Abstract: L'Oréal China news, L'Oréal Group will bring 19 international beauty brands to the second China International Consumer Products Expo (hereinafter referred to as Hainan Expo) to be held from July 26 to 30. And L'Oreal will bring Prada perfume and the much-loved TAKAMI to the Expo for the first time. According to CHAILEEDO, in this Hainan Expo, L'Oreal Group will focus on the concept of environmental protection and bring a limited version of L'Oreal Paris Revitalift Filler in Hainan, Biotherm Cera Repair Cream, Armani Beauty perfume new MY WAY, as well as new technologies including "Mr. Bones" augmented reality tools and Lancôme professional skin detector etc. The total area of the exhibition hall has been expanded from more than 500 square meters last year to 625 square meters this year, which will bring more exhibition contents to the visitors. According to CHAILEEDO, L'Oreal's exhibition area will be divided into 6 sections: "Beauty - Innovative Technology", "Beauty - Guardian of the Earth", "Beauty - Ultimate Experience", "Beauty-Fulness Perfection", "Beauty - High Definition Private Enjoyment" "Beauty - New Product Appreciation". In the Ultimate Experience section, Lancôme will display its Absolute series and Lancôme's most advanced professional skin testers. KERASTASE will exhibit its full range of high-end hair care products as well as its KERASTASE microscope testing tool, which can analyze the scalp at 600 times magnification. In the Fulness Perfection section, Maison Margiela will present its new spring eau de parfum "When The Rain Stops". Armani will also unveil its new fragrance MY WAY and its brand Armani. Armani will also unveil its new fragrance "Self without Borders" and its brand Armani/Privé. Moreover, Viktor & Rolf (Viktor & Rolf) Flowe Bomb perfume will usher in the debut of the Hainan Expo. In the New Product Appreciation section, L'Oreal will usher in two brands in Hainan travel retail business debut: Prada perfume will be officially launched in 2023 its beauty series and it will bring the latest product in this Expo. The Japanese high-end skin care brand TAKAMI which plans to be listed in 2023 will also appear in this Expo. L'Oréal Group will also focus on showcasing Valentino Beauty in China. As it was announced at the first Hainan Expo in May 2021 that Valentino would be coming to China. June 2021 saw Valentino Beauty landing in China. It officially entered Chinese e-commerce platform Tmall in July and opened its first offline flagship store in September. Valentino Beauty has now opened a price-sale boutique in Hainan. In terms of its two actions, China is indeed one of Valentino's important territory. It is reported that this is the second Hainan Expo that L'Oréal Group participated in. In the first Expo, L'Oréal's brands YSL Beauty and Armani Beauty also showed consumers the virtual makeup trial technology supported by ModiFace, L'Oréal's technology company. L'Oréal also presented more than 10 beauty seminars during the 4-day non-stop exhibition period of the first edition of the fair to stimulate the interest of visitors in the latest beauty products of the L'Oréal brand matrix. L'Oréal's President of North Asia and CEO of China, Fabrice, has said, "The China International Consumer Products Expo is an important platform for the display and trading of global consumer goodies and its successful holding will help build a more prosperous Hainan economy and even boost the prosperous development of the entire Chinese consumer market." L'Oréal is the largest beauty group in China. This year, L'Oréal also celebrates its 25th anniversary. L'Oréal is a witness, participant and contributor to a series of favorable business policies for China's reform and opening up. And the group is confident in the long-term growth of Hainan's tourism business and is committed to bringing more and better products and experiences with its solid expertise in the travel retail channel.

Abstract: Recently, Guangdong Medical Products Administration's official WeChat account posted an article, noting that some "influencer-promoted cosmetics" added with gold or platinum are emerging on the market.

Abstract: Chinese skincare brand CHANDO Men held the first JALA Men's Creative Event by using two new hair waxes and styling sprays from the "Men's Cool Hair Series" to create ideal hairstyles for more than 40 men on site. Beauty and personal care giants also launched new brands for Chinese men one after another. According to CHAILEEDO, the two products are currently priced at $20.5 each in CHANDO flagship store on the Chinese e-commerce Tmall with a total sales volume of 49 for CHANDO Himalaya Energy Styling Spray and 82 for CHANDO Himalaya Energy Styling Wax. According to a report by the Foresight Industry Research Institute, as Chinese men's skincare awareness increases, the demand for men's skincare products has been rising. International brands such as Biotherm, Nivea and L'Oreal have also launched various skincare and toiletries for men in China, such as Biotherm Homme Aquapower Set is priced at $81.6 with a monthly sales volume of 1000+. L'Oreal Men's skin care kit is priced at $31 with monthly sales of 9,000 +. In the highly competitive beauty industry, international beauty and personal care giants are also aware of the potential market for men and are launching new brands for Chinese men one after another. At the end of May, Unilever China launched EB39, a skincare brand specifically for high-end men, officially positioned as Unilever China's first light luxury men's skincare brand, the first AI algorithm-driven formula development brand, and the first meta-universe artist skincare brand. The brand is officially positioned as "Unilever China's first light luxury men's skincare brand, the first AI algorithm-driven formula development brand, and the first meta-universe artist skincare brand. A few days after the official launch of EB39, Shiseido Group announced the upcoming launch of Sidekick, a men's skincare brand for the Z-generation. Sidekick focuses on natural ingredient formulated products for Asian Z-generation male consumers. The first collection has been unveiled at Shiseido Beauty Square, an experiential collection store in Tokyo, and was officially launched in China on July 1. The brand has launched an official account on Chinese social platforms Bilibili, TikTok China and Xiaohongshu. It is reported that CHANDO belongs to JALA Group and was founded in 2001. During the Chinese 618 shopping festival this year, CHANDO launched against the odds in the unfavorable situation of the epidemic, achieving a strong outbreak of GMV growth of 28% year-on-year. It gained more than 1 million new members and the sales grew 109% year-on-year in its brand live streaming, which became one of the most outstanding local beauty brands. During the Chinese 618 Shopping Festival this year, CHANDO Himalaya Green Tea Clay was launched, which sold out several times in its Tmall debut and eventually sold 114,000 pieces. It topped the pore-shrinking clay mask list on Tmall after its launch. CHANDO Men's series was launched in 2018. In 2021, CHANDO Men ranked the top 10 in the list of men's skincare turnover during the Chinese Double 11 Shopping Festival in 2021 with a year-on-year growth rate of over 100%, and the official flagship store men's category self-seeding grew over 170% year-on-year. CHANDO Men's products also performed well with the highest selling product being CHANDO Himalaya Energy Glacier Water Moisture Dew. The total sales achieved 600,000+ with a price of $10.7. CHAILEEDO also observed that CHANDO also launched two hair care products this time. Previously, CHANDO officially announced actress Zhao Lusi as the global spokesperson for hair washing and care and launched a new scalp essence that claims to contain ingredients such as super-extreme yeast Ximoyin with the effect on scalp care and improving sensitivity. Combining two phenomena can be seen that CHANDO may develop the sector of hair care or hairstyle. In the new consumer era, the emergence of men's beauty/care brands is essentially related to the changing aesthetic needs of men. It is both inherited and derived and the main driver of all this is brand innovation. In the future, CHANDO will also continue to innovate from product development, and channel construction to marketing content driving the upgrade and iteration of the entire men's category industry.

In July 2022, Maybelline New York launched the new Maybelline Sky High Mascaras. According to L'Oreal officials, mascara is the king of sales in Europe and the United States, sold every 3 seconds in the international market, this custom upgrade is specifically for China. The lash comb of Sky High Mascaras is a dual-use arch-shaped elastic structure and the comb is designed to fit Asian women's eye shapes. The product claims to have been formulated with the Group's new technology to maintain the shape of the lashes. Its MQ restin factor is the highest of all the Group's products and it is fast-drying, waterproof, and oil-resistant so it does not smudge or come off easily. In addition, the mascara is enriched with a new eyelash technology, keratinogen, whose main ingredient, keratin active factor, provides a large number of peptide chains that nourish the eyelashes. In 2020, Maybelline also developed a Super Stay Full Coverage Foundation specifically for Chinese consumers. It is understood that the product was developed by L'Oréal's global R&D center to combine the needs of Chinese consumers for color, texture, and makeup effects. It took three years to find thousands of Chinese consumers to test it before it was officially introduced to the market. Currently, the product is priced at $22 on the Chinese e-commerce platform Tmall with monthly sales of 2,000+ and many consumers giving positive reviews. Since 1917, when the world's first mascara product was produced, Maybelline has been synonymous with trends. In 1997, Maybelline entered the Chinese market. After that, Maybelline has become the introductory makeup "mentor" for many Chinese consumers. It has helped a large number of Chinese channel operators and cosmetic stores to grow rapidly and its makeup products cover almost all of the first-tier cities to remote counties. As one of the core brands of L'Oréal Group, the world's top beauty group, Maybelline's long-term leading position is based on the brand's keen market insight and bold innovative spirit in addition to the excellent quality of its products. At the beginning of the development of the Chinese makeup market, Maybelline took the lead in laying out mainstream channels such as supermarkets and department stores and quickly reached the widest range of mass consumers and laid the foundation for its mass makeup market. At the same time, Maybelline paid great attention to choosing spokespersons in line with consumers' aesthetic trends and vigorously promoted different themes to maintain the brand's international fashion trend. However, in 2018, Maybelline was revealed to have retreated from the market channel on a large scale. Some news was revealed such as "counter shelves at Carrefour, Walmart, Wumart and other hypermarkets in Beijing left vacant on a large scale". At that time, L'Oreal China said in its official response that Maybelline would deploy "a channel strategy focusing on e-commerce, cosmetic stores, department stores, shopping centers and new boutiques" with department stores remaining one of the core channels. "In recent years, consumer upgrading has had a huge impact on the way the public consumes makeup and its sales channels, and experiential consumption and offline online integration experiences have gradually become a daily routine," said Maybelline. "To meet consumer demand more effectively and to reinforce its unique image as a high street fashion brand, Maybelline has decided to strategically transform its offline channel - from the previous department store counter channel to an offline-online interactive experience store." In short, after a complete withdrawal from supermarkets and department stores, Maybelline would keep only boutiques (single brand stores) offline developing in parallel with the online channel in the future. According to Maybelline's official information on the Chinese social platform Weibo, just as the department store counters are being withdrawn one after another, Maybelline was opening more iconic boutiques and flagship stores in parallel. For example, in May 2020, the world's first "Maybelline Trendy Toys Store" opened in Shanghai. In August 2020, Maybelline opened a new boutique in Shanghai InCity Mall. In recent years, Lancôme, Estee Lauder, HR, and other first-tier brands are still accelerating the layout of department stores. This is confirmed in a department store related to the person in charge. According to his introduction, in the past two years, there have been high-end cosmetics constantly stationed in a system. During the Chinese 618 Shopping Festival in 2020, 10 international beauty brands such as Erno Laszlo, TF, Atelier Cologne, SkinCeuticals, GUCCI, Valmont, POLA, Elixir, Filorga, and others are all debuting in Intime Department Store in Ningbo, China. In May of the same year, Dior Beauty sank into the county-level market and the first high-end boutique image store was located in Intime Xiantao Mall. As a global makeup trendsetter, Maybelline New York has always advocated the power of women's confidence while continuously launching innovative products. In conjunction with the launch of the new Maybelline Sky High Mascaras, Maybelline New York also announced the appointment of Curley G as the brand ambassador, which interprets the bold and edgy, and self-confident power of the "chic" girl. Maybelline New York is constantly trying to explore new ways to connect with consumers based on the innovative model of entertainment retailing and to convey the brand spirit of confidence to every consumer.

YSL announced Chinese actor Xiao Zhan as the spokesperson of YSL skincare with the promotional product YSL Pure Shots Night Reboot Serum, The product is priced at $116.9 in its flagship store on the Chinese e-commerce platform Tmall. Xiao Zhan has also endorsed international beauty brands such as Estee Lauder and L'Oreal PRO. YSL has previously announced only one spokesperson in China, Chinese singer Li Yuchun, with 16.324 million followers on the Chinese social platform Weibo. According to CHAILEEDO, these two spokespersons are not only sought after by many followers in China but also well-known internationally. Li Yuchun won the Favorite Artist Mainland China in MTV Asia Awards and Best Selling Chinese Artist in World Music Awards. Xiao Zhan has also endorsed international beauty brands such as Estee Lauder and L'Oreal's high-end hair brand L'Oreal PRO. In 1977, after Yves Saint Laurent traveled to China, he was deeply moved by Chinese culture and was inspired by the shape of a snuff bottle, which led to YSL opium, which is still on the top of the global perfume sales list. The six years since YSL beauty entered the Chinese market, it has coincided with the fastest growing years of China's high-end cosmetic industry, especially in the field of color cosmetics, which is far beyond people's expectations. Under the tide of high-end beauty consumption in China, China has become the world's largest market for YSL beauty brands. It is worth noting that YSL opened the world's largest flagship store in Guangzhou, China at that time. The iconic entry of YSL this time is not only to connect with the most cutting-edge consumers in China but more importantly, to redefine the new beauty retail phenomenon. As the world's largest flagship store of the iconic makeup brand and the largest beauty store in Guangzhou's top shopping center, YSL Beauty continues to redefine new retail with the world's popular technology and overturn the traditional perception and model of the beauty industry based on the integration of the brand's cultural genes. It is reported that YSL comes from the L'Oreal Group. L'Oreal Group's financial report shows that in the first half of 2019, the L'Oreal Group grew 7.3% year-on-year to $15 billion, which is L'Oreal's highest year-on-year growth in more than 10 years, of which the Chinese market and high-end brands, e-commerce is the three key words of the financial report. It is worth mentioning that the Asia Pacific region, where China is located, has become the largest regional market for L'Oreal worldwide, while high-end cosmetics grew by 13.2% in the reporting period, with YSL Saint Laurent beauty among the four largest high-end brands. Not only that, in the earnings report， L’Oreal also praised YSL's Black Opium perfume and YSL lipstick by name. At L'Oréal China's 25th anniversary conference, Mr. Fabrice, President of L'Oréal North Asia and CEO of China, said, "We believe that beauty is the source of technological innovation and that beauty is also creative. Beauty technology allows us to go further today and bring more personalized and innovative products to the market." Last year at the Shanghai Fair, YSL debuted the YSL Lipstick Printer in Asia, a machine that uses 3D printing technology to "print" lipsticks with personalized lip colors for consumers by modulating custom shades with three "base colors". Mr. Fabrice specifically mentioned, "The YSL lipstick printer is particularly popular and consumers think it's great." The Generation Z group has gradually become the main force of beauty consumption and this group also highly overlaps with followers of idols. Traditional beauty brands need young popular stars to bring new vitality to them and this time YSL is also in line with this trend.

Abstract: Chinese beauty brand Spenny launched the "Spenny Admissions - Women's Sponsorship Program", which aims to help women who have been admitted to college but have financial difficulties enrolling. A total of 20 students will be sponsored with each student receiving $740.3. Most of the consumer groups for beauty are still mainly young women. Therefore, in addition to launching suitable products for the targeted audience, brands also pay extra attention to empathy with the female group. According to CHAILEEDO, many Chinese and international beauty brands have repeatedly advocated and supported women. Spenny has also provided support for students who have just finished their college entrance exams in financial difficulties this time. Previously, beauty giant L'Oreal Paris launched the theme campaign named "I'm worth it" on the occasion of this year's International Women's Day inviting stars such as Gong Li, Ju Xiaowen, and Yang Tianzhen to participate in the campaign. The campaign focused on popular topics on women in society and gave full play to the celebrity effect. It encouraged women to "speak out their self-worth." On the same festival on International Women's Day on March 8, Chinese skincare brand Dr. Alva proposed "Your special is not about gender" aiming to remove the gender filter, break the stereotype of women from a higher dimension and discover their beautiful traits. Dr. Alva is a scientific skincare brand from Freda Bio. that deeply researches microecology. This is the first attempt of Dr. Alva on Women's Day since its establishment in June 2018. During the campaign, Dr. Alva gained 10 million exposures through a promotional film. It is not only because Dr. Alva has long continued to focus on women's power and deeply understood the psychological changes and market demand of user groups, but also because the brand always insists on innovation and tells a good professional micro-ecological scientific story. While telling a good ecological science story, it also pays extra attention to telling good humanistic care. Spenny was launched in 2013 focusing on the category of color cosmetics. Unlike most innovative makeup brands in recent years, Spenny has become popular for its cheap price and poor design packaging. The brand made itself known outside of the fixed community which is not through live e-commerce platforms such as TikTok China and Taobao, but through a channel that few other beauty brands have made an effort: Bilibili. Bilibili is a cultural community and video platform that is highly aggregated by young generations in China. Spenny belongs to one of the brands that entered Bilibili as an official account at the earlier time. It released a video on November 2, 2019, by Spenny operators introducing the double 11 activities, which has exceeded 100,000+ views so far. And on November 10 of the same year, it was the founder of Spenny appeared as the founder and confessed in the video with users of Bilibili that "packaging design is not the direction we are good at." Because of the differentiation between technical founder image and color cosmetics brand, it has attracted the attention of consumers. It also made this video a "milestone" for Spenny to be known by more consumers. After this, the boss and employees from different positions appeared one after another. The video was made more from the male point of view to produce content such as R & D experience, lip glaze review from a male operator, how to do lipstick, makeup product recovery, etc. The brand reaches customers in a distinctive way. Through the founder's IP and the staff's real-life profile brand content, the image of Spenny gained attention while the product was also labeled as "cheap" and "large volume". As a result, the distinctive persona of "a company composed of a team of science and technology men, which represents the products have low face value but in serious research and development to produce products with high-cost performance" has gained a lot of consumers' word of mouth and attention. CHAILEEDO observed that in the official flagship store of Spenny, the price range of its products is $3.4 to $12.9 and the highest selling product is Spenny three-shade concealer priced at $7.3 with monthly sales of 20,000+. The brand price is relatively low compared to other Chinese cosmetics. For example, the price range of Perfect Diary makeup products is $4 - $20.6. With the gradual tightening of regulations on cosmetics and various promotional platforms in China over the past two years, the Chinese cosmetics market has gradually emerged from the era of relying on traffic bonuses to seek a rapid rise in traffic. In addition to the basic elements of product quality, R&D technology and price positioning, innovation in content, form and channels will also help brands enter the virtuous cycle of market competition if they want to develop. And this time, Speeny's advocate for women has also achieved the purpose of enhancing the image of the brand.

Abstract: On July 17, S’YOUNG announced that it intends to acquire 90.05% of the equity and some creditor's rights of the parent company of the French high-end cosmetics brand EviDenS de Beauté for about €44.5 million ($44.95 million). According to the announcement, in 2021, EviDenS de Beauté SAS achieved a revenue of $19.8 million and a net profit of $5.5498 million. According to CHAILEEDO, the acquisition will be completed by wholly-owned subsidiaries HONG KONG YU JIA INTERNATIONAL TECHNOLOGY COMPANY LIMITED and JYJH LIMITED. It is planned to purchase a total of 90.05% of the equity of EviDenS de Beauté SAS held by the entities including Kazokou SAS and Orsay 53 SAS for €44.5 million ($44.95 million). At the same time, it purchased the debts formed by the dividends declared at the beginning of the year but not paid by EviDenS de Beauté SAS held by the original shareholders at a par value of €5 million (approximately $5.05 million). The total value of this transaction is €49.5 million ($50 million). According to the announcement, in 2021, EviDenS de Beauté SAS achieved a revenue of $19.8 million and a net profit of $5.5498 million. EviDenS de Beauté SAS has an international Ph.D. R&D team, and its high-end anti-aging brand EviDenS de Beauté has also been globalized. The brand's total global terminal retail sales exceeded $74.1 million. And that's why S’YOUNG is interested in EviDenS de Beauté SAS. According to public information, the EviDenS de Beauté brand was founded in 2007. It combines Japanese skin care technology and French skin care sophistication. It is a luxury anti-aging brand specially developed for sensitive skin. The products cover all daily skin care products such as makeup remover, facial cleanser, cream, essence, mask, etc. CHAILEEDO learned that as early as 2016, EviDenS de Beauté opened a Weibo account to connect with Chinese consumers. In 2019, the brand officially entered the Chinese market. Now it has opened a Tmall store, an online mall in the Mini Program, etc., and has settled in China's high-end department store SKP. In China, S’YOUNG is the exclusive agent of the brand. S’YOUNG said, "EviDenS de Beauté has gradually gained popularity in China's beauty market, accumulated a high reputation among consumers, and achieved great growth in brand revenue." At present, EviDenS de Beauté has carried out business layout in many countries or regions around the world, and its sales areas include more than 30 cooperative countries or regions such as the United States, France, the United Kingdom, Japan, South Korea, Thailand, etc., and it has settled in Galeries Lafayette, Rosewood Hotels, Tsum, King Power, Harrods, etc. S’YOUNG said that after the completion of the above acquisition, EviDenS de Beauté SAS will become its holding subsidiary, which will be included in the company's consolidated statements. In addition, the founder of EviDenS de Beauté SAS still holds a minority of shares in the company and will serve as the legal representative of the company, and the original team of EviDenS de Beauté SAS will continue to remain. After the acquisition, EviDenS de Beauté SAS will continue to maintain independent operations. S’YOUNG was originally Yujiahui. It is the parent company of domestic skin care brands such as UNIFON, MIHOO, and Huayaohua. S’YOUNG was listed in February 2018. However, the company's performance in the first two years after its listing did not improve by leaps and bounds. On the contrary, its net profit fell by 80% to less than $4.446 million in 2019. Since then, the company's strategy has changed, and the business model of "with its own brand as the core, driven by its own brand and agent brand" has been launched, and in March last year, the company name was changed to S’YOUNG. In this model, S’YOUNG quickly turned the situation around. CHAILEEDO combed the financial report of S’YOUNG and found that the company's revenue has increased from $243.9 million before listing (2017) to $742.5 million in 2021, and its performance has doubled in five years. In particular, in 2020, the net profit increased by 417.58% after the decline of the previous two years. And it still maintained an increase of 70% in net profit last year. According to incomplete statistics from CHAILEEDO, since 2018, seven companies, including YSG, GoLong, Proya and S’YOUNG, have invested in/acquired foreign beauty brands and companies, or established corresponding industrial funds for overseas high-quality beauty brands. For example, after its listing, YSG has successively acquired two international brands, the French high-end skin care brand Galénic and the British high-end skin care brand Eve Lom. According to Proya's 2021 financial report, the revenue of the company's cross-border agent brand is $20.1 million. Today, Chinese companies have gradually formed a trend of "buying products from all over the world", which is completely different from the previous situation in which international beauty companies aggressively acquired Chinese beauty brands. Some industry insiders believe that the massive acquisition of foreign beauty brands by Chinese beauty companies represents a new stage in the internationalization of China's beauty industry. It is an inevitable stage for the development of China's cosmetics industry to improve the brand and category structure of local cosmetics companies by acquiring international high-quality beauty brands.

Abstract: CHAILEEDO found that not only PROYA, but also many domestic top beauty brands use self-broadcasting as an important channel to achieve brand performance growth. In contrast, there is a view that " Without leading online influencer, it's hard to create a new brand".

Abstract: On July 13, Voolga updated its prospectus and replied to the second round of review and inquiry letter from the Shenzhen Stock Exchange. In the updated prospectus, Voolga said that in the first half of 2022, mainly due to the impact of the epidemic, some regional terminal channels can not operate normally and the sales growth rate has slowed down. The company is expected to achieve operating income of $118 million to $124 million, an increase of 0.03% to 5.03%. In the first half of the year, after the independent production of Voolga, it enjoyed the profit from the production link and the gross sales margin improved. The net profit attributable to the parent company is expected to be $49.5 million to $54 million, an increase of 7.35% to 16.96% year-on-year. The net profit attributable to the mother withheld is 329 million yuan to 361 million yuan, an increase of 8.18% to 18.70%. Previously, on June 23(China Standard Time), the prospectus published by Voolga showed that in 2021, its operating revenue was $246 million, up 4.08% year-on-year. The net profit was $120 million, up 24.38% year-on-year; net profit after deduction of the mother was US$116 million, up 62.29% year-on-year. The gross profit margin reached 81.95%. It is obvious that Voolga in 2021 and the first half of 2022 is outstanding in terms of both net profit and gross profit margin level. In the reply to the inquiry letter, in response to the query about its R&D staff and competence competitiveness from Shenzhen Stock Exchange, Voolga said that its main business activities are focused on the brand empowerment link in the midstream of the industry, where the upstream stage forms consumer-approved products through market demand discovery and product formula proportioning. It cooperates with upstream producers in the form of exclusive production and exclusive agency. Comparable companies such as Bloomage Biotech and BTN cover the upstream research and development segment, while Voolga has a different business model and therefore has different investment in research and development. However, Voolga has gradually extended upstream, such as acquiring Beixing Pharmaceuticals in exchange for shares, expanding its R&D staff, and cooperating with external research institutes for new product development. It is noteworthy that in the reply to the use of the funds raised, Voolga said that after the fund raising, it will build its own production base and the production capacity is expected to reach more than 600 million tablets. The company also intends to upgrade and optimize the manufacturing process and product performance of existing professional skin care products. It integrates the upgraded manufacturing process and production technology into the products to meet the high standard of differentiated demand for products from various downstream customer groups. According to the analysis report of Frost & Sullivan, in 2020, the sales of patch products of Voolga was the first in China market for patch professional skincare products, accounting for 21.3%. Among them, its medical device dressing patch products will account for 25.9%, ranking first in China market. Its functional skincare product patch products accounts for 16.6%, ranking second in China market. According to the official website, Voolga was established in 2017, mainly engaged in the research and development, production and sales of professional skincare products. It mainly sells products under the brand Voolga and its sub-brands Voolga Aesthetic Medicin and others. The product categories cover medical dressing products and functional skincare products. It mainly focuses on dressing and patch and film products. It also released different forms of products such as lotion, essence and lotion, spray, lyophilized powder. In its official flagship store on the Chinese e-commerce platform Tmall, Medical Sodium Hyaluronate Dressing is the highest selling product in the store with monthly sales of 300,000+ priced at $6/2 pieces ranking first in the Tmall medical dressing list. The global aesthetic medicine market size was valued at $99.1 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 14.5% from 2022 to 2030. Due to the aesthetic medicine market explosion, post-treatment skincare has grown one after another. For example, OxygenCeuticals Ceutisome PP Mask and Koi Beauty Derma Roller Face Microneedling Professional Repair Cool Sheet Mask Acne Healing Patch have been well received by international consumers. Since the suspension of the IPO at the end of last year, Voolga has recently updated its prospectus twice to continue the process of listing on the Second-board Market. CHAILEEDO will see whether the IPO of Voolga will be able to get the "first share of medical dressing" this time.

POLA Clear Toner was launched in China recently and the product is available in offline stores and online in its flagship store on Chinese e-commerce platforms Tmall and JD. In 2021, POLA reached 38% growth and soared 50% in the Chinese Double 11 Festival. According to CHAILEEDO, the product is officially priced at $133. POLA claims that the product consists of reducing pore, firming, and elasticity, as well as anti-glycation. POLA is from Pola Orbis Group, one of the four major cosmetic groups SHISEIDO Group, Kao Group, and Kose Group in Japan. Pola Orbis Group enjoys two flagship brands POLA and ORBIS and it acquired brands H2O +, Jurlique, Three, and other developing brands. POLA as the company's flagship brand Pola, the company's flagship brand, has a strong presence in the local high-end cosmetics market in Japan. Jurlique and Three already have a presence in the Chinese travel retail market and have opened counters at Beijing Daxing International Airport in 2019 in partnership with CDFG. Pola Orbis Travel Retail plans to accelerate the opening of stores in China starting in 2021 to expand its China business. Headquartered in Hong Kong, the company oversees and operates the growing travel retail business of Pola Orbis Holdings. In 2021, Pola Orbis Travel Retail is reportedly partnering with CDFG to open Hainan's first Pola counter in CDF Haikou Riyue Plaza. The company expects to open a second store in China in 2022. It is reported that Pola released its full-year 2021 financial results earlier this year, which showed that for the fiscal year 2021 (January 1 to December 31, 2021), net sales of Pola Orbis Group increased 1.3% year-on-year to $26.42 billion and gross profit increased 2.5% year-on-year. Its operating profit increased 22.8% year-on-year to $2.5 billion, of which its beauty business accounted for 98% of the group's sales with full-year sales of $26.4 million and another 2% from real estate gains and others. The company stressed that consumption in the Japanese domestic cosmetics market has declined due to the collapse of inbound demand caused by the epidemic. In this environment, on the one hand, the company is highly dependent on e-commerce in terms of its domestic business in Japan. On the other hand, sales in overseas markets, especially in mainland China, continued to grow. The profitability of the ultra-high-end brand POLA, which supports 60% of the Group's revenue, was in the spotlight. The brand's annual sales of $15.54 billion, a slight increase of 2.2%. But its profits achieved $2.4 billion, a surge of 49.8%, operating profit margin of 15% with strong performance. As with most other beauty brands, POLA's e-commerce sales rose sharply. Chinese consumers' interest in the POLA brand continues to grow with sales in mainland China up 38% and the brand's sales in China soared by more than 50% on Chine Double 11 Shopping Festival due to the popularity of the BA series. POLA is looking to further enhance the value of its brand and build a medium- to a long-term customer base with efforts to launch highly functional products in the anti-aging and whitening segments, said the company, which is "very focused on the growth market and travel retail in China." In recent years, the Chinese cosmetics market has seen a clear trend towards premiumization and it is international brands like Shiseido that have seized this dividend to usher in a major turnaround in the Chinese market. In the first half of 2019, Shiseido's premium skincare brand saw a 40% year-on-year rise in offline sales in China. From 2015 to 2019, Shiseido's China market sales grew from $1.2 billion to nearly $2 billion with the share of China business climbing by 5 percentage points to 19.1%. Although along with this dividend, POLA, the main brand of the Pola Group, has also achieved some growth in the Chinese market, the overall market size is still very limited. As mentioned above, POLA China's sales in 2018 were only $17.7 million. This is closely related to its conservative channel and marketing strategy. In the face of the huge potential of the Chinese market, luxury brands such as Chanel and CPB have not hesitated to lower their pride to hire Chinese celebrities as spokespersons. It also fully expanded in e-commerce channels and launched digital marketing. Although being noblewoman brands, their target group has long been not noblewomen, and the consumers who were born between 1990 and 1995 are paying for these products. CPB, for example, its 25-29-year-old consumers accounted for nearly 30%. POLA, on the other hand, has been extremely conservative, and its expansion into the Chinese market in recent years is still dominated by offline physical channels and has not hired a Chinese spokesperson. Until 2017, POLA only opened a flagship store on Tmall. At present, POLA has two stores on Taobao, POLA's official flagship store mainly sells skincare and cosmetics. POLA's overseas flagship store mainly sells beauty and health products. However, CHAILEEDO noted that POLA this year began to increase the operation of the e-commerce platform. Take B. A high-end product as an example, the product only has 66 monthly sales in 2020. And as of July 5, 2022 (China Standard Time), the highest product is POLA B.A. cleanser, which is priced at $116.8 with a total sales volume of 2000+. It can be shown that POLA enjoys a strong intention to expand its business in China from the launch of POLA Clear Toner and other moves.

On July 15(China Standard Time), Shu Uemura's official announcement of a new shade of ShuUemura Rouge Matte Lipstick will soon be relaunched. It is reported that the new launch of the lipstick number is also specifically for Asian skin tone special tone. According to CHAILEEDO, the new product uses a proprietary color powder process and new color-holding technology, with rich, saturated colors and claims of long-lasting color. Compared with Shu Uemura Rouge Matte Lipstick, 1.5 times more moisturizing ingredients are added to moisturize the lips and carry makeup comfortably. It is reported that Shu Uemura Matte Lipstick also claims to be designed for Asian skin tones. The Korean media reported that Shu Uemura would end its sales in Korea at the end of September 2021. Its online and offline stores will be closed in phases. After September, consumers can only buy the brand products in duty-free stores. In response to reports that the Shu Uemura was withdrawing from Korea, L'Oreal said that the adjustment involves only the business in Korea. It said, "As a global company, we regularly evaluate our brand portfolio in this particular market based on the needs of the local market and adjust the brand's marketing strategy accordingly." In the Chinese market, the Shu Uemura has also performed well from an online perspective, especially with the Chinese Double 11Shopping Festival in the past few years. Some data show that in the Chinese Double 11 Shopping Festival in 2019, Shu Uemura's pre-sale transactions in 5 minutes exceeded the whole day of the same period of the previous year. During last year's Double, 11, 60,000 bottles of Shu Uemura ONE PIECE limited edition cleansing oil were also sold out in 1 second. The after-effects of hot-selling products can be considered vigorous. However, CHAILEEDO also noted that in last year's Double 11, L'Oreal Group's four brands 3CE, Lancome, YSL, and Armani were listed in the list of top ten makeup. And in this year's 618, L'Oreal's beauty brands 3CE, YSL, Armani, etc. are also on the list of Tmall makeup top ten. Shu Uemura has not been shown in these two lists. For Shu Uemura products, Chinese netizens have also formed two sides. Enthusiasts believe that Shu Uemura's eyebrow pencil, cleansing oil, mascara, and other products are very good and they worry whether the Shu Uemura brand will also be withdrawn from China. There are also opposing voices, "Shu Uemura has nothing good except eyebrow pencil" and "Now there are more and more brands and more and more choices. If you are not the only one with the same price, I will consider others." It is reported that Shu Uemura is named after its founder Shu Uemura. Born in Tokyo in 1928, Shu Uemura moved to Hollywood for various reasons and started his career. With his unique insight into artistic aesthetics, Shu Uemura gradually made a name for himself and became a hot makeup artist in Hollywood through his involvement in film makeup. In the 1960s, Shu Uemura established a studio and a personal makeup company. It was also during this period that he created the first cleansing oil upholding the deep cleansing concept of "oil dissolving oil". It overturned the industry's perception. Thus Shu Uemura is also known as the "father of cleansing oil". Then Shu Uemura's brand gradually took shape. To this day, the cleansing oil remains a pillar of the Shu Uemura with one bottle sold every 7 seconds worldwide. In addition to cleansing oil, and mixing Eastern and Western cultures with professional craftsmanship, the Shu Uemura has also pioneered several categories such as the eyebrow pencil, which has also been highly sought after by consumers and triggered other brands to follow. As a pioneering innovator in the industry, Shu Uemura himself and his eponymous brand Shu Uemura also gained international recognition and attracted the attention of L'Oréal Group. In November 2000, the L'Oréal Group acquired 35% of the shares of Shu Uemura Cosmetics through its Japanese subsidiary to take over the rights to the Shu Uemura brand's business in international markets outside Japan. Shu Uemura became the first brand of the L'Oréal Group to come from Japan. According to the L'Oréal Group, the Shu Uemura had opened up markets in more than 20 countries by then and the brand's sales increased by 16% in 1999 with 75% of overseas sales coming from Southeast Asia. For the category of lipstick, there are differences in the aesthetics of consumers in various countries, Asian consumers are more interested in whether the shade of lipstick can be shown their skin tone white. The new shades launched by Shu Uemura are to claim this demand, which shows that Shu Uemura still has the ambition to seize the Chinese market.

Abstract: Recently, CHAILEEDO has learned that Shanghai Yuyuan Tourist Mart (Group) Co., Ltd. (hereinafter referred to as "Yuyuan Inc.") has launched a skin care product brand that is fully developed and incubated by itself - YoganDerma. As introduced by the relevant brand principal of YoganDerma to CHAILEEDO, "YoganDerma is positioned as a dermatological-grade skin care brand focusing on sensitive skin repair. It is expected to open a Tmall store at the end of July this year and use it as its main channel. The product will be priced between USD28 to USD49." The other party also stated that the products of YoganDerma have an exclusive and researched ingredient "Yohealix-4R™", and the product packaging is made of environmentally friendly materials, medical-grade packaging, aseptic filling and Braille applications. It is worth mentioning that after seeing the relevant promotional materials of YoganDerma, an industry insider thinks, "This looks like benchmarked against the Winona." The insider said that no matter the brand positioning or the characteristics of the first series of products, as well as the first impression of the packaging design, coupled with the claim of focusing on sensitive skin repair, etc., it is difficult not to think of Winona, the "top brand" in the sensitive skin market. It is undeniable that the market track targeted by YoganDerma has indeed grown rapidly in recent years. According to Euromonitor statistics, the market capacity of dermatological-grade skin care products in China in 2021 was about USD3.72 billion, and the compound annual growth rate of the dermatological-grade skin care products market from 2016 to 2021 reached about 32.50%, which was much higher than the overall growth rate of the cosmetics industry. Among them, "sensitive skin" repair has attracted much attention from consumers. On Xiaohongshu, there are more than 1.78 million notes related to it. In May of this year, a research report released by Shengang Securities showed that from 2022 to 2025, the scale of China’s sensitive skin care market is expected to be USD4.667 billion, USD5.816 billion, USD7.201 billion, and USD8.862 billion, respectively, with a year-on-year growth rate of 25.62%, 24.63%, 23.79%, and 23.07%. Because of the great market potential, many cosmetic companies have been involved in this track in recent years. However, it is worth noting that consumers are more clear about the consumption purpose of professional sensitive skin brands. According to the "White Paper on Market Trends of Sensitive Skin" released by Taobao Tmall's FMCG business department, the TOP10 brands preferred by people with severe sensitive skin are mainly professional sensitive skin brands, with Winona, Freeplus, Curel, Avène and other brands becoming the first choice. According to Euromonitor data, in 2021, Winona brand ranked first in the domestic market of dermatological-grade skin care products, and its market share increased by about 2 percentage points compared with 2020. Compared with 2020, Winona brand continues to expand its leading advantages over the second and third places. Its domestic market share is close to the sum of the second and third places, and the leading effect is significant. That is to say, YoganDerma is involved in the sensitive skin track at this time, and will face the competitive pressure of veteran players such as Winona, La Roche-Posay and Avène. In this regard, the relevant brand principal of YoganDerma said, "Compared to some mature brands, we are mainly too new." In her opinion, it is difficult for a brand to debut being the climax of the career. The brand has to go through constant exploration and testing, as well as the verification of the market. In recent years, Yuyuan Inc. has also significantly strengthened the layout of the cosmetics business. Although the overall proportion of cosmetics in Yuyuan Inc. is not high at present, revenue is increasing significantly. According to the 2021 annual report of Yuyuan Inc., the revenue of the company's cosmetics segment was USD72.22 million, a year-on-year increase of 13.05%. In June 2020, Yuyuan Inc. incorporated Fosun Jinmei (Shanghai) Cosmetics Co., Ltd. (YoganDerma brand is owned by the company) and its beauty brands such as AHAVA and WEI into Yuyuan Beauty and Health Group through investment and acquisition. On January 19, 2021, Yuyuan Inc. also established the Fosun Jinmei Global Science and Technology Innovation Center to intervene in the field of scientific and technological innovation in cosmetics. Although Yuyuan Inc.'s current performance in the cosmetics field is not outstanding, many industry insiders believe that with Fosun Group's resources and scientific research advantages in the medical field, the competitiveness of the YoganDerma brand cannot be ignored. The principal of a functional skin care brand under a listed company said that the product power of most of the cutting-edge brands can pass the test, mainly depends on whether they can find their own subdivided track and survive in the cold winter. On the whole, for a new brand like YoganDerma, there is still a great opportunity for the "sensitive skin" track, but whether it can make good use of its own resource advantages and ultimately win with quality, industry insiders generally believe that this is the key to determining whether a brand can open up the market.