The first new raw material "N-acetylneuraminic acid" (commonly known as bird's nest acid) registered on the Cosmetic Raw Material Recording Information Platform of National Medical Products Administration China has completed the expansion. The purpose of the raw material is anti wrinkle agent, skin protector, moisturizer and antioxidant, and can be used for skin maintenance and care of the whole body. Recently, according to the China National Medical Products Administration's Cosmetic Raw Material Recording Information Platform, after the opening of the new raw material filing, China's first filing new raw material "N-acetylneuraminic acid" has completed the expansion. On the basis of the original moisturizing agent, it has four new usage purposes: anti-wrinkle agent, skin protector, antioxidant. At the same time, heavy metal indicators and strain numbers are also added. The successful expansion of the efficacy of "N-acetylneuraminic acid" means that the raw material will have a wider application space and higher application value. According to the China National Medical Products Administration, "N-acetylneuraminic acid" is a non-animal and plant raw material, commonly known as bird's nest acid, bird's nest element, sialic acid. The purpose of use before the expansion is a moisturizing agent, which can be used for whole body skin care. care. Its maximum allowable concentration when used in cosmetics is 2%. It is reported that "N-acetylneuraminic acid" is the first new raw material that has been approved for filing in China, and the first new raw material that has successfully expanded its efficacy. The raw material comes from a Chinese biotechnology company - Wuhan Zhongke Optics Valley Green Biotechnology Co.,Ltd. (hereinafter referred to as "Zhongke Optics Valley"). It is worth noting that Zhongke Optics Valley and its parent company Jiabiyou Biotechnology (Wuhan) Co., Ltd. (hereinafter referred to as "Jiabiyou") have been sued before. According to the Jiabiyou announcement, Higrand Biotech (hereinafter referred to as "Higrand") claimed in the lawsuit that Jiabiyou and Zhongke Optics Valley jointly obtained the relevant information of Higrand through improper means, including combination of strains, production and commercial technical secrets of N-acetylneuraminic acid. Zhongke Optics Valley uses this technology to produce and sell products that are identical or substantially identical to those of Higrand. Therefore, in the trade secret dispute of Higrand, a lawsuit was filed against Jiabiyou and Zhongke Optics Valley. From the perspective of regulations, the usage of sialic acid in cosmetics is exclusive in China. Some people in the Chinese industry said that during the monitoring period, the new cosmetics raw materials belong to the owner. In other words, during the monitoring period of sialic acid raw materials, if a brand wants to use new raw materials, it must be approved and authorized by the filing enterprise before it can use the methods and means of preparing and extracting raw materials of the filing enterprise. Therefore, if there is a problem with the patent ownership of raw material preparation, it may affect the use of sialic acid raw materials in Chinese cosmetics in the next three years. So the prosecution of Zhongke Optics Valley and Jiabiyou will affect the application of "N-acetylneuraminic acid" in cosmetics? In this regard, a relevant person from Jiabiyou said: "The dispute with Zhongke Hongji is mainly in the field of food. Sialic acid as a cosmetic raw material is independently declared by the company, and the production and preparation of raw materials are strictly in compliance with regulations." He introduced that sialic acid is a crystalline product of N-acetylneuraminic acid with a purity of more than 98% obtained from glucose and corn syrup through fermentation, filtration, sterilization, hydrolysis, purification and other steps by Escherichia coli. The raw material can be used as a moisturizer for skin maintenance and care of the whole body. "It is certain that the use of sialic acid as an exclusive raw material in cosmetic products fully complies with regulations, and has no impact on the production and use of cosmetic raw materials, nor will it affect the use of brands." The person in charge added. At present, "N-acetylneuraminic acid" has been used in related cosmetics.

P&G's skincare brand SK-II has joined hands with China Duty Free Group (CDFG) to launch an interactive social retail pop-up store "House of Miracles" in Hainan. The event was conducted in an O2O mode, pushing the personalized skin care shopping experience to a new level through digital elements, providing consumers with a more meaningful shopping experience. According to statistics from Department of Commerce of Hainan Province, in 2021, the total sales of offshore duty free shops in Hainan exceeded $9 billion. Some research institutions predict that from 2020 to 2025, the scale of Hainan's duty free market is expected to increase by 10 times, and it will become one of the largest travel retail markets in the world. Since the implementation of the new offshore duty free policy in Hainan on July 1, 2020, offshore duty free business shopping has become a symbol of Hainan. Thousands of tourists visit Hainan every year, and Sanya International Duty Free Shopping Complex and Haikou Sun&Moon Plaza is also an offline retail circle with dense consumers. Hainan's huge retail opportunities are attracting global fashion and beauty brands to rush to it. From June 1st to June 29th, Beijing time, the SK-II "House of Miracles" pop-up store will be located in Sanya International Duty Free Shopping Complex and Haikou Sun&Moon Plaza, to build an experience space centered on interactive social retail, further enhancing consumers' personalized shopping experience. From the moment they step into the pop-up store, consumers can see chandeliers and product experience tables inspired by SK-II ace ingredient PITERA. Every time a customer picks up a bottle of SK-II signature product, Facial Treatment Essence, containing PITERA, the chandelier glows with dazzling light. In the pop-up store, customers can also use SK-II's innovative non-contact self-service skin tester to experience self-service skin test services and obtain exclusive skin analysis reports. The tester is a skin analyzer using artificial intelligence technology, which can help customers understand their skin strength, potential, and skin age in just three minutes. At the same time, in the process of participating in the experience, customers can scan the QR code anytime and anywhere to accumulate their own "Crystal Water Drops", and share the collected "Crystal Water Drops" on the three-dimensional large screen of the pop-up store during checkout, as well as interacting with the appearance of the pop-up store in a personalized way, with stunning visual effects. At present, SK-II has launched a number of pop-up stores in Hainan, Tokyo, Shanghai, Singapore, and other regions, as well as at the International Consumer Electronics Show (CES) and China International Import Expo (CIIE). With the integration and change of consumer groups from the post-80s to the post-00s, the Chinese consumer market is also gradually catering to new consumer demands. Thus Simple user-centered scene marketing has been difficult to meet the psychological expectations and needs of consumers. SK-II is also making breakthroughs and youth transformation in the retail field, and its core tenet is "consumer-centric". Whether through content, retail experience, or different accesses, ultimately they want to embrace consumer changes, respond to consumers' latest needs, and provide what they want most. It is reported that the SK-II "House of Miracles" pop-up store in Hainan is the first "immersive + interactive" social retail pop-up store, which is also an important step for SK-II to promote retail innovation and strategic transformation. The new generation of consumers hopes to get more meaningful experiences from the brands they are familiar with and trust, while SK-II hopes to establish deeper contact with consumers in this way.

Chinese makeup brand Joocyee has launched a new setting spray that claims 8 hours of oil control and 12 hours of hold effect to help the foundation to fit the skin better. The product is priced at 109 yuan ($16) on the Chinese e-commerce platform Tmall's flagship store. Designed for the new generation of women in China, Joocyee has generated monthly sales of $1.19 million for the entire month of November, which includes the Double Eleven sale (Black Friday in China) in 2021. Joocyee is a makeup brand founded in late 2019. What cannot be overlooked is that it is actually a brand that is genetically excellent - the Joy Group, to which Joocyee belongs, incubated Judydoll as early as 2017, and Judydoll's most well-known monochromatic eyeshadow was sold more than 13 million units in total on its Tmall flagship store and monochromatic blush ranked the top in Taobao for three years from 2019 to 2021, and its products such as highlighter and eyeshadow are also ranked Top 3 in Taobao. In terms of brand positioning, Joocyee has avoided the sweet style of Japanese and Korean makeup, the minimalist style of European and American makeup, and the gothic style that differs greatly from Asian personalities, but has discovered the new trend of "freedom and independence" in the changing characteristics of the Chinese female population and positioned itself in the style of modern and independent, fashion and romantic. It is not blindly pursuing cute and cool, but catching up with the modern trend. At the end of 2020, when the lip glaze category was popularizing. Joocyee team realized that there was still a lack of an "amber" shade that fit consumers' needs. From discovering the gaps in color shades to incorporating natural inspiration into makeup styles. it applied the wrap-around 3D printing process to the packaging and all these micro-innovations added up to give Amber Lip Glaze a starting advantage from the inside out. After the launch of the Amber series, Joocyee took the product as the core, especially amplifying the exclusive core feature "amber elements" and carrying out a series of promotions and publicity in the autumn and winter seasons. For that case, it used amber makeup as the starting point and explored various ways of displaying the whole outfit, detailed accessories, and even the atmosphere of sunset lights associating every fashion detail with "amber elements" on Chinese social platforms such as Weibo, TikTok, and Xiaohongshu where fashion experts are concentrated. In Q1 2021, Joocyee's Tmall sales were $13 million, up 748.4% year-on-year. By the end of 2021, the sales volume of the Amber series lip glaze has exceeded 2.2 million units in all channels. In May 2022, Joocyee launched the new "Original Nude" makeup series, which includes 8 upgraded texture and high pigmentation powder mist lip glazes and 4 new low-saturation 4-shade eye palettes. It is based on the original color philosophy theory, starting from returning to the skin tone, amplifying the original beauty of each person, and exploring a color philosophy more suitable for Chinese women. After comparing different skin tones, Joocyee summed up a color rule that is suitable for Chinese women to create natural makeup - "low saturation, same color, one degree deeper", which also makes Joocyee's "Original Nude series of makeup. The new "Original Nude" series of Joocyee takes the color of the skin and adds one more degree of nude color to customize the original makeup for Chinese women and magnify the beauty of the original base. The series consists of four low-saturation shades of "Apricot", "Chestnut", "Peach" and "Taro" for different skin tones. Each shade contains 2 (of 8) customizable pink mist lip glazes and 1 (of 4) four-color eyeshadow so that every skin tone can have a matching shade to choose from. There are 8 upgraded textured, highly pigmented pink mist lip glazes with silky smooth and lighter than ordinary lip glazes. The new four-shade eyeshadow has been upgraded with low-saturation coloring, which extends without losing powder, creating an original nude makeup that is true to the original color. This "Original Nude" series is the beginning of the new "Color Philosophy" series of Joocyee. It hopes to explore the makeup that can best restore the original beauty of Chinese women and create a sense of atmosphere that is true to the original color. In the future, based on the theory of "color philosophy", Joocyee will continue to explore more makeup series and products customized for Chinese women and provide more "designer makeup" with practicality and trendy artistry.

World Environment Day on June 5 aims to call on more people to focus on environmental protection. Beauty brands also respond that initiatives such as Zhiben, a Chinese skincare brand, launching refillable packs. World Environment Day, celebrated on June 5, is one of the main mediums through which the United Nations promotes global environmental awareness and raises awareness of and action on environmental issues. Chinese President Xi Jinping made a statement at the general debate of the 76th session of the United Nations General Assembly that China would strive to peak carbon emissions before 2030 and achieve carbon neutrality before 2060. In response to this call, Chinese beauty companies have released several initiatives such as the EGS report and the establishment of green factories. It is worth noting that the Chinese brand Zhiben has already been working in the field of environmental protection by launching refillable packs. Zhiben launched refillable packs in September 2021 for its Dermal Defender Series and Soothing Recovery Series. The most complex part of the material in the package is its pump head, which contains many different plastics in addition to the difficulty of disassembly, requiring many additional steps in recycling. The pack also contains metal parts inside that need to be disassembled manually. The replacement set does not contain the pump head, and the use of a replacement core allows the most environmentally unfriendly part of the pump head to be reused. Compared to single-layer vacuum pump bottles, the single-piece refillable set saves at least 35% to 86% of plastic usage. Moreover, the outer box of the refillable set is made of 100% recycled paper, also known as recycled paper. 100% recycled paper is made from waste paper that is discarded by the general public and is produced through a dozen processes including sorting, purification, and re-pulping so that the newly produced paper does not consume original wood pulp. The brand Zhiben was founded in 2012 and its parent company is Shanghai Chengmu Bio. Co. Ltd. The brand is one of the first Chinese brands to propose the concept of skin barrier repair and skin micro-ecological flora balance. Zhiben adheres to providing efficient care solutions for weak and healthy skin and always is committed to building efficient products with professionals. The whole line of products focuses on skin barrier repair and apply to a low-irritation formula such as alcohol-free, fragrance-free, and color-free, which has become a brand that people with sensitive skin sought after. In the product aesthetic, the packaging of Zhiben has always taken a simple and refreshing style. In the beginning stage, the brand was lack of funds to create products so the outer packaging design is very simple. Now that the brand is on the right track, the product style has also been fixed. In order to comply with the natural, healthy concept of the brand, its product packaging is in a solid color and the visual effect is soft. This style also carries over to product advertising with almost no portraits or body parts appearing in the product introduction videos to keep people's attention focused on the product. The special background music, clean visual interface, and product presentation also make followers in the comment section feel the advertisement is graceful. Research and development innovation has been rooted in the development of Zhiben. After 2015, Zhiben survived the hardships of the initial start-up. After solving the problem of survival, instead of focusing on traffic like brands pursuing capitalization, Zhiben continued to enhance its R&D, opening independent labs in Shanghai and Tianjin and collaborating with Nankai University to develop patents. Hydrotube, which provides antioxidant protection for the skin, Igniarex, which promotes collagen renewal, Exocrinetrater, which has high permeability and stability, and Polycalm, which efficiently inhibits stress activity, are some of the patented ingredients. In addition, Zhiben is focused on serving consumers, and it provides professional and meticulous services in its flagship store on the Chinese e-commerce platform Tmall, WeChat public account, and Chinese social platform Weibo. In Zhiben's flagship store on Tmall, consumers can send photos of their skin to customer service. They will determine whether the skin has common skin problems such as raised particles, redness, acne, etc., and then ask customers questions about sleep time, dietary preferences, skin condition before and after women's physiological periods, and frequency. Based on the consumer's answers, the customer service will give some cleansing and skin care, diet, and medical advice, and will provide this appropriate product line or not recommended to buy this product. This process is not only scientific for the people who buy the products, but also enhances the consumer's good feeling toward the brand. In its Tmall flagship store, its star product "Soothing Recovery Foam Cleanser 120g" has monthly sales of 400,000+, and "Soothing Recovery Cleansing Balm 100ml" has monthly sales of 200,000+. Its Tmall flagship store has a total of 18 products achieving monthly sales of 10,000 +. Compared to other brands, Zhiben does not have deep cooperation with influencers or KOLs. It also cooperated with no spokesperson. It has not been shown in any live broadcast. When Zhiben communicated with consumers, it constantly emphasizes that most of the profits were from product innovation, and strict quality control, which bring the image of research and innovation to the user. In terms of brand development, Zhiben adheres to long-termism and not to be tempted by some short-term interests. The brand is committed to serving consumers, highlighting brand features and carrying forward the brand's advantages.

In order to ensure the smooth progress of the registration and declaration of special cosmetics and new raw materials during the epidemic, National Institutes for Food and Drug Control of China recently issued a notice to clarify the solutions to the problems related to the inability to submit cosmetic registration and filing materials and the supplementary filling of cosmetic information.

Sephora President and CEO Martin Brok leaving the company, and Chris de Lapuente, Chairman and CEO of LVMH Select Retail, will also serve as Sephora's President and CEO. At the same time, Sephora China announced the Chinese brand luminous plan, which will support 5 local Chinese beauty brands within 3 years and help them become high-end beauty representatives with sales of over 100 million (over 15 million US dollars). Recently, Martin Brok, president, and CEO of LVMH's beauty retailer Sephora, will leave Sephora after less than two years on duty. Chris de Lapuente, chairman and CEO of LVMH's Select Retail division, will serve as Sephora's president as well as CEO and retain his original position. According to an internal memo, Brok's departure was due to "disagreement", and Brok has not yet responded to related questions. According to the news, Brok will step down at the end of this month, and Sephora's official website shows that Brok is still CEO. It is reported that Brok was appointed president and CEO of Sephora in September 2020. Before joining Sephora, he served as the president of Starbucks Middle East and Africa. Earlier, he had held leadership positions in Nike, Burger King, Coca-Cola Company, etc. Chris de Lapuente joined LVMH in 2011 as CEO of Sephora, and before that, he was group president of P&G global hair care division. Before Brok became CEO of Sephora, Chris de Lapuente had led Sephora for nearly a decade. During his tenure, Sephora tripled its sales and net profit, expanding Sephora from 20 countries to 36 countries. Its e-commerce business grew explosively and gained a foothold in the Chinese market. After 17 years of deep cultivation in the Chinese market, Sephora has achieved an omni-channel layout in China. In 2005, Sephora opened its first store in mainland China. At present, it has entered more than 87 cities in Greater China, with 312 offline exclusive stores. Online Sephora has successively entered China's mainstream e-commerce platforms JD and Tmall. Since then, Sephora's official APP, WeChat mini program official mall and other online contacts have been established one after another, building a systematic omni-channel sales network for Sephora. In an interview with the media, Chen Bing, general manager of LVMH-Sephora Greater China, pointed out that Sephora has made great strides in China: "The success of Sephora in the Chinese market does not refer to the number of stores opened, sales or growth rate, but how to build a sustainable Sephora business model suitable for the Chinese market." In recent years, Sephora has continued to introduce and incubate Chinese high-end beauty brands, and continue to bring more high-quality Chinese beauty brands into consumers' vision, such as WEI, Herborist TaiChi, Herborist TaiChi, INOHERB TANG, MAOGEPING·LIGHT and so on. In addition to providing incubation support for Chinese beauty brands in terms of commercialization and channel expansion, Sephora is also continuously helping the development of China's new generation of high-end traditional Chinese trend beauty products. On June 6, Beijing time, Sephora officially announced the Chinese brand luminous plan - "Made in China". The plan will support 5 local Chinese beauty brands within 3 years and help them become high-end beauty representatives with sales of over 100 million (over $15 million). At the same time, Sephora will also use its strong global network, loyal user community and rich experience in high-end retail to promote these brands to enter international retail channels. Having been involved in the Chinese market for 17 years, Sephora has an in-depth insight into the needs of Chinese beauty lovers to update and iterate, adhere to the core of users and brands, and rely on the full-category matrix and omni-channel operational advantages to fulfill its commitment to the Chinese market, accelerating the incubation of Chinese high-end beauty brands.

Chinese personal care brand KIMTRUE launched new Warm Feeling Cleansing Oil claiming to add WARM-TECH temperature-sensitive emulsification formula to achieve rapid emulsification and removal of makeup. At present, the product is available on its flagship store of Chinese e-commerce platform Tmall priced at $42. Currently, its highest sales are KIMTRUE Ultra Treatment Hair Oil priced at $13 with total sales of 1 million + in its official flagship store. The parent company of KIMTRUE is Shanghai Jinjia Company Limited(hereinafter referred to as Jinjia). In the past decade or so, Jinjia has focused on brand agency business and successfully incubated overseas niche beauty brands such as First aid beauty (FAB), RAFRA, LA GIRL, and TIMELESS in the Chinese market and thus accumulated valuable experience in brand incubation. In 2019, under the leadership of its CEO Maggie, its first private brand - KIMTRUE was launched. Relying on Jinjia's rich resources and experience in brand operation, KIMTRUE quickly stood out in the market. KIMTRUE insists on the research and development of high-quality Chinese personal care products. Previously, KIMTRUE has been focused on the field of cleaning. It is contributed to solving skin problems in a gentle and healthy and reasonable way. It successfully created several hot-selling products such as Makeup Meltaway Cleansing Balm and multiple hair care oil. In the process of product creation, KIMTRUE found that due to lifestyle habits and individual differences, different users have very different expectations and preferences for the effectiveness of personal care products. "We should respect every small and precise need from customers and provide users with effective products that can effectively solve the pain points of personal care and truly improve skin problems," said Maggie, CEO of KIMTRUE. According to OIBP, China's efficacious skincare market is expected to reach $15 billion by 2024, accounting for 22.9% of the overall skincare market. Currently, the boom has also long extended from facial skincare products to personal care products. CBNDate's 2021 Tmall International Personal Care Home Cleaning Industry Consumption Insight Report mentioned that current young consumers are increasingly diversified in their demands for the efficacy of body care products with the steady growth of fragranced body wash products and the rapid rise in consumer demands for body anti-aging. Based on this trend, at the beginning of 2022, KIMTRUE officially announced Chinese pop singer Liu Yuxin as the brand's first body care spokesperson. Through the celebrity traffic, the brand launched a further dialogue with young consumers on Chinese social media platforms such as Weibo and WeChat attracting the attention of many netizens. This cooperation also means that KIMTRUE ushered in the brand upgrade. The new slogan "because real so shine" was officially launched. It aimed at using real and effective ingredients formulas to provide users with a scientific skincare experience. At the same time, KIMTRUE launched three major personal care series: TRUE series, which focuses on daily care, the KIM series, which focuses on nourishing care, and the Energic series, which focuses on meeting the needs of efficacy, covering four personal care product lines: face, scalp, hair, and body, including amino acid facial wash, makeup remover, scalp purifying gel, hair care oil, repair bath, and body lotion, etc. It launched more than 40 efficacy personal care products to fully meet the needs of users. In 2022, KIMTRUE's ceramide body milk, niacinamide whitening hand cream, and other major products are also newly launched. Since its birth, KIMTRUE create a number of differences from the traditional efficacy of personal care products around the cosmetic market on product efficacy, and composition of consumer demand. Therefore it gained a good market reputation. Behind this, it reflects the strength of the brand's research and development. It is understood that the KIMTRUE laboratory is dedicated to product development. The laboratory consists of 50 members with a center area of 1500 square meters. Among the R&D staff, more than 50% of the members have master's degrees and five core members have more than 15 years of cosmetic R&D experience. At the beginning of 2022, its R&D team has been expanded to dozens of people and a 4000m² R&D center has been established making R&D the most solid and powerful support behind the brand. At present, more than 95% of the formulas in KIMTRUE's products are done in its own laboratory. For example, the formulas for the products it creates, such as makeup remover creams and hair care oils, are born here. With the strong resources and R&D strength of the parent company, KIMTRUE ushered in rapid development. The GMV of the brand in 2020 reached nearly $15 million. During the Double 11(Chinese Shopping Carnival), total sales of its Tmall flagship store reached more than $12 million. In the same year, its annual GMV of it exceeded hundreds of millions yuan, an increase of 700%. Maggie said she has a bigger "ambition" for KIMTRUE. She hoped KIMTRUE can become a long-lasting brand and will continue to work hard for this. KIMTRUE has never stopped investing in research and development and has never set limits on its products. In her opinion, the construction and solid development of any brand need to go through a long-term accumulation process. The company also should adhere to long-termism, find a suitable path for its own growth, and face opportunities and challenges.

The Chinese skincare brand OSM Pearl Activating Firming Essence was firstly shown in the live streaming of Chinese top anchor Li Jiaqi. With his tremendous traffic, the product sold 14,000+ bottles in ten minutes. The product claims to have the effect of light fine lines and barrier repair and is priced at $49.4. OSM specializes in pearl beauty and has been the TOP 1 in the whitening category of China's cosmetics segmentation ranking for 9 consecutive years. In 1967, OSM took the lead in raising the flag of "pearl skin care". In more than half a century of its development, it has gradually established a systematic pearl research system. Based on offline channels. it built a deep brand strength and grew into the head of the field of pearl whitening, and pearl skincare brands. In recent years, OSM implemented the strategy of single products, which means it focuses on creating Pearl Lucent Whitening Essence, Whitening Mask, and other star products. These products achieved good sales in all channels. It is reported that in 2020, OSM Pearl Lucent Whitening Essence sold more than 3 million bottles reaching $87 million, which shows that its single products strategy is quite effective. It reflects the OSM's status in the whitening category is stable. OSM's founder said: "The internal structure of pearls and skin structure has a very similar part of the skincare ingredients extracted from the pearl, which will be beneficial to the skin. 'Pearl cosmetics' is very Chinese characteristics. China's freshwater pearls account for more than 90% of the world's total production. Ou Shi Man has such a historical mission to be the representative Chinese pearl beauty culture." OSM also created a unique pearl culture and built the pearl culture base, pearl museum, pearl experience hall, etc. into a unique business card. It is reported that OSM farming base is applying for national tourist attractions, which will inject a deeper cultural connotation for the brand and consolidate the brand's market position in the field of pearl whitening. In fact, whitening has been the basic efficacy of much attention, the market competition is also quite fierce. It is reported that in 2020, China's whitening consumption market size of $10 billion and whitening demand in skin care products efficacy concern accounted for 42.2% and whitening demand continues to grow. At the same time, the industry continues to prevail in a variety of whitening ingredients, such as arbutin, tranexamic acid, niacinamide, vitamin C, etc. These ingredients and concepts have given rise to many new innovative brands. At the same time, there are also some brands lost in this trend which led to extinct. On the contrary, OSM has been able to stand in the ups and downs of the market cycle, which is inseparable from its deep history of whitening R&D innovation. In July 2021, the "multi-target pearl whitening peptide Ligfactor-p" researched and developed by the OSM Group stood out among more than 200 products for its innovation, safety, and stability, and won the Ringier Technology Innovation Award, which is a vivid reflection of OSM Group's R&D strength. In 2021 Double 11(Chinese Shopping Carnival), the report released by Tmall FMCG Division showed that OSM was still ranked in the billion yuan club, firmly occupying the TOP6 of Chinese brands, and its Whitening Mask is highly sought after by customers with turnover exceeding $3 million becoming another big star product of the brand. The data released by O&O Consulting also shows that from January to October this year, OSM was ranked at the TOP6 of beauty sales on the TikTok China platform and TOP8 of beauty sales on the Kwai platform with excellent performance in content e-commerce platforms. Although the brand marketing strategy with high exposure and explosive products strategy has accumulated high momentum online. OSM still insisted on the basic principle of "marketing for offline channel empowerment" and took offline channels as the brand's base. For example, in the focus on brand image building at the same time, OSM also continued to pearl culture tour activities for offline channels with the scene and atmosphere to attract consumers to stay and complete transactions. It contributed to helping offline channel sales. It is reported that, the OSM pearl culture tour plan to usher in a comprehensive upgrade. Only in the first half of the year, it was held 61 times with sales exceeding $7.5 million. The brand's overall return achieved more than 70% year-on-year growth.

In the upcoming 51st World Environment Day on June 5th, the global health and beauty brand Auou launched the third series of its global green plan, "The Right Way to Take Raw Materials", promising to adhere to the mode of respecting nature and fair trade to harvest raw materials and not to cause damage to the local environment. Its products such as sea fennel, squalane, French volcanic sand, and other raw materials have obtained the EU ECO-CERT certification, practicing from raw materials, laboratories to finished products are in line with the organic principles of no pesticides, no chemicals, and no environmental pollution. This is also the first voice of the Chinese beauty brand to practice organic principles at the raw material collection end. Founded in 2020, Auou is the first "Global Health Formula", which explores the original formula of "Global Natural Ingredients + Skin Flora Health", specializes in the research of global precious natural power, deep research on skin micro-ecology technology, and achieves the original beauty of the skin. The brand is not positioned as a strong efficacy brand, but as a global healthy beauty brand, focusing on the micro-ecological field of skin in the market segment, and proposing a "global healthy formula". Through the original formulation exploration of "global natural ingredients + microflora health", it returns to the most essential demand of consumers - skin health. On March 12, 2022, the "Global Green Plan" was launched on Chinese Arbor Day, which is the annual commitment of the brand to practice the concept of green and sustainable development. The plan is based on the three dimensions of environmental protection wrapping paper, empty bottle recycling, and the organic principle of raw material collection. On March 12, China Tree Planting Day, Auou's first launch of the "Global Green Plan" announced the use of FSC-certified environmental protection paper, gradually replacing the paper used for product packaging with environmental protection paper certified by the FSC Forest Stewardship Council, and the raw materials for the paper are all from sustainable regenerative forests to protect the sustainable development of forests. On April 22nd, World Earth Day, the brand launched the second phase of the "Empty Bottle Recycling Program" together with Yanantang Green Beauty, in which empty bottles are recycled and processed into recyclable materials. The environmental protection action is deeply penetrated into consumers' daily life, and consumers are actively encouraged to participate in it. On June 5, World Environment Day, it released the third series of our plan, "The Right Way to Take Raw Materials", which is to use global natural ingredients that are traceable to the cultivation, production, and procurement of raw materials. In this regard, it continued to pay attention to the protection of raw material cultivation sites and respected the laws of natural growth, and it insisted on taking the raw materials in the right way, hoping to respect the ecological balance with a respectful heart and guard the green future. In the future, the brand will continue to implement the Global Green Plan in the field of biodiversity protection. In addition to the advanced and international brand concept, the achievements of Auou since its launch have been particularly impressive. The flagship store of Auou on the Chinese e-commerce platform Tmall entered the top 100 brands of Tmall skincare after 45 days of launch, with monthly sales of 100,000+ for a single product. Its star single product not only reached the highest monthly sales of 200,000+ in the platforms under Alibaba, becoming the first place in its category for nearly 30 days but also was promoted by Chinese top live streamer Li Jiaqi. Behind good-looking data is a precise grasp of marketing by Auou. According to Qeyes' observation, there are very many stores selling Auou's products on Taobao, which makes it possible for the brand to have a large volume of sales and build users' brand awareness even if the flagship store is not operating when the brand first starts. Secondly, Auou is also very cautious about cooperation with KOLs. The brand believes that the actuarial degree of the brand's investment in marketing or resources will greatly affect the win or loss of this marketing. "Too many brands in the crazy on KOLs, advertising without calculating the input resources, in the end, how much ROI, how helpful to the brand empowerment, whether the marketing content is rich and so on." After a year of refinement and ecological layout, Auou announced Ju Jingyi(Cecily) as the first spokesperson, announcing the existence of Auou to the industry and consumers with a very empowering posture at the node when the brand is entering a period of rapid growth. It is precisely this kind of action that Auou first precipitates the strength and then makes a loud voice with the star spokesperson, which naturally shows Auou's long-term thinking in the continuous expansion of brand volume. Auou believes that only with an open and open-source vision of every participant in the industry chain, accordingly, the partners on the industry belt will be able to understand the brand to the greatest extent and turn it into a real long-term cooperation. Without reducing the quality of the prerequisite standards, it aims to achieve the most popular line of consumers concerned about the issue: cost performance.

Hawyu (HK) Limited, a wholly-owned subsidiary of Chinese personal care company LAF, agreed to subscribe for the newly issued common shares issued by Aesthetic Medical International, with a total amount of 100 million yuan (about $15million), which accounts for 23.2% of the total issued shares of it. The share subscription amount will help Aesthetic Medical International improve its liquidity and financial situation. Previously, Aesthetic Medical International was included in the pre-delisting list of Chinese concept stocks in the U.S. Securities and Exchange Commission (SEC). Recently, Aesthetic Medical International, a Chinese medical beauty service provider, announced that LAF will subscribe for a total of 21.413 million new ordinary shares issued by Medical Beauty International through its wholly-owned subsidiary, with a total amount of 100 million yuan (about $ 15 million), equivalent to about 4.7 yuan (about $0.71) / share, the subscription shares will account for 23.2% of the total issued shares of Aesthetic Medical International. Zhou Pengwu, Chairman and CEO of Aesthetic Medical International, said that the subscription amount of the shares will improve the current financial position of the company, enabling it to prepare in advance for further changes in the market in the future. Founded in 2001, LAF is a traditional daily chemical company in China. It is mainly engaged in the research and development, production and sales of washing, skin care and other products. It owns brands such as Lafang and Yujie. In 2021, LAF achieved operating income of $165 million, a year-on-year increase of 11.91%; net profit attributable to shareholders of listed companies was $10.3642 million, down 40.98% year-on-year; non-net profit deducted was only $511,800, down 96% year-on-year. In fact, the share subscription agreement between LAF and Aesthetic Medical International was signed last year. In May 2021, LAF and Aesthetic Medical International reached a fixed increase agreement of US$15.1 million to subscribe for 5.3294 million shares and obtain about 7% of the equity. It is worth noting that the fixed increase price at that time was 27.4% higher than the closing price of the previous trading day, and the cost per share was about 2.88 US dollars. A year later, LAF increased the price again. Subscribing 21,413,200 shares of Aesthetic Medical International for 100 million yuan (about $0.15), the shareholding cost becomes 4.7 yuan (about $0.71). On June 2, Aesthetic Medical International closed at $1.770 overnight, with a total market value of $41.72 million. However, according to the LAF subscription ratio of 23.2%, the corresponding market value is only $9.679 million. According to public information, Aesthetic Medical International Holding Group Co., Ltd. is a Chinese beauty medical service provider. Its main brand in the Chinese market is "Pengai Medical Aesthetic Hospital", which mainly serves Guangdong, Hong Kong, Macao and the Yangtze River Delta. It provides one-stop beauty services, including surgical beauty treatment, non-surgical beauty treatment, general medical services and other beauty services. It is worth noting that Aesthetic Medical International has suffered losses for two consecutive years, and the shrinkage of the subscription price may be related to this. In 2021, the income of Aesthetic Medical International was $97 million, a decrease of 28.4% compared with $135 million in 2020; The net loss in 2021 was $100 million, which was 171.2% larger than the net loss of $37 million in 2020. Previously, Aesthetic Medical International was included in the pre-delisting list of Chinese concept stocks in the U.S. Securities and Exchange Commission (SEC). Regarding the inclusion of Medical Beauty International on the SEC's pre-delisting list of Chinese concept stocks, some industry insiders believe that the pre-delisting list is different from China's ST stocks. It does not mean that the pre-delisting this year will be delisted next year. "There is a three-year waiting period for the pre-delisting list. If Medical Beauty International fails to meet the SEC review requirements for three consecutive years, a decision to be delisted will not be made until 2024. Before that, it will still be in the US stock market. However, the share price will fluctuate due to performance growth.” However, the rationality of LAF's investment of 100 million yuan (about $0.15) to invest in such a medical aesthetic company has been questioned by the outside world, and it is believed that this is a very big burden for LAF with poor performance.

Recently, a branch of Watsons in Beijing was fined 50,000 yuan (about $7,500 ) by the Beijing Yanqing District Administration For Market Regulation for allegedly using false price methods to deceive transactions. It is worth mentioning that this is the eighth time in the past two years that Watsons stores have been punished for various violations. Discounts and promotions are the most common means of attracting customers in beauty stores. In addition to special occasions such as traditional Chinese festivals, stores will also launch promotional activities according to the actual situation. However, a Watsons branch was fined for the promotion. According to information from China's National Enterprise Credit Information Publicity System, recently, a branch of Watsons in Beijing was suspected of using false price methods to deceive transactions. It turned out that the store wanted to do promotional activities to attract customers' attention and increase store sales. But there is a problem with the "price discount" of the promotion. For example, when this facial mask was promoted, the marked price was "Yan Xi Bai Moisturizing Facial Mask 6-Piece package", the original price was 49 yuan (about $7.35), and the current price was 44 yuan (about $6.60). According to its transaction data, the price of the mask was 44.1 yuan (about $6.62) per piece before the promotion, which was inconsistent with the original price of 49 yuan (about $7.35) per piece at the time of the promotion. Therefore, the Beijing Yanqing District Administration For Market Regulation determined that the branch's behavior violated the "Price Law of the People's Republic of China": using false or misleading price methods to lure consumers or other operators into trading with it. Therefore, according to the relevant legal provisions, the store was ordered to correct the violations involved, and a fine of 50,000 yuan (about $7,500) was imposed. As the largest retail chain of health and beauty products in China, Watsons' business scope includes the retail of medical masks, the sales of second-class medical equipment, the sales of hairdressing accessories, the sales of daily necessities, and the wholesale of cosmetics. It has nearly 50 branches and more than 4,000 stores in mainland China. According to the latest financial report of the parent company of Watsons, CK Hutchison Holdings Limited, as of the end of 2021, the number of Watsons stores in China has reached 4,179, an increase of 2% year-on-year in 2020. An industry veteran in China said that when the number of stores in the chain reaches a certain level, this situation is prone to occur. Moreover, the vast majority of Watsons clerks are promoters of manufacturers, so it is not uncommon for this kind of promotional chaos. It is worth noting that this punishment is the eighth time that Watsons stores have been punished for various violations in the past two years. From June 2020 to December 2021, Guangzhou Watsons has a total of 4 pieces of administrative punishment information, with a total fine of about US$5,700, of which 3 are related to cosmetics. Not only Guangzhou Watsons has been fined many times, but also the stores of Shanghai Watsons, Qingdao Watsons and other branch stores have also been repeatedly reported to be fined and sold substandard products. Although these penalties involve minor problems and the fine is not high, Watsons, as a well-known cosmetics chain, has had problems many times, which should also be paid special attention to. Under the strong supervision of cosmetics in China, Watsons has to make great efforts in the standardized operation and management of stores. Otherwise, it will eventually cause losses to the Watsons brand in the long run.  For a brand, it is a long process to establish public praise, but it often takes only a moment to destroy it.

Shiseido brand CPB and UNICEF launched the third year of cooperation, announcing that part of the global sales of the star essence “The Serum” will be used to support the education and empowerment of 6.5 million girls around the world. The product is available at the flagship store of Chinese e-commerce platform Tmall, and is priced at 1,250-1,980 yuan ($186.5-$295.4). Education promotes sustainable development, which is of positive significance to community development. Education can enhance girls' ability to be independent and improve their economic situation. It is a ladder to help them get rid of poverty and make it possible for them to continue to pursue a better life. Recently, Shiseido's brand CPB announced the launch of the third year of cooperation with the United Nations International Children's Emergency Fund (UNICEF). In collaboration, CPB will continue to work to remove barriers that girls may face, provide them with greater access to science, technology, engineering and mathematics (STEM) education and skills training, empowering girls with the skills they need knowledge and skills, thus making a positive impact on their communities and around the world. To further demonstrate the brand's commitment to advocating girls' education, CPB also pledged to donate a portion of the global sales of the star essence product "The Serum" to support the education and empowerment of 6.5 million girls around the world. As part of its commitment, CPB will also promote this worthy cause on various social media platforms and through in-store displays. Ms. Mizuki Hashimoto, CPB Chief Brand Officer, said, “CPB firmly believes that unlocking the potential and talents of girls through STEM education will help create a better world. The past two years have been a very rewarding journey as we seek real change together, and it is even more precious because of the active participation of every consumer. It is an honor to see the support of our brands make an important and positive impact in the efforts of UNICEF.” It is reported that from June 1st to June 30th, BST this year, the Chinese market will also actively carry out this public welfare project again. As a brand of Shiseido, CPB's public welfare projects are just a microcosm of all Shiseido Group's public welfare activities in China. Since the outbreak of COVID-19, Shiseido Group has donated money immediately and launched the "Relay of Love" project to continuously donate materials to the front-line and needy groups in China. For example, the training instructors of the CPB brand of Shiseido explained daily makeup techniques such as maintenance, nursing and decompression to the medical staff of Shanghai Jiaotong University School of Medicine, and presented loving products. In addition, Shiseido, as the first batch of participants in the "Come on! Anti-epidemic Angels" project of the China Women's Development Foundation, donated 77,000 products of AUPRES hand cream and body cream and PURE&MILD hand cream to the International Women's Day in 2020, with a total value of $443,095, aiming to send practical care to front-line medical staff and their families, mainly in Hubei Province, to help them stand their ground and overcome difficulties together. In June 2020, Shiseido joined hands with the China Women's Development Foundation to set up the "Shiseido Love Relay-Care Women's Love Fund", and launched a series of public welfare activities: sending Shiseido professional hand care to female volunteer teachers in mountainous areas of China, and providing Chinese women college students professional guidance on career planning and styling. In the 41 years since it entered the Chinese market, Shiseido has lived in harmony with Chinese society. Behind the accumulation is the widespread trust and recognition of Shiseido brands by Chinese consumers. It is Shiseido's commitment to the sustainable development of China's cause to practice the path of public welfare with a sense of gratitude. With the vision of "BEAUTY INNOVATIONS FOR A BETTER WORLD", Shiseido will continue to unite loving forces for China's public welfare undertakings.