Abstract: The first flagship store of The J Shop of JD, a collaboration between Perfect Diary and Jingdong, will land in Chengdu, Sichuan, China. As of 2020, Perfect Diary's market share in the Chinese beauty market reached 6.7%, making it the second largest single brand of color cosmetics after Maybelline. According to CHAILEEDO's observation, since the completion of the online channel launch in May this year, The J Shop of JD has completed the pilot operation of innovative cooperative stores in five places, including Xi'an, Shenzhen, Chengdu, Yinchuan and Beijing, since May 20. The vice president of Perfect Diary's parent company, YSG, said that based on The J Shop of JD's deep experience and strong technical support in the online retail field, it is believed that both parties will provide customers with more high-tech and intelligent convenient services, personalized shopping experience and jointly create an immersive shopping space. It is understood that the store is built by the in-depth cooperation between JD and Perfect Diary and the two sides have complemented each other in various aspects such as product layout and operation services of the store. The store in Chunxi Road has also received a new upgrade of scenes and experiences. Relying on JD's digital supply chain and omnichannel advantages, The J Shop of JD will provide one-stop solutions and region-specific customized services such as efficient speed of selected products, online and offline integration experience, multiple interactive games, and full-link services to fully meet the new fashion life consumption needs of young consumer groups. Perfect Diary also brings a new color cosmetics series. It is reported that Perfect Diary is the main brand of YSG. Founded in 2017, as the main brand of YSG, Perfect Diary has been on a roll since its birth. During the Chinese Double 11 Shopping Festival in 2018, Perfect Diary, which was established just one year ago in 2017, became the first makeup brand with sales revenue of more than 100 million on Tmall. During the Double Eleven Shopping Festival in 2019, Perfect Diary became the first domestic brand to top the makeup list on Tmall. At 15:14 on November 1, 2020, the payment amount of Perfect Diary's flagship store exceeded $47.08 million, becoming the first makeup brand on Tmall to break $47.08 million with the sales volume topping in the beauty category. During the Double Eleven Shopping Festival in 2021, Perfect Diary's cumulative sales exceeded $94.16 million, ranking first in the makeup categories on Tmall. As of 2020, Perfect Diary's market share in the Chinese beauty market reached 6.7%, becoming the second-largest makeup single brand after Maybelline, while the overall market share of Perfect Diary's parent company, YSG, reached 8.3% in the same period, ranking fourth in market share, making it the only local enterprise in the top five of the beauty group. During the Double 11 Shopping Festival in 2021 on Tmall, Perfect Diary won the top one place in domestic brands in the makeup categories on Tmall with the omnichannel sales volume of the star products of the "NEW! 207 PERFECT DIARY README LIQUID LIPSTICK EVER-STAY PD029" achieving 974,000 pieces and the "SLIM LIPSTICK" 1.074 million pieces respectively. But the 2021 financial report issued by its parent company, YSG, is not optimistic. All along, YSG has been criticized for emphasizing marketing over its R&D. In the prospectus, YSG mentioned that from 2018 to 2021, its marketing expenses were $46.1 million, $186.6 million, and $509 million and $597.7 million. The proportion of annual revenue accounted for by marketing expenses rose from 48.2% to 68.6%. The research and development expenses of YSG, from 2018 to 2021, were RMB 2.6410 million $394 thousand, $3.46 million, $9.92 million, and $21.2 million, respectively. Thus, although the difference between the R&D expenses and the marketing expenses of YSG is large, it can be seen that the group has also been making efforts in R&D in the past two years. In comparison, according to the Ping An Securities report, L'Oreal's R&D expenses in 2020 were nearly $179 million, the number of global R&D staff was as high as about 4,000, and the number of global patents in the past five years was as high as 1,368. YSG has also said that the group's success in the first 5 years was due to the traffic dividend, while the next 5 years have to be driven by product power and productiveness. In fact, since the establishment of Perfect Diary in 2016, it has been to create a "healthy beauty explorer in the new technology era" as the vision and committed to becoming the leader of China's beauty. This joint venture with The J Shop of JD will bring the brand one step closer to the dream of accompanying users to become more beautiful.

In January this year, P&G acquired the American probiotic skin care brand Tula Skincare, which is reportedly expected to have net sales of $150 million in 2021. After the official opening of the online stores, can Tula successfully open the Chinese market with the micro-ecological skin care trend? CHAILEEDO noted that, on July 4, China Standard Time, Tula Skincare (which is hereinafter referred to as "Tula"), an American probiotic skin care brand of P&G, announced the launch of the brand's official overseas flagship store on both Tmall and TikTok China. It also means that the brand officially entered the Chinese market, which is "one of the strongest growth markets" for the group. In addition, the micro-ecological skincare trend that has exploded in China may also be one of the motivations for the probiotic skincare brand to expand its business scope. In recent years, micro-ecological skin care products have gained unprecedented popularity among Chinese consumers. The main ingredients claimed to improve skin microecology are prebiotics and probiotics. According to data, between the first half of 2020 and the first half of 2021, the online sales of cosmetics with claims of "prebiotics" exceeded 100 million yuan ($14.93 million), the sales of cosmetics with claims of "lactic acid bacteria" were $52.26 million and the sales of cosmetics claiming to add "probiotics" was $237 million, totaling $3.05 billion. Based on the micro-ecology theory, major companies launched skin micro-ecology skin care products, such as P&G, L'Oreal Group, Shiseido Company, BASF, CsOSMAX, Givaudan and other cosmetic giants. In addition to the international beauty groups who have ventured into the field of microecology in the early stage, Chinese brands have also looked to it. Domestic brands such as Dr. Alva, Lipostides, Dr. Yu, KANS and One leaf, etc., have added "microecological ingredients" to their new products. Tula was founded in 2014 by Roshini Raj, a gastroenterologist and internist. Tula's product line includes skincare, makeup and oral beauty products that feature patented probiotics, superfoods or vitamins. Furthermore, a skin test on the brand's website that allows consumers to complete a series of questions about their skin before receiving a recommendation of products. According to the observation from CHAILEEDO, this official announcement is the second news released by Tula since it first opened accounts on WeChat Public Platform, Sina Weibo and Xiaohongshu in late June this year. Currently, there are 11 skincare products in the two online stores on Tmall as well as TikTok China, including Cult Classic Purifying Face Cleanser, Brightening Treatment Drops Triple Vitamin C Serum, Sleep Overnight Repair Treatment, Glow & Get It Eye Balms and other products, ranging from $22 to $64. It is worth noting that the brand has seen explosive growth in the U.S. market since its birth. Therefore, the brand has attracted the attention of global cosmetics giant P&G. In January this year, P&G, which continues to bet on high-end beauty, acquired the brand in a deal whose terms were not disclosed. In addition, this marked the third acquisition the company had completed in two months. Tula was reportedly expected to sell about $150 million in 2021, which was almost twice the size of Farmacy Beauty, a skin care brand that P&G acquired last November, and three times the size of Ouai, a hair care brand acquired last December. Just two months after the acquisition, P&G announced its return to the high-end beauty segment with the creation of Specialty Beauty. The division would cover brands operating through brick-and-mortar and direct-to-consumer retail channels. The division's key brands include: the premium skincare brand Tula Skincare, the hair care brand Ouai, the skincare brand Farmarcy Beauty, the skincare brand First Aid Beauty, the skincare brand for middle-aged womenSee Me Beauty, the hair care line Keep It Anchored and the North American business of SK-II. The introduction of Tula into the Chinese market immediately after the organizational restructuring is a clear sign of the group's ambition for the high-end beauty market and the micro-ecological skin care market in China. In fact, Chinese and foreign brands have been in the Chinese market for some time to educate the market, and Chinese consumers already have a high level of acceptance of micro-ecological skin care products. Thus, to some extent, Tula, which focuses on probiotic skin care, is more likely to open the Chinese market successfully.

Recently, Ocenid was fined 500,000 yuan for infringing on perfect diary lipstick, unauthorized use of the product name, packaging, design and identical or similar marking that affects the others to certain degree.CHAILEEDO's search suggests that there are still relevant infringing products on sales across e-commerce platforms. Recently,CREDIT.GZ.GOV.CN announced an administrative punishment that Guangzhou Ocenid Cosmetics Co., Ltd (hereinafter referred to as "Ocenid ") for infringing the lipstick of Perfect Diary, was fined 500,000 yuan (about USD 74,600). The administrative penalty decision disclose that Ocenid entrusted Guangzhou Gedi Cosmetics Co., Ltd. (hereinafter referred to as "Guangzhou Gedi ") to sign the Contract of Purchase, and commissioned it to produce" HOLDLIVE Waterdrop Stiletto Lipstick "in December 2020. By the time the case was filed, Ocenid has entrusted Guangzhou Godi to produce 120 thousand pieces of "HOLDLIVE Waterdrop Stiletto Lipstick", the production cost is USD 0.22 per piece, the contract value is USD 26.9 thousand, and the total value of the Ocenid distributors of "HOLDLIVE Waterdrop Stiletto Lipstick" is USD 125.4 thousand. Upon investigation, Baiyun Administration for Market Regulation held that "HOLDLIVE Waterdrop Stiletto Lipstick" and "Perfect Diary Saturated Rouge Intense Velvet Slim Lipstick Velvet Matte Lip Makeup" bear a high degree of similarity in packaging and design, which might mislead consumers for some specific connection between the origin of the goods or think "HOLD LIVE Waterdrop Stiletto Lipstick" and the brand Perfect Diary. Therefore, Baiyun Administration for Market Regulation decided that Ocenid's aforesaid acts were in violation of Article 6 of the Anti-Unfair Competition Law of the People's Republic of China- "The proprietor who uses the same or similar markings of the product name, packaging, design, etc without permission." which have a certain influence with others". As a result, Ocenid received a penalty of USD 74.6 thousand. In fact, this is not the first infringement upon the"Perfect Diary Saturated Rouge Intense Velvet Slim Lipstick Velvet Matte Lip Makeup". In February 2022, Yatsenglobal, Ltd., Perfect Diary's parent company filed a lawsuit with the People's Court of Yiwu City, Zhejiang Province: NVNO's unauthorized use of its lipstick name and packaging design constitutes an unfair competition relationship. Finally, the court awarded the manufacturer Shantou Jiabao Cosmetics Co., Ltd. USD 29.9 thousand and the seller Yiwu Tianyu Cosmetics Co., Ltd. USD 9 thousand. Perfect Diary has been an active part in right protection, for which Yatsenglobal, its parent company, has set up a special intellectual property task force responsible for intellectual property registration, layout and brand protection, and accumulated certain resources and reputation in the market. Whether from the existing case of local rights protection or the platform intellectual property protection mechanism, the effort, fund and human resources spent for right protection remain huge for the beauty brand. In the beauty makeup industry, plagiarism and infringement have always been persistent problems. Once the infringement of cosmetics is involved, it will have a negative impact on consumers, beauty brands, and the cosmetics industry. This will not only seriously disrupt the market order, damage the legitimate interests of producers and consumers, but also reduce the willingness for brand innovation. It is noteworthy that in recent years, the management of infringement is all getting tougher across policy regulation brands and platforms." Regulations for the Supervision and Administration of Cosmetics " explicitly stipulates to "mete out punishment to the exact people involved", serious offenders will face life imprisonment; And Tmall, JD.com and other e-commerce platforms, have been cracking down on counterfeiting and strengthening the platform's self-supervision, all of which are contributing to greater development for China's cosmetics industry.

Tiantu Capital has officially submitted the prospectus to HKEX and proposed to list on the main board.According to CHAILEEDO, Tiantu Capital is China's first investment agency with a focus on consumption, and has now faciliated 23 unicorn companies in total. Recently, Shenzhen Tiantu Capital Management Co., Ltd. (hereinafter referred to as "Tiantu Capital ") submitted the listing application materials to the HKEX for listing on the main board of the HKEX, with JPMorgan Chase and Huatai International as co-sponsors.Tiantu Capital, which had been listed on the NEEQ in 2015, would be China's first venture capital firm to be on NEEQ and HKEX if it goes public successfully. According to the company's website, Tiantu Capital, founded in 2002, is one of the earliest professional institutions engaged in equity investment in China. From 2019 to 2021, Tiantu Capital's investment in China's consumer sector was the third largest among all private equity investors, behind Tencent and Sequoia China, according to CIC（China Insights Consultancy）. Over the same period, Tiantu Capital ranked first among all private-equity firms centering on consumption. Tiantu Capital's asset management grew at a compound annual growth rate of 22.9% from 2015 to 2021, according to the prospectus.Tiantu Capital assets were managed at $ 3.018 billion, $ 3.018 billion and $ 3.72 billion in 2019, 2020 and 2021, with 121, 147 and 178 invested companies in their portfolios. In terms of financial data, Tiantu Capital recorded total income and net investment income or loss of $ 102 million, $ 212 million and $ 121 million from 2019 to 2021, respectively; Net profits were $ 26 million, $ 144 million and $ 88 million, respectively.Net profit was down by 38.4% in 2021 compared with 2020. For such decline in performance, Tiantu Capital attributes it mainly to a decline in revenue from non-asset management businesses reeling from the COVID-19 pandemic in 2021. By 2021, Tiantu Capital has invested in 205 portfolio companies, including innovative consumption, new retail and consumer finance. It is worth noting that 23 of the 205 invested companies have exceeded USD 1000 million in their estimated value, heading towards the rank of "unicorns". As a leading consumer goods investment company in China, Tiantu Capital has also invested in many beauty brands. According to CHAILEEDO's incomplete statistics, Tiantu Capital has invested in 16 enterprises in the related fields of the beauty sector, including the upstream and downstream industrial chain of cosmetics, including innovative biological material research and development and application enterprise PAML Biotechnologies, beauty brand Flower Knows, Scent Library, Hanajirushi, LAN, PUskinology, Biolab and so on. Among them, the beauty brand Hanajirushi received the earliest investment from Tiantu Capital. In October 2014, Hanajirushi announced that it had secured Series A funding in the Tiantu Capital of about USD 15 million; then In 2016, it got Series B funding with an investment of more than USD 15 million, which was jointly led by Chess Zhao Capital and Qianhai Fund, with Tiantu Capital. It's noteworthy that as early as 2015, the Tiantu Capital was listed on the NEEQ. By May, Tiantu Capital issued a statement saying that the company had submitted documents and materials for the initial public offering of foreign capital stocks listed abroad and listing H shares to the CSRC and had been accepted by the CSRC. On the same day, in order to avoid abnormal fluctuation of the stock price, Tiantu Capital suspended its stock in the NEEQ. Prior to the suspension, the company's total stock issue was 520 million shares, at 5 yuan (USD 0.75) each, with a total market value of about 2.6 billion yuan (USD 388 million). For the listing in Hong Kong, the target amount of IPO is about USD 493 million. For the net proceeds from IPO, Tiantu Capital claims in the prospectus that about 65 percent of the funds will be used for private equity funding; Approximately 25 percent will be used for direct investment; About 10 percent for general company purposes. According to CHAILEEDO, in recent years, enterprises initiating IPO applications across the venture capital field are of rarity, but those prioritizing new consumer areas and makeup fields are even less. If Tiantu Capital gets listed as expected this time, it will become the largest venture capital in China's beauty industry.

Sisley China recently held a shopping festival for fans at its offline counters, which not only gives full play to the brand's channel advantages, but also cultivates brand loyalty among consumers. On July 1, China Standard Time, Sisley, a well-known French cosmetics brand, launched a month-long shopping festival for fans, in which a series of discounts and gifts were included. CHAILEEDO learned that Sisley's skincare, makeup, hair care and fragrance products will all participate in the event. Among them, the skin care products represented by the Ecological Compound, Black Rose Skin Care Series and Phyto-blanc Lightening Series are the products that the brand is highlighting in this event. In July, Sisley brand members can get multiplier points, free samples or peripheral products of the spokesperson when they shop at counters. In addition, there are many hidden discounts waiting for consumers to visit counters or beauty consultants to reveal. In fact, as a high-end cosmetic brand, Sisley's professional skincare approach in stores not only provides consumers with a unique experience, but also establishes a competitive advantage for differentiation. According to CHAILEEDO, this high-end beauty brand from France has been in the Chinese market for 16 years. Currently, Sisley has 146 offline stores in China. In 2016, Sisley entered Tmall, thus officially opening up the channel for online sales . Since then, the brand has been present on two other e-commerce platforms, JD and TikTok China. On both Tmall and JD, the brand's best-selling products are Ecological Compound, (priced at $172) and Black Rose Skin Infusion Cream (priced at $224). It is worth noting that the brand generated $35.82 million in sales during this year's Tmall Double Eleven Shopping Festival, ranking 18th among all skincare brands, while it did not make the Top 20 skincare brands on Tmall's list during the same period last year. However, Sisley, which has achieved outstanding results in the online channel, is not satisfied with this. Shortly after the end of the 618 Shopping Festival, Sisley launched a shopping festival for fans in counters. Obviously, the launch of this shopping festival makes the brand realize the linkage of online and offline promotional activities. In recent years, as a shopping carnival created by the e-commerce platform JD, the 618 Shopping Festival has gradually covered all channels. Although Tmall and JD are the main e-commerce platforms, cosmetic brands represented by Estee Lauder, Lancôme and Guerlain have started to carry out promotions in offline channels simultaneously during the promotions launched by e-commerce platforms. Although e-commerce and live e-commerce are becoming the choice of more and more consumers, the offline channel is still of irreplaceable value to brands with online channels. The acquisition of online customers costs is getting higher and higher, the margins of live-streaming are getting smaller and smaller, and the growth margins are not enough. Otherwise, more and more cosmetic brands are seeing the experience and service of offline channels as an important weapon to enhance the added value of their brands. Sisley, which has more than 100 offline stores in China, has a relatively obvious advantage in the breadth of offline channel layout. This shopping festival for the offline channel can give full play to this advantage and also cultivate consumers' brand loyalty.

Abstract: Professional aesthetic medical repair brand SMR launched new products such as recombinant human-derived collagen lyophilized powder, claiming to apply recombinant Human-Like Collagen III independently developed by Taiyuan Biology. The recombinant Human-Like Collagen III has the characteristics of no virus hidden and low immunogenicity. Collagen is an important part of the human body. As we all know, the main cause of skin aging is the loss of collagen. Due to its excellent physical and chemical properties, collagen has the ability to moisturize and nourish, tighten and smooth wrinkles, and repair skin tissues. It is popular in the field of repairing skin after aesthetic medicine, especially in the scenes of dressings, artificial organs and regenerative medicine, beauty, and cosmetics. According to CHAILEEDO, China's collagen market is growing steadily and is the main driver in the aesthetic medical care sector. According to GrandViewResearch report, the market size of collagen in China grows to 983 million in 2019, accounting for about 6.40% of the global market. And by 2027, the market size of collagen in China is expected to reach 1.576 billion, accounting for approximately 6.96% of the global market. In the Chinese market, the collagen giant Xi'an Giant Biogene is planning to go public. Its skincare brand Collgene, among others, is also making good gains. According to Frost & Sullivan, Giant Biogene is the second largest professional skincare products company (by retail sales) in China in 2021. It has been the largest collagen professional skincare products company (by retail sales) in China for three consecutive years from 2019 and is the first company in the world to achieve mass production of recombinant collagen skincare products. From 2019 to 2021, the group's other brand Kefumei achieved revenue of 290 million, $421 million and $898 million, accounting for 30.3%, 35.4% and 57.8% of total revenue, respectively. and Collgene revenue is $481 million, $559 million and $526 million, accounting for 50.3%, 47.0% and 33.9% of total revenue, respectively. Many major international brands have also launched products about collagen, such as L'Oreal Paris, which has launched Age Perfect Collagen Expert Night Moisturizer, claiming to provide a daily boost of Collagen Peptides + Niacinamide to intensely rehydrate and firm maturing skin. The product is available for $14.8 in Tmall Global. Etude House has also launched collagen-related skincare products, but there is no official channel for them to be sold on Chinese e-commerce platforms. From this point, the international brand has not put more collagen-related products in China. It is understood that SMR was established in 2013, and is a professional engaged in biomedical beauty, health industry and biomedical research and development, production, sales, training and service as one of the comprehensive high-tech enterprises. And SMR has cooperated Biopharmaceutical Research&Development Center of JiNan University, School of Biological Sciences and Engineering from South China University of Technology to form the brand strategy of "industry, academia, research and medical". This time, SMR released a new product of recombinant Human-Like Collagen III and further reiterated the brand "7 days golden repair plan 0347 repair law". The new positioning is "professional medical repair, make beauty more beautiful", repositioning the aesthetic medical market. SMR stated that the launch of the recombinant Human-Like Collagen III is 100% homologous to humans and effectively circumvents the viral pitfalls and rejection reactions of traditional animal-derived collagen. It is generally higher than collagen on the market in terms of safety and effectiveness." It is reported that SMR launched collagen lyophilized powder, collagen dressing and other medical device products, which are expected to be launched in July. According to the introduction, such products are used during and after surgery of aesthetic medicine respectively providing consumers with more options for repair after aesthetic medicine. This time, SMR launched high-quality recombinant Human-Like Collagen III products aiming to build a professional medical post-operative repair brand and help aesthetic medical consumers achieve the goal of making themselves more beautiful.

Abstract: Monster Code will launch its first concealer --- Monster Code Blue Eucalyptus Concealer, which contains triple acne-removing ingredients (such as salicylic acid) in addition to eucalyptus globulus extract. Previously, the brand's blockbuster Copper Peptide Midnight Oil became the Top 1 in the Copper Peptide segment of skin care category on TikTok China and Tmall. According to CHAILEEDO, it can be seen that Monster Code has always taken the skincare route. The launch of the concealer may show the ambition that Monster Code plans to expand the makeup sector. According to the official disclosure of the product information, in addition to the concealing effect, the concealer has been applied with special ingredients for skin care and acne removing efficacy of the ingredients, which also continues the previous tone of skincare of Monster Code. It is reported that from September 2020 to August 2021, the sales of facial makeup on Chinese e-commerce platforms Taobao and Tmall reached $3.92 billion. But compared to August 2020, sales of facial makeup declined significantly, down 12.53% year-on-year while the concealer category saw a significant increase in August this year with a year-on-year growth of 42.09%. In the international brand, NYX multiple shade concealer once became the hot-selling product in China. NYX is a professional makeup brand from the United States of California and was founded in 1999. It has been sold in more than 70 countries and regions across the world with nearly 250 independent retail stores. In the Chinese sharing platform Xiaohongshu, the relevant notes of the product have more than 10,000. It also gained a good reputation among consumers. It is priced at $16.3 on Taobao with monthly sales of 1000 units. In terms of concealer sales by countries, the top ten countries of origin market share reached 99.89%, of which China contributed 50.24% of the performance ranked first in the countries. It can be seen that users have a certain degree of recognition of the Chinese brand with the representative brands are Mao Ge Ping, Perfect Diary, Judydoll, etc. It is worth noting that the top four countries in the Asian countries accounted for three compared to European and American brands. The same Asian Japanese and South Korean products are more suitable for Asian skin and skin tone. UNNY and The Saem from South Korea and many other popular affordable brands took 23% of the market share. Japan is due to IPSA sales, which successfully achieved a $21.5 million sales performance. The U.S. generated $19.9 million in revenue thanks to NARS. Germany took 6% market share due to the hot sale of kryolan. It is understood that the product will be officially launched on its official flagship store on Taobao, China's e-commerce platform on July 4 at 18:00(China Standard Time). The concealer claims to have a nano-sized powder with high coverage and a very ductile texture. The creamy texture can be applied and blended easily. Its main ingredient, eucalyptus globulus extract, is known as the "sapphire of green leaves" and is effective in locking in moisture in extreme environments. Eucalyptus globulus extract has the effect of repairing the skin barrier, promoting the synthesis of ceramides in the skin, regulating the balance of oil in the skin and inhibiting secretion by oil glands. Founded in 2020, Monster Code has chosen to address the needs of young people for "advanced skincare" by exploring the fundamental problems of skin through the three dimensions of "ingredients, technology and spirit". The brand has developed its R&D concept as the "MC Skincare Pyramid" following the step-by-step skincare concept of "Protect-Repair-Progress". It has developed three main product lines inspired by this concept: "Endogenic Protection - First Principle", "Endogenic Repair - Retracing of the Self", and "Endogenic Progression - Non-Invasive Conquest". At the same time, the brand has joined hands with the U.S. Formulation and Ingredient Conductivity Laboratory to develop formula efficacy. It can develop the conductivity of ingredients to go beyond the stacking of concentrations to better leverage the skincare benefits of active ingredients and products. Currently, the brand has launched products such as Copper Peptide Night Serum, 42 Essence Mist, Energy Oil-control Essence, and 9 Ingredient Cleansing Bubbles. In fact, few Chinese brands have made products on acne-removing & concealer. This attempt of Monster Code may open up a new category. A search of Xiaohongshu shows that the new product has reaped quite a lot of praise in the KOL community.

Recently, MUJI was publicly meted administrative punishment for infringment of consumer rights, causing heated debate among Chinese netizens. According to CHAILEEDO, the reason is that "MUJI labels its cosmetics non-refundable". Recently, Minhong Road branch of MUJI (Shanghai) commercial limited company (hereinafter referred to as "MUJI ") faces charges of infringing on consumer rights, and was fined 447.3 USD by Minhang Administrationfor Market Regulation. Since October 2018, MUJI has been stamping "Purchases of this product cannot be returned or exchanged for any reasons" in red on shopping tickets for in-bag underwear, cosmetics and pre-packaged food, according to the decision of administrative punishment. As the case is filed, the illegal income of MUJI is beyond calculation and no circumstances are given in which the parties actually refuse to perform the obligation of returning and exchanging goods via the above-mentioned declaration. MUJI first began in Japan in 1980 as a brand with over 7,000 no-frills quality products focusing on cosmetics, clothing, household goods and other categories, and it has opened more than 900 stores worldwide. Minhang Administration for Market Regulation held that in this case, on one hand, in respect of the goods such as in-bag underwear, cosmetics and pre-packaged food, the rule set is that the goods are not refundable except for any quality problems, for which reason the red stamp reads "Purchases of this product cannot be returned or exchanged for any reason", which obviously exempted MUJI from such refunding responsibility of the aforesaid goods due to quality problems; On the other hand, such stamps on the store receipts can get consumers mistaken that all the goods on the receipts are not refundable, causing an obvious misunderstanding and excluding the right of the consumer to return goods. As soon as the news was released, the hashtag "MUJI incurred penalty for non-refundable underwear" landed on the top search of Weibo, a Chinese social media giant, which received a page view of over 53.66 million as of 12:00 on July 1, 2022(China Standard Time)and invited numerous comments of Chinese users. Some said "this is not making sense, how can anybody refund bought underwear" or "How can the used cosmetics be exchanged? "No way. What if someone else buys the used ones ?". Other netizens left comments like "quality problem is definitely a reason for refund" and "I was satisfied upon footing the bill and spotted the problem at home, then many offline shops offer no refund service, in this regard consumer rights are on no account guaranteed" "some cosmetics causes allergy but the store just slight over it by being irresponsible". CHAILEEDO Consulted with legal professionals for this issue and learned that the refund rules of MUJI are that the goods are not refundable except for any quality problems, with the red stamp reading "Purchases of this product cannot be returned or exchanged for any reason", which obviously exempts MUJI from the responsibility of refund due to goods quality, that is to say, the underwear and cosmetic products should all be of quality. In addition, in 2021, the Shanghai Administration for Market Regulation announced that, in the quantitative packaging commodity net content sampling inspection by variables, 17 batches of products in the toiletries category were found to be unqualified, and MUJI four batches of washing and protecting articles were unqualified, including "MUJI seaweed shampoo" detected to be unqualified; "MUJI seaweed conditioner (refill)" MUJI damage care conditioner (refill) "and" MUJI conditioner (refill) "were detected as unqualified. In fact, the MUJI "Purchases of this product cannot be returned or exchanged for any reason" statement limits the right of consumers to return goods and is a behavior that does not fully fulfill its responsibility. From the perspective of running a company, MUJI should optimize the mechanism to refund and exchange goods, respond to the demand of consumers promptly, and effectively address the after-sale problems such as refund of goods; It should conduct operations under laws and regulations and formulate rules for refund of goods on the basis of such laws and regulations as the Law of the PRC on the Protection of the Rights and Interests of Consumers.

CDF submitted a listing application to the Hong Kong Stock Exchange for the second time, with CICC and UBS as joint sponsors. According to the prospectus, in 2021, CDF accounted for 24.6% of market share of the global travel retail industry , ranking first in the world. On June 30, China Standard Time ( this article is China Standard Time), China Tourism Group CDF (hereinafter referred to as "CDF"), China's duty-free giant, submitted a listing application to the Hong Kong Stock Exchange for the second time. The listing had been completed in A-shares, but the listing in Hong Kong this time meant that CDF would become a member of AH-shares. In addition, China International Capital Corporation and UBS Group acted as joint sponsors. CHAILEEDO learned that CDF passed the listing hearing as early as November 22, 2021, but then CDF A-shares issued an announcement saying that due to factors such as the Covid-19 pandemic, the global economy had been greatly impacted, and the capital market continued to subdue, and the company decided to suspend the process of this H-share issuance and listing, and the follow-up arrangements would be determined according to market conditions. According to the prospectus, CDF was established in 1984 and has grown into the world's largest travel retail operator. According to Frost & Sullivan, in terms of sales revenue, CDF's global ranking has continued to improve over the past 10 years, from 19th in 2010 to 12th in 2015, and fourth in 2019, and finally ranked global first in 2020 and 2021. In 2021, CDF accounted for 24.6% of the market share of the global travel retail industry. At present, CDF operates a total of 193 stores, 184 of which are located in 100 cities in 28 provinces, municipalities and autonomous regions in China, and 9 overseas duty-free stores. According to the latest statistics, from 2019 to 2021, CDF's airport duty-free shops have served more than 2.2 billion passengers. In terms of financial data, in 2019, 2020 and 2021, CDF’s revenue was US$7.168 billion, US$7.853 billion and US$10.104 billion respectively; net profit was US$817 million, US$1.061 billion and US$1.857 billion respectively. From 2019 to 2021, CDF's revenue grew at a CAGR of 18.7%, while its net profit grew at a CAGR of 50.8%. In terms of channels, CDF has established the only duty-free logistics and distribution system in China covering the whole country and has established direct procurement channels for more than 430 suppliers and more than 1,200 brands worldwide. Until March 31, 2022, CDF has more than 1,200 cooperative brands and more than 316,000 SKUs, covering fragrances, fashion products and accessories, etc. The cooperative brands include L'Oreal Paris, Lancome, Estee Lauder, Sulwhasoo, Dior, Shiseido, etc. With the upgrading of consumption in China, the demand for high-end cosmetics among Chinese outbound tourists has grown rapidly in recent years, driving the rapid growth of the sales revenue of the global duty-free fragrance category. According to the prospectus, in 2021, CDF China reached a sales revenue of US$3,446.28 million in tax-free fragrance products, becoming its largest source of revenue in 2021. As for the global tourism retail market of fragrance products, CDF has a market share of about 18.0%, ranking first among all duty-free operators in China. According to the prospectus, the funds raised by CDF will be used to consolidate Chinese channels and expand international channels, including investing in 8 airport duty-free shops, 20 other port duty-free shops and 20 taxed tourism retail projects, and opening 6 international duty-free shops in cities, as well as 11 domestic duty-free shops in cities, 6 cruise duty-free shops, and to renovate and expand Haikou/Sanya International Duty Free City. At the same time, CDF also plans to selectively acquire 2-3 international travel retail operators to improve the efficiency of the supply chain and improve the membership system. According to the analysis by Western Securities, a Chinese securities management institution, CDF’s strategic intention is still relatively obvious, that is, in the future, international layout, extensional mergers and acquisitions, and industrial chain extension will be important directions for the company’s strategic layout. If the subsequent issuance becomes successful, it will significantly increase the company's capital scale. The company hopes to make positive progress in the development of overseas channels in the future, including investment and M&A opportunities for tax-free operators and upstream brand owners.

Abstract: China's original plateau plant skincare brand SHE LOG launched Ding Zhen(a Chinese influencer popular in TikTok China) co-branded peripheral Limited Bag, which is made of biodegradable jute fiber. The bag is available on its flagship store on the Chinese e-commerce platform Tmall. Customers can get the bag if their payment can be reached at 329 yuan(about $49.1). The amount of the bag is limited to 5,000 units. According to CHAILEEDO, the bag launched this time uses jute fiber of plant origin as the production material, which is natural, rough, durable and biodegradable. SHE LOG aims to express the brand's philosophy of plant-based raw materials as the core and to advocate natural environmental protection. Founded in Guangzhou in December 2020, SHE LOG is dedicated to creating green, safe, gentle and effective skincare products including the Matsutake Mushroom Series Amino Acid Cleanser, essence, facial cream, mask, makeup remover, etc. Its products are available on Tmall, Jingdong and other e-commerce platforms. Its brand positioning insists on being rooted in China, using rare plant extracts. With scientific innovation as the core concept, the brand is committed to delivering green and healthy beauty care solutions and a simple lifestyle. It is worth noting that The Body Shop also advocates green skincare and veganism. In its Chinese e-commerce platform Tmall Global official flagship store, the highest-selling product is The Body Shop Ginger Shampoo priced at $14.8 with the total sales volume of 200,000+. In its comment section, a number of users said they have repurchased the products several times. It is reported that during the first Chinese Double 11 Shopping Festival that the brand participate in, the monthly sales of its iconic product reached 100 thousand units. The total sales of SHE LOG exceeded $2.684 million in its flagship store on Tmall during the Chinese Double 11 Shopping Festival in 2022. In February 2022, sales of SHE LOG on the Taobao channel reached $2.2 million. At present, SHE LOG said the brand's full range of packaging is made of renewable paper with environmentally friendly soy ink printing. The bottle is also a biodegradable material. This sustainable concept echoes the plant-based skincare brand concept that SHE LOG has been following. Previously, SHE LOG also participated in the Earth Hour campaign and advocated for consumers to take action together. In recent years, in order to solve the increasingly serious climate problem and promote environmental protection, on September 22, 2020, Chinese President Xi Jinping on Tuesday made a statement at the general debate of the 76th session of the United Nations General Assembly that China would strive to peak carbon emissions before 2030 and achieve carbon neutrality before 2060. Against this backdrop, carbon reduction has become a top priority in the sustainability plans of major beauty giants, and their latest sustainability goals include further refinement of the direction and criteria for carbon reduction from using renewable energy for production to more environmentally friendly transportation processes. Now, these beauty industry leaders are also setting their sights on carbon capture, utilization, and sequestration technologies to separate greenhouse gases from the environment and even convert them into resources. L'Oréal's 2030 Sustainability Commitment cites its Natural Regeneration Fund's goal to help capture 15 to 20 million tons of carbon dioxide by 2030, and P&G's "Net Zero 2040" sustainability goal announcement states that it will pilot and promote materials made from renewable carbon, recycled carbon and carbon capture technologies. materials. According to the Who Cares Who Does release by Kantar Consumer Index, the percentage of Chinese consumers who support environmental protection reached 53% by 2020, an increase of 13 percentage points from last year, indicating that consumers are gradually becoming more concerned about sustainability and more environmentally conscious. Among Chinese brands, CHANDO has gradually implemented sustainable development strategies including clean production, energy saving and emission reduction, in addition to the launch of the eco-friendly bottle packaging of its products some years ago. In today's world, sustainable lifestyles are more important than ever, and more and more beauty companies are involved in sustainable ecology. The bag launched by SHE LOG in conjunction with Ding Zhen is dedicated to strengthening environmental education for consumers and contributing to the cause of environmental protection in China.

Chinese sensitive skin care brand-- Winona’s parent company Botanee proposes $15 million investment to Sequoia Fund. It is managed by Sequoia Capital, focusing on investment opportunities in sectors such as technology, health care and consumer services. On June 30 of Beijing time (all times in this article are Beijing time), CHAILEEDO observed that Chinese sensitive skin care brand-- Winona’s parent company Botanee announced a plan. It intends to invest in the Sequoia Capital Equity Investment Management (Tianjin) Co., Ltd. as the manager, and in the Hangzhou Sequoia Kunpeng Management Consulting Partnership (limited partnership) as the Hangzhou Sequoia Shengheng Equity Investment Partnership (limited partnership) that was set by the general partner (hereinafter referred to as sequoia Fund). And also it intends to sign Hangzhou Sequoia Shengheng Equity Investment Partnership (limited partnership) Limited partnership Agreement. Among them, as one of the limited partners of Sequoia Fund, Botanee subscribed $15 million with its own capital. The share that Botanee’s investment accounts for in Sequoia Fund would be finally confirmed based on actual fund-raising. Botanee announced that the purpose of this investment mainly is to further promote the company’s comprehensive competitiveness and profitability, grasping the opportunities of strategic cooperation. And also this action will improve the efficiency of the use of its capital, and explore cooperation opportunities with other excellent enterprises, further promoting the development of the company, thus improving the comprehensive competitiveness and profitability. It is helpful to improve the company's overall strategic layout. Introduced by Botanee’s official website, Botanee, set up in 2010, is a grand health industry group mixing of research and development, production and marketing, and positioning in the skin health Internet+. Brands like Winona, DOU DOU KANG, Winona Baby are its core brands. According to Botanee’s financial report in 2021, its operating revenue reached $600 million, with a year-on-year growth of 52.57%. Its net profit was $129 million, a 58.77% increase over last year. In light of Euromonitor’s statistics, Winona, its core brand, ranks No.1 in the dermatological skin care market in China. The market share in 2021 increased by about 2% over that in 2020. Compared with 2020, Winona’s leading-edge over the second and third place continued to expand, and its market share in China is close to the sum of the second and third, with a significant “80-20 rule”(It means that being number one in a field tends to get more attention and have more resources). According to the above announcement, the Sequoia Fund mainly focuses on investment opportunities in sectors such as technology, health care and consumer services. The objective of Sequoia Fund mainly is equity investment for enterprises, while taking into account the investment opportunities of mergers and acquisitions, so as to obtain good returns for partners from capital gains. Actually, Sequoia China has a deep relationship with Botanee. Sequoia China, the supporter of Botanee’s first-round financing, contacted Botanee in 2014. In March 2021, Botanee was successfully listed on the Gem of Shenzhen Stock Exchange. Prospectus showed that a 25.39% share of Botanee was held by Sequoia China before the issuance, making it the second largest shareholder within the company and the largest external institutional shareholder. Besides investing in Sequoia Fund, recently, Chinese beauty brand FUNNY ELVES completed A round financing of tens of millions yuan, led by Botanee, with the investment of Qingrui venture capital. The public data indicates that FUNNY ELVES mainly focuses on cosmetics, mainly yielding professional foundation make-up, which is the first cosmetic brand that Botanee invested. In fact, relying on a single brand is the main challenge in Botanee’s operation. According to its annual report, the revenue of the core brand Winona accounted for more than 98% of the company’s overall revenue in 2021. For this situation, Botanee has mentioned repeatedly the principle of “connotative cultivation and extensional acquisition.” As for the investment in FUNNY ELVES, it is a part of a multi-brand initiative.

"Fragrance Traveler" experience officer Cheng Xiao(over 12 million followers on Chinese social platform Weibo) was invited to attend the "Fragrance Traveler" limited time store launched by Coty's Asia Pacific travel retail business unit and GDF Duty Free City. According to the observation from CHAILEEDO, Coty is a world leader in beauty and home to an illustrious roster of cosmetics. To fit the theme of the pop-up store, Coty has decorated it with balloons, which represent the fragrance brands that have crossed the ocean to Haikou, China. Furthermore, to provide consumers with a unique shopping experience, the company launches a nameplate customization service and a branded ribbon customization service. The brands participating in the pop-up store include Chloe, Burberry, MARC JACOBS, MIU MIU and other four fragrance brands. Earlier this year, Coty Group reported its results for the second quarter of the fiscal year 2022, which ended December 31, 2021. In the second quarter, Coty reported net revenues of $1.58 billion, up 12% year-over-year, driven by growth in its two business segments: high-end beauty and mass consumer beauty. For the first half of the fiscal year 2022, Coty's net income was $2.95 billion, an increase of 16 percent year-over-year. In the second quarter, Coty's premium beauty division reported net revenues of $1 billion, representing 64% of Coty's sales and a 12% increase over the prior year. On an LFL basis, the Premium Consumer segment achieved strong net revenue growth of 12 percent, driven by strength in all regions including most EMEA markets, travel retail, China and the U.S., where market growth continued to rebound. In the second quarter, sales of fragrances in the High-end Consumer segment continued to grow at a double-digit rate, with strong growth from brands such as Burberry, Gucci, Marc Jacobs and Chloe, according to the report. It is worth noting that Coty's key innovations, notably Gucci Flora Gorgeous Gardenia and Burberry Hero, also continued their strong sales performance and were the best-selling fragrance innovations in their key markets, with the former ranking in the top 7 on the Tmall channel in China last December. Meanwhile, its fragrances business showed strong double-digit growth in China during the quarter. According to Euromonitor, the Chinese fragrance market is expected to grow at a CAGR of 14.9% between 2015 to 2020 and 22.5% over the next five years with retail sales in China reaching $4.5 billion by 2025. The global market will grow at a CAGR of 7% over the next 5 years and will reach $64.5 billion in 2025. The comparison shows that in the next few years, the growth rate of the Chinese market will be about three times that of the global market, with huge development potential. Eternal Group said in its White Paper on 2021 China Perfume Industry Research that high-end perfumes are the main force for growth in the Chinese perfume market, with the market share rising year by year, from 70% in 2015 to 91% in 2020. For the COTY perfume category, COTY Group China General Manager introduced that the current COTY Group perfume brand portfolio is balanced and diversified. As for high-end brands, two brands Gucci and Burberry have been performing well in China. In addition to conventional products, both have high definition lines such as Gucci Fading Autumn Scented Water series, Burberry Classic series, which are more popular in the market. In the high-end niche market, represented by Chloe, the brand's new series name is Wonderland Garden. The whole theme of the fragrance is flowers, which is favored by many young women. It enjoys the great potential for development. As for the designer brand perfumes, such as Miu Miu and Tiffany, are all exclusive with Sephora in China and basically also maintain a growth rate of two to three digits. As for lifestyle perfume brands, there are CK and Marc Jacobs perfumes. In the mass market, there are also Adidas sporty perfumes to choose. From this point of view, Coty invited Cheng Xiao as "fragrance traveler" experience officer for enhancing the group's brand image, brand value. Coty believes that in the future, China will have a stronger voice in the beauty market and will become the leader in the global beauty market leading the development of the entire beauty industry.