Abstract: Chinese innovative fragrance brand Documents has launched creative drinks such as smoothies inspired by the classic fragrance of Eau de Parfum, and offers some of the classic fragrances with corresponding flavors of ice cream every weekend in Huaihai, Shanghai, China. According to CHAILEEDO, the beverages launched by Documents incorporate various aromatic ingredients into the special drinks to mobilize consumers' senses of taste and smell. For example, the drink named Naive is made with lime and crisp peach flavors. The brand claims that the drink is inspired by the smell of NAIVE fragrance, which has the notes of lime and peach. In recent years, there have been multiple cross-border attempts by perfume brands in China and the international market with French fragrance brand Diptyque having used food as a gimmick for its cross-border attempts, collaborating with Shanghai dessert store Chikalicous to launch a dessert of the same name, Eau des Sens. This limited dessert will only be sold for one month. Other industries are also looking at the perfume category, for example, the classic Chinese sugar brand Dabaitu has launched Dabaitu perfume, claiming to have the scent of Dabaitu sugar. As a fragrance brand, Documents has launched a drink, which brings unprecedented novelty to users on the one hand, and positively promotes the brand's own business expansion on the other. According to official information, Documents was founded in 2021 as an innovative fragrance brand, starting from the 15 % - 25 % fragrance sector and creating a unique style called "CHANKU".The brand is committed to creating a "new Chinese fragrance" with novelty, rarity and diversity. The brand has received attention for its high pricing and high-end positioning, with its home fragrance product "Silver Charcoal Drops" priced as high as $396, far exceeding the pricing range of international brands such as Jo Malone (Jo Malone Freesia priced at $94) and Dior (Dior Sauvage priced at $112). After color cosmetics, fragrance seems to have become the most promising beauty sector in recent years. On the one hand, foreign perfume manufacturers, such as Firmenich, Givauton, etc. have entered the Chinese market, looking for opportunities to put into production in China. On the other hand, international high-end fragrance brands have also entered the Chinese market, such as the French brand L'Artisan Parfumeur, the British brand Penhaligon, European brand BYREDO, and so on, and have achieved good results. L'Artisan Parfumeur made the list of young people's favorite imported niche perfumes in the 2020 Tmall Tanabata campaign. The local Chinese market has also seen the rise of fragrance brands with some heat, such as Scent Library, RE, Scentooze, Plustwo, etc. For example, in 2019 ToSummer debuted as a niche, original, oriental story fragrance brand. The first store is located in Taikoo Li Sanlitun, Beijing, which has also made ToSummer the most sought-after local beauty brand among young consumers in recent years. Based on this, Documents is finally anchored on the luxury market, which best reflects its own brand creativity and design capabilities. Through the perfume's mature supply chain, it cooperated with global head fragrance giants, invested in packaging and packaging materials raw materials and technology to quickly solve the problems at the production end, and focused on highly concentrated products with 15%-25% fragrance content that is most suitable for Chinese people. The main product perfume 30ml pricing $127, 90ml for $267. Data from the industry institute shows that Chinese sales of fragrance concept products reached $0.9 billion in the first half of 2021, up 21.07% year-on-year. Euromonitor data also shows that the Chinese fragrance market is growing at a compound annual growth rate of 14.9% between 2015 to 2020, while the growth rate for the next five years is even more optimistic, expected to be 22.5%. Nowadays, many innovative brands are using e-commerce platforms as their main front, while Documents is focusing on developing offline space. Documents have opened its first offline store in Shanghai. As of November 2021, the store's performance is two times higher than the average of its peers, including a bag pick-up rate of over 30% and a customer unit price of over $150. Starting from December 2021, Documents opened new stores in Beijing, Shanghai and Chengdu one after another. It is reported that Documents has revealed that it will open offline flagship stores overseas in the future. The stores are located in Shanghai's busy shopping district and Beijing is located in the high-end luxury mall SKP-S, which also carries the necessity of perfume and luxury experience. In terms of category selection, Documents has chosen the most creative and innovative fragrance as its core product to occupy the position of high-end perfume, including the launch of the brand's beverage products, which also aims to export the brand's comprehensive image to consumers. From this perspective, the Chinese perfume and fragrance market, as well as the new generation of luxury brands in China, may have more new possibilities.

Chinese e-commerce integrated service provider Ruoyuchen invests in MOFAN, which is seen as an important step for Ruoyuchen to expand its influence in the ecological environment of TikTok China. In 2021, Ruoyuchen's service revenue in the TikTok China platform exceeded 3.2846 million US dollars. Recently, Wuhu Ruoyuchen Investment and Management Co., Ltd., a wholly-owned subsidiary of Guangzhou Rouyuchen Technology Co. Ltd. (hereinafter referred to as "Ruoyuchen"), invested in Guangzhou MOFAN E-commerce Co and accounted for 10% of its shares. In the industry, this is an important step for Ruoyuchen to increase the layout of TikTok China e-commerce. According to the official website, Ruoyuchen was founded in 2011 and is a Chinese e-commerce integrated service provider. At present, Ruoyuchen has served more than 100 customers such as P & G, Selsun, Unilever, and Kao. The company has also hatched its brand of washing care, "Zhanjia." According to the 2021 financial report, Ruoyuchen achieved an operating income of 192 million US dollars, an increase of 13.44% over the same period of last year, and achieved a net profit of 4.3588 million US $. Among them, its own brand "Zhanjia" revenue has accounted for about 6% of the overall revenue. According to the revealed information, MOFAN was founded in 2016 and is one of the first Chinese e-commerce service providers to enter the TikTok China live-streaming track which served L'Oreal Paris, Rifuquan, Perfect Diary, Little Ondine, Abby’s Choice, Kelala and other brands. During the 618 Shopping Festival, MOFAN’s GMV shop topped 200 million ($30 million), surpassing last year's Double 11 Shopping Festival. It is understood that since the second half of 2020, Ruoyuchen began to accelerate the service penetration of the emerging e-commerce marketing platform represented by the TikTok China platform, and through the store station operation, integrated marketing, data mining, supply chain management, and other aspects, to help the brand to make a further breakthrough in the e-commerce live-streaming. Selsun is the anti-dandruff care brand of Sanofi, a world-renowned pharmaceutical company, which officially entered the Chinese market in 2019. In June 2021, Selsun first entered the TikTok China e-commerce platform. From June 18 in 2021, the volume of transactions of its small shop GMV in TikTok China was over 447.9 thousand US dollars. In 2021, opened for half a year, selsun’s sales are more than 2.986 million dollars and became the global purchasing of personal care category TOP1. In TikTok China SELSUN overseas flagship store, "SEASON Gold 2.5% sulfide selenium nonsilicone oil powerful anti-dandruff and oil-free shampoo 200ml" is the store's highest selling product, at the price of $7.32, this series has sold more than 110 thousand pieces. As of June 24, China standard time, the product sales page shows that the product has been snatched up. In addition to the service operation of the brand, Ruoyuchen hatched its brand at the end of 2020 and achieved a rapid breakthrough in the vertical field of fine clothing care since its listing, and in 2021 the selling amount of GMV exceeded 11.944 million dollars in China. According to CHAILEEDO's observation, Zhanjia's popular videos are frequent on TikTok in China. The most popular video even achieved 31,000 + likes, and six related videos broke 20,000 likes. During June 18 shopping festival this year, Zhanjia also gained new market volume on the TikTok China e-commerce platform. The target completion rate of TikTok China's new stores reached as high as 160 percent. In TikTok China Zhanjia Fabric Care flagship store, "Zhanjia Deodorant, Mite and Odor Removal Fragrance Spray 200ml" is the highest selling product in the store, priced at $19.11, and has sold more than 30,000 pieces. As a service provider of the first tier of TikTok China, MOFAN has become a leading player in the e-commerce operation with its team's deep understanding of the business ecological environment and rich industry experience. The investment of Ruoyuchen this time not only realizes the upgrading of its serviceability in TikTok China content marketing and enhances the internal business synergy capability, but it also deepens the brand management strategy with the help of the diversified layout of capital and empowers the Group's brands management matrix and promotes the overall upgrading and development of the company's business. Intensified competition, sluggish consumption, coupled with the slowdown in the revenue growth of mainstream e-commerce platforms, have made the entire beauty makeup e-commerce agent operators industry enter a critical period of transformation, while e-commerce supplier TikTok China has broken through the trillion level of product sales in just two years. Revealed information shows that Baozun, Lily & Beauty, and other Chinese traditional leading agent operators have set up subsidiary companies or business sectors in 2021 that specialize in TikTok China agent operations. This time, Ruoyuchen invests in MOFAN to increase the layout of TikTok China's e-commerce supplier. There may be more opportunities, such as: With the help of the huge flow pool, it can quickly create hot-selling products for its cooperated and managed beauty makeup brands.

China beauty thirdpartnar Lily & Beauty has set up a TikTok China business unit , launching TikTok China livestreaming room for co-branding in a bid to bolster its livestreaming service. Recently, CHAILEEDO observed that Chinese beauty thirdpartnar Lily & Beauty on the investor community site: "Targeting at the fast-growing live streaming sector, the company will promote marketing by cooperating with Kol talents, adopting different livestreaming forms such as in-store live session. At the same time, the company has set up a TikTok China business unit to set up a TikTok China livestreaming room for co-branding in a bid to bolster up its live streaming service." In 2021, Lily & Beauty started its continuoUS investment in the emerging e-commerce marketing platform featured by TikTok China, and extended cooperation with Coty, Henkel, Kao corporation, Pierre Faber, LG group and other noted beauty groups and undertook operation of TikTok China shops for brands such as Schwarzkopf, Freeplus, KATE, ALLIE, Avene, and Rene Furterer. According to the sales report following the 618 shopping festival of Tmall, during the big promotion, the sales volume of several international beauty brands operated by Lily & Beauty on Tmall was gaining traction, with multiple products faring well in sales. The 618 sales reports released by Lily & Beauty suggests that Rene Furterer ranked first in the category of satin essential oil, scalp care ①, Kissme ranked first in the category of mascara, eyeliner while KATE came up first in the category of eyebrow powder/eyebrow pencil/brow cream. Schwarzkopf in hair dyeing and Adidas in men's shower gel. Among them, the transaction amount of the Radiant Rejuvenating 7-pieces package exceeded 10.437 million US dollars, and the transaction amount of Sulwhasoo essentials package exceeded 4.473 million US dollars, the transaction volume of "Rene Furterer TRIPHASIC ATP INTENSIF" Exceeded 2.982 million US dollars, and the transaction volume of "Burberry Eau De Parfum" Exceeded 89,500 US dollars. In response to the establishment of the TikTok China business unit in Lily & Beauty, the move was considered by indUStry insiders as a rescue method for Lily & Beauty at a time when the performance growth slowed down. According to Lily & Beauty’s financial report, in 2021, Lily & Beauty reached an operating revenue of 0.62 billion US dollars, a decrease of 9.67% year-on-year; net profit after deducting non-recurring gains and losses was 0.054 billion US dollars, an increase of 17.32% year-on-year. In 2021, Lily & Beauty's revenue from Tmall and Tmall International was 0.553 billion US dollars and 0.024 billion US dollars respectively, with year-on-year changes of-14.78% and 1.43% respectively. The total revenue from Tmall platform was 0.577 billion US dollars, accounting for 93.2% of the company's gross revenue.as an e-commerce thirdpartnar in china, centering only on Tmall poses tremendous risks for enterprises and threatens to be a major weakness of Lily & Beauty. In this regard, rapid adjustments should be made targeting china's current e-commerce market landscape as soon as possible. According to the 2021 financial report of Lily & Beauty, in 2022, the company will channel greater investment in emerging marketing platforms featured by TikTok China and expand the market share in TikTok China by expanding lease venues, increasing recruitment, opening up more channels of cooperation, securing wider market share in TikTok China and so on. With the continuous improvement of the TikTok China e-commerce system and mechanism, an increasing body of businesses, e-commerce celebrities, and Users are gathering together on TikTok China. Lily & Beauty is also stepping up on the development of emerging platforms led by TikTok China. As of December 31, 2021, Lily & Beauty has run a total of 33 TikTok China shops. Paraphrase: ① The first: herein refers to ranking first in the Trading Index of Tmall Business Staff Market during The 618 Sales in 2022.

Interest e-commerce platform TikTok China prohibited live broadcasting room advertising for beauty and body care medical devices and contact lenses/solutions for contact lenses or other categories of products, cosmetic contact lenses, and medical dressings were included. On June 22 China Standard Time, TikTok China issued its Announcement about the prohibition of live broadcasting room advertising for "three types of products and one device" — Medicine, Health-care Food, formula food for special medical purposes, medical devices， and veterinary medicine. The Announcement has forbidden those live broadcasting rooms titled with the above products According to the information gathered by CHAILEEDO, if the Ocean Engine advertising platform or the Qianchuan platform detected the above violations in the promotion, the advertisement will be suspended immediately. In the case of brand promotion, if the above rules are violated, the live broadcasting room that advertised the prohibited products will not be guaranteed the sales volume and the promotion fee will be paid according to the scheduled display volume. The Announcement stipulated that the live stream advertisement for beauty and body care medical devices, contact lenses/ solutions for contact lenses, and other categories of products were prohibited. According to the medical device category management regulations announced by TikTok China in April, cosmetic contact lenses and medical dressings were included in the category of beauty and body care medical devices. This regulation announced in April only allows some targeted access to brand flagship stores, including Voolga, FulQun, Comfy, Rauer, Cofoe, BLOOMING-MIH, YIFU, Facelive, and Winona, all of the above are Chinese brands. On June 10 China standard time, China Food and Drug Administration (CFDA) also released an article titled "Notice for buying and using decorative colored contact lenses (cosmetic contact lenses)," clearly stating that Cosmetic Contact Lenses are contact lenses with a decorative function, known professionally as Corneal Contact Lenses. CFDA suggests that those contact lenses will directly cover the surface of the cornea and closely touch the eye tissue, so they are relatively high risk and directly related to the safety of the human eye. At present, China has included cosmetic contact lenses in the regulation coverage of category III medical devices, which requires that only those sellers who obtained a business license and a medical device business license are legally allowed to run this business. The certificate of registered record for medical device network sale is also required if the business party wants to sell cosmetic contact lenses on China’s e-commerce platform. As the public data showed, the consumer demands for cosmetic contact lenses are relatively low before 2012, while the market for contact lenses at that period was dominated by traditional brands such as Johnson & Johnson, BAUSCH + LOMB， CIBA Vision， and Cooper Vision. Later on, those Japanese and South Korean brands gradually entered the Chinese market, influencing the younger generation. Only after 2015, did China’s market demand for cosmetic contact lenses surge quickly, signifying the rise of China’s cosmetic contact lens brands. The growing Chinese cosmetic contact lens market is flooded with all kinds of low-cost products, and consumers are the victims of those poor-quality contacts. Previously, reports of consumers wearing contacts with dry eyes and red blood have been exposed frequently, among which there are even more serious cases of colored eyes by the contacts and corneal ulcers. On the Chinese complaints platform Black Cat Complaints, there are hundreds of consumer complaints about the quality problems of contacts, mostly for the following reasons: grinding the eyes after wearing, dryness, conjunctivitis, and severe redness of the eyes. To improve the quality of the cosmetic contact lenses market and advance the whole industry’s environment, Chinese government regulators have been gradually strengthening the management and supervision in this industry. In 2012, China Food and Drug Administration put in place comprehensive regulations on contact lens products and included them in the category of medical devices, stating that businesses are not allowed to produce or sell cosmetic contact lenses without a medical device registration certificate. Recently, China Food and Drug Administration released an additional regulation to the previous Notice, suggesting consumers report to local Food and Drug Regulation Departments if they find counterfeit and shoddy products or unlicensed business operations for contacts products. The regulators will refer to the law while investigating and punishing those business practices violating the laws or regulations. Those who have criminal suspicions will be transferred to public security organs for criminal responsibility. In just half a month, two regulations have been issued for contacts in the industry — the notice of contact lens risks from CFDA and TikTok China’s prohibition of cosmetic contact lenses advertisement in the live broadcasting room. With the joint efforts from China's regulators and e-commerce platforms, it is expected that the contacts industry will enter a new phase of ordered and regulated development.

A few days ago, Natasha Denona, the founder of the American professional makeup artist brand Natasha Denona Beauty, was accused of discriminating against Asians for a video of an eyeliner tutorial on an Asian woman. Recently, Natasha Denona Beauty, a famous makeup artist brand in the US, issued an apology on Instagram as well as Chinese social media platforms, Sina Weibo and Xiaohongshu, for the "racial stereotypes" of the brand founder Natasha Denona. CHAILEEDO has learned that on June 11, Natasha was accused of discriminating against Asians for a video she posted on Instagram, which showed her eyeliner tutorial for Asians with single-fold eyelids. The video was made by the brand in collaboration with Sephora in 2021 and is titled "How to match your eyeliner to your face shape". In the video, Natasha demonstrates how to apply eyeliner to girls who have single-fold eyelids in both heavy and everyday makeup. After the completion of the makeup, an Asian girl with infold double eyelids has two thick and long black eyeliners. Furthermore, almost half of her eyelids are painted black. Once the video was released, it sparked the discontent of many Asian netizens. According to the observation from CHAILEEDO, there are two main reasons why netizens are disgusted with the video: firstly, the model in the video has a typical Asian face, but does not have single eyelids; secondly, the makeup artist drew thick eyeliner on the model's eyelids, which is said to be ugly and a "stereotype" of Asians. It is worth mentioning that many netizens clearly pointed out that "Asians never draw eyeliner like this" and that this makeup is only her "stereotypical image of the Asians". However, Natasha's response to these comments further intensified the discontent of the netizens and even triggered the attention of the famous beauty media "Estee Laundry". Natasha not only denied the problem with her makeup tutorial, but also argued that "the whole point is to inspire you because you don’t do it". "The whole point of the video is to show what you COULD do if you want a bolder or different look than you are used to, otherwise if you know exactly how to do your makeup and don't need any inspiration, then there is no need to watch any tutorials," she added. The Asian eyeliner controversy ended with an apology from the founder and the brand's official accounts. On June 14, Natasha deleted the controversial video. She then posted a video about five minutes in length to explain and apologize for the controversy on Instagram. At the same time, the brand also posted an apology onInstagramm and other social media platforms. CHAILEEDO noted that Natasha said in the video that the controversial eyeliner was inspired by her own bold and exaggerated makeup creations. Meanwhile, she argued that she meant no disrespect to Asians and that the video was just meant to inspire people. "The reason why I removed the video is that I don't want any internet users to be hurt by this video." Subsequently, she added that English is not her native language, so she didn't clearly express her intention in response to netizens' comments. But the apology not only failed to quell the anger of netizens, but even further amplified the conflict. In the Chinese market, for example, the apologies of the brand posted on Weibo and Xiaohongshu have generated some negative comments. According to CHAILEEDO, Natasha Denona Beauty officially entered the Chinese market through Sephora in 2020 and subsequently opened an online overseas flagship store on Tmall and JD respectively. In December 2021, the brand opened its first offline counter in Xi'an., China.Natasha Denona Glam Eyeshadow Palette (priced at $88) sells more than 2,000 units per month on Tmall. Actually, in recent years, the disputes caused by foreign cultural differences and aesthetics have received much attention in China. The features, including single eyelids, slanted eyes, flat noses, square and round face shapes, which are considered to be the appearance of Asian people, have long appeared in film and television works in Europe and America. Obviously, these so-called characteristics of Asian appearance are also shown in the makeup designed by Western brands. Last year, the renowned brand Dior was accused of scandalizing Asian women for an advertisement. It is reported that the Asian woman in the ad has "a very representative Asian face" - slanted eyes. Although the aesthetics of different countries are very different, if Western brands do not change these stereotypes of Asian people. Not only will it be difficult for them to truly connect with Asian consumers, but will it be easy to be resisted by consumers by means of inappropriate advertising and marketing.

On the 23rd of June, Beijing time, the latest prospectus introduced by Voolga showed that its revenue in 2021 was 1.6 billion yuan (about 246 million US dollars), a year-on-year increase of 4.08%. Its net profit was 120 million US dollars, a year-on-year increase of 24.38%. On June 23, Beijing time, CHAILEEDO observed that Harbin Fuerjia Technology Co., Ltd. (hereinafter referred to as "Voolga") responded to the second round of inquiries from the Shenzhen Stock Exchange and released the latest prospectus. According to the official website, Voolga was established in 2017 and is mainly occupied in the research and development, production, and sales of professional skin care products. Its main products include the "Voolga" brand and its sub-brands "Voolga 1 Beauty" and "Voolga Flower Season". The product category features medical device dressing products and functional skin care products. It focuses on dressings, patches, and film products, and has introduced other forms of products such as liquid, essence and lotion, spray, and freeze-dried powder. According to Frost & Sullivan's analysis report, in 2020, the sales of Voolga patch products ranked first in the Chinese market of professional patch skin care products, accounting for 21.3%; among those products, medical device dressing products accounted for 25.9%, ranking first in the Chinese market; functional skin care products and patch or film products accounted for 16.6%, ranking second in the Chinese market. From the facet of profitability, the prospectus showed that in 2021, Voolga's operating income was 246 million US dollars, a year-on-year increase of 4.08%; net profit was 120 million US dollars, a year-on-year increase of 24.38%; non-returned net profit was 116 million US dollars, a year-on-year increase of 62.29%; gross profit rate reached 81.95%. It is not difficult to see that Voolga performed very well in terms of net profit and gross profit rate in 2021. From January to March 2022, Voolga got revenue of 52.8507 million US dollars, an increase of 1.99% over the same period in 2021; the net profit of the parent company was 24.1316 million US dollars, a decrease of 6.58% over the same period in 2021. Voolga said that it is mainly because the company focused on online sales in this period, which led to an increase in service fees of platform promotion and new media marketing and other publicity and promotion fees, and increased investment in research and development in this period at the same time. From the facet of product categories, Voolga now has a total number of 49 products, including 4 medical device products and 45 cosmetic products. Although there are only 4 types of medical device products, speaking of revenue, such products are still the main source of revenue for Voolga, accounting for more than half of the total revenue. These 4 kinds of medical device products are "Medical Sodium Hyaluronate Repair Patch (White Film)", "Medical Sodium Hyaluronate Repair Patch (Black Film)", "Medical Sodium Hyaluronate Repair Lotion (Disposable)", "Medical Sodium Hyaluronate Repair Lotion (Spray)". All of them are suitable for mild to moderate acne and can help heal injuries and repair one's skin. They have an adjuvant therapeutic effect on acne recovery, skin allergies and early post-laser pigmentation, and reduction of the formation of epileptic scars. Among them, "Medical Sodium Hyaluronate Repair Patch (White Film)" is the product with the highest sales in the Tmall official flagship store of Voolga, with monthly sales of over a hundred thousand, and the price is 6 US dollars for 2 pieces. It ranked first in the Tmall praising list of medical dressings. According to the prospectus, Voolga's main products are composed of two categories: medical devices and cosmetics. From 2019 to 2021, the operating income of Voolga medical device products was 137.0561 million US dollars, 131.4309 million US dollars and 138.5385 million US dollars, accounting for 68.38%, 55.54% and 56.25% respectively. Besides, benefiting from years of comprehensive operating experience accumulated in the field of medical device dressing products and a deep understanding of the market of professional skin care products, the revenue of Voolga cosmetics products also presented a trend of rapid growth. From 2019 to 2021, the revenue of cosmetics was 63.3741 million US dollars, 105.2121 million US dollars and 107.7549 million US dollars respectively. It is reported that this round of Voolga’s IPO raised 283 million US dollars, of which 132 million US dollars was used for brand marketing and promotion, 98 million US dollars was used for constructing production bases, 45 million US dollars was used to supplement circulating funds, and 8.5079 million US dollars was used for research and development and the construction of quality inspection center.

Abstract: Chinese minimalist and naturalist beauty brand UNNY CLUB have announced actress Deng Jiajia (13.105 million followers on Chinese social media platforms Weibo) as the spokesperson for its foundation series. The brand said that Deng Jiajia has won the Golden Rooster Award and the Hundred Flowers Award for Best Supporting Actress, and has both strength and popularity. UNNY claims that the foundation has an upgraded version of its patented oil-control powder, 15 times more effective in absorbing oil and 2% more mango seed butter. According to observation from CHAILEEDO, it shows that UNNY was founded in 2014 and is a Chinese minimalist natural beauty brand with minimalist design philosophy, specializing in skin science for Chinese women. The brand concept of "simple and pure" is to create three series of makeup, cleansing, and skincare. UNNY is a brand of PEILAI Brand Management Co. Founded in 2010, PEILAI Group is a new generation cosmetic brand management group that "empowers the integration of multi-brand R&D and operation". In the past 10 years since its establishment, PEILAI Group has built 15 brands, including UNNY CLUB and RNW, which have a GMV of over 447 million covering four major fields: color cosmetics, skincare, personal care, and fragrance with sales of over $46.8 million in 2020. It is understood that UNNY's makeup has several categories such as base makeup, eye makeup, lip makeup, skincare products covering masks, lotion, sunscreens, and other categories and beauty tools products such as beauty sponge, powder puff, and others. It is reported that, as a basic skincare process, sunscreen has been the immediate need of consumer concerns. According to data from oIBP, it is shown that the Chinese sunscreen market size of $2.1 billion and is expected to reach $3.6 billion by 2024. As the public's awareness of sunscreen becomes more profound, the sunscreen market has gradually evolved to segmentation and diversification. In the face of the tens of billions of sunscreen market, major brands have shown their ace products to compete. In the list of TOP9 hot-selling single products, Japan's Anessa sunscreen from Shiseido ranked top 1. As the sunscreen market in the hot-selling brands, the product of Anessa is also ranked Top 1 on the V list of sunscreen, international sunscreen list, and many other lists on the Chinese e-commerce platform Tmall. While UNNY's star product is sunscreen, UNNY sunscreen is divided into two versions for dry and oily skin: Unny Club My Fair Moist Sun Lotion and Unny Relief Whitening Sun Cream. Its sunscreen products have a total sales volume of more than 1 million on the Tmall flagship store. From January to April 2022, on the Tmall and Taobao platform, UNNY made the list of Top 10 sunscreen brands, the rest of the brands include Mistine, Anessa, Lancome, etc. UNNY's core product line of facial primer and whitening sunscreen cream saw sales growth of $2.3 million in the official flagship store. It is noteworthy that a short video of a blogger in TikTok China had exploded that some of the sunscreen products launched by famous Chinese brands, including UNNY, are products without their own licenses. The blogger also said that "you (consumers) spent a couple of hundred, two or three hundred to buy the sunscreen is likely to be goods from an unknown factory." The video sparked massive attention upon release, and for a time consumers, manufacturers, experts, and wholesale agents joined the debate. This TikTok blogger exploded the brand including UNNY explained and clarified on the official social media platform. After that, UNNY denied that it was registered under a different brand because of formula secrecy and filing conditions. New brands are constantly emerging in the Chinese market. The head brands are constantly innovating and developing under the impact and the whole Chinese market will still have a strong vitality in the future. For UNNY, with the endorsement of the group and the complementary support of the brands under the group, UNNY still has great potential in the whole beauty market in the future.

On June 22, China Standard Time, Chinese flavor supplier Kunshan AsiaAroma spice Co., LTD.(AsiaAroma) went public at the Second Board of Shenzhen Stock Exchange. AsiaAroma has also established long-term and stable cooperative relations with International flavors & FragrancesInc.(IFF), Givaudan, Firmenichi, Colgate, etc. On June 22, China Standard Time, Chinese flavor supplier AsiaAroma went public at the Second Board of Shenzhen Stock Exchange, whose sponsor is Ping An Securities Co., Ltd. According to CHAILEEDO, the opening price of AsiaAroma shares was US $7.33, up 36.74%. This public offering of 20.2 million shares accounted for 25.00% of the total share capital after the issuance. As of 15:00 on June 22, the current price of AsiaAroma shares was $7.29, up or down 36.13%, with a total market value of $589 million. As one of the major manufacturers of medium and high-end spices in China, it has been engaged in research and development, production and sales of spices since its establishment in 2001. After years of development, AsiaAroma has successfully developed more than 160 products in three series: natural flavor, synthetic flavor and cooling agent. The end products are widely used in food and beverage, daily chemical, pharmaceutical and other industries. Also, It has established long-term and stable cooperative relations with IFF, Givaudan, Firmenichi, ABT and other internationally renowned companies in the essence industry, as well as companies in the consumer goods industry such as Mars Wrigley, Mondelez International and Colgate. From 2019 to 2021, the income of AsiaAroma increased from US $76million to US $92million, and the net profit attributable to the parent increased from US $12.6134 million to US $13.6126 million, maintaining a steady growth trend. At the same time, the net operating cash flow of AsiaAroma from 2019 to 2021 was RMB 4.6872 million, USD 11.4619 million and USD 13.5215 million respectively, and the cash flow continued to improve. Over the years, AsiaAroma has always attached importance to the investment in technology research and development, giving full play to its own R & D capabilities. According to the prospectus, from 2019 to 2021, the R & D investment of AsiaAroma shares accounted for 3.91%, 4.25% and 5.57% of the operating revenue, increasing year by year. After years of deep industry cultivation, AsiaAroma gradually mastered the core technology of coolants, eugenol vanillin and the production process of a variety of natural flavors, and expanded the product line of synthetic flavors such as daily chemical flavors. It is learned from the prospectus that natural flavor is the largest source of revenue for AsiaAroma. Its main products are eugenol vanillin and vanillin ferulate. The company has become one of the major manufacturers of such products in the world. In 2019, the company sold about 200 tons of the above products, accounting for about 30% of the global market share of similar products. At present, the company's revenue from natural flavor products is on the rise, with us $38 million, US $40 million and US $46 million respectively, contributing 50% of the company's revenue. AsiaAroma shares raised a total of US $108million, of which US $65million was invested in 6500t/a essence and food additives and 15 tons of cinnamon essential oil, 1 ton of clove light oil, and 20 tons of ramen. Zhoujunxue, chairman of AsiaAroma, said that the project will help to increase the production base, expand the production scale of AsiaAroma, solve the constraints on the company's development caused by the capacity bottleneck of major products, meet the rapid growth demand of the global flavor essence market, and consolidate, enhance and develop the company's existing main business. In addition, the prospectus also predicts that the operating income of AsiaAroma shares from January to June 2022 will be about US $48 million to US $53 million, a year-on-year increase of 7.57% to 20.22%; It is estimated that the net profit attributable to the parent company will be about US $7.78 million, with a year-on-year increase of 22.94% to 51.86%. This listing will help AsiaAroma further improve its existing product line, continuously increase R &D investment, bring products more in line with market demand to the market, improve the structure and brand influence of the company's existing products, gain more market share, and strive to become the core natural flavor supplier of international leading flavor essence Enterprises.

Abstract: Chinese technology beauty care brand AMIRO achieved good results in the just past Chinese 618 shopping festival. AMIRO's omnichannel sales increased by over 400% year-on-year and AMIRO RF PRO was ranked TOP1 in the online Chinese e-commerce channel Tmall, Jingdong, and TikTok China in the category of Chinese beauty instrument brands. According to the observation from CHAILEEDO, AMIRO was established in 2015, and the brand is deeply involved in the preferences of modern female consumers. Starting with modern young women, AMIRO has developed precise product positioning and marketing strategies. With the dividend of new media, the brand has gained tremendous growth. Unlike other innovative Chinese brands that focus on color cosmetics, the product strength of AMIRO has always been built on a deep foundation of photovoltaic technology. In addition to its initial iconic product, the beauty mirror, AMIRO has developed a succession of black technology products such as RF beauty instruments and red light hair removal instruments. AMIRO aims to deliver the concept of "technology-enabled beauty care" to more users. In September 2021, AMIRO received Series C financing. From May 31 to June 7, 2022, during the first period of the 618 Shopping Festival on TikTok China, AMIRO achieved the Top 1 in the brand list of beauty and personal care instruments. It also set the highest record since the brand started brand live streaming with a peak GPM of $5100. AIMRO launched 6 products of 3 SKUs during the Chinese 618 shopping festival on TikTok China to precisely fetch the targeted audience. For example, the brand's iconic AMIRO beauty mirror targets the community of beauty experts and AMIRO combined with the promotion of China's hit variety show to reverse the target of the wide-age group with skin care needs and technical level requirements for makeup accessories. Another product of AMIRO red light hair removal device targets young users with hair treatment needs and advertises the product through a summer scenario in order to get users to place orders. And the promotion of AMIRO RF beauty instrument is to expand the main brand customer base to 30-year-old women who demand anti-aging and other advanced home beauty needs. According to data from the Qianzhan Research Institute, in 2022, the market size of China's beauty industry will reach $74.5 billion. As a cosmetic mirror under the category of Tmall personal care and beauty, the market prospect is broad. Compared with traditional mirrors, LED makeup mirrors to have the advantages of accurate color rendering and accurate restoration, which are suitable for live streamers and office workers who need to do the daily skin care behavior of cleaning and repairing. The growth of this category in the Tmall has exceeded 100% in the last three years. Relevant data showed that 75% of women in front of the mirror in an average daily stay of more than 25 minutes, corresponding to the average annual consumption of a single user of beauty products amounted to 10,000-20,000 yuan($1490-$2980). The blue ocean market of beauty mirrors has brought the emergence of various innovative brands such as AMIRO, EASEHOLD, Muid, etc. It also brings new market opportunities to enterprises such as Midea, Xiaomi and NetEase. In addition, some traditional home appliance brands such as the Midea, Panasonic and others have also launched makeup mirror products, and the main selling point is the fashionable appearance, lightweight and high-definition, high color reproduction. At present, in the market of LED beauty mirrors, the price ranges from several hundred to thousands of yuan, such as the Japanese brand Panasonic intelligent makeup mirror in its official flagship store price of $44.7 with a monthly sales volume of 2000 units and Midea daylight makeup mirror official price of $11.8 with the monthly sales volume of 83. Compared with the traditional makeup mirror, the price is a factor that hinders many consumers' desire to buy. However, under the prevailing market condition of "Her Economy", LED makeup mirror still has great market potential in the long run. Although AMIRO makeup mirror is already a market leader in the same industry in China, the director from AMIRO, Huang Kun, said that the category is still in the market education stage. This also means that many consumers are not yet aware of how helpful professional makeup mirrors are for daily beauty care, and thus this market segment still has a lot of room for market development.

Recently, 3CE STYLENANDA (which is later referred to as 3CE), a makeup brand of L'Oreal Group, announced the closure of its flagship store in Sanlitun, Beijing. CHAILEEDO noticed that a number of Chinese netizens recently said on social media platforms such as Xiaohongshu that they received official text messages and were told that the 3CE store in Sanlitun, Beijing, would officially be closed on June 18, China Standard Time. It’s reported that the flagship store was the first store opened by 3CE in China, and was also the largest flagship store opened by the brand of L'Oreal Group in China at that time. In response to the closure, L'Oreal China claimed, "the 3CE flagship store in Sanlitun, Beijing, has recently closed due to the expiration of the lease of the venue. The brand will open a store in Beijing afterward, and the new store is currently in the process of site selection." In May 2018, the French beauty giant L'Oreal Group acquired 70% of 3CE's parent company Nanda for $308 million, which meant the world's largest beauty group had the first Korean makeup brand. After the acquisition, L'Oréal Group made China the brand's future focus and officially entered the Chinese market in 2019. In January of the same year, the 3CE Tmall flagship store was officially opened. Subsequently, 3CE's first offline flagship store in China settled in Sanlitun, Beijing, in October 2019. The offline store was reportedly the largest brand flagship store under the L'Oréal Group at the time, covering an area of 400 square meters. In addition to the size, the two parallel lines of makeup and apparel, the full range of product categories, and the minimalist design style were the other distinctive features of this store. According to CHAILEEDO, besides Sephora and other cosmetics collection stores, 3CE has only two offline stores left in China, located in Xintiandi, Shanghai, and Nanjing Deji Plaza respectively. Otherwise, the brand is currently preparing for the launch of a new store in the Intime Department Store located in West Lake, Hangzhou. As a supplement to the offline channel, 3CE is also present in Tmall, JD, Tik Tok China and WeChat Mini Program. On Tmall, the brand's official flagship store has 16 products with monthly sales of more than 10,000 units. Among them, the best-selling 3CE Velvet Lip Tint even sells more than 100,000 per month. On JD, there are 8 products with more than 100,000 reviews in the brand's official store. Data shows that in the 618 Shopping Festival of this year, the sales of 3CE broke RMB100 million（$14.9 million）, ranking second in the Top 10 Tmall 618 makeup brands, second only to Yves Saint Laurent. In the same period last year, the brand ranked third and lagged behind Yves Saint Laurent and Florasis. Apparently, 3CE has performed better this year. It is worth mentioning that, as a key member of the brand portfolio of L'Oreal's Mass Cosmetics Division, 3CE has become a beauty brand with sales of over 1 billion yuan ($149 million) on Tmall platform in just two years, breaking sales records and ranking the top of the makeup category. Furthermore, in March this year, the brand finally won the trademark infringement lawsuit that had stirred the Chinese beauty industry. It is reported that the trademark of "3CE", which was pre-registered by Wu Lili, is highly similar to the trademark of the brand. And there is no obvious difference in word composition, call and overall appearance of the two trademarks. If consumers are not familiar with the trademark of 3CE, it is generally difficult for them to identify it clearly. After a year-long litigation on trademark infringement, the Primary People’s Court of Haidian District of Beijing Municipality ruled that the defendant's use of the "3CE" logo constituted trademark infringement, found that the defendant had engaged in counterfeiting and false advertising acts such as packaging and decoration, trade names and corporate names. Therefore, the defendant was sentenced to award 3CE 10.4 million yuan ($1.55 million) for the economic losses and reasonable expenses. "The choice to upgrade Shanghai (China) as the headquarters of L'Oréal North Asia is an important strategic decision for us, and we hope to enable China to lead the latest trends in the 'golden delta of beauty' in China, Japan and Korea ...... In the last year, 3CE and Shu Uemura both achieved very impressive results in the Chinese market, which shows that our strategy makes a lot of sense." Fabrice Faybray, the President of L'Oréal North Asia and the Chief Executive Officer of L'Oréal China, said. Whether 3CE will open 2 offline stores in Beijing and Hangzhou as planned or not? How will the brand develop in the Chinese market under the leadership of L'Oréal Group? CHAILEEDO will keep following.

In just one year, Lalami, the Chinese beauty agency operator that ranks first in sales on Tmall International, officially launched its IPO. This means that China's listed cosmetics management companies are expected to be enlarged. Recently, according to the information disclosed on the China Securities Regulatory Commission's online service platform, Guangzhou Lalami Information Technology Co.(hereinafter referred to as "Lalami"), Ltd.'s "Approval for the Company's Initial Public Offering of Shares (A Shares on the Main Board of the Shanghai Stock Exchange and the Main Board of the Shenzhen Stock Exchange, B Shares)" has entered the stage of receiving materials. Once the materials are passed, the Chinese beauty cross-border agent operator can submit the materials to impact the A-share IPO. According to the official website information, Lalami was established in August 2012 with a registered capital of more than 7.445 million US dollars. At present, Lalami is mainly engaged in international beauty, skin care, and maternal and child care products. It introduces cross-border brands through an exclusive agency or trademark acquisition, building brand image while conducting online and offline omni-channel sales management via professional teams. According to the observation from Qeyes, the store brands operated by Lalami on Tmall International and JD Worldwide include Avène, BYPHASSE, Naris, French dermatology brand Evoluderm, Korean brand I'M CMIC, and many other beauty brands. Among them, in the Tmall International NARIS overseas flagship store operated by Lalami, "Essence in UV Cut Spray"(SPA++++, SPF 50) is the single product with the highest monthly sales in the store, with a monthly sales of 600,000+ and a price of $13 -$17. It is understood that in 2014, Lalami's operating income was $3.4572 million and net profit was $95,900; from January to June 2015, Lalami's revenue was $10.4479 million and net profit was $499,700. The data for the six months of 2015 was an increase of more than 202% compared to the full year of 2014. In just over a year, Lalami's "Global Shopping Overseas Franchise Store" has ranked No. 1 in sales on Tmall International. Also in 2015, Lalami received investment from several listed companies. According to public reports, in August 2015, Lalami introduced a round of financing of $7.445 million. The investors in this round of financing were listed companies SouYute Group and Shengkun Juteng, with investment amounts of $6.7005 million and $744,500 respectively. In September of the same year, Lalami also received $10.423 million in Series B financing from A-share listed company jewelry brand CHJ Jewellery. According to the 2021 annual audit report released by CHJ Jewellery, the current shareholding ratio of it in Lalami is 15.96%. With the continuous changes in the gameplay of China's e-commerce industry, the listing is only the first step for operators to enter a new stage of the competition. Whether the exploration of new business models can be completed in the future is a difficult problem that needs to be solved urgently. On the whole, the revenue growth rate of Internet e-commerce platforms shows signs of slowing down in the environment of intensified competition and sluggish consumption. The entire Chinese e-commerce agency operation industry has entered a critical period of transformation, where they are all urgent to find new growth points. Some industry insiders pointed out that with the tightening of China's e-commerce platform traffic, the proportion of brand sales through online channels is getting higher and higher. While large international beauty groups are gradually planning to operate their own e-commerce business, the profits of the beauty e-commerce agency operation industry are no longer as prosperous as they used to be. Lalami is taking the route of niche brands in terms of cross-border e-commerce, so it can be distinguished from other operators. However, being niche means that it is not well known to the public, and consumers do not have so much trust in it. In addition, internationally renowned beauty brands have already occupied most of the market share. If niche brands want to break through, they can only start from R&D, production, and organizational capacity upgrades. When you have a good product, word of mouth will follow as well.

French beauty brand Christian Louboutin Beauty, a sub-brand of Spanish fashion and fragrance company Puig, has unrelieved Chinese actress Zhao Liying as its Chinese spokesperson. On June 21, China Standard Time, Christian Louboutin Beauty, a French beauty brand of Puig, officially announced Chinese actress Zhao Liying as the makeup spokesperson. In a video released by the official Sina Weibo account of the brand, Zhao Liying promoted the new product Teint Fétiche le Cushion. According to the observation from CHAILEEDO, as of 15:00 on June 22, China Standard Time, the tag #Zhao Liying as the makeup spokesperson of Christian Louboutin Beauty has been read more than 150 million times on Sina Weibo, and discussed more than 840,000 times. The reason why this official announcement has such a high level of buzz and discussion is that the famous Chinese actress has a huge fan base. CHAILEEDO learned that Christian Louboutin Beauty was founded in 2014 and officially signed a global beauty licensing agreement with Puig in 2018. Since then, Puig has been responsible for the design, development and distribution of its beauty product line of the brand. In 2019, Christian Louboutin Beauty entered the Chinese market under Puig's leadership. According to CHAILEEDO, the brand is currently stationed on two e-commerce platforms, Tmall and JD. Meanwhile, Christian Louboutin Beauty currently has five offline counters in China. On Tmall, the brand's best-selling product is the Rouge Louboutin Silky Satin (priced at $132), with monthly sales of over 2,000 units. This product is also the brand's best-selling product on JD. It is worth mentioning that Chinese consumers like the lipstick to the "Rolls Royce of lipstick". In addition to Christian Louboutin Beauty, Puig also owns British perfume brand Penhaligon's, L'Artisan Parfumeur and British makeup brand Charlotte Tilbury, Spanish skincare brand ISDIN and other brands. In 2017, Puig established a company in China to leverage e-commerce to develop the Chinese market. In recent years, several of the aforementioned beauty brands have become the focus of the group's layout to expand its beauty business in China. CHAILEEDO notes that betting on the salon fragrance market, opening standalone stores, laying out travel retail channels and investing in Chinese brands are the group's main business strategies in China. In 2019, two of Puig's salon fragrance brands, Penhaligon's and L'Artisan Parfumeur, entered the Chinese market and currently enjoy a high profile in China. Since the second half of 2021, Puig has opened 18 brand counters in China one after another. Otherwise, last December, Puig opened a multi-brand collection store in Sanya International Duty Free Complex City to showcase and sell the products of Penhaligon's and L'Artisan Parfumeur. Immediately after that, Christian Louboutin Beauty will be officially located in Sanya International Duty Free Complex City in January 2022. It is worthwhile noting that in September 2021, Chinese fragrance brand Scent Library announced the completion of its Series B funding, which was exclusively invested by Puig. It was reported that the brand will use the funding to accelerate product development and optimize its international supply chain. "The partnership with Scent Library is a very interesting opportunity to participate in the development of the Chinese fragrance market with a company based in China and led by a local team," Marc Puig, CEO of Puig Group, once said. Shortly after the investment in Scent Library, the group entered into a partnership with Chinese agency operator Beauty in 2021 to officially open its first head warehouse in China and jointly build an omnichannel smart warehouse supply chain system. It was reported that this move may open a green channel for the brands of Puig to open the Chinese market. What’s more, Puig announced the group's medium-term development plan to 2025 in late 2020, which highlighted the important position of the Chinese market and digitalization strategy. According to its forecasts, China will account for 25% of its global sales by 2025. The group's latest financial results also show a significant expansion of Puig's business in China, with revenues tripling from 2020 and a surge of 212%. The official announcement of the Chinese spokesman, means that Christian Louboutin Beauty will devote greater effort to the layout of the Chinese market. As to whether Puig's ambitions for the Chinese market can be realized as expected, CHALEEDO will wait and see.