Kantar Worldpanel released "the 2022 Footprint Ranking List of Chinese Cosmetic Brand", Chinese consumer demand for high-end cosmetics of fuels the development of high-efficient products in the full process skin care and the refinement evolution for better efficacy. Kantar Worldpanel has released its latest report on trends in China's beauty market. The report shows that the recurrent epidemic has made the demand in China's beauty market more changeable, and further analyzes the main orientation and trend of consumers’ erratic demand. At the same time, Kantar Worldpanel also released the 2022 Footprint Ranking List of Chinese Cosmetic Branding based on the Consumer Reach PointCRP) According to CHAILEEDO, Pechoin has won TOP1 of the 2022 Footprint Ranking List of Chinese Cosmetic Brands for six years in a row and has become the only brand with CRP reaching hundreds of millions of dollars over the past year. And it ranked 14th in the "2022 Global 50 Of Cosmetics and Personal Care Brands Value" recently released by Brand Finance, a British brand appraiser. In addition, Dabao, once a Chinese skin care brand and later bought by Johnson&Johnson, ranked second by virtue of its popularity and cost-effectiveness. And Lancome entered the list for the first time at TOP10. Chinese brands and international brands broke even with each securing five slots on the list. According to Kantar Worldpanel, among the most popular cosmetic brands among Chinese consumers, Perfect Diaries is way ahead of a number of international brands such as Lancome, Dior, Saint Laurent, and Maybelline New York, ranking first with unprecedented popularity. And Florasis, with its core product "Kongqimifen"(face powder), first made it to the top 10 list; Carslan has been ranking among the top 10 in the makeup market since 2017. Its core product "Lasting Cover Foundation" and "Lasting Moisture Foundation" further caters to the various needs of consumers with different skin types in choosing make-up products, gaining a ton of popularity among Chinese consumers. In the 2022 Footprint Ranking List of Chinese Cosmetic Brand of skin care products, cosmetic products, Kantar Worldpanel summarized the key factors for Chinese consumers leading brands to secure such a stable share in the market: development of core products: anchored brand orientation, creation of differential positioning; Design of creative images: transmission of brand value, avoidance of aesthetic fatigue; terse communication of key point: catering to the targeted young consumers and attention paid to brand strength spillover effect. The report showed that high-end demand from Chinese consumers is still gaining momentum in the Chinese skincare market. For brands registering rapid growth in CRP, there is SK-II, Bio-MESO, LA MER on the list by virtue of their essence; and Sulwhasoo, PROYA, and L'Oréal Paris with great product performance in rejuvenation; also there are Winona, Biodema, La Roche-Posay taking off in the sensitive skin care field. As the representative of the fast-growing brand, PROYA has created a very representative ace item "Elastic Brightening Youth Essence", introduced "morning C evening A", a popular new skin-care concept, into product research and development, and is well acclaimed. In cosmetic brands of rapid growth, Pramy, with makeup base products sales, grew from the 26th to 7th place within a year; And lip makeup leading brand Colorkey, is still on the list upholding its "Excellent value for the money" mission; Representing China's emerging cosmetic brand, Flotte, Unny Club, Amortal, also made their way to the list with the creation of hot-selling eyebrow pencil, eye shadow, mascara and other eye makeup products. In addition to the aforesaid Chinese brands, Nars under Shiseido, and Lancome under by L'Oreal Paris, are the only two international brands listed, with competent facial makeup and lip makeup. In this regard, China's cosmetics brand is booming, hence outstripping international brands. In response, Kantar Worldpanel holds that a brand needs to consider three core strategies for undiminished favor of consumers: product category layout: a prompt hot spot in time, exploration of the new product line; Marketing and communication: efficacy matters more in terms of skincare while consumer experience prevails for the cosmetics; Development scenario: Strengthening of situational communication and expansion of product function for wider application.

Production is the lifeline of cosmetics, so controlling production strictly is also one of the important principles in the formulation of China's new cosmetics regulations. In order to warn cosmetics practitioners, National Medical Products Administration announced typical cases of the second batch's special drug safety rectification. Recently, National Medical Products Administration (abbreviated as “NMPA”) announced typical cases of the second batch’s special drug safety rectification. Among them, Guangzhou Saiyin Cosmetics Co.,LTD. (hereinafter referred to as “Guangzhou Saiyin”) was fined $6 thousand because its production and sales of cosmetics didn’t meet the technical requirements specified in the cosmetics record materials, and the corporate juridical person was banned from working for 10 years. What is worth mentioning is that it is the first punishment of banning for 10 years in China’s cosmetics industry. According to CHAILEEDO, at least six “bans” have been issued in China’s cosmetics industry from September 2021 to April 2022. As notification displaying, NMPA found in August 2021 that some consumers had adverse reactions after using TOURAN, a product produced by Guangzhou Saiyin. By investigation, products named “TOURAN brightening lotion” and “poly-peptide repairing essence”, belonging to TOURAN that was produced by Guangzhou Saiyin in May 2021, were detected as salicylic acid which was not stated in the cosmetics record materials. The company’s cosmetics do not meet the technical requirements specified in the cosmetics record materials, which violates the relevant provisions of Cosmetics Supervision and Administration Regulations. In addition, the products that related to the case induced consumers many adverse reactions, and Guangzhou Saiyin deliberately evaded the investigation by providing fake evidentiary materials during the period of investigation, which violates the law seriously. Thus, Guangzhou Saiyin was fined $6 thousand and its corporate juridical person was banned from working on cosmetic operations for 10 years by Guangdong Medical Production Administration. It is reported that the salicylic acid in the above case is restricted raw material. According to Safety and Technical Standards for Cosmetics(2015 edition), the max amount of salicylic acid in skin care products is 2%. Besides, combined with the popular science article--Scientific understanding of Peeling that published by NMPA, we can learn that relatively high concentration of acid has certain stimulation and damage to the skin, the cosmetics involving acid cannot be mixed with “peeling treatment”. Thus, NMPA stops the “peeling cosmetics” and lists it on the key regulatory objects. With China becoming the world's second cosmetics consumer market, there are many problems behind the rapid growth, as the system of production quality management of some enterprises is not perfect, and the quality control level of products is low. In particular, the integrity management and the responsibility consciousness of the main body of product safety of enterprises still need to be improved. Production is the lifeline of cosmetics, so controlling production strictly is also one of the important principles in the formulation of China’s new cosmetics regulations. In July this year, the No.1 announcement of 2022--Cosmetics production quality management specification issued by NMPA has been formally implemented. The implementation means that the violations and punishments to upstream producers of China’s beauty industry would be more serious. It not only demands enterprises to set up a quality management department independently and the responsibility system for the quality and safety of cosmetics, but also makes clear the responsibilities of the legal representative (or main person in charge), the person in charge of quality and safety, the person in the charge of quality management department, the person in the charge of the production department and other related positions about cosmetics quality and safety.

The former Chinese cross-border e-commerce giant of maternal and child, MIA announced that it will shut down its APP on September 10, 2022. It is reported that MIA, founded in 2011, is a service platform of lifestyle for Chinese women. Recently, it can be found on www.mia.com that it intends to shut down its APP on September 10, 2022, in China Standard time (all times in this article is China Standard time). Also, it said that the transaction orders of consumers will continue until the platform closes. After its closure, the company would centrally delete user information that has been collected, log out of personal accounts, and stop collecting or using the information and data of consumers and merchants. According to CHAILEEDO, at present, Apple’s App Store cannot search the MIA, which can be searched in Android App Store while cannot be downloaded and installed, just showing the App has stopped maintaining. MIA denoted that, although the App will be closed, its Wechat Youzan mini program could provide service to users, and members can still enjoy the shopping experience. In the light of its official website, MIA, founded in 2011, is a service platform of lifestyle for women, covering retail, private brand and membership marketing. Its e-commerce App was launched in 2013. In addition to product retail and member marketing, it also operates private brands, like MAMA SELECTION, a brand of maternal and child, whose products mainly face infants, including Face cream, Foaming cleanser, Shampoo, Lipstick, Cotton Towel, Diaper and so on. Besides, the high-end skincare brand V'ALAMIO, which includes Facial masks and essence, also belongs to MIA. In addition, according to public reports, the MIA has raised $230 million in funding up to now. Among them, many global top venture Capital companies like ZhenFund, Xianfeng Huaxing, Sequoia Capital, H-Capital favor MIA. Baidu’s $150 million financing broke a record financing amount in China’s maternal and child industry. At that time, the MIA market was valued more than $150 million, making it the most valuable cross-border e-commerce of maternal and children in China. However, luck is fleeting. The living space of China’s e-commerce is squeezed. Like MIA, channels and flow have become the common difficulty that vertical e-commerce is facing. The competition pattern between Ali, JD and Pinduoduo has diluted the flow of vertical e-commerce, squeezing their living space. Before then, the cross-border e-commerce Kaola was acquired by Ali, the beauty e-commerce Jumei delisted from the US stock market, and the luxury e-commerce SECOO was acquired by Qudian... Some professionals believed that maternal and child e-commerce is a category of vertical e-commerce, which is rarely successful in the world at present because the customer cost and operating efficiency are so low that it cannot compete with comprehensive e-commerce. While at the macro level, the declining birth rate in China also induces much more pressure and costs to the development of maternal and child e-commerce. Becoming a supply chain company is the only way, to join the integrated e-commerce platform and content e-commerce platform and giveis up being an independent e-commerce platform. Based on the public media reports, the founder and CEO of MIA, Liu Nan split MIA and MAMA SELECTION at the board level in 2021, turning them into two completely independent companies. In order to adapt to the brand transformation, Liu Nan is hands-on in product research and development and the supply chain level. At present, as the first maternal and child brand that has registered in TikTok China, MAMA SELECTION leads the race of maternal and child in TikTok China. In the last period of 818 (the promotion that happened on 18th, August annually), its 11 items ranked Top1 in the popular items list of TikTok China. Liu Nan mentioned in a speech in June this year that, MAMA SELECTION is a Chinese professional brand of maternal and child care, positioned at the age of children. We could spend more time screening the basic materials and researching and developing basic ingredients in the economic downturn.

Abstract: Chinese skincare brand PROYA has launched a new PROYA Ultra Luminizing Brightening Essence. It claims that it can inhibit black pigment, whiten skin and precisely lighten spots and is priced at $47.6 at its flagship store on the Chinese e-commerce platform Tmall. In this year's Tmall 618 In the list of beauty and personal care Top 20 brands on Chinese 618 Shopping Festival this year, PROYA ranked No. 5. PROYA officially claims that the product enjoys a double tube and double pump: one side for local acne marks, while the whole face whitening. According to the observation from CHAILEEDO, the product has obtained the registration certificate of special-purpose cosmetics in China. PROYA is well known to consumers for its Vitamin C for morning and Retinol for night skincare combination. Before that, PROYA had launched a whitening efficacy product PROYA Ultra Luminizing Bright Refreshing Cream, claiming to inhibit and lighten melanin, hydration, and antioxidant efficacy. It was priced at $56.4 with a total sales volume of 3,000 + units. Compared with its other products, the product’s sales are relatively low. The official website shows that PROYA was founded in 2003, the earliest brand launched under PROYA Cosmetics Co. In November 2017, the company was listed on the Shanghai Stock Exchange, abbreviated as PROYA, securities code 603605. It is China's first listed only beauty stock, listed in 2017 after the Chinese Double 11 Shopping Festival that year. The opening was up 44%. Perfect performance has been highlighted in the strong beauty market. Therefore, PROYA Cosmetics Co., Ltd. has been known as "the first stock of beauty in China". In the past Chinese 618 Shopping Festival, in the list of beauty and personal care Top 20 brands on Chinese 618 Shopping Festival, although the first to fourth place still international brands L'Oreal, Estee Lauder, Lancôme and OLAY, PROYA is the dark horse of this year's Chinese products, which climbed from last year's 15th to the fifth place while overtaking the perennial Chinese brand Winona. This further indicates that PROYA's product strength is recognized. Laterally, it reflects the growing brand value and the steady advance of trust and loyalty in consumers' hearts. It is worth noting that in April this year, PROYA shares (603605-SH) released its 2021 financial results with revenue reaching 690 million. From an annual revenue of $253 million in 2014 to $690 million in 2021. The revenue has nearly tripled in 7 years. The company started in the CS channel. From 2003 to 2013, the CS channel was the only main sales channel for PROYA. In 2012, PROYA set up the Beauty Valley e-commerce subsidiary to open online and began to work closely with Alibaba, JD, Vipshop and other platforms. What pushed PROYA into the spotlight was its Black Marine Mud Deep Purifying Bubble Spa Mask in 2019. According to Jiang Ligang, R&D director of PROYA, the product sold more than 1 million boxes in the first month of its online launch. By November 2019, the accumulated sales volume of products on its Tmall flagship reached more than 3 million boxes. In July 2019, the mask took 1st place in the "TikTok beauty and skincare list" and " Tmall monthly sales ranking of facial masks" and other tops. It contributed to $8.9 million of sales in that month. In February 2020, the PROYA Deep Ocean Energy 1.0 version was created. This product caters to the new consumer trend of Vitamin C for morning and Retinol for night skincare combination by adding higher levels of Retinol, hexapeptides, and other anti-aging star ingredients, but is priced at only $37.1/30ml, which is very cost-effective. Once launched, PROYA Deep Ocean Energy achieved a single-day sales of 15,000 units and the cumulative sales in a single month soon climbed to more than 50,000 units. Its subsequent launch of Ocean Energy 2.0, Ocean Energy Eye Cream, and Ocean Energy Toner series respectively achieved a total GMV of about $68.6 million for PROYA, accounting for 17% and 30% of the total GMV of the flagship store respectively. In 2021, the sales of these three series of products fully surpassed the original basic product line and became an important revenue pillar in PROYA's skincare category. This time, PROYA is once again focusing on whitening efficacy products. That may expand its product matrix. Regarding the business plan for 2022, PROYA has previously stated that it would continue to build a large single product matrix for the PROYA brand focusing on categories such as essence, cream, eye cream, and mask. At the same time, it aimed to optimize and upgrade the existing large single product. It developed a new single product and the brand would further penetrate around the single product strategy.

China’s Leading Baby Care Brand  Frog Prince was sold to its OEM Sinaijie (Fujian) Oral Health Technology Co., Ltd. for $ 7.44 million. Recently, Prosperous Future Holdings Limited, the parent company of China’s baby care brand Frog Prince, announced that it signed the equity transfer agreement on July 4, Beijing time (this time is Beijing time), and sold the total share capital of Frog Prince (Fujian) Baby Care Products Co., Ltd. (hereinafter referred to as "the Sinaijie"). By that, the financial performance of Frog Prince will no longer be incorporated into the consolidated financial statements of Prosperous Future Holdings Limited. Frog Prince was listed on the main board of the HKEX in July 2011. In 2012, the company's revenue stood at $ 234 million, a year-on-year increase of 23.87%. Then the company's market value was on a continued rise, exceeding $ 764 million in the second half of 2013. The fact is that this is not the first time Frog Prince to be sold. In 2020, Prosperous Future Holdings Limited made an announcement that it will sell all shareholdings of Frog Prince for ＄7.44 million to the buyer, Beijing Huitongda Supply Chain Management Co., Ltd. In November 2018, Frog Prince secured a term loan of $ 10.43 million from Beijing Huitongda to purchase equipment for business development, according to the announcement. As of April 30th, 2020, the amount of its outstanding loan was $ 7.44 million. The equity sale this time is Frog Prince's effort to offset all the outstanding debt owed to Beijing Huitunda. However, six months afterward, another announcement from Prosperous Future Holdings Limited claimed that the equity transfer agreement shall be terminated as several prerequisites had not been reached (or exempted) before the extended final deadline and the seller and the buyer had not reached an agreement for a deadline extension. So now the selling of Frog Prince is concluded. According to CHAILEEDO, Sinaijie is the OEM of plastic external packaging for Frog Prince and other relevant products. In 2018, it also bought Azalli, a toothpaste producer of Frog Prince, and opened the "Frog Prince Sinaijie Store" on Tmall, selling products such as children's cream, hand sanitizer and anti-mosquito liquid. Frog Prince was founded in 1994 as a leading baby care brand in China, according to its website. In order to improve its brand awareness, its founder invested in the "Frog Prince" animation trilogy within eight years, which is broadcast on CCTV Child and more than 100 local TV channels across China. Soon the Frog Prince became a popular name along with his remarkable performance. Within several years, it has established itself as the top brand of baby moisturizer and the second most famous brand of baby body wash and baby shampoo. Despite its ongoing efforts to improve Frog Prince's personal care business, its financial performance has not met the expectations of the board due to China's economic slowdown in recent years, the aggravated competition in both retail and e-commerce markets and such uncertainties of the global economy, claimed Prosperous Future Holdings Limited. As of December 31, 2021, Frog Prince's annual revenue reached $ 74 million with a loss of $ 8.1832 million after-tax. As of May 31, 2022, its adjusted NAV was approximately $ 7.599 million. According to Prosperous Future Holdings Limited, $ 6.556 million of the proceeds from the sale would be used to redeem loans and the remainder would become the group's general working capital. That is to say, the personal care business is divested thoroughly from Prosperous Future Holdings Limited after the deal. Prosperous Future Holdings Limited also suggested that the sale was an excellent opportunity for it to clear all outstanding loans, thereby reducing the liabilities and selling of a subpar business segment. In conclusion, this act will help improve the group's financial status, enabling more resources to be distributed to other businesses.

Tmall added Specification for Publishing Children Cosmetics: ban the use of words like food-grade, edible or any other devices related to food when promoting the children cosmetics. At present, Tmall added a public notice named Specification for Publishing Children Cosmetics(hereinafter, the Specification). This rule was publicized on July 5th, 2022 in China Standard Time(the Time is applied in the whole text), and will go into effect on July 12th, 2022. The Specification regulates the ban on the use of words like food-grade, edible, or devices related to food, and the publication of medical terms in children's cosmetics promotion. For the past few years, the e-commerce platform acts as an important channel for the cosmetics business. According to the data issued by China’s cross-border e-commerce platform Koala Global, the total consumption of children cosmetics increased by 300% in 2020 compared with 2019. Due to the increasing demand for children's cosmetics, more and more merchants engage in the cosmetics industry for children. When CHAILEEDO inputted Children Cosmetics on Tmall, various children's make-up boxes came into view. CHAILEEDO learned that most of these cosmetics boxes were children's toys to make-up dolls instead of kids, therefore, they were not under the cosmetics regulations. What’s more, in order to attract consumers and dispel their misgivings, CHAILEEDO found some cosmetics products were blatantly labeled as edible on the promotion posters to hint to parents that these kinds of cosmetics were safer. In fact, cosmetics differ from food in product categories, so there are no so-called food-grade cosmetics. In October 2021, the National Medical Products Administration also point out in popular science articles that children's cosmetics can never be labeled with words like food-grade and devices related to food. On January 1st this year, the implementation of China’s first regulation on children's cosmetics, the Children Cosmetics Supervision and Administration Regulation, marked China initiated strict supervision ofchildren's children cosmetics. The quality safety of children's cosmetics remains as an important livelihood issue as well as the considerable content of China’s cosmetics supervision. However, relying on the work of regulators is quite inadequate. The e-commerce platform, as the children's cosmetic business operator, shall take effective administration and oversight. For instance, firstly, the platform should define the regulatory significance of the whole e-commerce link like Tmall’s release of the Specification. Then, the platform is supposed to further train the related business runners to learn more about laws, regulations and other specialized knowledge of the cosmetics field, for improving the professional quality of the staff. As the Specification regulates, the make-up products with efficacy like cleansing, moisturizing, tonging and sun blocking on Tmall are classified as children's cosmetics once utilizing trademarks, devices, words, partial tone, alphabet, Chinese pinyin, numbers, symbols and packaged forms on the captions, main photos, attribution and detail pages of products to express or imply its accessibility to children. The Specification also points out that the main photos and detail pages of children's cosmetics must clearly and completely show the label devices with Children Cosmetics on the packaging; When publishing children's cosmetics registered or filed after May 1st, 2022, it is necessary to display the product packaging pictures marked with the children cosmetics logo Xiaojindun(a little golden shield). Those registered before May 1st need to be supplemented with the logo before May 1st, 2023. As the Specification requires, the efficacy of children's cosmetics used by infants (0 ~ 3 years old, including 3 years old) is limited to cleaning, moisturizing, hair care, sunscreen, soothing and refreshing; that for children (3-12 years old, including 12 years old) is limited to cleaning, makeup removal, moisturizing, beauty modification, fragrance, hair care, sunscreen, repairing, soothing and refreshing. Ensuring the quality and safety of children's cosmetics is a long-term and uninterrupted project. To achieve the healthy development of children's cosmetics in China entails the joint efforts of regulatory departments, production and operation enterprises and e-commerce platforms.

Since December, Xiaohongshu has been cracking down on misleading and exaggerating sharing content with several rules released to that end.CHAILEEDO observes that against such backdrop, brands  are opting to leave Xiaohongshu for TikTok China. Since December 2021(China Standard Time), China's lifestyle-sharing platform Xiaohongshu launched a special campaign to address "unrealistic sharing". So far, it has banned more than 57 brands, disposing of over 172.6 thousand relevant notes and more than 53.6 thousand illegal accounts. Among the banned brands, there are also well-known beauty brands like Little Dream Garden, Dove, Neutrogena, RNW, Nivia and so on. Xiaohongshu is a lifestyle-sharing platform for the young generation founded in Shanghai, in 2013, according to its website. Users can showcase their experiences on the platform daily-record their lives through a variety of formats including photos, text, videos and live streaming and be inspired to discover and connect with a range of diverse lifestyles. As of October 2021, its monthly users topped 200 million. This community has drawn 130 thousand brands from more than 200 countries and regions worldwide as of now. Because of Xiaohongshu's "attention-catching feature", consumers can find the desired products while brands can precisely cater to target group customers, hence it had gained wide popularity among consumers and brands. Xiaohongshu has an ultra-high customer stickiness for 90% of its users have resorted to it before product purchasing, according to reports from Dongxing Securities. This also leads to many brands, through external intermediaries or platforms, utilizing product replacement or cash to create a large number of average note sharers of false content, which prompts such a black and grey industry chain of false marketing. Recently, CHAILEEDO searched some keywords of certain brands on Xiaohongshu and got corresponding feedback, meaning that the previous bans on many beauty brands have been lifted. Search keyword "Dove", for example, relevant notes come out again but with no official accounts presented; "Neutrogena" search results revealed that, other than relevant notes, advertising pages of the product also appear with no official brand accounts attached. Despite that the bans were lifted, the disruption caused is here to stay for relevant brands. As for the Chinese skincare brand Little Dream Garden, the person in charge reported that it's been a month since the followers left and it's hard winning them back at the current stage. On top of that, its reputation also plummeted. If you search Little Dream Garden On Xiaohongshu, only relevant notes will appear. And the first 4 notes shown are all of the negative content, "Little Dream Garden's body lotion isn't worth the price" "Little Dream Garden's tone-up body cream is an absolute disaster, come on" and "Little Dream Garden's tone-up body cream so lousy, no match for xx".In addition to the above-mentioned dissatisfaction with the product per se, the note also indicated that its brand marketing is over the top, "Overwhelming advertising, absolutely bad experience for such click bait" "I've come across so many users recommending video notes, but it was a real sell. I guess the advertising is the brand's core business". In addition to the special campaign for strict governance, in April this year, Xiaohongshu launched "illegal score of brand marketing", with more transparent and visible production-oriented means, continuous monitoring and disposal of brand marketing behavior on the site. In June, Xiaohongshu issued a "Public Notice on the Account Trading and Pageview Fabricating of MCN Institutions" on the site to mete out punishment to the institutions and authors who take advantage of such practices of accounts buying and selling, meaningless content sharing, unusual means to churn out fans and fabricating likes for notes. Some industry insiders reckon that such a fight against fake content sharing will raise the cost of user sharing. Providing that large-scale Kol does not work, brands would opt out of Xiaohongshu and choose platforms such as TikTok China with greater online traffic. Other media outlets have reported that the Chinese brand Perfect Diary, which had established its name via Xiaohongshu, is now giving less priority to its cooperation with it. Insiders of Yatsenglobal, the parent company of Perfect Diary, claimed that the company is squeezing its marketing budget, hence investment in Xiaohongshu will also be reduced significantly. And the company also dissolved its MCN Yatsenglobal, whose operation focuses on Xiaohongshu. However, the Perfect Diary is getting more involved in its TikTok China operation after shifting its focus from Xiaohongshu. With similar marketing effects and other platforms being less stringent on regulation, it is no surprise that brands are turning to TikTok China for more traffic.

Abstract: Chinese personal care brand Pinpoint launched Winnie the Pooh's co-branded series, including body cream, shower gel, etc. According to CHAILEEDO, the products are priced from $7.4-$14.8 in its flagship store on the Chinese e-commerce platform Tmall. The brand Its Pinpoint Rainforest Tone-Up Body Cream sold in nearly 200,000 pieces during the Chinese 618 Shopping Festival in this year. According to The 2021-2027 China Body Care Industry Development Trends and Investment Decision Recommendations Report released by Intelligence Research Group, the market size of China's hair and body care market was $11.7 billion in 2020, up 1.7% year-on-year. The body care category trend study released by the CBN Data Center shows that the market size of the body care category has grown steadily over the past three years, and has consistently maintained a high growth rate since the 3rd quarter of 2017. From the degree of discussion on social platforms such as Xiaohongshu, moisturizing and hydrating is no longer the only pursuit from customers of body care, product efficacy extended to more segmented aspects of exfoliation, whitening, and delaying aging ...... This also provides a new path for the breakout of many innovative personal care brands. "Pinpoint" focuses on the sea fennel all-purpose stem cells, seaweed, and other marine ingredients emphasizing the regulation of sebum balance, strengthen the skin barrier differential efficacy. In the Chinese market, there is no shortage of international giants such as P&G, L'Oreal, and Unilever in the personal care category has long occupied most of the market. In the cosmetics companies ranked in the top 20 cosmetics companies, L'Oreal, P&G, Estee Lauder, Shiseido, and LVMH Group occupy the top 5 respectively. But in the last two years, there are also many innovative Chinese brands seized the opportunity such as Rocking Zoo and Little Dream Garden. They fetch the niche positioning and differentiated to prominence. Some brands established a year or two have completed the leap from 0 to 1. Pinpoint was launched in August 2021 and belongs to Moody. It focuses on regulating sebum balance and strengthening the skin barrier and contains 30 products such as body lotion, shower gel, and hand cream, etc. Its main selling channels of it are Tmall and JD, the Chinese e-commerce platform, and the price is between $5.8 and $61. Pinpoint, currently less than a year old has already entered the live streaming of super-head anchor Li Jiaqi. In February this year, its monthly sales on omni-channel exceeded $1.5 million and has created a number of hot-selling products such as Pinpoint Marine Hand Cream, Pinpoint Body Lotion Oceanic Nectarine, and Pinpoint Rainforest Tone-Up Body Cream one after another. Of course, Pinpoint's high buzz can't be separated from its brand background - incubated by the early team of Moody, the champion color contact lenses brand of its parent company VIM. Moody has achieved many remarkable results in the past three years, such as breaking $30 million in the first year of trading on the Tmall platform. In November last year, it reached over 150 million. In November last year, Moody completed a Series C round of funding of over $150 million, the largest funding round to date for color contacts. By 2021, its transaction size exceeded $104 million. Moody's sister brand Pinpoint has been online for only 57 days and the cumulative sales volume of its star products, body lotion, and hand cream, reached 5,000+ and 8,500+ respectively on November 1. Pinpoint defines itself as an "immersive" efficacy personal care brand, and its name: point represents a location or state of self-immersion, pin is the action of finding the state. Its brand concept is "Pin your Point. Enjoy the Moment". Pinpoint's products are designed in terms of saturation, brightness, and hue with the association colors of a series of scenes so that the colors are not too dull and not too fluorescent. This design also echoes the philosophy of the brand itself. It is reported that in September 2021, when the brand was first established, the Ocean Series was launched, containing hand cream, body lotion, makeup remover, body wash, etc., a series of products inspired by the ocean. 21 February 2022, "Pinpoint" followed up with the launch of the new Rainforest Series, containing 3 products, including a body tone-up cream, a cleansing mud mask, and applying cream, inspired by the rainforest. This time, Pinpoint launched the Winnie the Pooh co-branded collection, which again uses the jungle as the background of the products and still emphasizes on immersion care. From this, we can see that the various series of Pinpoint's products have always insisted on combining with nature to give consumers a relaxing and gentle breathing sensation.

Shiseido's luxury skincare brand THE GINZA, the first store in the Central of China, will be located in Wushang Plaza and will open on July 9, China Standard Time. In January, THE GINZA's boutique opened on the basement of Deji Plaza, which is the brand's first store in Jiangsu. In the same month, the first store of THE GINZA in South China was opened in the mixc, Shenzhen. This is a reflection of the popularity of high-end care brands in the offline market. THE GINZA, one of the highest-end skincare brands of the Shiseido Group, officially entered the Chinese market in 2021. The brand currently has three boutiques and two counters in Shanghai, Beijing, Nanjing and Shenzhen. With consumers' brand pursuit and scene aesthetics getting higher and higher, the business in each city has also been upgraded in the past five years. Until 2020, Wuhan's business status has been in a dominant position and its business aesthetics are in a disadvantageous position among cities of the same level. As a regional commercial leader, Wushang Plaza's cosmetics sales reached $134.3 million in 2019. The number of brands with the performance of over $1.5 million in 2018 reached 28 out of 60 cosmetic brands in Wushang Plaza. Among them, Estee Lauder, Lancôme's performance reached more than $12 million. Dior's performance reached more than $9 million. Chanel's performance achieved more than $7.5 million. La Mer's performance achieved more than $6 million. SK-II, YSL, and Shiseido's performance achieved more than $4.5 million. Whoo, Armani, Kiehl's, CPB, Clarins and other brands' performance reached more than $3 million. Moreover, in the introduction of new brands, Tom Ford broke $1.5 million in sales opening the counter four months. ALBION, Filorga and COVERMARK and so on had a good performance in 2018. For its parent company Shiseido, in terms of its first-quarter earnings report released in May, the Chinese market became its biggest market in terms of fluctuation. During the reporting period, the Shiseido Group reported its net sales of $1.73 billion, down 1.3% year-on-year. Its operating profit reached $34.5 million and the net profit attributable to the parent company reached 4.399 billion yen (about 232 million yuan). By region, from January to March this year, China became the market with the largest decline in sales for the Shiseido Group worldwide, down 20.6%, surpassing the decline in the same period in 2020 when the epidemic broke out, which is the largest decline for Shiseido China in at least the last six years. Shiseido had just achieved the fastest global growth rate of 46% in China compared to the same period of last year. For Shiseido, the Chinese market is as important as the Japanese market. In the first quarter of this year, Shiseido's China performance accounted for 22.2%, compared to 24.4% in Japan. The gap between the two was further widened. From its entry into China in 1981 to the establishment of its first R&D center in China in 2001 and China becoming Shiseido's largest overseas market since 2017, Shiseido has been deeply involved in the Chinese market. In May this year, Shiseido's first special investment fund in China with a registered capital of over $74.6 million - Ziyue Fund - was officially landed. It was revealed that this fund would focus on investment opportunities in innovative brands in the Chinese beauty and health frontier markets and upstream and downstream related technology service companies. So despite the temporary difficulties in China revenue, Shiseido continues to release positive signals in the Chinese market from recent market actions. In addition, Shiseido's new luxury men's skincare brand designed for Asian "Generation Z" men will make its global debut at this year's Consumer Expo, and high-end perfume and makeup brand Serge Lutens will also make its debut at the China International Consumer Products Expo. Moreover, a number of bombshell beauty black technology will also make an appearance at the Expo. SHISEIDO, CPB, THE GINZA, NARS, IPSA, ELIXIR, DRUNK ELEPHANT and other brands will also bring new products. Combined with Shiseido's recent actions in China, it is easy to see that the choice of THE GINZA to be in Wushang Plaza is also a side affirmation of the Chinese market. As the largest overseas market of Shiseido Group, Shiseido has also said that it would continue to give full play to the advantages of Oriental beauty experts to meet the needs of people's

National Medical Products Administration has released an article warning that toothpaste is not a medicine and cannot treat diseases; Cosmetics Supervision & Administration Regulation also stipulated that toothpaste products should be supervised according to the regulation of normal cosmetics. On July 5 China Standard Time (the dates in this article are all based on this standard), National Medical Products Administration released an article on popular toothpaste science reminding people that whatever the reason is, fallen or injured permanent teeth will not be able to regrow. Brushing your teeth with fluorine-containing toothpaste can enhance the teeth's anti-carious capacity, but it cannot reverse the decaying progress of caries. In addition, it requires professional oral examination, diagnosis, and treatment, if the long-term gum disease destroys gum tissue and leads to losing teeth. National Medical Products Administration also suggested that it is unproven by science for the advertising saying of using toothpaste to brush teeth can repair cavities, close teeth slit, and stabilize the losing teeth. CHAILEEDO has searched “toothpaste” in China’s e-commerce platforms and found that there are many kinds of toothpaste claiming that they can eliminate mouth odor, repair tooth enamel, and prevent helicobacter pylori, be edible, and so on. Their price is ranging from a few dollars to tens of dollars. Besides that, some of these kinds of toothpaste are even advertised with the words “suitable for your whole family, free to refund if ineffective”. For example, a toothpaste brand BIYOUTING has claimed that its toothpaste has a 99% cleansing rate for colon bacillus, staphylococcus aureus, and porphyromanus gingivalis. When CHAILEEDO asked its customer service whether this toothpaste can be effective for these three groups of bacteria, they advised that it can prevent Helicobacter pylori. While in January this year, National Medical Products Administration has particularly released an article to warn consumers that the toothpaste’s advertisement for anti-Helicobacter pylori lacks science foundation, and toothpaste is not a medicine, it cannot replace medicine for disease treatment. Similar to that, in February this year, the Administration for Market Regulation in Jiading district Shanghai City issued a written decision of administrative penalty which showed that Shanghai Likang Disinfection Hi-tech Co., LTD (short named Shanghai Likang) has been fined 3000 dollars for false advertisement. The decision of penalty suggests that Shanghai Likang TaoBao online store Youluoshaxing Flagship store has sold and advertised a product named “Youluoshaxing hp toothpaste refresh mouth eliminates mouth odor removes bad breath family online official flagship store 90g*5”, included words of “eliminate (the original Chinese word is ‘qu’) mouth odor and remove bad breath” in its title. But as the inspection report of this toothpaste shows, the product only has the function of alleviating bad breath. According to Xinhua Dictionary (a reputable Chinese dictionary), the advertised Chinese word “qu” means to eliminate. While the toothpaste sold by Shanghai Likang doesn’t have the effect of eliminating bad breath, it’s against the fact as it is advertised as eliminating. Eliminating bad breath belongs to the function scope, but the executing standard of Youluoshaxing Toothpaste is normal toothpaste, which means it isn’t produced according to the Standard of Functional Toothpaste. Therefore, the advertising of eliminating bad breath is on the brink of the law, which can cause misleading for consumers. “Neither toothpaste nor cosmetics can be advertised as having therapeutic effects, the advertising cannot contain any spurious or misleading information and should not beguile or misguide consumers. It is explicitly stipulated in Advertising Law that those behaviors are suspected of violating the consumer’s the Right to Know and the Right to Select.” Chen Yinjiang, the deputy secretary of China’s Consumer Protection Law Society, has suggested. Cosmetics Supervision & Administration Regulation implemented from January 1 of 2021 has also stipulated that toothpaste products should be supervised under the regulation of cosmetics. If the toothpaste has undergone function evaluation according to China’s national standard and industry standard, it can be advertised as preventing cavity, dental plaque, dentine hypersensitivity, alleviating gum problems, and so on, but it cannot say explicitly or imply that it has medical functions. In addition, a departmental law of the Measures for Supervision and Administration of Toothpaste specifically targeted at toothpaste regulation will be launched soon, to that time the toothpaste industry will be put under strict supervision.

At the end of last year, Beiersdorf acquired the French high-end makeup brand Chantecaille , which was expected to sell more than $95 million in 2021. Recently, Chantecaille China has announced its first brand ambassador, which means that the brand will accelerate its layout in the Chinese market. On July 5, China Standard Time, Chantecaille, the high-end makeup brand of German cosmetics giant Beiersdorf, announced its first spokesperson in China, Chen Feiyu. In a video released on the brand's official Sina Weibo account, actor Chen Feiyu promoted the brand's foundations. The marketing campaign has brought considerable heat and buzz to Chantecaille. As of 14:00 on July 6, the tag # Chen Feiyu as Chantecaille China's first brand ambassador has been read more than 30 million times on Sina Weibo and discussed more than 20,000 times. In addition, the brand's first official announcement of a Chinese spokesperson also shows its ambition for the Chinese foundation market. CHAILEEDO learns that the Chinese foundation market is currently in a period of rapid development, and the scale is huge. On Xiaohongshu, if you search by keywords such as "foundation" and "concealer", you can find that the total number of related notes exceeds 4 million; the industry data shows that by October 2021, the sales of facial foundation reached $2.42 billion, accounting for about 36.7% of the online makeup market; the data released by Industry Consulting Expert in China shows that as of October 2021, the sales of facial foundation were $2.42 billion, accounting for 36.7% of the market share, the first largest category of makeup; the China Business Industry Research Institute predicts that the market size of China's ficial foundations will be close to 40 billion yuan ($6 billion) in 2022. The French high-end makeup brand Chantecaille, founded in 1997, enjoys a high reputation among Chinese consumers with its hero product Just Skin Tinted Moisturizer Sunscreen Broad Spectrum SPF15. On Xiaohongshu platform, there are 50,000 notes related to " Chantecaille", of which the protective moisturizer (priced at $124) is the most discussed product. It is worth noting that among these notes, the protective moisturizer from Shiseido's high-end makeup brand CPB (priced at $52) is the product most often compared to Chantecaille's. CHAILEEDO notes that although the moisturizer of CPB is much cheaper than Chantecaille’s, the monthly sales of the two products on Tmall are relatively the same, with the units of 500. It is worthwhile mentioning that Chantecaille’s protective moisturizer ranked first in the best-selling list of imported pre-makeup protective moisturizer on Tmall, while CPB’s moisturizer ranked twelfth. In addition to moisturizer, the brand's best-selling products in Tmall as well as JD include Compact Makeup Pressed Powder (priced at $113), which sells more than 700 pieces per month on the Tmall. In 2018, USHOPAL, a Shanghai-based luxury beauty group, officially introduced Chantecaille to China. Currently, Chantecaille has opened overseas flagship stores on Tmall and JD, and is also present in USHOPAL's offline store Bonnie&Clyde (B&C). In November last year, USHOPAL made its debut at the 4th China International Import Expo with Chantecaille and other brands. It is also worth noting that on December 21 last year, Beiersdorf announced that it would acquire the American beauty company Chantecaille Beauty Inc. (Chantecaille's parent company). According to Beiersdorf, Chantecaille has a global presence and a strong presence in North America and Asia. In 2021, Chantecaille's global sales were expected to exceed $95 million, while the brand was valued at between about $561 million and $658 million. The group said that Chantecaille would be managed separately as a complementary premium brand under the group's brand portfolio after the acquisition like La Prairie. The acquisition is an important move in Beiersdorf's C.A.R.E.+ strategy. Vincent Warnery, the CEO of Beiersdorf, has publicly stated that "with the acquisition of Chantecaille, the group will strengthen its position in the beauty sector, particularly in the U.S., Chinese and Korean markets." Shortly after the acquisition, Chantecaille China announced its first brand ambassador, Chen Feiyu, and launched a series of brand marketing and promotion activities. It is foreseeable that the brand will further reinforce the layout of the Chinese market and accelerate its capture of the foundation market share.

Abstract: HBN debuted a letter from its CEO - the brand's third-anniversary list. It is reported that HBN Retinol Firming Night Cream has been ranked as Top 1 in the repurchase list of firming creams, and is the pioneer of Retinol skincare for Chinese brands. According to the observation from CHAILEEDO, HBN also showed the achievement in the public "letter" of HBN: HBN has gained 150% growth during the Chinese 618 Shopping Festival this year. But at the beginning of HBN, the Chinese skincare industry was still dominated by "basic skincare". For decades before that, few Chinese brands would choose the high-risk and high-cost path of effective anti-aging with little to no return. "The anti-aging and efficacy sector has been the main position of the international brands and most of the Chinese brands were developing basic skincare and moisturizing products in the affordable field. They have found themselves uncompetitive when they move up." HBN founder said. For the effect of anti-aging, international brands have long occupied the leading place. It is reported that among the top ten brands of anti-aging skincare products, Lancôme, LA MER, and OLAY occupied the top three. For instance, Estee Lauder's Advanced Night Repair, which is sought after by Chinese customers, has a total sales volume of 1 million on the Chinese e-commerce platform Tmall with a price of $98.5/30ml. Lancôme from L’Oreal also gained a good reputation in China and it is priced at $113.5/30ml with a total sales volume of 600 thousand. The rapid rise in demand for anti-aging has also brought popularity to the ingredient retinol. It is a member of the vitamin A family and is currently recognized as one of the world's most effective anti-aging ingredients. In terms of the Chinese market, according to the "White Paper on 2020 China Online High Growth Consumer Market" released by MarketIDX, the sales of retinol skincare products on Chinese e-commerce platforms Taobao and Tmall reached $190 million in 2020 with an increase of 262.5% year-on-year. In this regard, some cosmetic industry sources said that 2020 is the year of the explosion of retinol ingredients. And in the past two years, Chinese brands have frequently made their presence in the anti-aging sector, such as PROYA, Bloomage Biotech, Marubi, and other brands in the anti-aging sector. These brands gradually become well-known and recognized by consumers. In the 2022 Chinese 618 Shopping Festival, PROYA was ranked TOP5 in pre-sale of Tmall skincare brand on the first day with $37.9 million, and Bloomage Biotech's brand QuadHA was ranked TOP6 with $32.1 million in pre-sales. Although the first and second place in the list of Tmall skincare brands on the first day of pre-sales is still international brands L'Oreal and Estee Lauder, it can be seen that Chinese brands are catching up. It is reported that HBN was established in 2019 and is the only brand with millions of real retinol users in China. The brand claims to have the value mission of "specializing in researching ingredients to fight against skin aging" and uses the innovative concept of "having visible effects" to create the ultimate skincare products. The brands want users to "spend every penny on effective ingredients". According to the market intelligence of MarketIDX, HBN ranked No.1 in the sales of retinol in the first year and won the honor of Top 1 brand of retinol anti-aging for 3 consecutive years since 2019. As a Chinese anti-aging brand, HBN surpasses international brands in retinol market size. In addition, several HBN products have long been ranked in the "repurchase list", "reputation list", "sales list" and "hot-selling list" of anti-aging products on Tmall and TikTok. In this way, HBN has become the first Chinese brand to make a mark in the anti-aging skincare field. It can be seen that HBN is one of the very few Chinese brands that can take international brands head-on in terms of efficacy. In the 2021 Tmall Golden Award Ceremony, HBN, as a selected innovative Chinese brand, appeared on the same stage with many other skincare brands such as La Mer, HR and Estee Lauder. It stood out from the strong competition of a number of brands by virtue of its strong brand strength. It won three major industry awards and prizes one after another. The awards include "Top Brand of the Year", "Super Ingredient Award" and "Ingredients-centric Award", which directly verifies HBN's strong brand strength.