivery times from Asia double." Indeed, the stability of the Chinese market is of vital importance to major international groups. Back in 2020, Givaudan settled its largest plant in the world in Changzhou City, Jiangsu Province, China with a project capacity of 38,000 tons of flavors and fragrances per year. The plant produces a wide range of products such as daily flavors, dental flavors and microencapsulated flavors. BASF, Dow, Clariant, DSM and other raw material manufacturers were also investing in China to build raw material plants. As early as April this year, Givaudan revealed its intention to adjust prices. Not only Givaudan, another head raw material supplier international flavor and fragrance company IFF also issued an announcement in March that will be a wide range of product price increases for all its departments. Estee Lauder Group, L'Oréal Group's high-end skincare brand HR, LVMH's high-end brand Guerlain, and Coty's perfume brand also made price increases in July. It is worth mentioning that Guerlain had announced a price increase in April this year, which was delayed until July due to the Shanghai epidemic. From a beauty collection store owner provided COTY price adjustment letter, involving brands including GUCCI, Calvin Klein, Chloé, Hugo Boss, Burberry, etc. In early July, in the GUCCI flagship store on the Chinese e-commerce platform Tmall, it was found that the price of Gucci Bloom eau de/30ml increased from the $100.8 to $106.7. The customer service of the Burberry flagship store also informed that the price increase is indeed true. In general, the price increase of the international brands is maintained in the single digits. Skincare products increased by about 5% or less and perfume products by about 10% or less. In the face of raw materials, logistics and inflationary cost pressures, international brands increasing product pricing to maintain revenue is one of its common means. It is worth noting that for the beauty giants, luxury beauty brands, especially fragrance brands are the key to their recovery this year. Estee Lauder's skincare and fragrance divisions, which had the highest growth rates in fiscal 2021, were both driven by high-end brands with the fragrance division growing more than 100% in the second quarter of this year. According to Unilever's financial data for the first half of 2022, the Beauty & Personal Care division posted revenue of $1.8 billion with underlying growth of 7.5% and double-digit growth in both the Luxury Beauty and Healthcare divisions. Coty also cited strong demand for fragrances in the U.S. and China in its earnings report with the luxury beauty division posting 159.9% sales growth in the second quarter. From this point of view, Givaudan, as a supplier of raw materials for high-end perfume brands, may be able to turn the situation around after adopting a price increase strategy despite the decline in profits in this earnings report.

Abstract: The Business France said that China has now become the number one export market for French cosmetics.

Abstract: Shiseido participated in the new product release conference of 2022 Hainan Expo. During the release conference, Shiseido lauched a promotion for its ultraviolet conversion technology as well as its male’s skincare brand SIDEKICK and new fragrance brand Serge Lutens, which made debut in Japan in 2022 and in mainland China respectively. Shiseido participated in the 2nd China International Consumer Products Expo Hainan Expo of this year. According to CHAILEEDO, this is the second time for Shiseido to attend the exhibition. Last year, a total number of thirteen brands within Shiseido participated in the exhibition, among which two major brands, THE GINZA and BAUM, launched in China. For this year, Shiseido’s nineteen major brands and star products have been brought to the exhibition with three highlights. First highlight is ultraviolet conversion technology, also known as sun protection technology. The ultraviolet conversion technology launched by Shiseido Group is able to convert harmful ultraviolet radiation to skin care light, which is beneficial to our skin. Shiseido claimed that 86% of the subjects enjoyed a more glowing skin after four consecutive weeks’ usage of the skin care products adopting this technology. Second, the new luxury compound skin care brand SIDEKICK built specially for young Asian male group, made overseas offline debut in Japan. The head of Shiseido's China Men's Products Business Department released the overseas offline debut of the brand's eight new products at the Expo. He said that SIDEKICK has officially landed on China's mainstream e-commerce platform, and would focus on the promising male’s skincare market of China in the future. As a high-quality compound male’s skin care brand originating from Japan, SIDEKICK will better meet the diverse needs of younger generation. Third, Shiseido's new fragrance brand Serge Lutens made its offline debut in mainland China. Two major series of the brand, Collection Noire and Gratte-Ciel made an exhibition. Serge Lutens launched Tmall overseas flagship store last year. The sales of makeup and new fragrance series debuted at the Expo achieved an explosive growth in 618 Shopping Festival of this year. Serge Lutens hopes to gain some popolarity among Chinese customers through Hainan Expo, which served as an important communication platform. It should be noted that Shiseido has not only brought new brands and technoligies, but also promoted exceptional social contribution and life improvement makeup compaigns. The makeup brand for concealer pruducts called PF-COVER, which is developed to deal with different skin problems through optical technology, is also launched at the same time. Shiseido’s life improvement makeup campaign has started since May of this year. Some specialised stores selling color cosmetics across the country have also set up areas for trial use of PF-COVER products, which better providing consumers with professional experiences and services of the brand. As the largest overseas market of Shiseido Group, China is the second global center of Shiseido, and will make the best of its advantage to continuously introduce new products, new brands and new technologies, and as a result, to promote the steady growth of the Group. Thanks to Hainan Expo and Hainan’s exceptional openness, Shiseido enables its consumers not only to enjoy offshore duty-free policies, but also to experience the innovative, diverse and cutting-edge beauty of Shiseido.

Abstract: In the second China International Consumer Products Expo, L'Oreal Group, Shiseido group and Kose group not only brought new brands and products, but also brought new environmental protection concepts.

Abstract: At the event, L'Oréal mainly presented new products from four brands: Lancome, YSL, L'Oréal Paris, and Prada. According to CHAILEEDO’s report, on July 28, China International Consumer Products Expo held a “Consumer Expo debut” new product launch event. 68 brands from 28 international and domestic well-known companies brought 104 new products of different styles and series to the event. As the main brand of France, the guest of honor at this Expo, L'Oréal Group presented itself at first as an important guest at the event. This is the second time that L'Oréal has participated in the Consumer Products Expo, and it is been 25 years since it enters China. This time they not only brought new products, new services and new experiences to consumers, but also jointly released the first domestic " Guidelines for the Promotion of Sustainable Consumption in the Daily Chemical Industry " together with the China Sustainability Tribune of the Ministry of Commerce and the China Environmental Protection Foundation, hoping to promote the sustainable development of the cosmetic industry. At the event, L'Oréal mainly presented new products of four brands: Lancome, YSL, L'Oréal Paris and Prada. Lancome professional Skin Screen can detect the Skin condition from 12 dimensions in an all-round way and provide customized skin care services for consumers of different ages. YSL's three main products were Blouse, TUXEDO and JUMPSUIT of the LE VESTIAIRE series, which shared the classics with Chinese consumers. L'Oréal Paris has specially launched REVITALIFT FILLER for the Hainan duty-free channel, which is the leader in European sales. Prada is a high-end brand of L'Oréal Group. Its debut showcased that L'Oréal is optimistic about China's high-end beauty market. Zhenzhen LAN, Chief Corporate Affairs and Engagement Officer of L’Oréal North Asia and China, said at the event that consumption has become the top of troika for China's economic growth. The concept of sustainability is also gradually accepted by consumers, and more and more consumers are willing to pay for more environmentally and socially responsible products. At present, China’s consumption of carbon emissions in 2021 account for 53%, but the carbon emissions of industrialized countries will account for 60 to 80%. It can be predicted that with the development of China's industrialization and consumption upgrade, the proportion of China’s consumption of carbon emissions will further rise. Retail has always been an important segment for L'Oréal, with 75 years of experience in global travel retail channels and more than 45 years of retail experience in the Chinese market. Adele ZHANG, General Manager of L'Oréal China Travel Retail, shared the data of sales channel proportion of L'Oréal global travel retail market in 2021 at the event. In the post-pandemic era, the airport's retail channels accounted for 25%, which was fully overtaken by urban duty-free shops (43%) and duty-free shop platforms (29%). She also claimed that the future of travel retail in the pandemic era will focus on Hainan and e-commerce. As a province with excellent geographical and political conditions, Hainan received 88 million tourists in 2021. Also, L'Oréal saw e-commerce growing strongly against the trend in 2021, and believed that it will also become an important growth point in the future. Fabrice MEGARBANE, President of L’Oréal North Asia and CEO of L’Oréal China, said at yesterday’s media conference that the Consumer Expo is a good channel for communicating with Chinese consumers. The "Consumer Expo debut" new product launch event held at this Consumer Expo provides a good publicity channel for various participating brands, allowing more consumers to understand overseas products, and allowing overseas enterprises to understand Chinese consumers better.

Abstract: In the first half of 2022, the market size of Chinese smart oral care products in social media platform was $55 million, of which the total amount of TikTok China's GMV was $50 million, an increase of 85% year on year.

Abstract: The 2nd China International Consumer Products Expo(CICPE) will be held in Hainan Province on July 25 (China Standard Time). It is expected that more than 600 global new products will debut, and a number of internationally renowned cosmetic brand groups will present their new product. The 2022 China International Consumer Products Expo will be held from July 25 to 30 in Haikou city, Hainan Province. CHAILEEDO learned that the Expo is divided into international and domestic exhibition areas, with a total area of ​​100,000 square meters, an increase of 25% over the first session. The number of exhibiting brands has increased significantly compared with the previous year. It is expected that more than 600 global new products will debut, and many customer products will be display. The top international beauty groups participating in the expo are: Estée Lauder Group, L'Oréal Group, Pierfarber Group, Shiseido Group and Coty Group, etc. Estée Lauder Group will participate in the Expo as a group for the first time, with 13 iconic brands on display. Estée Lauder, LA MER, M·A·C, Clinique and Jo Malone London, etc. Besides these brands that have been sold in China mainland, Estée Lauder Group is also expected to present two brands that will be introduced in China mainland in the future - Le Labo and Aveda. It will be a new visual experience for visitors. According to L’Oréal China, L’Oréal Group will bring 19 international beauty brands to the Expo. According to the news, L’Oréal exhibition area will be divided into 6 different sections. Among them, the innovative technology exhibition area will display the L’Oréal Paris Skin Genius (L’Oréal skin detector) and bring a limited version of L’Oréal Paris Revitalift filler in Hainan Province. In the new product quick review exhibition area, L’Oréal will usher in the debut of the two major brands in Hainan's tourism retail business. Prada fragrance will officially launch its beauty series in 2023, and it will bring its latest products to the Expo. The Japanese high-end skin care brand TAKAMI, which is planned to be listed in 2023, will also show up. A few days ago, Nicolas Hieronimus, the CEO of L'Oréal Group, expressed his gratitude to CICPE through a video. He said that L’Oréal has gradually become the largest beauty enterprise in China, and China has also become the second largest global market of them. He hoped that the exhibits at the Expo can meet the diversified demands of Chinese consumers for beauty. In addition, in this consumer expo, Shiseido officially released a new R&D concept "DYNAMIC HARMONY". Under the guidance of the new concept, two skin beauty technology-Shiseido "ULTRAVIOLET conversion technology" and "gene testing method”, and its 19 popular brands will be introduced to consumers. Coty Group will debut its iconic beauty brand to showcase its latest products that are more innovative, sustainable and clean, including perfume, makeup and skin care flied. Pierfarber group will bring its Avène and Rene Furterer brands to the French exhibition area of Expo. This Expo has added a domestic product exhibition area, with an area of ​​5,000 square meters. Bloomage Biotech, a leading hyaluronic acid company, and Pien Tze Huang, a China's time-honored brand also participated in the exhibition with new products, showing the unique charm of domestic consumer products to the audience.

Abstract: Chinese high-end science and technology beauty brand OGP (Osmosis Growth Purity) has developed and launched a number of products using the blue crystal peptide system based on technological breakthrough. OGP and Florasis, a well-known Brand in China, belong to the same parent company -- Zhejiang Yige Beauty Group Co., Ltd. Four new products with copper peptide as the main ingredients are launched at the conference, by which the group expects to open up the high-end anti-aging market. On July 20, 2022, the first international summit on the innovation of copper peptide cosmetics (hereinafter refers to as "Copper Peptide Summit") was held in Hangzhou, hosted by the Chinese anti-aging brand OGP.Upon years of research, OGP released four products: Activate Peptides Repairing Mask, Activate Peptides Energize Double Essence, Activate Peptides Energize Repair Cream, and Activate Peptides Revitalizing Saturating Serum, all of which highlight the anti-aging effect.The copper peptide anti-decay system developed by OGP has overcome many technical bottlenecks in cosmetic applications, aiming to offer different anti-decay experiences for consumers. Bose, retinol and polypeptides have long been hailed as "the three perfect anti-aging ingredients", and copper peptide is one kind of polypeptides. The copper peptide was not well known at first. But in recent years, after strong recommendation of the ingredient-conscious consumer group, copper peptide is gaining wider currency in the market featured by collagen stimulation, anti-inflammatory skin restoration, skin fortifying, anti-aging effect.However, compared with other anti-aging ingredients across the market, its material is costly with defects as follows: easily inactivated, bad penetration and difficult matching with other products. "The R&D team has developed a new formula for the application of copper peptide from the aspects of preservation, penetration and synergy, creating a copper peptide anti-aging system and successfully leading the trend of copper peptide application in cosmetics," said Tan Qi, director of R&D of OGP.The copper peptide anti-aging system is divided into three technologies: the peptide trisome preservation technology, guarantee for the activity of copper peptide in the whole formulation; the two-factor penetration technology, for high-efficient penetration and maximum efficacy of copper peptide; application of targeted anti-wrinkle polypeptide, for enhancement of the anti-wrinkle effect.Three major technologies combine to improve defects in copper peptide products. According to the data of Tmall in 2021, retail sales of anti-aging product market reached 87 billion yuan, up by 11% year on year, the per customer transaction was USD 33.78 with its growth rate up by 21% year on year. Its market scale is second only to that of moisturizing product and ahead of markets of skin restoration and whitening.Industry professionals hold that China's overall consumption of anti-aging cosmetics will top 100 billion yuan. According to data released by the National Medical Products Administration, as of May 2022, more than 20 thousand cosmetic product's name containing "polypeptide/peptide" are registered, including more than 2500 cosmetic product's name containing "copper peptide".Data from Beauty, Evolution, an app updating latest skin-care and beauty industry information, show that in the past three years, the number of products containing copper peptide has increased significantly.By June 2022, the product number had reached 24587, up by 6.65% year on year.Procter&Gamble's brands Snowberry, Chinese brand MonsterCode, Uniskin, MEDREPAIR and Dr.alva are all enjoying popularity in the market for their copper peptide essence, and CHICMAX's KANS also released its own anti-aging copper peptide platinum package last month.Growing bodies of brands are focusing their R&F on this popular ingredient. OGP selected the American company Active Peptide as a raw material supplier as a partner, which is OGP for blue copper peptide with purity above 99%.The two partie also signed an agreement to establish a Sino-American research center for joint innovation of copper peptide and carry out more in-depth and closer cooperation.This serves as an paradigm for Chinese companies to open up international vision of product R&D and to explore wider access to global market. For years, such industry giants as Procter&Gamble, L 'Oréal have occupied the world anti-recession market, and most Chinese cosmetics companies still follow the OEM/ODM.In recent years, Chinese companies have tried to turn the table with a not-to-be-outdone determination.Through scientific and technological innovation, increase investment in R&D, Chinese companies cooperate with overseas high quality upper and lower reach enterprises, actively improve the layout of high-end anti-aging product market, seek breakthroughs constantly, establish their own high-end brands and gradually edge into the high-end skin care market.

Recently, the official website of AOXMED, a high-end anti-aging brand of BTN, was officially launched. The brand is targeted itself as “only for professional beauty”. The launch of AOXMED means that BTN has officially entered the high-end anti-aging aesthetic medical market. Its multi-brand matrix has been further improved. According to CHAILEED, in BTN's 2021 financial report, the company's revenue in 2021 was $595 million, an increase of 52.57% year-on-year, of which the performance mainly comes from the main brand Winona. This single brand achieved revenue of $582 million, accounting for more than 98% of the company's revenue. In addition to AOXMED, BTN's brands include the leading brand for sensitive skin, Winona, and the baby care brand Winona Baby, which can be seen as a clear difference between AOXMED and its original brand. According to the 2021 annual data from the Tmall channel, in the cosmetics category, the retail sales of the anti-aging market reached $12.86 billion an increase of 11% year-on-year with a unit price of $33.8 and a year-on-year growth rate of 21%. Its size is second only to moisturizing ahead of repair and whitening markets. The prevailing view in the industry is that the overall consumption scale of anti-aging cosmetics in China will exceed $14.78 billion. According to Data insider, the GMV of group's main brand Winona in Chinese 618 Shopping Festival reached $66.51 million reaching double-digit growth year-on-year and ranking Top 7 in the Tmall beauty category. Its iconic single product Natural Skin Care achieved single product sales of over $14.78 million during the Chinese 618 Shopping Festival. The company has also recently invested in the Chinese makeup brand FUNNY ELVES to lay out the makeup track. It is expected that AOXMED will become another star product of BTN after its launch to further improve the company's product matrix and enhance its growth momentum. In contrast to China's leading cosmetic companies, the multi-brand matrix seems to be traceable. The hyaluronic acid giant Bloomage Biotech has four main brands, namely Biohyalux, Quadha, Medrepair and Bio-Meso. These four brands have different focus: Biohyalux digging deeper into the efficacy of hyaluronic acid, Quadha focusing on anti-aging, Medrepair focusing on sensitive skin repair, and Bio-Meso highlighting the power of technology. Focusing on collagen skincare group Giant Bio also has two ace skincare brands, Kefumei and Collgene with Collgene focusing on anti-aging and Kefumei focusing on skin repair and maintenance. These two brands are the third and fourth best-selling brands in China's professional skincare products industry in 2021 contributing 90% of Giant Bio's revenue. Thus, the Group's multi-brand matrix strategy is the way to go. It is reported that the main products of the AOXMED brand are skincare + drinks, which are mainly divided into three series: Rejuve Revitalizer, MeiYan and ACID DRINK. Now it has been on line skincare + drink series, of which Rejuve Revitalizer series for skin care products, including 8 sku. ACID DRINK series for beverage products, currently on line GABAPORIA COCOSγ-AMINOBUTYRIC ACID DRINK and ROSA ROXBURGHII POMEGRANATE DRINK. Mei Yan series products will soon be on line. In the channel, AOXMED said the brand will be the breakthrough of high-end medical institutions in the offline channel. Minsheng Securities related research report said, according to BTN company performance meeting, this year, AOXMED is expected to be placed into 400-500 terminal medical beauty institutions in South China and North China. After the launch of the AOXMED, BTN Group brand matrix further improves the mass line to Winona as the core brand leading Winona baby, Zirun, Doudoukang for synergistic development. Its high-end line after Beauty Answers added another member with gradually growth. In addition, after the main brand Winona launched a series of anti-aging products, the company set up another brand to focus on the high-end anti-aging market. It indicates its determination to further enter the high-barrier anti-aging track in the skin care industry.

Abstract: The new brand of COGI designed for problematic skin, COGIPRO, is now available. The emergence of this brand fills the gap of the group's effective skin care line, thus improving the brand structure layout of offline channels together with the group's existing brands. On July 21, 2022, COGI officially announced the birth of its new brand COGIPRO at the 14th Journey of Love event. CHAILEEDO learned that the brand adopts an exclusive off-line model, aiming to meet the"consumer demand", address "problematic skin characteristics" and delve deep into effective skin care market segments. It is reported that COGIPRO brand has been formally established gained its approval in 2018, adding to the existing brands for the major brand matrix. Apart from its mass-market technological skincare brand COGI, Hydrate Essence Mask brand "Yipianbaping", soft skin care brand COGI FORMULA, COGIPRO mainly target the problematic skin to cater to groups of sensitive skin, providing spot-on solution for all problems of sensitive skin, and have created a number of hit products including the Double Serum Rejuvenate & Repair Essence Oil. In May, COGIPRO launched the Toleriane series, including Tender Defender Soothing&Moisturizing Essence Toner and Copper Peptide Repairing Essence and other products. Building a brand matrix in the skincare industry is not uncommon. The leading hyaluronic acid company Bloomage Biotech, which has four brands under its wing(BIOHYALUX, Quadha, Medrepair and Bio-MESO), recorded $ 434 million in revenue for the first half of 2022.And the COGIPRO's emergence happens to filled the vacancy of the group's effective skincare line, thus improving the brand structure layout of offline channels together with the group's existing brands. The path GOGIPRO selected has a great bearing on the mounting situation of effective skin care market. Beauty skincare industry has recorded solid growth in recent years with market scale expanding in a faster pace, and the consumer demand for effective skincare products is also on the rise. According to data from Euromonitor, the market scale of China's effective skincare products reached 81 billion yuan in 2020, up 9.46% year on year and is expected to top a hundred billion yuan to take up 22.9% of the whole market. The report also notes a relatively robust market growth for products of sensitive skincare. The growing bodies of people with sensitive skin present a high demand of skin repairing, leading to the skin sensitivity being the second biggest skin problem consumers want to improve the most. "Winona" brand best embodies the Pareto principle among all sensitive skincare brands. According to Euromonitor statistics, Winona brand ranks first in the domestic market for dermatology-level skincare product in 2021, with its market share up about 2% from 2020. Compared with 2020, "Winona" brand's leading edge over second and third place continues to expand, "Winona" domestic market share is close to second and third place combined, showing a prominent Pareto principle. Therefor GOGIPRO has a long way to go in the R&D of effective skincare products. At the moment, the competition of Chinese cosmetics industry is not only reflected in R&D, but also very important. Over the past 30 years, COGI has channeled great efforts in CS channels and established multiple reliable offline channels, so far owning tens of thousands of outlets, which also enables COGIPRO to compete with other brands in staggered online periods and prosper in its offline business. Jin Yuqiu, the new deputy general manager and director of brand center of COGI Shanghai, noted that, after years of unremitting efforts, COGI has formed a differentiated brand matrix dedicated to offline channels. COGI not only boasts celebrity endorsement, variety show's huge investment, but also the content of fine operation offline. "COGI will continue to develop online channels and keep up the good work offline, and empower its terminal sales in a gradual manner to reinforce its brand with great influence." The uphill battle for COGI and its new brand COGIPRO in competition is just getting started, thus only through multi-pronged efforts from channels, products, scientific research can they secure a long-term development.

Abstract: Shiseido Group's first revolutionary sunscreen technology "UV conversion technology" has been applied to the Anessa Sun Dual Care. It is worth mentioning that Shiseido will participate in the China International Consumer Products Expo in 2022 with brands such as Anessa. Recently, The Shiseido Group claims to have created the industry's first revolutionary sun protection technology - "UV Conversion Technology". Inspired by plant photosynthesis, Shiseido has transformed harmful UV radiation into skin-beneficial "skin-beautifying sunshine", and combined this technology with the original sunscreen technology to develop a new "Sun Dual Care Technology™" with both sunscreen and skin care benefits. "(Sun Dual Care Technology™). This Shiseido-developed technology can promote the production of hyaluronic acid and collagen while protecting against the sun, accelerating barrier repair and improving skin condition. Moreover, with the group's strong research strength, this technology has been applied to many of the group's brands. Anessa, a professional sunscreen brand known as the "originator of the Japanese sunscreen industry", has applied this innovative technology in the brand's first Anessa Sun Dual Care launched in China, which achieves the dual effects of sunscreen and skin care in one bottle, providing consumers with a new, efficient and convenient solution. It provides consumers with an efficient and convenient new sunscreen experience. As basic skin care, sun protection has always been an immediate need for consumers. OIPB data shows that the Chinese sunscreen market size reached $2.1 billion and is expected to reach $3.6 billion by 2024. CHAILEEDO learned that, as the public's awareness of sunscreen becomes more profound, the sunscreen market is gradually evolving to segmentation and diversification. In the face of the tens of billions of sunscreen market, the major brands have shown their iconic products to compete in this market, the list of TOP 9 hot-selling single products, Shiseido's Anessa Perfect UV Sunscreen Skincare Milk is ranked No. 1. Winona Natural Skin Care and Shiseido The Perfect Protector ranked 2nd and 4th in the list. It is worth noting that, according to the Taobao Live ON MAP "2022 January-April Taobao Live Sunscreen Report", the heated concept of skincare also penetrated from the foundation to the sunscreen, consumers have higher expectations for the last step of skincare routine. Based on the sunscreen skincare demand, products of this type have emerged. The parent company of Anessa, Shiseido, has also been moving more frequently in China recently. First of all, China, the second largest market for Shiseido Group, had sales of $374 million in the first quarter, down $968 million yen from the same period last year, a decline of 20.6%. In this regard, Shiseido explained in its earnings report that sales and operating profit of the Shiseido Group fell in the first quarter of 2022 due to factors such as lower sales volume in China than last year and the slow recovery of consumer desire for cosmetics in the Japanese domestic market. And in May this year, Shiseido's first specific investment fund, Ziyue Fund, was officially landed in China. Shiseido China confirmed that the entity of Ziyue Fund is Xiamen Ziyue Equity Investment Partnership, with a total registered capital of $3.6 million. According to Shiseido China, "Ziyue Fund will focus on investment opportunities in emerging brands and upstream and downstream related technology service companies in frontier markets such as beauty and health." It is worth noting that Shiseido will bring 19 of its popular brands to the China International Consumer Products Expo in 2022 and present more innovative technology and brand achievements for consumers by relying on the open global display platform of the China International Consumer Products Expo. This year, Shiseido Group's new luxury men's skincare brand designed for Asian "Generation Z" men will make its global debut at the China International Consumer Products Expo and high-end perfume and makeup brand Serge Lutens will also make its Consumer Expo debut. As the largest overseas market for the Group worldwide, Shiseido will also further explore its growth potential in China.

Abstract: Recently, the Beauty Huangpu Phase I Project (D District) has been completed and the Beauty Huangpu Showroom was opened. After completion, it is estimated , by 2024, to produce 2 to 3 leading beauty enterprises with an annual revenue of over 10 billion yuan, and 1 to 3 local enterprises with an annual revenue of over 5 billion yuan (USD 740 million). On the morning of July 19, all eyes were on Huangpu District, where the scale of the high-end daily chemical industry exceeds 100 billion yuan (USD 14.8 billion), the scale of the cosmetics industry exceeds 80 billion yuan (USD 11.84 billion), and the cosmetics output value exceeds 40 billion yuan(USD 5.92 billion), because the day marks a exciting moment for the beauty and health industry of Guangzhou development zone, the Beauty Huangpu Phase I project (District D) was completed with the Beauty Huangpu exhibition hall opening to public. The project will center on four major fields of health management, aesthetic medicine, WITMED and medical e-commerce, integrate strong enterprises in China and the global health industry, introduce the upper, middle and lower reaches industrial chain of large health that covers technology, research and development, production and other industrial value links; It will pool research institutes, testing centers, headquarters economic zone, industrialization acceleration zone and core technology manufacturing enterprise zone, rely on the development zone's strong support and own industrial resources, progress on the overall planning of Guangdong-Hong Kong-Macao Greater Bay Area, utilize land efficiently, so as to present the "Beauty Huangpu", a first-class health industry clusters in Guangdong-Hong Kong-Macao Greater Bay Area.It will strive to breed 2 to 3 leading beauty enterprises with an annual revenue of over 10 billion yuan (USD 1.48 billion) and 1 to 3 local enterprises with an annual revenue of over 5 billion yuan (USD 740 million) by 2024. According to the latest figures as of May 12, 2022, Guangdong Province boasts 2,943 licensed cosmetics manufacturers, taking up 56% within China's total.The output value accounts for half of that of the entire industry in our country.Among them, licensed cosmetics manufacturers in Guangzhou account for over 60% of the whole Guangdong province with their locations mainly in Baiyun, Huadu and Huangpu District, respectively building three beauty industrial parks: "Baiyun Beauty Bay" beauty and health industrial park, CBCITY and Beauty Huangpu.In addition, other provinces and cities in the country have also completed some beauty industry parks, including The Oriental Beauty Valley in Shanghai, Beauteville in Huzhou, Future Beauty City in Beijing and West Beauty Valley in Chongqing. Recent years have witnessed the uprising trend of Chinese beauty industry with local brands mushrooming and booming. According to the National Bureau of Statistics, the “beauty value” economy represented by cosmetic products has registered a retail consumption growth rate of nearly 14% in 2020, and the consumption reached a staggering 340 billion yuan (USD 50.32 billion). China's consumption of cosmetics per capita is USD 43, which is far lower than that in countries like the United States, Japan, and Korea where the consumption of cosmetics is relatively mature. And the consumption polulation and the consumption per capita are all on the rise, proving the enormous potentials of the domestic market.The market share of middle and high-end cosmetics is about 30%, and the sales scale is up by 28.08% year on year, a figure much higher than the 6.95% in the mass cosmetics market, which also showcases the robust demand of Chinese consumers for high-end cosmetics. Capital markets have boosted local beauty brands since 2016; With the rise of “Guochao”, the Chinese fashion trend, consumers are more likely to purchase domestic goods, and homemade beauty brands have been winning more consumers. With the new media bringing forth the dividend of the online traffic, Chinese beauty brands seize the opportunities from livestreaming, short-video, new social media and the like to occupy the market in no time. And there are so many factors propelling the rising new brands rapidly gaining markets by excellent cost-effectiveness. In 2020, the market share of the new and aggressive beauty brands take up 18.9% of our home market. In terms of manufacturing, Chinese cosmetics manufacturing industry, on the whole, is featured by: low added value products, small-scale enterprises, low-performing brands, redundant links in OEM's process, low industrial concentration of OEM, export product’s manufacturing centered on material and semi-finished links.In June 2020, the Regulations on the Supervision and Administration of Cosmetics was issued to promote high-quality development of China's cosmetics industry, tightening the management of cosmetic materials and products on record and raising the entry threshold for relevant market entities. Some unqualified, non-conforming manufacturers of weak competitiveness who fail to meet the manufacturing standard will face a round of elimination, hence the manufacturing industry will gradually shift from an extensive development to an intensive one. From the development of Chinese beauty industry and the emerging beauty industrial parks in recent years, we can identify the main development strategy of Chinese beauty industry going forward: first, give great support to domestic brands, to build marketing demonstration platform. Second, step up the building of R&D platforms, establishing a R&D system integrating efforts of enterprises, universities and research institutions in a bid to promote R&D and innovation capability. Third, work to upgrade and reform OEMs, develop smart manufacturing and flexible manufacturing to boost production efficiency. Fourth, attach importance to the supply chain of cosmetics materials, promote the production of domestic materials, which means to channel greater efforts into developing the "original ingredient" for our own cosmetic products.