There are currently more than 200 million sensitive skin people in China, and economic growth is proportional to the increase in the incidence of sensitive skin. Therefore, the skin care market in China has attracted much attention, and sunscreen for sensitive skin has become a new trend. On Tmall, China's mainstream e-commerce platform, using "sensitive skin sunscreen" to search, there are 4 international brands in the top 10 monthly sales. With the popularization of sunscreen knowledge, Chinese consumers are increasingly aware that sunscreen is not only about preventing darkening but also the key to preventing skin light aging and a series of other skin problems. According to oIBP, the compound annual growth rate of China's sunscreen market in the past 15 years has been as high as 12%. Even though affected by the epidemic in 2020, the growth rate of China's beauty market has slowed down, and the growth rate of China's sunscreen market has slowed to 6.7% year-on-year, the overall market share in 2020  reached $2.16 billion, and this amount is expected to increase in 2024 to $3.66 billion. The overall Chinese sunscreen market is on the rise. According to a survey by Qeyes①, 24% of consumers started using sunscreen products before the age of 18. Not only on the face, but 82% of them also use sunscreen on the body, and 45% of them use an average of 2-3 sunscreens a year. The increasing awareness of sun protection among Chinese consumers has become an important driving force for the growth of China's sun protection market. More and more people realize that skin care needs sunscreen all year round, and sunscreen categories are flooding into the public's view in new ways. According to sunscreen efficacy, it can be divided into whitening sunscreen, isolation sunscreen, moisturizing sunscreen, skin nourishing sunscreen and sensitive muscle sunscreen. Due to the skin type of Chinese consumers, China's sensitive skin care market has attracted much attention, and sensitive skin sunscreen has become a new trend. At present, there are more than 200 million sensitive skin people in China, and economic growth is proportional to the increase in the incidence of sensitive skin, and there is a trend of younger development. In 2022, the market size of China's dermatological skin care products will reach $4.35 billion, with a compound growth rate of 27.0% in the past three years. On Tmall, China's mainstream e-commerce platform, using the keyword "sensitive skin sunscreen", there are 4 international brands in the top 10 monthly sales. 4 sunscreen products are from Winona, ranking 1st, 5th, 6th, and 9th respectively; There are also 4 sunscreen products from international brands such as Papa recipe, AHC, Mistine, Eltamd, etc., ranking 3rd, 7th, 8th and 10th respectively. Winona is a brand in China that focuses on sensitive skin care. As the top brand of sunscreen products for sensitive skin in China, on the pre-sale day of the 618 sales last year, "Winona Sunblock Milk SPF 48 PA+++" was sold out with 10W sets. The annual sales volume has exceeded 150,000. Papa recipe is a Korean cosmetic brand, and its sunscreen single product, "Bombee Moist UV Sun Essence", is the top-selling list in its Tmall flagship store, with monthly sales of 10,000+ and a price of about $16, which focuses on moisturizing and nourishing the skin. AHC is a functional skin care brand owned by Unilever. Its sunscreen single product "Pure Mild Sun Cream" focuses on mild skin care, with monthly sales of 7,000+ and a price of $23. Eltamd is an American skincare brand. It claims to be the "No. 1 sunscreen brand in the United States" in its overseas flagship store on Tmall. Its safe and efficient product "Oil-Free Lightweight UVA/UVB Protection" claims to have 0 alcohol and 0 fragrance, moisturizing and nourishing the skin. The price in the flagship store is 31 US dollars, and the monthly sales volume is 5000+, which is the sunscreen with the highest unit price among the TOP10 products. The sunscreen products of Thailand's Mistine have achieved a high growth rate of more than 80% in China for two consecutive years. In 2022, Mistine, relying on its cutting-edge sunscreen formulations and technologies, launched a "Base Mild Sunscreen Milk" for sensitive skin. This sunscreen is a refreshing cream texture, mild and non-irritating, which can help soothing and repair as well; it also claims that it does not add paraben preservatives and sunscreens that harm coral bleaching, which can protect the marine environment and biodiversity. It sells for $15 in its Tmall flagship store and sells 7,000+ per month. So, what should consumers with sensitive skin issues do when choosing a sunscreen? Professor Liu Wei, Consultant of the Dermatologist Branch of the Chinese Medical Doctor Association, suggests that for sensitive skin, the sunscreen performance should be mild; the texture should be light and clear; the protection effect should be balanced. Also, the effect of soothing and repairing should be provided, and multi-scene fine protection is also required. It is worth noting that with the diversification of sunscreen needs of Chinese consumers, sunscreen products are also increasing. In order to meet the needs of consumers in different scenarios such as outdoor activities, swimming, and makeup, different sunscreen products such as sunscreen sprays and sunscreen sticks have emerged one after another. In response to the pain point that it is difficult to reapply sunscreen after makeup, sunscreen makeup products have also been derived, such as sunscreen primer, sunscreen lip balm, sunscreen powder, and sunscreen highlighter, etc., not only to meet the needs of sunscreen, but also to enhance the user's experience for consumers. Notes: ① 200 consumers from 25 provinces and cities in China are selected to participate in the survey, covering different age groups and skin types.

100% of Chinese cosmetics packaging supplier HCP Group will be acquired by US-based private equity firm Carlyle Group. If the transaction amount can be completed, this may become the largest acquisition in the history of Chinese beauty. Recently, US-based private equity firm Carlyle Group (Carlyle) announced in a release that it has agreed to acquire 100% of Chinese cosmetics packaging supplier HCP Group from an affiliated fund of Baring Asia, with a proposed closing date of the third quarter of 2022. Details of the transaction have not been disclosed at this time. However, as early as the middle of this month, some international media reported that Carlyle intends to acquire HCP for $1 billion and that Carlyle and Baring Asia, the owner of HCP, have finalized the final details of the acquisition agreement. According to public reports, if the transaction amount is true, this may become the largest acquisition in the history of Chinese beauty. Public reports show that HCP was founded in 1960 in Taiwan, China, and has a history of more than 60 years so far. It designs, develops and manufactures primary packaging containers mainly for the color cosmetics, skin care, fragrance and toiletries industries, and is currently the largest color cosmetics packager in Asia and one of the largest cosmetic packaging suppliers in the world. According to the information on HCP's official website, it has 10 production sites in China, the United States, Mexico and Europe, including five factories in China. At present, HCP has cooperated with more than 250 global famous cosmetic and perfume brands, covering international top brands such as Estee Lauder, L'Oreal and Shiseido, as well as Chinese brands such as Florasis, Perfect Diary and Meiking. Specifically, in terms of cooperation with brands, HCP provides more than 500 individual items of cosmetic packaging materials, such as compact powder boxes, palettes and kits, lipsticks, mascaras, etc. In addition, it also provides custom packaging design and manufacturing services for brands. Its cases include "Givenchy Blush" and "Mao Gopin's Palace Collection". Carlyle will leverage its experience in the consumer and manufacturing industries to help HCP continue to expand its business and customer base globally. Carlyle will also leverage its global investment network in the beauty, consumer and manufacturing industries to help HCP explore strategic global acquisitions, further strengthen the company's advanced research and development capabilities, and promote business synergies and strategic alliances. HCP has experienced transformative growth during Baring Asia's ownership period. With Baring Asia's support, HCP became an increasingly strong primary packaging supplier for color cosmetics and skin care products, and expanded its product technology and business footprint. "We are proud to be the world's leading manufacturer of cosmetic packaging and thank Baring Asia for their support over the past six and a half years," said HCP President and CEO. We will continue to focus on our strategic focus of sustainable packaging technology innovation to provide the highest quality service and best-in-class operations to our global customers. It is a pleasure to partner with Carlyle and it is an honor to have such an exceptional shareholder. We look forward to leveraging the strength of Carlyle's global platform to achieve the next phase of growth and enhance our leading position in the international market." Managing Directors of Carlyle's Asia investment team, said, "We are excited to partner with HCP and look forward to working with HCP President and CEO and the management team to help the company achieve its next phase of global expansion. We see long-term growth potential in the beauty industry and see HCP's strong track record and the company's strong commitment to R&D and environmental, social and corporate governance (ESG) as differentiators. Carlyle will leverage our global platform, deep industry and market knowledge, and synergies with our portfolio companies across consumer and manufacturing industries to help HCP capture new growth opportunities and help the company move to the next level." "We are proud to have supported the company's growth as a global packaging leader during our partnership with HCP," said Managing Director of Baring Asia. "We are confident in the company's long-term sustainable growth by exploring new markets, deepening our presence in the local Chinese market, and making selective complementary acquisitions to enrich the company's product line. We are proud to witness HCP's transformative developments in ESG The transaction is subject to relevant regulatory approvals and is expected to close in the third quarter of 2022, and sustainability, including recyclable recycled content (PCR) packaging and sustainability-certified manufacturing facilities that will leave a more sustainable and environmentally friendly footprint in the future. "

Chinese actress Jing Tian was punished for illegal advertising endorsement. After the exposure, beauty brands endorsed by Jing Tian drew a line with her. It is worth mentioning that there have been few examples of fines for false advertising in the cosmetics industry. Recently, the topic that Chinese actress Jing Tian was punished for illegal advertising endorsement hit the top of a hot trend on the Chinese social platform Weibo. The State Administration for Market Regulation also issued an article saying that it firmly supports the investigation and handling of Jing Tian's illegal advertising endorsement case according to the law. It is understood that Jing Tian was fined $1.086 million. According to the penalty information, the product endorsed by Jing Tian had no valid evidence to prove its efficacy of "blocking the absorption of oil and sugar". Jing Tian, knowing that laws and regulations stipulate that ordinary food products shall not be advertised for therapeutic and health effects, and without effective means to verify the efficacy of the endorsed products, still claimed in the advertisement that the endorsed products have the efficacy of "blocking the absorption of fats and sugars" in her name and image. Her behavior has violated the relevant provisions of the Advertising Law. Jing Tian's illegal income from the above advertisement endorsement totaled $388 thousand. Following Article 61 of the Advertising Law of the People's Republic of China (hereinafter the Advertising Law), the relevant market supervision bureau issued an administrative penalty decision to confiscate the illegal income and fined Jing Tian $698 thousand (the total amount of confiscation was 7,221,200 yuan $1.086 million). After the incident came to light, the official account of Dior Skincare on the Weibo platform, which was still interacting with Jing Tian on April 30, quickly deleted all the content updates about Jing Tian. Chinese beauty brands such as Fulfil and Wetcode also made cuts with Jing Tian and deleted publicity related to her. The Blue Moon also cleared its official content on its official account on Weibo, and now there is no more content related to Jing Tian. Subsequently, Jing Tian issued a letter of apology, saying that she would cooperate with the relevant departments and resolutely put an end to such incidents from happening again. It is worth noting that Article 38 of the revised the Advertising Law of 2021 stipulates that natural persons, legal persons, or other organizations who have been administratively punished for making recommendations or certifying in false advertisements for less than three years shall not be used as advertising spokespersons. In other words, Jing Tian cannot endorse advertisements for three years. In recent years, there have been few examples of fines for false advertising in the cosmetics industry, in which international and Chinese big-name cosmetics groups have been involved. In February 2022, the Shanghai Municipal Administration of Market Supervision published on its official website the administrative punishment decision issued to Estee Lauder. Estee Lauder was fined $358 thousand for publishing false advertising content through several channels. According to the administrative penalty decision, the Shanghai Municipal Bureau of Market Supervision found that to promote the product of Extra Moisture Repair Essence, Estee Lauder (Shanghai) Trading Co. Ltd. published video or print advertisements with the product efficacy such as "youth index +77%" and "smoothness +20%, translucency+20%" through its official website and other channels with small print labels, at a total advertising cost of $358 thousand. The content of the above advertisements was based on the clinical reports issued by the third-party testing laboratories commissioned by the parties concerned. After verifying the clinical reports, it was found that the efficacy of "youth index +77%", "smoothness +20%, translucency+20%", etc. advertised in the above advertisements were for samples of different ages, under certain restricted conditions, in combination with sunscreen products. The data was obtained from the study. The study data were obtained from samples of different ages and under certain restricted conditions with the use of sunscreen products, and the person referred to the overall concept of "youthfulness" as the one-sided indicator of the recovery of the number of skin metabolites. However, the survey showed that the recovery of the number of skin metabolites was not the same as the improvement of skin rejuvenation and that the age of the sample had a greater impact on skin metabolites, softness, and smoothness, radiance, etc. The older the age, the more obvious the improvement in skin condition. At the same time, the results of the consumer survey showed that the small print labeling in the advertisement was not sufficient to make consumers fully aware of the true meaning and prerequisites of the efficacy of the relevant products, and the content of the advertisement had a substantial impact on consumers' purchasing behavior. In summary, the Shanghai Municipal Bureau of Market Supervision held that the above-mentioned acts of the party violated the provisions of Article 4(1) and Article 28(1) and 2(2) of the Advertising Law of the People's Republic of China, and published advertising content containing false or misleading information, and ordered the party to stop publishing illegal advertisements, eliminate the influence within the corresponding scope, and punished the party with a fine of double the advertising fee, totaling $358 thousand. It is worth noting that the new advertising law, which was revised as early as 2015, began to regulate the extreme terms in advertisements, etc. The Regulations on Control of Advertisement formulated by the "cosmetic advertising management approach" requires that the advertising content of cosmetics must be true, healthy, scientific and accurate, and shall not deceive and mislead consumers in any form. Cosmetic advertising is not allowed to appear, including but not limited to: the name of the cosmetic, the method, ingredients, utility and performance of false exaggeration; the use of another person's name to ensure or to mislead the utility of the implied method; the use of the "latest creation", "latest invention" The use of "the latest creation", "the latest invention", "clean natural products", "no side effects" and other absolute words.

China is one of the most dynamic markets in the world, and travel retail has always been the main channel for the performance growth of Estee Lauder Companies. The president of Estee Lauder Companies expressed that he is very optimistic about the development of China and the Chinese travel retail market. It is reported that Asia's largest international duty-free commercial complex will be completed this year, and Estee Lauder Companies may establish new cooperation with it to continue to develop tourism retail business in Hainan. Fabrizio Freda, President and CEO, said at the Estee Lauder Companies third-quarter fiscal 2022 shareholder performance announcement communication meeting recently: "The offshore duty free business in Hainan, China, was in good condition until mid-March, but then the passenger flow dropped sharply. However, we predict from experience that the passenger flow will perform well after the rebound. Once the travel restrictions are over, people will quickly resume their travel plans in China." Freda is very optimistic about the Chinese market. "Our confidence in the future of Hainan has not changed. Seeing the amazing development of Hainan so far, our confidence has increased." Freda stressed. "The long-term fundamentals of global high-end cosmetics in China and China's tourism retail market are still very good. I am very optimistic about this opportunity. Compared with other parts of the world, China's tourism retail, online sales, physical stores and perfume business market will rebound more. High-end perfume accounts for an increasing proportion in the overall development of the category." China is one of the most dynamic markets in the world, and the layout of Hainan is of strategic significance for Estee Lauder Companies. Under the background of the highly developed tourism retail in Hainan and the advantages of the free trade port policy, Estee Lauder Companies has also continued to develop the tourism retail business in Hainan by establishing a series of innovative cooperation. In July 2021, Estee Lauder, CDFG and Marriott Bonvoy Hainan Regional Hotel launched tripartite cooperation, integrating vacation, beauty and shopping, and launched a long-term cooperation project in Hainan with the theme of "Hainan Summer Beauty Pass". In January 2022, Estee Lauder started a live broadcast event in Haikou, Hainan, which revealed the limited packaging of Estee Lauder's seventh-generation Advanced Night Repair essence and eye cream for the Year of the Tiger. At the beginning of 2022, the Estee Lauder Companies fragrance brands, Frederic Malle and KILIAN, entered the Hainan Duty Free Shop in the form of opening special counters and pop-up stores... It is worth mentioning that in February this year, Estee Lauder Companies has confirmed its participation in the "2022 China International Consumer Products Expo" held in Hainan, China. At that time, the Estee Lauder Companies will bring 13 iconic brands such as LA MER, MAC, and Clinique. In addition to these brands that have already been popular in China, the Estee Lauder Companies will also bring two future brands that are expected to be closely related to the mainland China market - Le Labo and Aveda. This is also the first time Estee Lauder Companies has appeared at the Hainan Expo as a group. During the communication meeting, Freda also mentioned in particular the expansion of offshore duty free business in Hainan: "There are new large shopping centers under construction in Hainan, which is an extraordinary new opportunity." It is reported that the large shopping mall under construction is Haikou International Duty Free City, which is expected to open before October 1 this year. The Haikou International Duty Free City project has a total construction land of 485 mu and a total construction area of about 930,000 square meters. Covering hotels, real estate, commerce, cultural tourism, and other formats, it will become the largest international duty-free commercial complex in Asia after completion. Analysts said that the opening of Haikou International Duty Free City is expected to boost the overall performance of an offshore duty-free business and help Hainan achieve the goal of reaching 100 billion (about 15.01 billion US dollars) in offshore duty free business sales throughout the year.

Chinese package supplier Baixinglong Enterprise approved the proposed issuance program of the Beijing Stock Exchange. If the program can be completed, the enterprise will be the first stock of cosmetic packages in the Beijing Stock Exchange. Recently, the board of directors of the Chinese package supplier Baixinglong Enterprise considered and approved the proposed issuance program of the Beijing Stock Exchange, the issue reserve price of 11.8 yuan(about $1.77) / share. The fund raising will be used for creative packaging intelligent manufacturing production and construction projects, etc.. In November 2021, Baixinglong Enterprise entered the Beijing Stock Exchange listing counseling period, counseling institutions for IFC Securities. According to the annual report of the enterprise, the revenue of Baixinglong in 2021 was $63.9 million, up 51.15% year-on-year and its operating profit was $7.45 million, up 86.51% year-on-year and its net profit attributable to the mother was $6.34 million, up 88.63% year-on-year. Shenzhen Baixinglong Enterprise was established in February 2008 and it is a creative packaging total solution provider, mainly engaged in the design, development, production and sales of creative packaging products in several fields such as wine, cosmetics and tea, with partners involving Louis Vuitton, Gucci, Bvlgari, L'Oreal Paris, Elizabeth Arden and other international brands. In the industry, Baixinglong is a company famous for its creative packaging design, with a total of over 40,000 creative works. Through its excellent creative design works, it has won 103 international design awards, including 40 PackStar Award of world stars, 15 Red Dot Award, 6 Pentawards, 9 The Mobius Advertising Awards, 20 IF design awards, 11 A'DESIGN design awards, 1 IAI Design Award 1, etc. According to the company's official website, the successful cooperation cases of Baixinglong include "L'Oreal Anti-Wrinkle Essence + Pro-Retinol Gift Box", "L'Oreal Paris Age Perfect Zell-Renaissance Gift Box", "Dr. Alva Mid-Autumn Gift Box", etc. In its annual report, Baixinglong said that in 2021 the company continued to deepen its wine and international cosmetic packaging business, simultaneously increase the development of Chinese cosmetic packaging, tea and food packaging and related products business, and accelerated the regional layout and base construction. In the process of consumer shopping for goods, packaging has gradually become an important factor in consumers' decision to buy products. From the perspective of market demand, cosmetics and personal care packaging materials represented by rigid plastic, soft plastic packaging and paper boxes have shown a strong growth momentum, and there are many entrants to compete the market. In the face of an increasingly competitive market environment, Chinese OEMs/ODMs have begun to change their business models to meet the current challenges. In contrast to their previous role as intermediaries, many companies have now repositioned themselves and are no longer limited to "saving the whole thing" for brands and raw material suppliers, but have become an important part of the cosmetic supply chain with their R&D strength and insight. "From an upstream perspective, the demand for small packaging orders has skyrocketed in the past two years." One Chinese packaging supplier company stated that whether in the field of color cosmetics, skin care or toiletries, small packaging products are gaining more and more consumers' favor by virtue of their compact and lightweight packaging, aseptic and quick sealing, and long time product activity, and have become a popular segment of the personal care sector. It has become the most popular segment of the personal care circuit. According to relevant data, in the Chinese market, the scale of mini makeup online has been rising year after year, and the growth rate of mini lipsticks, mini makeup brushes and other makeup tools has reached more than twice that of the category. From the brand level, both international and domestic brands have launched small-package products, and there have been rapid breakout models such as capsule lipsticks and mini makeup sponge. In the skin care market, the small packaging products are showing a more diverse form, appearing in blister, tube, bottle, strip, spray bottle and other different forms of presentation. NBC represented the main new strip of dazzling Moe bubble mask with the use of macaroon color creation and double cavity tube to achieve easy portability and fun. Kans from Chicmax launched the annual star new product - emotional small capsule mask with innovative changes in the market of smear mask. Its soft and pinchable decompression pinch burst design and capsule sub-disposal design bring consumers a novel feeling of use. Biohyalux's hot-selling disposable essence has applied the B.F.S aseptic filling technology used in the production of eye drops in its functional skin care products. The 1.5ml small dose of the product is both portable and sterile, preservative-free and alcohol-free leading a new boom in the essence category. For the brand, a design can make the original small disposable packaging become more lovely and use small packaging to test the market will be more beneficial than large production investment.

Global raw material giant DSM and Swiss fragrance and fragrance supplier Firmenich will jointly establish the DSM-Firmenich joint venture. The two parties will promote high growth and innovation in market segments through complementary capabilities in fragrances, food and nutrition. On May 31, BST (all times in this article are Beijing time), Royal DSM Group of the Netherlands and Firmenich, a Swiss fragrance and fragrance supplier, announced the signing of a cooperation agreement, and the two parties will jointly establish a DSM-Firmenich joint venture. After the establishment of the company, DSM will own 65.5% of the shares of DSM-Firmenich, while Firmenich will own 34.5% of the shares of DSM-Firmenich, and will receive more than 3.754 billion US dollars in cash (the transaction amount may be adjusted). Among them, the combined fragrance and beauty division has combined revenue of 3.540 billion US dollars. Firmenich's fragrances and ingredients business will further expand the two companies' presence in the beauty market by merging with DSM's personal care and fragrance business. According to the news, the combined fragrance and beauty department will take a leading position in the fragrance ingredients companies, and will have high-end renewable, natural, biodegradable and other technologies. It is reported that the DSM-Firmenich board of directors is under the Swiss governance and will be composed of three nominees from Firmenich shareholders, seven independent directors from the DSM supervisory board, one independent director from the existing Firmenich board and one new independent member. The transaction will eventually come to an end in the first half of 2023, and at that time, DSM-Firmenich will be listed on Euronext N.V. It is worth mentioning that on May 30, Firmenich announced the signing of a strategic cooperation agreement with Scentrealm, a pioneer in digital scent technology in China. Firmenich is making the digital transformation by combining artificial intelligence technology with human intelligence, leading the industry to launch AI-enhanced laundry care fragrances and AI-based flavors. This partnership with Smell Kingdom will help Firmenich to bring a higher level of fragrance and fragrance experience to its clients and consumers, as they explore the digital future of fragrance. Paul Andersson, President of Firmenich China, said the partnership will strengthen Firmenich's leadership in digital innovation in the aroma and flavor industries and develop engaging new experiences for consumers in China. According to public information, Scentrealm mainly focuses on the technological development and application of digital graphics and digital olfactory products. By summarizing the underlying classification methods of odors, a huge odor database has been established, and the digital, networked transmission and terminal playback of odors have been realized. As China's first supplier of digital scent technology and digital scent solutions, as well as the official supplier of the 19th Asian Games Hangzhou 2022, Scentrealm opened its offline experience center "Scent Metaverse" in Hangzhou in April 2022. In August 2021, Scentrealm announced the completion of a 50 million RMB (about $7.505 million) A+ round of financing, which was successively invested by Monarch Capital and Shansheng Equity Investment Fund.

Chinese skincare brand One Leaf cooperates with skin care experts to launch the "One Leaf Guardian and Self Repairing" theme activity, aiming at five scenarios of "mask face", "excessive skin care", "allergic to staying up late", "barrier damage" and "chemical peeling trend", arousing consumers’ attention to skin barrier problems and provide scientific repair solutions. The "self-repairing manual" was also released to analyze the phenomenon and causes of barrier damage from multiple dimensions, and provide professional advice for repairing the barrier. In 2014, the parent company of One Leaf, CHICMAX, saw the huge development space of China's facial mask Market and launched the facial mask brand One Leaf, which focuses on the youth market. In 2016, One Leaf facial mask became the No.1 facial mask brand in terms of sales in China and was chased by young users with its fresh brand image. In 2022, One Leaf officially started the road of upgrading and transformation, positioning itself as "The leading brand advocating pure beauty plant skin care in China", with the brand tone of "plant technology, natural simplicity, environmental protection, and the plastic reduction", and with the product efficacy of "focusing on barrier repair", it continued to increase the size of the young market. In terms of formula design, One Leaf takes plant ingredients as the core, constantly digging Chinese natural raw materials with equal emphasis on efficacy and safety, and uses scientific research to extract purer raw material ingredients to ensure that the formula is more streamlined and safe. In terms of efficacy, One Leaf relies on in-depth research on plants and the transformation of scientific and technological achievements to precisely repair, build a skin barrier protection wall, and exert "skin self-healing power". In terms of packaging materials and brand ESG, it adheres to the concept of environmental protection and sustainability. It can be said that these designs meet consumers' expectations for products with natural and pure raw materials and repairing effects. At the beginning of this year, as the first product after the transformation and upgrading of One Leaf, the "Repair & Embellish Essence" was unveiled, which focuses on repair and red repair, and realizes the consumer's demand for repair and red repair with transparent formula and simple, pure and natural ingredients. It is reported that the product is added with 20% high-concentration olive extract and 1% B5, which realizes multi-effect care of the skin barrier, and has the effects of repairing, hydrating and soothing. The mild and non-irritating formula contains 93% natural plant ingredients, suitable for sensitive skin. At the same time, One Leaf, together with China's App Beauty Evolution, which focuses on cosmetics filing information and full ingredient list query, invited 31 volunteers with sensitive skin issues to conduct a four-week real test to record the effect of "Repair & Embellish Essence" on the sensitive skin people. The results showed that after using the product for four weeks, skin sensitivity was reduced by 45.28%, skin water content was increased by 39.47%, skin water loss rate was reduced by 28.12%, and skin redness was reduced by 13.27%. After the transformation and upgrading, One Leaf has not only built a solid brand by launching good products but also actively promoted the development of clean beauty in China and the sustainable development of the industry. For example, One Leaf and Shanghai Daily Chemistry Trade Association took the lead in launching the group standard of "Technical Definition and Calculation Guidelines for Natural and Fermented Cosmetic Ingredients". This group standard defines natural and fermented cosmetic ingredients, standardizes the natural calculation method of ingredients and formulas, and defines and quantifies the natural attributes of raw materials and formulas. This move will help to regulate China's clean beauty market from the raw material side. It is a "stepping stone" for Chinese brands to explore the development of clean beauty, and will also provide a reference for China to formulate relevant laws and regulations on clean beauty in the future. It’s revealed that the group standard will be officially announced soon after months of preparation.

Recently, oIBP, a well-known market research institution, issued a certification statement for Seeyoung on "No.1 Non-Silicone Scalp Care Brand in China". After Seeyoung obtained the "No. 1 Non-Silicone Personal Care Brand in China ①" in 2021, it won the official certification of "No. 1 Non-Silicone Scalp Care Brand in China ②" by oIBP in 2022. Established in 2014, Seeyoung is positioned as a Chinese shampoo and hair care brand in the non-silicone market. From shampooing to dry hair spray to essential oils and scalp essences, Seeyoung gradually broadens the scalp care track, fully infiltrating the brand concept of its non-silicone scalp care while using the healthy scalp care concept to occupy the minds of consumers. For Seeyoung, the continuous recognition of authoritative institutions is closely related to their strong product power. And every high-quality product is inseparable from its scientific research strength as a strong backing. Relying on the strong R&D strength of the parent company, Guangzhou Uniasia Cosmetic Technology Co., Ltd., Seeyoung has obtained 13 related product patents, 7 scientific and technological appraisal achievements, 5 scientific and technological progress awards, and 5 high-tech products, forming a core product cluster with the efficacy and technical characteristics of ginger(prevents baldness), tea seed(dandruff removal), and soapberry(oil control). Among them, its ginger series has sold more than 40 million bottles in total and obtained the national makeup anti-hair loss special certificate. The high emphasis on research and development has made Seeyoung aim at high-standard production and incubation from the very beginning. In order to continuously improve important processes such as raw materials and production, Seeyoung has carried out close strategic cooperation with world-renowned raw material research and production companies such as Symrise and Clariant. In addition, its in-depth cooperation with scientific research institutions such as Guangzhou Quality Supervision and Testing Institute and Japan BHI has also added a strong boost to its development. Seeyoung not only leads the non-silicone shampoo market in China with its strong product R&D strength, but also focuses on the Z generation, digging deep into the industry development trend, and wins the love of consumers with innovative marketing strategies and gameplay. Online, Seeyoung has been launched on Chinese platforms such as Douyin, Xiaohongshu, Weibo, WeChat, Zhihu, Taobao, etc. Through the joint voice of the head, waist, and tail KOL, it can accurately reach consumers and realize all-around user operations, penetrating its brand concept into the minds of users. It has also formed strategic cooperation with China's leading e-commerce platforms such as Tmall, JD, and Vipshop, and other Chinese interest e-commerce companies such as Douyin and Kwai to use diverse and interesting gameplay for marketing communications. Offline, Seeyoung has strong exposure in major first-tier cities in China, attracting public attention for the first time, and while increasing the popularity of the product, it has occupied the minds of users for a long time. Up to now, Seeyoung has deployed more than 25,000 offline outlets in China, covering multiple channels such as Watsons, Carrefour, Walmart, etc., and has increased its efforts in new retail terminals such as Sanfu, KK hall and 7-Eleven to create a new retail mode integrating online and offline. It is worth mentioning that during the pre-sale period of Double 11 in 2021 alone, 100,000 sets of Seeyoung Ginger Hair Shampoo were sold out in the live broadcast room of China's top anchor Li Jiaqi, with sales reaching RMB 7 million+ ( over $1,045,100). Seeyoung soapberry shampoo continued to be included in the Tmall list of "non-silicone shampoo" hot-selling list and the top 3 in the praise list, and the monthly sales of this series of products in its Tmall flagship store reached 50,000+; The annual exposure of Seeyoung brand reached 1 billion+, and it occupied the top list of keywords such as preventing baldness, ginger shampoo, non-silicone shampoo... Notes: ① No. 1 Non-Silicone Personal Care Brand in China: the data source comes from oIBP. In the Chinese Mainland market, according to the retail channel sales in 2020, silicone free scalp care products refer to the washing and care products without silicone oil. The research was completed in January 2021. ② No. 1 Non-Silicone Scalp Care Brand in China: the data source comes from oIBP. In the Chinese Mainland market, according to the sales volume of retail channels in 2021, silicone-free scalp care products refer to scalp cleaning, scalp care, and other care products without silicone oil, including shampoo, conditioner, hair mask, essential oil, etc. the research was completed in May 2022.

Chinesea leading digital technology and solution company Baozun achieved beauty online store revenue was $13.4 million, accounting for 5% of total revenue, up 2% year-on-year. Up to now, six more representative Chinese cosmetic e-commerce agency companies - Baozun, ChanceMate, RuoYuChen, Lily&Beauty, and UNQ have been listed. On the evening of May 26, Baozun announced its financial results for the first quarter that ended March 31, 2022. Its net revenue for the first quarter was $296 million, down 2% year-over-year, including service revenue of $195 million, up 24.3% year-over-year; operating loss of $6.2 million, compared with an operating profit of $7.9 million for the same period last year; net loss attributable to ordinary shareholders of Baozun Ltd. was $18.2 million, compared with a net profit of $194 thousand for the same period last year. Specifically, its total transaction volume (GMV) was $2.5 billion, an increase of 28.4% year-over-year. Its distribution GMV (referring to GMV under the distribution business model) was $114 million, a decrease of 28.8% year-over-year. GMV of non-Tmall trading platform and channel accounted for 40% of total GMV in the first quarter. The year-on-year growth rate of GMV of Jingdong, Wechat mini program and Douyin exceeded 100%. Meanwhile, Baozun opened a number of new stores in Jingdong in the first quarter, covering beauty, luxury goods, apparel and other sectors. By channel, beauty online store revenue was $13.4 million, accounting for 5% of total revenue, up 2% year-on-year. According to the report, since March, including Shanghai, where Baozun's headquarters is located, and many cities across the country have been affected by the pandemic quarantine epidemic and strict control measures have been implemented. Baozun has been able to reduce the impact of the epidemic through its mature digital operation system, solid technology infrastructure, strategically deployed warehouses and expanding regional service centers. In addition, although Baozun store operation revenue declined in the first quarter, value-added services such as digital marketing and technology services achieved high double-digit year-over-year growth. Among them, digital marketing and technology services revenue was $57.6 million, up 39% year-on-year. Baozun said that based on the uncertainty of the macro environment, the current financial management priority and focus will be on operational efficiency, cash flow management and cost control, and is now confident in the long-term business outlook and strategy. Baozun was founded at Shanghai, China in 2007. Over the past decade, we have set up branches in Hangzhou, Beijing, Hongkong and Taiwan, with overseas offices located in France，Japan, Korea and the USA. It is a famous brand E-commerce business partner and a leading digital technology and solution company in China. Its integrated capabilities encompass all aspects of the E-commerce value chain covering IT solutions, store operations, digital marketing, customer services, warehousing and fulfillment. It helps brand execute their E-commerce strategies by selling their goods directly to customers online or by providing services to assist with their E-commerce operations. Its business ranges from Chinese brands’ official stores, well-known online shopping platforms-Tmall and JD.com, as well as WeChat Mini programs, Douyin, and O2O smart store, to overseas famous online shopping platforms such as LAZADA, SHOPEE, HKTVMALL and Yahoo super mall. Rooted in the evolving digital business, driven by technology, it digs into each area of supply chains, makes customized solutions for brands, and builds a communication bridge with customers. Baozun was listed on NASDAQ in May 2015 and completed the secondary dual-listing on HKEX in September 2020. China's e-commerce development so far, as the agency operator, not only is the recorder, witness, but also the history of the maker. Up to now, six more representative Chinese cosmetic e-commerce agency companies - Baozun, ChanceMate, RuoYuChen, Lily&Beauty, and UNQ have been listed. The e-commerce services of ChanceMate are focused on the FMCG vertical. According to the disclosure, ChanceMate's partner brands include Procter & Gamble (PG.N), Pechoin, Elizabeth Arden (USA), Amore Pacific Group (090430.KS) (Korea), Aupres, Mao Geping, PopMart (09992.HK) (Japan), Mengniu (02319.HK), Yanker Shop (002847.SZ) (Japan), etc. Lily&Beauty, on the other hand, focuses on the beauty vertical categories. Cooperating beauty brands include more than 60 brands such as Erno Laszlo, Whoo, freeplus, Sulwhasoo, Avène and Schwarzkopf. Compared to ChanceMate and Lily&Beauty, Baozun covers more vertical fields. The company currently covers 8 vertical fields including beauty/ FMCG, home building materials, internet finance, automotive, apparel, 3C digital, home appliances, and food/healthcare products, with more than 250 partner brands. In the field of beauty and cosmetics, it has cooperated with international beauty brands such as Estee Lauder, MAC, POLA, NIVEA, Jo Malone, La Mer and others. From 2017 to 2020, Baozun's revenue grows from $620 million to $1.32 billion, with a CAGR of 28.7% over the period, which is higher than the number of brand partners over the same period. In 2020, the Company's revenue growth rate is 21.6%, while the previous two consecutive years of 2018 and 2019 have maintained revenue growth rates of over 30%.

"Fair skin" is the mainstream aesthetic in East Asia. In pursuit of whiteness, Chinese beauty lovers take great care in skin care and makeup. Qeyes found that Taobao anchor Li Jiaqi(Austin) shared his whitening method in a recent live broadcast. In China, there are many beauty lovers who work hard for whitening like Li Jiaqi. According to data from the World Health Organization, the market size of whitening products will reach 31.2 billion US dollars (about 220.8 billion yuan) in 2024. It is predicted that the average annual market size of whitening consumption in China is at least 66 billion yuan, accounting for 30% of the global whitening product market. Different from the pursuit of diversified skin colors in the west. In China, there was once a traditional saying just like"A white plexion is powerful enough to hide seven faults". And today, whitening products are popular with Chinese consumers, all of which reflect the popularity of the concept of "white". From 2018 to 2019, oral whitening health products became popular in China, and many people rushed to try them. The price of such products is relatively high. A bag of Pola whitening pills costs 1,088 yuan in China and can only be taken for one month. And according to public information, the efficacy and safety of such products are controversial, and Chinese consumers are gradually returning to the normal whitening road that focuses on skin care products. According to a survey by Qeyes, more than 80% of women choose whitening cosmetics in their daily skin care process. When it comes to whitening, Chinese consumers are well aware that it requires both money and patience if they want to see a nice effect. In the use of skin care products, whitening consumption is second only to basic moisturizing and cleaning. They will choose to use a whitening facial mask, followed by whitening sunscreen and whitening essence, and most Chinese consumers are willing to spend more than four weeks waiting for the effect of whitening products. Within the same brand, the unit price of whitening products is usually higher than that of cleaning and moisturizing products. The whitening products of domestic products are usually concentrated between 250 yuan and 350 yuan, but this does not affect the sales of products with good reputation. In the first half of 2021, a single piece of OSM Pearl Lucent Whitening Gift Box occupied the top sales in CS channel sales with sales of 8.2 million. For Chinese consumers who are especially concerned about whitening efficacy, some proven whitening ingredients are also the reason why the product is popular. In terms of ingredients and technology research and development, international brands that have been established for a longer time and have developed more mature have also won the trust of Chinese consumers. In China, niacinamide is widely known as an effective whitening ingredient, such as Olay's whitening products. According to a survey by Qeyes, among the cosmetics used by consumers, Olay Advanced Light-Perfecting Essence is the No. 1 essence whitening product with a proportion of 61.8%. On the e-commerce platform’s essence repurchase list of less than 300 yuan, the fourth-generation light-sensitive white bottle with a capacity of 30ml and a price of 280 yuan sits firmly at the top of the list, and has been regarded as “the gospel of natural yellow-skinned people”. Even if the natural skin color cannot be changed, makeup can also achieve the purpose of whitening. The foundation shade for cool white skin is still the first choice for Chinese consumers. For makeup people, lipstick, blush, eye shadow and other color makeup selection criteria all have the item "whitening". Recently, the way of making up with powder blue has become popular in Douyin, because the cool blue color will make the skin look whiter. On the e-commerce platform, in the category of powder blusher, powder blue products have also received a lot of praise. Many beauty bloggers have also published evaluation videos for consumers on their own channels.

Recently, China also implemented a campaign for refuting rumors about cosmetics. Among it, it specifies that children's cosmetics and toys are two different categories of products. Thus, if a child's product meets the definition of a cosmetic, it should be regulated as cosmetic. Recently, on the occasion of International Skin Care Day, China also implemented a “national cosmetic safety week”, and children's cosmetic safety remains a key concern for Chinese local drug regulatory authorities. On May 25, the famous Chinese news website Xinhuanet and China's Piyao Organization for refuting the rumor jointly released the "2022 Cosmetics-related Rumors Refuting List" to educate people about the correct use of cosmetics and to guide consumers to enhance their awareness of the scientific and safe use of cosmetics. The list indicates that some toys on the "children's dressing table" including eye shadow, blush, lipstick, nail polish, etc., are hot-selling in the market. In fact, many of these products are produced by toy manufacturers for dolls and other decorative toy products but not as cosmetics management. Children will be misused for such toys as cosmetics there are certain safety risks. Cosmetics and toys are two different categories of products, according to different laws and regulations to implement the management, its management measures and requirements are not the same. According to the Regulation on the Supervision and Administration of Cosmetics, cosmetics are applied to the skin, hair, nails, lips and other human surfaces to clean, protect, beautify, and decorate for the purpose of daily use of chemical industrial products. In simple words, products applied to the surface of the human body are cosmetics and should be managed under the regulations for cosmetics. Products simply applied to toys such as dolls are not cosmetics and should be managed following the regulations for toys or other products. If a product meets the definition of a cosmetic, it is a cosmetic whether it is sold separately or together with other products such as toys. According to the Cosmetic Classification Rules and Catalogs issued by the National Medical Products Administration, cosmetics for children aged 3-12 can include claims of beauty touch-ups and makeup removal, while cosmetics for infants and children aged 0-3 are limited to claims of cleansing, moisturizing, hair care, sun protection, soothing and toning. In other words, cosmetics for infants and toddlers under the age of 3 do not include the category of "makeup". Therefore, it is illegal for makeup cosmetics to be labeled as available for infants under the age of 3. In recent times, CHAILEEDO has found that most cosmetic products on Chinese e-commerce platforms are labeled "for children", but the store's customer service said that this claim refers to the product's efficacy of mild but not that it is for children. In response to this marketing behavior, an industry source said, "The target consumer group of some products claimed that pregnant women are available and children are available sometimes is not necessarily pregnant women or children, which is a way to imply to consumers that the product is safe and mild." The Provisions on the Supervision and Administration of Children's Cosmetics (hereinafter referred to as the Provisions) indicated that the logo "for the whole population" "for the whole family" and other words or the use of trademarks, patterns, harmonics, letters, pinyin, numbers, symbols, packaging forms, etc. implying that the product's targeted population containing children should be by the management of children's cosmetics. It is worth mentioning that in recent years, along with the liberalization of the three-child policy and the upgrading of consumer demand, children's cosmetics ushered in a huge opportunity. Public data showed that in 2021, China's 0-3-year-old baby care market size will grow from $1 billion in 2016 to $2.6 billion. And in 2020 alone, children's makeup consumption grew by 300% year-on-year and children's skincare consumption grew by 250% year-on-year. The increasingly large market for children's cosmetics has also exposed some past violations to a greater extent to consumers and regulators. In terms of platform regulation, China's major e-commerce platforms such as TikTok and Taobao have also introduced management rules for children's cosmetics. Not long ago, TikTok E-commerce launched new rules for the release and promotion of children's cosmetic products, which comprehensively regulate the release, promotion, and treatment of violations of children's cosmetic products. There is no denying that regulation has clearly acted as a strong deterrent to illegal behavior by merchants. For example, today, on the Chinese e-commerce platform Taobao, CHAILEEDO searched "children's makeup" as a keyword, and it was found that the majority of merchants can provide their sales of children's makeup products for filling record numbers. The merchants who sell children's lipstick/lipstick balm mostly promoted their products by indicating their products are inedible.

Carslan, a leading professional makeup brand in China, officially announced that Michele Burke is the special chief makeup artist. Michele Burke is the first female Oscar Academy Award for Best Makeup and Hairstyling winner and have participated in "Mission Impossible" and other works as a makeup guide. Carslan was born in 2001 and has been focusing on the makeup track for more than 20 years. Recently, China's leading professional makeup brand Carslan announced that the first female Oscar Academy Award for Best Makeup and Hairstyling winner Michele Burke as its special chief makeup artist. Michele Burke has been in the makeup industry for more than 40 years and has won many world-class awards, such as the Academy Award for Best Makeup and Hairstyling, the Emmy Award for Outstanding Makeup, and the BAFTA for Best Makeup. Michele Burke also participated in works such as "Mission Impossible" as a makeup director, and cooperated with many Hollywood stars such as Tom Cruise and Cameron Diaz, and is widely favored by Hollywood first-line stars with its excellent methods. Michele Burke's professionalism in makeup design and product use is the most important part of this cooperation for Carsla. It is reported that Carslan will work with Michele Burke to jointly develop makeup products and create creative theme makeup to provide Michele Burke with free and full research and development support. Michele Burke is always concerned about the development of China's color cosmetics market. For the first cooperation with the Chinese brand Carslan, she believes that this will be a wonderful exploration of professionalism and creativity, and hopes to bring refreshing cosmetics products and experiences to Chinese consumers. Born in 2001, Carslan is a Chinese brand that has been specializing in color cosmetics for 21 years. "The reason we have been focusing on makeup for 21 years is that we want to build and enhance our core competitiveness. Only by focusing can we create strong competitiveness." Tang Xilong, chairman and president of Carslan Group, said, "For us, the most important thing is good products. If the product we make does not have great advantages, we simply do not make it. We have made the highest requirements in every aspect of the product. The mission of Carslan is to enable Chinese consumers to use the best makeup products in the world." For this aim, Carslan invests a lot of money every year to focus on R&D and innovation, integrating global resources in an all-around way to build the core competitiveness of products. Carslan also has close strategic cooperation with the world's top cosmetic research institutions, raw material suppliers, and packaging material suppliers. In 2021, Carslan established a European R&D center in Italy, which can better grasp the fashion trend of color cosmetics and the most cutting-edge R&D technology; Carslan also signed a strategic cooperation agreement with the global chemical giant Dow Chemical Company and the world's top perfume company COTY, to conclude a long-term and comprehensive strategic partnership based on the advantageous resources of both sides. At the end of 2021, Carslan teamed up with COLORO, an international professional color agency, to launch the "Prosperous China Red" serious lipstick that represents the spirit and strength of Chinese women and is exclusively customized for Chinese women at the group's 20th-anniversary ceremony. In addition, Carslan also collaborated with Hermes co-designer Eric Berthes, Dior co-designer Lydie Bossuet, and Chanel co-designer Marion Collet to create three haute couture series, representing Chinese make-up on the Eiffel Tower "World Tide" Paris Exhibition. This time, Carslan and Michele Burke have joined forces to transmit different industry opinions and cultural perspectives to each other, which will collide with new inspiration in the cooperation and create infinite possibilities, so as to make Carslan a step closer to the brand vision of becoming a world-class cosmetics group.