eBeauty, a Chinese service operator that has served beauty brands such as ISDIN, L'Occitane, and CPB, announced the sales data of 618: the sales volume of more than 80 beauty brands it served exceeded 1 billion yuan(over $150 million) in the first hour of pre-sale on 618. In the past China e-commerce mid-year 618 promotion (from May 31, 2022, to June 20, 2022, China Standard Time), many beauty brands have achieved excellent results: Chinese skincare brand Biohyalux’s omni-channel sales exceeded $50 million, and WHOO became the first brand of Tik Tok China 618 with a turnover of more than RMB 100 million (over $15 million)... At the same time, eBeauty, the Chinese e-commerce service operator behind the beauty brand, also handed in an answer sheet: the sales volume of more than 80 beauty brands it served exceeded 1 billion yuan(over $150 million) in the first hour of pre-sale on 618. Among them, 13 beauty brands sold over 100 million yuan (over 15 million US dollars). During the 618 periods this year, the sales volume of COLLGENE, a Chinese efficacy skincare brand it serves, increased by 224% year-on-year. Its popular product "Human-like Liftactiv Tightening Mask" has increased sales by 11 times +, and the 618 promotional price is $30/20 pieces. In addition, judging from the Tmall list, the brands served by eBeauty are ranked TOP3 in 13 sub-categories, namely facial essence, hand care, facial makeup, lip makeup, facial set, body cleansing, lotion and cream, eye care, neck care, makeup remover, toner, face cleanser, men's body care. Behind these data, it reflects that eBeauty's team members not only have a solid knowledge of e-commerce operations but also are very familiar with the characteristics of each beauty brand. By formulating unique operation plans for each brand, brand target customers can quickly search for brand products, which increases the stickiness of consumers to the brand. According to its official website, eBeauty was established in 2010. According to the report data from iResearch, in 2021, eBeauty's market share was No. 1 among China's beauty e-commerce service providers based on the $3.142 billion + GMV contributed or generated. Up to now, eBeauty's brand partners include 6 of the world's top 10 beauty groups (in terms of global revenue in 2021), and the brands it has served include ISDIN, L'Occitane, CPB, Clarins, Sisley, etc. In addition, eBeauty has also carried out an omni-channel operation mode layout. In online channels, eBeauty has cooperated with mainstream e-commerce platforms such as Tmall, JD, and Amazon. In offline channels, it has also established cooperative relationships with beauty chain stores such as SaSa International and AFIONA. From Wei Ya and other top Chinese anchors being banned for tax evasion, to Li Jiaqi being suspended for more than half a month. This years 618 did not have the voice of the super-head anchors in the past. But with the rise of brand self-broadcasting, beauty brands have "self-reliant" and embarked on the road of "self-production and self-broadcasting". According to relevant data, during the 618 periods in 2022, among the self-broadcasting studios cooperating with eBeauty, 15 of them have a turnover of over 10 million (over $1.496 million), reaching over 300 million people. Through the data, it can be seen that eBeauty has accumulated rich experience in the beauty industry, always understands the operating rules of major e-commerce platforms, and has achieved growth in the brand performance of its services. It is reported that eBeauty will also establish a new joint venture with Giant Biogene, the parent company of COLLGENE. After the transaction, Giant Bio and eBeauty will hold 60% and 40% of the joint venture, respectively, and jointly control the joint venture. It is reported that the joint venture will be mainly engaged in the sales of beauty products. In terms of the markets where the two parties are located, public information shows that eBeauty accounts for 5-10% of the domestic beauty e-commerce agency operation service market in China, and the joint venture is expected to account for 0-5% of the domestic beauty product sales market in China. One is a beauty service operator and the other is a beauty group. It can be speculated that the joint venture established by the two is to prepare for the continued growth of sales in the future. As the leading beauty service operator in China, eBeauty has once again proved itself with its achievements. It will continue to cooperate with more beauty brands. Through eBeauty's professional e-commerce operation capabilities and accumulated experience in the beauty industry, it is expected to help partner companies achieve better performance in the China e-commerce "Double Eleven" promotion .

Sephora, a high-end beauty retail brand owned by LVMH, disclosed its sales data in the early stages of the 618 promotion, achieving a 22% increase in sales across all channels. After 17 years in China, Sephora has opened 318 offline stores in 88 cities, with online channels covering Sephora's official website, official Application, WeChat Mini Program, Tik Tok China, Tmall, JD, Meituan, and JD to Home. Recently, Sephora launched the Chinese brand luminous plan - "Made in China", which aims to sup According to IResearch, the market size of China's cosmetics collection store industry reached $6.3 billion in 2020 and is expected to reach $12.2 billion in 2023. Besides. traditional beauty collection stores represented by Sephora and Watsons are still going to occupy a major market share in the coming years. According to the observation from CHAILEEDO, new beauty collection stores represented by THE COLOURIST, WOW COLOUR and HARMAY have emerged one after another in the Chinese market in recent years, and have been sought after by many young people. Under the context of the intensifying competition in China, a number of traditional beauty collection stores are seeking transformation, and Sephora, as the industry leader, is also benefiting from it. Recently, Sephora publicly disclosed the sales of the early stage in 618 promotion . The newest data showed that the brand achieved a 22% increase in sales across all channels, with over 300,000 members participating in the promotion. Present in the Chinese market for 17 years, Sephora has opened 318 offline stores in 88 cities, and its online channels cover the official website, official APP, WeChat Mini Program, Tik Tok China, Tmall, JD, Meituan and JD to Home. Qeyes learned that Sephora achieved 23% sales growth through offline retail stores. Among them, more than 160 stores achieved strong sales growth, and four stores achieved record sales. It is also worth mentioning that the sales of Sephora's official website ( including the Application of Sephora, the official website of Sephora and the WeChat Mini Program of Sephora) achieved $7.46 Million in the first hour of the start in 618 promotion. Whzt’s more, the average customer unit price of the members of Sephora also increased 14%. Sephora also achieved notable results in the private retail channel with Smart BA, with the average unit price which was paid by gold card members of Sephora exceeding $522. As of mid-June this year, Sephora China's sales in this channel are reported to surpass the sales of last year. Qeyes found that Sephora launched the Smart BA program in June 2020. Specifically, the beauty advisors of Sephora guide consumers to the private retail sphere through Enterprise WeChat, further understand consumers' needs and continuously provide one-on-one personalized services, such as reminding consumers who "placed orders yesterday but did not pay" to complete the order. Otherwise, Sephora attracted more than 2 million viewers through live streaming on Tik Tok China during 618 promotion. At the same time, Sephora's sales on the platform increased 200 times compared to last year. When it comes to brands, seven foreign cosmetic brands achieved a 96% increase in sales during 618 promotion, namely HOURGLASS, CLEAN, Murad, Kate, ANASTASIA BEVERLYHILLS, dermalogica, and SENSORI+; seven Chinese cosmetic brands achieved a 33% increase in sales, including CHA LING, WEI, Herborist Taichi, YUMEE, Inoherb Tang, MAOGEPING LIGHT and MARIE DALGAR COLOR STUDIO. Among them, HOURGLASS, ANASTASIA BEVERLYHILLS, Murad, and CLEAN are the new brands that Sephora has just introduced this year. In addition, the skincare brand Dr. DennisGros and hair care brand LivingProof are also new faces in Sephora stores online or offline. It is reported the above seven Chinese brands are high-end beauty brands that Sephora has been introducing and incubating in recent years. It is worth mentioning that just this month, Sephora officially launched the Chinese brand luminous plan - "Made in China" and plans to support five local Chinese beauty brands within three years. In fact, as the retail brand that many beauty brands exclusively cooperate with within the Chinese market, Sephora not only successfully introduces a series of overseas cosmetic brands but also becomes a window for some Chinese cosmetic brands to go global.

Perhaps, have you heard of cosmetic repair? Broken eye shadows and broken lipsticks are easily reborn in the hands of "cosmetic restorers" as if they have never been broken. Many big-name makeup products are fragile and expensive, and it is very distressing to break down. Based on this, it has become a new business to restore broken cosmetics using repair. Cosmetics such as lipstick, eye shadow, and setting powder are usually easy to break. Once accidentally damaged, it usually costs money to buy a new one. Recently, a business called "makeup restoration" has quietly emerged, where damaged makeup can be restored for a few dollars. CHAILEEDO found through browsing that makeup repair covers a wide range of items. The most common method for damaged eyeshadow palettes, setting powders and other makeup products with powder cores, is to break them through a small wall breaker, take them out, and put them in for use. The manual pressure plate in the original box is soaked in alcohol; broken lipstick can be restored to its original shape by melting and re-injection. Furthermore, some makeup restoration bloggers also offer "customization" services. A blogger once posted a video showing that the fluorescent pink sent by the customer was changed to positive red by adding lipstick powder and vegetable mixed oil. Makeup products can also be reorganized, for example, eye shadows and powder blush of different shades can be reorganized into one plate to make the shades richer. In addition, different types of makeup can also be assembled, customers can take base makeup, eye shadow, highlighter, etc. in one tray at the same time, and it is more convenient to carry when going out. It is reported that cosmetics repair videos first appeared at the end of 2019, and the number and traffic collectively exploded in the first half of 2022. On China's recommended social platform Xiaohongshu, there are more than 50,000 related notes; on the Chinese short video platform Tik Tok China, the video compilation "Immersive Makeup Repair and Transformation" has a total of 82.85 million views. Flow drives business, and on Taobao, China's mainstream e-commerce platform, there are many shops engaged in "makeup restoration". Some stores have a monthly turnover of more than 700 orders. Repair items include eye shadow repair, powder repair, lipstick repair, etc. It is understood that the price of repairing a piece of makeup is generally between 3 US dollars and 7 US dollars. Customers send the makeup that needs to be repaired to the merchant by express, and the merchant will send it back after repair. It will be fixed in a day. Expensive makeup is mostly made of chemicals that come into contact with the skin. So, is it reliable to cost a few dollars to fix makeup? Is it safe? Judging from many repair videos posted on public platforms, most of the repair environments are "family" small workshops, not professional studios. Some repairers only wear finger cots, and sterilization and disinfection only rely on alcohol and ultraviolet radiation. The operating environment is worrying, and there is a big gap between it and the high-standard workshop of cosmetics production. In addition, beauty repair tools such as grinders and powder pressing tools can be purchased directly on e-commerce platforms, but the prices of different tools are slightly different, which further proves that the phenomenon of makeup repair is quite common, and the operating threshold is low. Experts said that the makeup has been reprocessed, and the repaired product is different from the original product. Generally speaking, for the repaired cosmetics, the manufacturer can not bear the warranty, and consumers need to be cautious when choosing such services.

Abstract: Chinese experimental visual beauty brand SIT.E officially announced the brand's first virtual artist MONA. The virtual image was produced by the SIT.E artist group together with virtual artist MOMO CHEN spending 1200 hours, and is expected to be officially launched on June 22 on the brand's official website. According to CHAILEEDO, SIT.E was launched in 2020 and has now launched five series in the Chinese e-commerce platform Tmall flagship store: lens series, by series, pioneer series, rule series, and white label line, with products covering color cosmetics, perfume, and aromatherapy. Compared to other brands, SIT.E emphasizes that each of its products will be "a little more breakthrough" in terms of packaging, internal materials, and development concepts so that it can constantly push out new products instead of repeating them in a pattern, and provide more unique products or design concepts at a price acceptable to consumers. Moreover, from the overall tone of the brand, SIT.E's target group is not just girls. From the information on its official website, SIT.E products advocate a democratic aesthetic that its products can be used by boys, girls, older or beginning professionals, and also support the participation of many niche cultures. According to the disclosed data, SIT.E cooperated with Viya(a Chinese top live streamer) in 2021 and the GMV in single live streaming reached $1.16 million and multiple accumulations of sales up to 46,000 pieces. The total sales GMV of SIT.E in Viya live streaming reached $2.4 million. At the same time, its performance in the official Tmall flagship store is also relatively good with its pricing of 130 yuan lip powder cream tube monthly sales of 8000 + pieces. What makes SIT.E really famous is its lip powder series. Lip powder, as a form of lip makeup, is a texture innovation on the basis of lipstick. The effect is to create a matte makeup feeling. This is actually not a new concept, as early as 2018, Chanel had launched a limited monochrome lip powder plate, but did not get the brand's continued promotion. Now, the promotion of Chinese beauty on social platforms has pushed the lip powder form to the public again. In 2021, the Chinese brand Mao Ge Ping launched "Forbidden City lip powder", whose shape is similar to an eyeshadow palette. The product was divided into two parts: a base cream and four-shade lip powder with a lip brush to wear. There are a total of two shade plates of 11g. Its official retail price is $86. And SIT.E also launched two lip powder products. One is the "lip glaze + lip powder" double-headed design product. After applying the lip glaze, lip powder can achieve a matte makeup effect for customers. After that, SIT.E launched a lipstick-like solid lip powder that is similar to a normal tube of lipstick. According to the product description, lipstick has a high powder content ratio of 28%. On the Tmall platform, SIT.E Pioneer Series Pipe Lip Powder ranks fifth in the list of lipstick repurchases within 300 RMB(about $44.67) with monthly sales of over 4,000 units. Searching for notes related to lip powders in Xiaohongshu(a Chinese sharing platform), Mao Ge Ping currently has more than 70, and SIT.E lip powder notes amount to more than 2000. After the continuous promotion of the new international brands and the promotion of Chinese brands, the lip makeup sector is already a field of fierce competition. From the perspective of consumer demand, whether online or offline, consumers' demand for lip products is significantly higher than that of other makeup categories. According data shows that from January to February 2021, Lip makeup in Chinese interest e-commerce TikTok China sales entered the Top5 in the three-tier category sales of the makeup industry, with lipstick/lipstick following air cushion and foundation in third place and lip gloss/lip honey/lip glaze in fifth place as a similar form, with obvious upward momentum. L'Oreal Paris, M-A-C, Estee Lauder, Nars, and others have accumulated enough brand recognition and star product influence in the field of lipstick and lip glaze. They also have tried lip creams and other aspects one after another. Compared to international brands, in terms of form innovation, the new Chinese brands that more widely reach young people are more active, such as Perfect Diary, Florasis, JudyDoll, Into You, and other Chinese products that carry a broader role in the youthful market education. However, "expensive" has raised the threshold for product repurchase, with SIT.E's representative lip powder selling at $34.2 for an 8g double-headed lip glaze powder and $19 for a 0.9g Pioneer Series lip powder. "Lip powder package is more expensive than the general lipstick, raw materials to process costs are naturally higher than the general lip products." Industry analysis points out that the special nature of the supply chain causes the selling price of lip powder to go higher as well.

To improve and protect the habitat of wild pandas, Kiehl's has opened a "Panda Oasis" pop-up store in Chengdu, China. Currently, the brand is not only present on e-commerce platforms such as Tmall and JD but also has nearly 170 offline counters. It is reported that Kiehl's retail sales in the Chinese market were close to RMB 4 billion ($596 million )in 2020. On June 14, China Standard Time, Kiehl's, a skincare brand owned by the L'Oreal group, opened the Pop-up Store "Panda Wonderland" in downtown Chengdu, China, for a limited time of six days. Furthermore, the launch of the store is to appeal to consumers to protect the green planet where wild pandas inhabit. According to the observation from CHAILEEDO, the first panda charity image KK of the brand' has already made a high-profile appearance in the store. And KK is dedicated to calling on more people to join the team to protect the habitat of wild pandas. The location of the store lies in Chengdu, the "home of pandas". In addition, Kiehl's also promotes Rare Earth Deep Pore Daily Cleanser, the hero product of the brand, in the flash store. And CHAILEEDO learned that the brand also adds the Limited Edition of KK×Rare Earth Deep Pore Daily Cleanser in "Panda Wonderland". 2022 is the 11th consecutive year that Kiehl's has launched the limited edition of Rare Earth Deep Pore Daily Cleanser related to pandas. It is reported that part of the net profit from the sales of these products will be donated by the brand to improve the ecological environment of the wild pandas' habitat. It is also worth mentioning that Kiehl's has been working with the Shan Shui Conservation Center for eleven years to protect the habitat of wild pandas. Thanks to the brand's long-term support, the habitat of wild pandas has been protected for a total of 722 square kilometers, benefiting more than 80,000 local community members. This year, Kiehl's is launching a water purification campaign under the theme of "Pure Skin - Pure Source" to improve and protect the green habitat of wild pandas. Therefore, the brand decorated "Panda Wonderland" into a clear and cool "Amazon rainforest", where visitors can immerse themselves in the habitat of wild pandas, explore Kiehl's eleven-year history of public goods about pandas, and experience the cleansing power of hero product from Amazon rainforest. The 171-year-old American skincare brand joined in L'Oreal group in 2000 and officially entered the Chinese market in 2009 by opening a counter in China. At present, Kiehl's enjoys popularity and considerable sales in China. It is reported that Kiehl's retail sales in the Chinese market were close to RMB 4 billion ($596 million )in 2020. Otherwise, Kiehl's achieved a revenue of $121 million in the 2021 Tmall Double Eleven, ranking 11th on the list of Top 30 brands in the beauty category. CHAILEEDO also found that the brand has achieved an omni-channel presence in China. Nowadays, Kiehl's has an online official flagship store in Tmall and JD, in addition to an official website. Data shows that it has more than 170 offline counters in China in 2021. On Tmall, Kiehl's official flagship store has six products with monthly sales of over 10,000, including Rare Earth Deep Pore Daily Cleanser with monthly sales of over 100,000, which is priced at $49. On JD, there are 19 products with more than 200,000 reviews in the brand's online store. The data provided by Tmall shows that among all products of the brand, Rare Earth Deep Pore Daily Cleanser and Corrective: Accelerated Clarity Renewing Ampoules are the top 3 bestsellers. In fact, Kiehl's also has a high reputation in China, mainly thanks to the marketing as well as public goods in the country. In recent years, the brand has officially announced Song Qian and Liu Haoran, two celebrities with high buzz, which have established close links with many young consumers. What’s more, Kiehl's has launched a series of public goods and charity activities in China, such as the Care for Left-behind Children Project and the Conservation of Habitat of Wild Pandas Project. As China's highly representative 618 Mid-year Shopping Festival is coming to an end, Qeyes will continue to follow and report on Kiehl's sales.

American beauty giant Coty has joined hands with Hainan Development Holdings-owned Global Premium Duty Free (GDF) Plaza（which is later referred to as GDF Plaza）to launch a limited-time pop-up store called "Fragrance Traveler" and a range of promotions for "618 COTY Brand Week". In the context of the explosive growth of the Chinese fragrance market, Coty, which has been in the Chinese market for 26 years, has been revitalized. It is worth mentioning that strengthening the high-end beauty division in China is one of the company's long-term development strategies. According to oIBP, the Chinese fragrance market achieved a 14.9% annual compound growth during 2015-2020 and is expected to reach 22.5% in the next five years. By 2025, the retail sales of the Chinese fragrance market are expected to climb to $4.5 billion. In contrast, the global fragrance market will enjoy a 7% annual compound growth rate over the next five years to reach $64.3 billion. The comparison shows that the growth rate of the Chinese fragrance market will be about three times that of the global market in the coming years. In fact, the Chinese perfume market, which has shown explosive growth in recent years, has attracted global cosmetics giants such as L'Oreal group, Estee Lauder and Puig to come and contend for market share. Apparently, Coty, which is famous for its perfume business, is one of them. Recently too further promote the rebound of consumption after COVID-19, Coty teamed with GDF Plaza to launch a limited-time pop-up store called "Fragrance Traveler" and a series of promoting actions for the "618 COTY Brand Week ". CHAILEEDO observes that the pop-up store was officially set up in Haikou, China, on June 10, China Standard Time, and will remain open for the next 20 days. In addition, four high-end perfume brands of Coty, including BURBERRY, Chloé, MARC JACOBS and Miu Miu, will collectively appear in the store. 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. In addition to the pop-up store, Coty also launched a series of promotions for 618, the Chinese Mid-year Shopping Festival, which involve brands such as BURBERRY, GUCCI, Chloé, Tiffany, Calvin Klein, MARC JACOBS, Hugo Boss, Miu Miu, Lancaster, Bottega Veneta. According to the observation from CHAILEEDO , the fragrance and cosmetic products of the above 10 brands are enjoying a 65% discount on two pieces. Taking specific product,s for example, the combination of GUCCI Sérum De Beauté Fluide Soyeux and BURBERRY Her Eau de Toilette is priced at $95 aftera discount. CHAILEEDO also found that the high-end perfume is the category that Coty is currently focusing on in the Chinese duty-free channel and even the entire Chinese market. Otherwise, according to the Q3 FY2022 results report of Cot , the Chinese market performed strongly in the reporting period, although the control measures of COVID-19 put pressure on sales in March. Specifically, the high-end beauty business achieved double-digit sales growth, with high-end fragrance sales accounting for 10% of total global sales of the fragrance category. In fact, Coty has been in the Chinese market for 26 years, but its history of development is not as successful as expected. CHAILEEDO learned that Coty lost the opportunity to capture the Chinese cosmetic market when it sold YUE SAI to L'Oreal group because it was not optimistic about the Chinese market. Six years later, Coty acquired a majority stake in TJOY and returned to the Chinese market. This acquisition not only failed to allow Coty to enter the Chinese market successfully, but also dragged down the company's performance. In June 2014, Coty announced that it would stop selling the products of TJOY. A year later, the founder of TJOY bought the brand back from Coty. But the two failures didn't make Coty give up on China, a cosmetic market with hugegrowth potentialh. In 2017, Philosophy, the skincare brand of Coty entered Tmall, thus officially landing on the Chinese market. In the same year, the company also took back the Chinese agency rights of BOURJOIS, Max Factor, Gucc,i and Hugo Boss and unifiedthem witho Coty Trading (Shanghai) Co. In April last year, Coty announced the group's long-term growth strategy, which includes strengthening the high-end beauty division in the Chinese market. What’s more, the company expected to triple its sales in China to more than 10 percentbyh fiscal years 2025. Four months later, Coty officially announced a partnership with Chinese beauty agency Lily & Beauty. It was reported that the company would provide refined operation services for the high-end beauty brands of Coty, such as Burberry, Marc Jacob,s and philosophy.

Recently, KK Group, a trendy Chinese retail company, was exposed that in its “K+ Membership” APP, the sold product “Dior 999 Legendary Red 3.5g” is a fake. According to reports, some consumers bought 20 lipsticks on the KK Group's APP "K+ Member", and the lipstick was identified as a fake. So consumers found KK Group and wanted to deal with the matter, but KK Group asked the consumer to sign a non-disclosure agreement to resolve it. As a result, the consumer took KK Group to court. According to public information, KK Group owns four self-incubating retail chain brands, KKV, THE Colorist, X11, and KK Hall. Its product portfolio covers major categories such as beauty, fashion, food and beverage, household goods, and stationery, driven by China's leading multi-brand matrix. In May 2022, the Intermediate People's Court of Dongguan, Guangdong Province ruled on the case: the lipsticks sold by KK Group, the parent company of "K+ members", were identified as "fakes", and Guangdong Kuaike E-Commerce Co., Ltd, the parent company of KK Group, stated that the identification report was meaningless. Therefore, Guangdong Kuaike E-Commerce Co., Ltd was judged to assume the responsibility of "one-for-one compensation for ten" in accordance with the agreement, refunding the consumer $775 of the purchase price and compensation of $7,749. It is worth mentioning that the operator of the APP"K+ Member", Tengke Network, has also been administratively punished for allegedly selling lipsticks that infringe on the exclusive rights of other registered trademarks. In December 2020, the Dongguan Administration For Market Regulation of Guangdong Province sent the Dior lipsticks purchased by consumers to the LVMH Group Asia-Pacific region and the authorized person of PARFUMSCHRISTIANDIOR, the registrant of the "Dior" trademark. Then it received the "Appraisal Report and Price Certificate", and the appraisal result showed that the lipstick was a fake, that is, "these samples are not produced by PARFUMSCHRISTIANDIOR, nor are they produced by a company authorized by us". After that, in July 2021, the Dongguan Administration For Market Regulation ordered it to stop selling infringing goods. In addition to selling fake lipsticks, KK Group was fined $44,900 in May this year. It is reported that in the process of opening the franchise, KK Group lacked regulations and violated the "Regulations on the Management of Commercial Franchise", and was fined 44,900 US dollars by Shenzhen Administration For Market Regulation. According to the regulations, a franchisor engaged in franchising activities shall have at least 2 directly-operated stores and have operated for more than one year. That is to say, the franchisor needs to open two directly-operated stores that have been operating for more than one year before opening a franchise store. However, since August 2018, when KK Group launched the franchise activities of three brands including KK Hall, KKV, and THE COLORIST, although it already owned at least 2 directly-operated stores, the operation time did not exceed 1 year. In other words, KK Group violated the regulations by opening franchise stores in violation of regulations. Not long ago, KK Group also submitted listing application materials to the Hong Kong Stock Exchange, preparing to be listed on it. At present, the prospectus was "invalidated". According to the relevant regulations of the Hong Kong Stock Exchange, if a company to be listed fails to complete the hearing or listing process within 6 months, the prospectus and other materials will automatically become invalid. However, this does not mean that the company has failed in its listing. The listing process can be restarted by supplementing the latest financial report within 3 months. It is reported that from 2018 to the first half of 2021, the total assets of KK Group were $37 million, $217 million, $466 million, and $778 million, while the total liabilities for the same period were $52 million, $324 million, and $871 million, respectively. The net debt in the first half of 2021 was $1.044 billion. Serious losses, high debt, and much negative information are the reality in front of it. Under such circumstances, it remains to be seen whether KK Group can be recognized by the market.

Abstract: Chinese cosmetic brand Pientzehuang launches the new Pientzehuang Queen Royal Delicate Pearl Cream, claiming to add ingredients such as ceramide compound essence and mainly focus on moisturizing, firming, and anti-wrinkle effects. This product is the upgraded version of Pientzehuang Queen Pearl Cream with a light texture. According to the official introduction of Pientzehuang, this product upgrade aims at providing consumers with a more immersive skincare experience. In its flagship store of Pientzehuang on Chinese e-commerce platform Tmall, Pientzehuang Queen Pearl Facial Cream is the highest selling item in the store, priced at $16.1 with total sales of more than 800,000 units. According to CHAILEEDO, Pientzehuang subsidiary Pientzehuang cosmetics brand is a national high-tech enterprise integrating R&D, production, and sales, which is positioned as big health Chinese makeup and skin care covering skin care and wash and care with products focusing on core efficacy such as spot removal, whitening, and anti-wrinkle. At present, Pientzehuang cosmetic has formed multiple brand matrices such as "Pientzehuang" and "Queen". Among them, Pientzehuang cosmetics has formed a "3+3+1" characteristic efficacy product line including three medium and high-end series Skin Whitening, Age Locking and Ganoderma Nourishing", new series Pearl, Ganoderma, and Aqua" and special care series for soothing and removing acne, as well as the queen pearl cream series. As a firm inheritor of oriental beauty and skin care culture, the herbal skincare brand Queen started in 1980 and inherited the herbal beauty way since its birth. It is devoted to exploring the connotation of oriental beauty, and successively bred classic and star products such as Pientzehuang Queen Pearl Cream, Pientzehuang Queen Nutriv Ultimate Pearl Cream, and Whitening and Spot Removal Cream. Among them, the classic pearl cream has been sold in Hong Kong, Macao Taiwan in China, and as well as worldwide in Japan, Korea, and Southeast Asia since it was born in the 1980s. It is known as a "beauty boutique" and has become a generation of Chinese classics with its excellent quality and outstanding skin care effect. In 2013, on the basis of continuing the efficacy of classic pearl cream, the brand launched Pientzehuang Queen Nutriv Ultimate Pearl Cream, which won the "2020 Meiyi Award TOP-skin care category facial cream award", "High Popularity Cream Award" and "High Popularity Cream Award" of Ruili Fashion & Beauty Magazine Beauty Model. On the basis of inheritance, Pientzehuang makes innovation breakthroughs and seizes the demand of young consumers who focus more on product safety, efficacy, and quality, and adds Panax ginseng total saponin and pine mushroom extract to make the cream whitening and spot removing efficacy to a higher level. According to the 2021 annual performance report announced by Pientzehuang, the company achieved revenue of $1.2 billion in 2021, up 23.2% year-on-year, and achieved net profit attributable to shareholders of listed companies of $363 million, up 45.46% year-on-year. Among them, the consolidated revenue of the cosmetic and daily chemical segment is $125.5 million, down 7.05% year-on-year, and the gross profit margin is 67.01%. In recent years, the performance of Pientzehuang cosmetics has improved year by year, and from 2017 to 2021, the cosmetic operating revenue is $26.11 million, $40.9 million, $64.2 million, $91.2 million, and $102 million respectively and the net profit in the same period is $3.14 million, $6.3 million, $12.1 million, 17 million and $20 million respectively. In fact, since 2014, Pientzehuang put forward and implemented a big health development strategy called "one core with two wings", and this strategy is further optimized to "multi-core drive and two-way development" in 2021, so it can be seen that the cosmetic segment is important in the future development of Pientzehuang. The importance of the cosmetics sector in Pientzehuang's future development layout can be seen. In addition, Pientzehuang actively seizes the men's market. In December 2021, Pientzehuang increased its entry into the men's skincare products market and launched new products of the men's oil control series. As a matter of fact, Pientzehuang cosmetics have been precipitated in men's skincare field for 25 years. As early as in the 1990s, the Queen brand of Pientzehuang cosmetics already launched men's facial cream. In the past three years, Pientzehuang Cosmetics has also continued to strengthen its advertising investment. The data of the financial report shows that in 2021, the advertising expense of Pientzehuang Group is $33.3 million, decreasing 1.83% year-on-year, and the cost of online channel generation and operation is $7.15 million increasing $6.3 million increasing 726.01% year-on-year. "In 2021, our influence in the industry and at the consumer level was obviously enhanced and the sales of core products continued to maintain the growth trend. It can be seen that more and more young consumers became loyal fans of the brand. During this year, under the situation that most brands' offline channel sales declined obviously, the company still maintained sales growth in the offline channel." The relevant person in charge of Pientzehuang said so.

Korean high-end cosmetics brand The history of WHOO (which is later referred to as WHOO) has become the first brand to sell over RMB 100 million ($14.84 million) in the 618 promotion of Tik Tok China. According to the observation from CHAILEEDO, the brand has been in the Chinese market for 17 years and currently has 312 offline counters. Furthermore, WHOO has been present on e-commerce platforms such as Tmall, JD, Vipshop, and Tik Tok China. It's worth mentioning that WHOO has seized the trend of live e-commerce in China and achieved excellent sales on Tik Tok China and Kuaishou. The latest data shows that from 0:00 on June 1 to 24:00 on June 10, China Standard Time, the sales of WHOO, the cosmetics brand of Korean cosmetics group LG Household & Health Care, has exceeded 100 million yuan ($14.84 million) in Tik Tok China 618. The Mid-year Shopping Festival was launched by Tik Tok China, lasting the first 18 days of June. According to the observation from CHAILEEDO, the top 10 brands in the beauty and skincare category were WHOO, Estee Lauder, SK-II, BIOHYALUX, Helena Rubinstein, PROYA, HANS, OLAY, QuadHa , and L'Oreal, of which 4 are Chinese cosmetic brands. Two years after its birth, WHOO officially entered the Chinese market in 2005. According to CHAILEEDO, the brand has 312 offline counters in China at present. In addition, LG Household & Health Care noted in its 2021 financial report that WHOO achieved a 12% growth in China, mainly thanks to e-commerce channels such as Tmall, JD, Vipshop and Tik Tok China. Currently, on the Tmall platform, there are three products with monthly sales of more than 10,000 in the official online store of WHOO. Otherwise, there are 24 products with more than 500,000 reviews respectively on JD. Among them, Cheongidan Radiant Rejuvenating Set, Gongjinhyang Vital Hydrating Set and Jinyulhyang Set are the top 3 best-sellers. It is worthwhile mentioning that in addition to Tmall and JD, two live e-commerce platforms, Tik Tok China and Kuaishou, have become an important addition to the online selling channels of WHOO. In January last year, the brand's official flagship store officially entered Tik Tok China. In the 2021 Tik Tok China e-commerce annual ranking list released by the platform itself, the official flagship store of WHOO ranked first in the sales list of the beauty category. In addition, the brand also ranked No. 1 in the 2021 Kuaishou Top 30 sales list. Taking Tik Tok China as an example, there were 79,000,000 live streams associated with WHOO last year and nearly 6,600 a month, of which the number of monthly associated live streams all broke 10,000 in the last quarter of 2021. Last year, the livestreamer @Guangdong Fufu shared the closest partnership with WHOO, and become the brand’s main source of sales on Tik Tok China. CHAILEEDO has also learned that in recent years, WHOO has been selling mainly skincare sets on e-commerce platforms, such as the Cheongidan Radiant Rejuvenating Set, which is priced at $247. The recent data shows that the skincare sets of the brand have been sold more than $402 million through livestreaming on Tik Tok China and Kuaishou. In the 2021 results report, LG Household & Health Care, the parent company of WHOO, stated that it will continue to focus on its beauty business in 2022, including the focus on developing luxury beauty brands and further emphasis on the importance of WHOO. In addition to WHOO, LG Household & Health Care also owns the high-end skincare brand Sum:37. The brand officially entered the Chinese market in 2016 and currently has a certain level of popularity and sells well in China. In fact, after 2016, under the background of the Korean restriction order and the rise of new beauty brands in China, the market share of some mass-market Korean cosmetic brands has been gradually eroded by Chinese cosmetic brands, such as Etude House, The Face Shop and Innisfree. In general, these brands which are highly dependent on marketing and cost versus benefit have lost their competitiveness compared to many Chinese cosmetic brands. In this round of competition, Korean cosmetic brands such as WHOO and Sulwhasoo have managed to survive by capturing the trend of social media and live e-commerce in the Chinese market. Subsequently, CHAILEEDO will continue to follow and report on the future development of these Korean cosmetic brands in China.

Though deeply caught in the MLM turmoil, after two investigations, the cosmetic brand TST owned by Zhang Ting and Lin Ruiyang seems to be still operating normally, and the brand's live broadcast and new product launch are not affected. On June 16th, China Standard Time (all times in this article are China Standard Time), the topic "Zhang Ting frequently appears in the agency WeChat group" was on the hot search on the Chinese social platform Weibo. In addition, the boss Zhang Ting frequently appeared in the agency WeChat group, and the e-commerce platform stores were also updated as usual. It is reported that on June 13, the TST brand held a live broadcast of the company's 8th anniversary on the WeChat video account of "Juboyiwang". Shanghai Juboyiwang Industrial Co., Ltd. is a wholly-owned subsidiary of TST's parent company, Daerwei. CHAILEEDO noticed that during the live broadcast that day, Zhang Ting herself recorded a promotional video for the new product. At the same time, the company is still developing new products. Among them, "Orchid Clear Sunscreen" will be officially launched on June 20, priced at $49/35ml, which is much higher than well-known international sunscreen brands such as ANESSA. As early as 2021, Yuhua Administration For Market Regulation, Shijiazhuang City, filed an investigation into the alleged pyramid schemes of the Daerwei company owned by Zhang Ting and her husband, and 96 properties under the company's name were seized. Later, the Baokang Administration For Market Regulation of Hubei Province conducted an investigation and found that Daerwei had the circumstances specified in the relevant provisions of the "Prohibition of Pyramid Selling Regulations", which belonged to the nature of pyramid selling. According to the law, 3.03 million US dollars of illegal income was confiscated and a fine of 270,000 US dollars was imposed. Coincidentally, just this month, the Baise Intermediate People's Court made a final ruling on the case of the "Taiji Gufang" platform suspected of pyramid selling. The four defendants were sentenced to fixed-term imprisonment ranging from 1 year and 8 months to 5 years and 6 months for the crime of organizing and leading pyramid selling activities, fined 390,900 US dollars, and recovered about 36 million US dollars of illegal income according to law. It is understood that the "Taiji Gufang" e-commerce platform mainly sells cosmetics such as repairing liquid and facial masks. In addition, just over two months ago, Guangzhou Chengze Information Technology Co., Ltd., the operating company of the "Think Shopping Mall", was also investigated for the crime of organizing and leading pyramid selling activities. According to the latest report, 32 people including Mr. Li, a suspect suspected of organizing and leading pyramid selling activities, were arrested by the law. It is reported that the Think Shopping Mall mainly sells daily necessities and household products such as cosmetics, daily chemical products, clothing, electrical appliances, etc. In China, multilevel marketing(MLM) is a special kind of fraudulent activity, and MLM organization is a special kind of fraudulent organization. It seeks illegal benefits by "charging entry fees, developing offline, and layer by layer commissions". Chinese regulators have never stopped cracking down on the use of online platforms to organize pyramid schemes. In December 2021, the State Administration for Market Regulation of China issued the "Implementation Outline for the Construction of Market Supervision under the Rule of Law (2021-2025)", requiring more efforts to crack down on pyramid schemes, and use technical means to identify e-commerce, micro-business, and consumer products under the new situation. New types of pyramid schemes carried out in the name of rebates, etc., shall be investigated and punished by the law for violations of laws and regulations in direct selling. However, although China has always maintained a "zero tolerance" attitude towards pyramid schemes, this illegal activity has never been eradicated. The main reason is that the people involved in pyramid schemes are brainwashed. Affected by the idea of getting rich overnight, most MLM personnel hope to obtain the greatest benefits in the shortest time. This kind of thinking makes them try their best to deceive more people to join the MLM organization and become greedy for it. Moreover, the MLM organization also has a complete set of rhetoric, which is instilled in the participants in advance. Saying this is "China's macro-control" has led to MLM participants not trusting the police but only MLM organizers. Li Jinping, a professor at the People's the Public Security University of China, suggested that all functional departments in China can set up offices dedicated to cracking down on pyramid schemes, and implement the rectification responsibility to the area and directly responsible persons so that the rectification work can become a long-term and routine work, and the rectification responsibility is more strict and clarified. In addition, the general public should also be vigilant in their daily life, and fully understand the fraudulent, concealed, and harmful nature of illegal MLM. When encountering MLM selling activities, everyone should be obliged to report them to the public.

Abstract: Cochran Laboratory of Adolph, a Chinese detergent brand, has been accredited by China National Accreditation Service for Conformity Assessment (CNAS), which indicates that it has the technical capability to conduct testing and calibration services according to the corresponding accreditation guidelines. That means the test results from the brand will be recognized by international mutual recognition bodies in more than 100 countries and regions around the world helping to further upgrade the brand's credibility, authority, and influence. According to Qeyes, CNAS is the abbreviation of China National Accreditation Service for Conformity Assessment, which is a Chinese accreditation body approved and authorized by the State Certification and Accreditation Administration of the People's Republic of China in accordance with the Regulations of the People's Republic of China on Certification and Accreditation. It is responsible for the accreditation of certification bodies, laboratories and inspection bodies, and other related institutions, and has an important Chinese and international influence. Among the local cosmetic companies in Guangzhou, only 10 companies have received accreditation, and Adolph Research and Innovation Laboratory is one of them. The CNAS accreditation also signifies that the product testing capability and management level of Adolph Research & Innovation Laboratory have reached a new level, and the testing reports issued by it will be more authoritative. At the same time, it indicates that Adolph Research Innovation Laboratory has the technical capability to carry out testing and/or calibration services according to the relevant international accreditation standards; it has the opportunity to participate in bilateral and multilateral cooperation and exchange in international accreditation of conformity assessment bodies; it can use the CNAS accreditation mark within the scope of accreditation; and it is listed in the National Accreditation Laboratory List. Adolfo Research and Innovation Laboratory will also operate under CNAS management system, which is more standardized and regulated. On May 28, 2022, Guangdong Cosmetic Society announced the results of the 2021 "Guangdong Cosmetic Society Science and Technology Progress Award", and Adolph's research team won the second prize with the project "Application of Tea Seed Extract in Hair Shampoo Products". It is reported that since its establishment, Adolph has won more than 100 awards, and this award is also a positive encouragement to Adolph on the road of R&D innovation. Previously, the joint research team of Adolph and Jiangnan University also discovered for the first time the efficacy and molecular mechanism of tea bran extract in promoting hair growth. The relevant research results were published in the SCI international authoritative Journal of Cosmetic Dermatology in April 2022. This is another breakthrough in the research on the efficacy of tea bran extract. Adolph Tea Seed series products have also been recognized by the market. Among them, Adolph Tea Seed Silicone Free Balancing Shampoo was awarded the "Paris Peony Award" in 2015, showing the world consumers the beauty of traditional Chinese culture. Adolph is a fragrance brand of Guangzhou Adolph Personal Care Co., Ltd, headquartered in Guangzhou, China, which is dedicated to meeting consumers' demand for upgraded products. In Adolph China's e-commerce platform Tmall flagship store, the top selling product is Adolph Shine & Silky Shampoo & Fragrance Lotion/2 bottles, priced at $14.8 with total sales of more than 1 million. It is reported that in the 2020 Double 11 (China Shopping Carnival), Adolph's total online sales exceeded $49 million yuan (data cut-off time is 23:59 on Nov. 11, 2020). The hair care market is currently relatively small compared to the skin care or color cosmetics categories but has the fastest annual growth with annual turnover growth of 28.7% (based on data from Chinese e-commerce platforms Taobao + Tmall, time range from March 2021 to March 2022). International brands still hold a dominant position in China's toiletries market, especially in the mid to high-end market segment, but this advantage is shrinking. As Chinese brands continue to invest in R&D, production, and innovation, the quality of Chinese products is improving, and channels continue to give Chinese products the opportunity to catch up. The gap between them will become smaller and smaller. According to the founder of Adolph Li Zhizhen, at the beginning of Adolph, the market share occupied by Chinese high-end fragrance detergent products was about 1-2%. But under the leadership of Adolph, its market share has now reached more than 10%. After occupying a high market share in China's high-end fragrance and toiletries market, Adolphe has started its globalization journey. In 2021, Adolph officially started the brand's journey the globally and has already achieved a certain share in the Southeast Asian market. "It is our vision to become a world-class personal care company," said Li Zhizhen.

The 2022 PCHi, originally postponed from March to July, will be postponed again to February 15-17, 2023 in Guangzhou, China. It is reported that the 2021 PCHi has attracted global companies such as BASF, DSM, Ashland, Symrise, and Dow Chemical Company. On June 17, China Standard Time (all times in this article are China Standard Time), the Organizing Committee of Personal Care and Homecare Ingredients (PCHi) announced that because the current epidemic prevention and control situation in China is still severe and complicated, the basic and security conditions for holding large-scale exhibitions are not yet available in the short term. 2022 PCHi will be adjusted from February 15, 2023, to February 17, 2023, at the China Import and Export Fair Complex. At the same time, the 6th (2022) PCHi Global Personal Care Products and Cosmetics Industry Leaders Summit will be held in Guangzhou, China from September 15, 2022, to September 16, 2022. It is understood that the 2022 PCHi was originally scheduled to be held from March 2, 2022, to March 4, 2022. Due to the epidemic, the PCHi Organizing Committee issued an announcement on January 12, 2022, saying, "Due to the complicated situation of epidemic prevention and control in various places, it has been decided to adjust the holding time to July 18, 2022 - July 20, 2022." At the time, although the time of PCHi was postponed, the venue was still the Shanghai World Expo Exhibition and Convention Center. According to the official website of PCHi, PCHi is an international trade exhibition based in China, serving the global cosmetics, personal, and home care products industries. The holding cycle is once a year. Companies related to the cosmetics industry around the world will participate and exchange the latest products, technologies, and services in their respective fields. The event rotates annually between the Yangtze River Delta region and the Pearl River Delta region - two of China's wealthiest regions and a hub for the country's care, cosmetics, toiletries, and home care industries. It is reported that the last PCHi was held in Shenzhen, China, which welcomed 26,000+ professional visitors and gathered 665 exhibitors from 30 countries and regions around the world. The theme of 2021 PCHi is "Clean-Created by Nature", which has attracted global companies such as BASF, DSM, Ashland, Symrise, and Dow Chemical Company. According to people familiar with the matter, the number of exhibitors at PCHi 2022 has reached 650+, of which there are about 200 exhibitors in Shanghai, accounting for about one-third of the total exhibitors. For a long time, PCHi has been one of the most concerned and valued offline exhibitions in China by global cosmetic raw material manufacturers. So, will the PCHi move to Guangzhou this time have any impact on exhibitors? The relevant person in charge of PCHi said that in recent years, PCHi has been held alternately in Guangdong and Shanghai, so at present, there is almost no case of companies "withdrawing from the exhibition". In response to changes in location and time, PCHi will also keep in close contact with customers and actively respond to and feedback on their questions. In addition to PCHi, Qeyes also noticed that recently, other exhibitions in China's beauty industry have also pressed the "pause button". For example, on May 23, Chongqing Beauty Expo announced that the exhibition originally scheduled to be held from June 9 to 11, 2022 will be postponed until further notice. Also on May 30, the 2022 BSCE Expo originally scheduled to be held in May also announced postponement. According to the current situation of epidemic prevention and control in China and the postponement of a large number of exhibitions, the cosmetics exhibition industry is destined to be more difficult under the current epidemic prevention and control situation compared with other industries due to its clustering characteristics. The severe global epidemic situation forces the convention and exhibition industry to face the reality that it will be difficult for the convention and exhibition market to return to its past prosperous period for a long time.