General Administration of Customs of China: Coreana SHO Hemp Seed Relief Mask were not allowed to enter China due to the detected ingredient hemp seed oil. In 2021, The List of Banned Raw Materials for Cosmetics released by National Medical Products Administration explicitly listed Cannabidiol as the forbidden raw materials for cosmetics. On May 18 BST, General Administration of Customs of China announced the information on cosmetics that were not allowed to enter China in April. Among them, four products including Shiseido liquid foundation and Coreana SHO Hemp Seed Relief Mask were not allowed to enter China. In addition, ROCKETSOAP CO.,LTD's Rocket Hand Soap and Shiseido liquid foundation (free gift) were not allowed to enter China because they did not provide the required certificates or certification materials. The importers were Liaoning Fuyoumei International Trade Co., Ltd. and Global Consumer Products ( Hainan) Trading Co., Ltd. Besides, Puffin perfume soap was not allowed to enter the country due to unqualified sensory inspection. It is reported that the above-mentioned four batches of cosmetics that are not allowed to enter China have been returned or destroyed at the port according to law. It is worth noting that the Coreana SHO Hemp Seed Relief Mask produced by Coreana Cosmetics Co., Ltd. was not allowed to enter China due to the detected hemp seed oil. The importer is Tianjin Vipshop Supply Chain Management Co., Ltd. Currently, the relevant product page of Vipshop shows that the product has been removed from the shelves. In March 2021, National Institute for Food and Drug Control of China issued a notice that, according to the relevant policy requirements of China's national drug control administration, raw materials such as cannabis sativa nuts, cannabis sativa seed oil, cannabis sativa leaf extract and cannabinoid are proposed to be listed as prohibited components of cosmetics. Then in April 2021, in the "Catalogue of Used Cosmetic Raw Materials (2021 Edition)" issued by the National Medical Products Administration, a note was also made after the above-mentioned raw materials, "to be adjusted to the prohibited ingredients of the "Cosmetic Safety Technical Specifications". In May 2021, the latest catalogue released by China's National Medical Products Administration showed that cannabis sativa seed oil had been listed in the "Catalogue of Prohibited Plant (Animal) Raw Materials for Cosmetics", including hemp kernel nut, hemp extract, etc. In other words, hemp seed oil is a banned raw material in China, and it cannot be contained even in imported goods. The rise of cannabis cosmetics in the Chinese market can be said to be a capital carnival. According to incomplete statistics, in 2019, more than 50 A-share listed companies in China announced their entry into the industrial hemp industry, including well-known Chinese daily chemical groups such as Yunnan Baiyao Group Co., Ltd .  China's industrial cannabis stock market soared and almost fell into madness. At the same time, a steady stream of capital began to be injected into cannabis cosmetics industry. For example, Simpcare, a Chinese brand focusing on cannabis skin care, received 6 rounds of financing within one and a half years of its establishment; CBD lifestyle brand CANNAFEVER, a new miracle, completed 2 rounds of financing within half a year. In addition, many Chinese pharmaceutical companies such as Yunnan Baiyao and SL Pharm have invested in the field of cannabis cosmetics. Fueled by capital, Chinese cannabis cosmetics had a blowout in 2020. According to statistics, for the whole year of 2020, there were a total of 1,757 records of cannabis-related non-special use cosmetics in the China National Medical Products Administration's filing system, more than four times the number of records filed in 2019.Cannabis cosmetics have suddenly become a new star in the industry. The data shows that cannabis leaf extract was the top three popular ingredients in 2020, even more popular than Bifida Ferment Lysate, the core ingredient of Estee Lauder's star product "Advanced Night Repair". In just two years, cannabis cosmetics in China has gone from a bright star moment to a low point when it is abandoned by the industry. The era of cannabis cosmetics in China is over.

Shiseido's brand Drunk Elephant was rumored to be going out of business and was being liquidated. Drunk Elephant denied this rumor. It can be seen that Drunk Elephant’s flagship store on the Chinese e-commerce platform Taobao is operating normally. Recently, Shiseido's brand Drunk Elephant was rumored to be going out of business and was being liquidated. Subsequently, Shiseido's brand Drunk Elephant released a statement in response to the recent rumors of "Drunk Elephant liquidating" and "closing down" spreading on the online platform. The statement said that Drunk Elephant has never authorized operations such as liquidation and that the relevant actions on the Chinese e-commerce platform Taobao and other social media are all unofficially authorized violations. In addition, the brand will reserve the right to take legal measures to defend its rights against the release of false information such as "liquidating" and "closing down" by various accounts from different platforms. Drunk Elephant also reminded us that the only official store of Drunk Elephant - DrunkElephant overseas flagship store, is operating in an orderly manner. Consumers who need to buy can reach Tmall International's official only formal channel to buy experience. The so-called "Drunk Elephant Liquidating" incident started in January this year. At that time, the official public number of Drunk Elephant issued an article, saying that the sale of online channels will be suspended to carry out the upgrade of the store. According to Drunk Elephant's official Tmall flagship store customer service response, the store reopened its Tmall overseas flagship store on March 31. In response, Shiseido China had replied that the Drunk Elephant China market is indeed in the period of dealer replacement, according to the platform regulations, the store needs to suspend sales for 1-2 months, and said that thereafter Drunk Elephant's online channel operation will still be handed over to the agent to operate. It is understood that the current agent is Lian E-commerce Services limited. The oops of this event has once again raised the industry's concern about Drunk Elephant as a representative brand of clean skin care. Founded in the United States in 2012, Drunk Elephant had sales of nearly $100 million in 2018. It entered Sephora in Hong Kong, China. In September 2019, it went online on the Tmall platform and was officially acquired by Shiseido in October of the same year. Shiseido's President and CEO once called "Drunk Elephant" "one of the fastest growing skincare brands in history. At the time, talking about the acquisition of Drunk Elephant for 6 billion yuan(nearly $900 million), Shiseido had pointed out that Drunk Elephant could leverage Shiseido's industrial resources and global platform to further expand the existing American market, as well as quickly expand to new markets such as Europe and Asia. At the end of 2019, China General Manager Su Jiani of Drunk Elephant had told the media that "contemporary consumers are concerned about cost effectiveness, demand high efficacy, and demand precision skin care, which are all opportunities for us." In 2020, Drunk Elephant launched the Vitamin F Electrolytic Ionic Goodnight Mask, which will be available on its website and Sephora from January 1, 2020. In the Chinese market, Drunk Elephant has also launched a new product trial campaign. In 2021, Drunk Elephant made its mainland China offline debut at the 4th Fair, showcasing its skincare and toiletries line of products. This year, Drunk Elephant's first quarter sales dropped 32% year-over-year due to the impact of the epidemic and other factors. Currently, Drunk Elephant’s best-selling product in Tmall's overseas flagship store is Vitamin B5 priced at $60/50ml, which is currently sold by Drunk Elephant mainly by way of brand self-live streaming. Due to the instability of the global epidemic, resulting in many beauty brands are affected to varying degrees, some are even unable to support normal operations and announced the closure of stores or withdrawal from the Chinese market. Estee Lauder's makeup brand BECCA announced its official closure in September last year, its highlighters had been its star product. Due to the epidemic and its marketing strategy, the brand had to stop production to stop losses. In addition, Amore Pacific's brand, Innisfree, has made strategic adjustments to the Chinese market, and the person in charge said that Innisfree stores will continue to be optimized in the future, closing 170 stores in China to 140. Previously, another brand of Amore Pacific, Etude House, completely closed all offline stores in the Chinese market in March 2021, and another Korean makeup giant, LG's Face Shop, also closed all offline stores in the Chinese market at the end of 2018. According to the retail sales data of consumer goods released by the National Bureau of Statistics on May 16, 2022, the total retail sales of cosmetics from January to April 2022 saw the first negative growth in nearly five years, down 22.3% year-on-year to $3.2 billion. Most beauty groups' earnings reports cite the first quarter downturn in China as the reason for the factory closures, logistics shutdowns, and store closures due to the epidemic in Shanghai that began in March. But as people get used to the normalized epidemic prevention and control measures again and the normal rhythm of production and life resumes, brands have reason to be optimistic about future growth expectations in China.

Chinese fragrance brand To Summer officially entered the global fashion and luxury platform Net-a-Porter (China), becoming the first fragrance brand to enter the platform, and it's also the first time for this brand to log on the e-commerce platform. To Summer is a niche original aromatherapy brand focusing on oriental plant flavor. Previously, its products were only sold in official Wechat mini program stores and offline channels. With millions of Wechat subscriptions, 100,000 loyal users, and a 60% repurchase rate, Wechat mini program mall GMV alone of To Summer has exceeded 100 million RMB (more than 15 million US dollars) in 2021 according to media estimation, which is almost the biggest envy of countless high-end fragrance brands. To Summer was born in 2019 and it cut in the field of "home fragrance personal care" and is positioned as "a Chinese brand focusing on fragrance healing and healthy life". The product was officially launched in January 2019, and 1000 pieces were sold on the first day of the product launch. Its signature product "Autumn Osmanthus" set a record of selling out in three seconds. In terms of price, To Summer's products are not cheap. Only 18 products are on sale in its Wechat mini program, with prices ranging from $11 to $109. The rest of the limited-edition products will only be available at 20:00 (Beijing time) on Thursdays, including eight fragrance products, including Autumn Osmanthus and Cedarwood, priced at $60. In the early stage of brand establishment, To Summer has already completed brand content marketing on its Wechat public account, and new limited products will be published every Thursday at 20:00 (Beijing time). The founder of the brand once responded: We until now have been adopting a strict order process, not assembly line production, but also because of the particularity of fragrance materials. Also, a lot of raw materials need to be ferried from around the world, such as the UK, South Africa, such as the United States, then the material can only be excavated in our studio and complete a series of follow-up work, which is also the reason for our limited sales." Apart from the limited supply, To Summer differs from other brands in one significant way: it has no flagship stores on Chinese e-commerce platforms. In today's era when online e-commerce is king, To Summer has not opened any flagship stores on Taobao, Tmall, and JD like most brands, and has not entered any Online e-commerce platforms in China except Wechat mini program and Xiaohongshu, a Chinese recommending social networking platform. In September 2020, To Summer opened a pop-up store in Lane Crawford, Beijing, and within a month of opening, it became the top three in Lane Crawford's beauty and healthy living area. When To Summer opened its first offline store in Shanghai in January, it had to queue for half an hour to get in. It took half an hour to queue up to enter the site. In April this year, To Summer Shenzhen (a pop-up store) was opened and directly set a brand one-day sales record on opening day. In addition, To Summer has also reached a cooperative relationship with Lane Crawford and Four Seasons for product sales. To Summer is also the first Chinese fragrance brand to settle in Lane Crawford. At present, there are only a few fragrance brands focusing on oriental fragrance in the Chinese market. To Summer took the lead in entering the two markets of "fragrance and oriental fragrance" and occupied the minds of consumers, which is also the most unique place of its brand positioning itself. As Chinese young people's confidence and identification with oriental culture grow stronger, To Summer, which tells Oriental stories, is also favored by this group of target users in terms of emotion and cultural resonance. To Summer uses plant elements, excavates the taste in Chinese people's memory, and makes the original oriental plant fragrance. If we want to compare To Summer to a person, Shen Li, the co-founder of the brand, believes that "This should be a person who was born and grew up in China, went abroad to study and work when he grew up, and finally returned to China to make a career related to Chinese culture".

Carlyle Group, an American private equity company, plans to acquire HCP, a Chinese cosmetics packaging material supplier, with US $1 billion (about RMB 6.769 billion). Baring Private Equity Asia, the owner of HCP, invited bids for the sale of HCP in early 2020, but the sale plan was shelved due to COVID-19. HCP is a well-known cosmetics packaging material supplier in the world, whose service brands include Estee Lauder, Clarins, Pechoin, Proya, Perfect Diary, etc. Carlyle Group, an American private equity company, plans to acquire HCP, a Chinese cosmetics packaging material supplier, with us $1 billion. A person familiar with the matter said that Carlyle had finalized the final details of the agreement with Baring Private Equity Asia, HCP’s owner. Carlyle Group is expected to obtain regulatory approval and complete the transaction in the coming months. Baring Private Equity Asia purchased HCP from rival TPG Capital in 2016 for an undisclosed sum. Then HCP partially expanded by purchasing SIMP in the same year, Germany's Rusi Cosmetics the following year, and another packaging company in 2020. Baring Asia seems to have shelved the sale of HCP in March due to concerns about the valuation of HCP. The previous offer of $1.5 billion attracted the interest of private equity such as Primavera Capital, PAG and DCP Capital. HCP was established in Taiwan, China in 1960, mainly producing lipstick, compact foundation box, mascara and other cosmetics packaging materials and skin care packaging materials. It’s the largest cosmetics packaging materials manufacturer in Asia, who has served many cosmetics brands including Estee Lauder, Clarins, Lancome, MAC, Maogeping, Perfect Diary, etc. It is reported that the lipstick jointly signed by MAC and Arena of Valor and Mao Geping Palace Museum series are all using packaging materials from HCP. HCP once said in an interview: "Our global sales reached US $400 million in 2019, of which 80% of the products were manufactured in Chinese Mainland. In addition, Iin the “Double 11” of 2019, only two of the top 30 brands in beauty sales were not our customers." Industry insiders say that in the field of cosmetic packaging materials, whether it is production capacity or manufacturing quality, China is leading. A very obvious phenomenon is that both Chinese brands and international brands are using Chinese packaging products. Gotha Cosmetics, an Italian cosmetics supplier, also purchased a majority stake in Chinese Cosmetics maker Suzhou iColor Biotech this year. "Through this acquisition, Gotha's production capacity will be strengthened and its global influence will be enhanced. Gotha is going to enter the steadily growing Asian market, especially the Chinese market," said Paolo valsechi, CEO of Gotha. Suzhou iColor Biotech, founded in 2018, is a Chinese cosmetics OEM and ODM enterprise integrating cosmetics, skin care products, formula development, filling, packaging material design and development, and product processing and production. Its main production projects are skin care products. In recent years, there have been more and more cases of international enterprises acquiring Chinese cosmetics factories. This is because compared with their own factories, the acquisition of more mature local factories in China, whether in terms of staffing or localization, can help these enterprises layout the Chinese market more quickly. Moreover, in the background of the epidemic normalization, with logistics congestion, long time-consuming and high transportation costs, the acquisition of Chinese factories for these enterprises, will be more conducive to their implementation of the strategy of "Taking China as the center and developing the Asian market".

The fact that L'Oreal get back together with Chinese top live streamer Li Jiaqi was triggered heat discussion among netizens. It is understood that L'Oreal was questioned by many Chinese consumers who believe it is false advertising of its iconic products Ampoule Replumping Mask. On May 13, Beijing time, Chinese top live streamer Li Jiaqi highlighted L'Oreal Paris' Bright Reveal Spot Correcting Double Essence during his live streaming, and spoke highly of the product. This event triggered a lot of discussion among netizens. It is understood that on October 20, 2021, L'Oréal's Ampoule Replumping Mask pre-sold in Chinese top Li Jiaqi's live-streaming priced at 429 yuan($67.18). However, the price of the same mask in L'Oreal's live streaming on November 1 is only 257.5yuan($40.25). Before that, the brand announced in Weibo(Chinese biggest social platform) that the price of this mask in Li Jiaqi's live streaming was the "biggest discount of the year" on October 13 and 14. After the complaint from consumers, the words "biggest discount of the year" are deleted in Weibo. L'Oreal's move has been questioned by many Chinese consumers and they believe it is false advertising. At the same time, tens of thousands of consumers have complained that "L'Oréal Paris disseminated false advertisement but issued a large number of coupons after paying deposit. That moves is suspected to cheat consumers and don't refund the difference in price." In the early morning of November 18, L'Oreal Paris issued an apology statement saying that the price difference was due to the overly cumbersome promotional mechanism of the platform but did not offer any substantial solution. As a result, Chinese consumers did not accept its apology. After this, L'Oreal Paris had been disappeared from Li Jiaqi's live streaming. However, it seems that L'Oreal Paris and Li Jiaqi have been quietly "get back together" for a long time. Since February this year, Li Jiaqi resume to promote products of L'Oreal Paris. On February 26, when promotional campaign for Women's Day on March 8, a large number of new products from L'Oreal Paris flagship store were shown his live streaming. L'Oreal Paris and Li Jiaqi apparently stood on a united front again. In this regard, an MCN agency founder said, "The two is nothing but 'interest'." According to public data, the skin care and cosmetics achieved sales of $2.4 billion on Alibaba's platform in April, down 22% year-on-year and down nearly 28% month on month. Due to store closures and logistics shutdowns caused by the epidemic in Shanghai, China, international brands have been flat on Taobao and Taobao-related platforms in recent months. According to L'Oreal 2022 first quarter earnings, although the first quarter performance in the Chinese market exceeded expectations, but L'Oreal also confessed that due to the impact of the epidemic in Hong Kong and mainland China, the group's revenue in February and March fell, only to achieve a low double-digit growth beyond expectations. Industry insiders said that the fastest way to pull sales up at present is only live streaming. So, L'Oreal Paris and Li Jiaqi are bound to resume the relationship. It is understood that the "Beauty Festival" activities on May 26, L'Oreal Paris is also apparently full of good faith. It offered a good discount on Li Jiaqi's live streaming. According to Li Jiaqi, the original price of L'Oreal Paris Bright Reveal Spot Correcting Double Essence in its flagship store is $63.4. On May 26, the product will be priced at $53.1 with a giveaway of the same regular products. International beauty brands rarely sell their products at a discount. In the Double 11(Chinese Shopping Carnival) in 2021 and promotional campaign on June 18th, in order to achieve sales and uphold the "principle" of not discounting, a number of international beauty brands are mostly through the gift of small samples, samples of disguised concessions, in order to attract consumers to buy. In this year's "Beauty Festival" activities on May 26, many international brands have played a "sell regular products with giveaway the same" offer. To Li Jiaqi live streaming, for example, not only L'Oreal Paris, including Guerlain, Estee Lauder, OLAY, Shiseido and other brands, there are many good-selling products to give a "buy one get one free" discount. For example, "Estee Lauder Soft Clean Silky Hydrating Lotion", in Li Jiaqi live streaming is priced at $59.1 / 400ml with a giveaway of the same products with 400ml. For the live streamers, the international famous brand stationed in the live streaming can help to increase the stickiness of followers to achieve the career of "leap". Of course, for the top live streamers like Li Jiaqi, the cooperation with L'Oreal is more inclined to enhance followers' stickiness. Since March 28, the number of views of Li Jiaqi's live streaming has been around 20 million, while in early and mid-March, the number of views on Li Jiaqi's live streaming was almost above 30 million. Both L'Oreal and top live streamers are the head of the industry, cooperation belongs to the strong combination, discard the former suspicion again hand in hand is also reasonable.

Hermès launches the Rose Hermès Pinky collection has been officially launched on May 20th in Hermès boutiques and selected sales stores in mainland China and online. Moreover, multiple luxury brands now turning their helm into beauty sectors and putting more investment in the Chinese market. Following the launch of the Rouge Hermès lip collection, the first chapter of the Hermès beauty department in mainland China last July, Hermès now launches the Rose Hermès Pinky collection, the second chapter of the Hermès beauty. Inspired by the exceptional texture of the Hermès silk scarf and the iconic pink of the vast color palette, the talented team of masters has created eight blush shades in pink rose tones, combining sensual shades with silky smooth textures and brilliance. Jérôme Touron, Creative Director of Hermès Beauty, says: "'Red' is a definitive and iconic color, while 'pink' interprets a feeling that has just emerged and is fleeting. Rather than being a bold and clear color, it is a dream of color. This range of shades can draw out contours without any rigidity, giving cheeks a luminous glow. With an ever-present, evolving, almost ambiguous haze of beauty, the Rose Hermès blush collection can be transformed into a myriad of beauty possibilities. We can let it blend, halo, and intensify. It is like life itself, revealing all the moving flavors." The collection includes eight Rose Hermès Silky Blush, two blush brushes, a Pommette blush box and three natural luminous and magnificent lipsticks. This new Rose Hermès blush collection with replaceable cores for long-lasting use also opens a new beauty chapter for Hermès beauty. The collection has been officially launched on May 20th in Hermès boutiques and selected sales stores in mainland China and online (Hermès China official website hermes.cn and Hermès WeChat Mini Program Store). Earlier, Hermès Group announced its financial results for the first quarter of 2022, with its perfume and beauty business revenue rising 20% to $126 million. It is worth noting that in March this year, Hermès first released its primer series Plein Air, which mainly contains a powder and 12 shades of skin tone makeup prep. In fact, in recent years, the luxury brands eyeing the beauty cake are not only Hermes. Before that, Gucci, Burberry, Valentino and many other luxury brands have launched their own makeup products. It was found that lipstick is the first tool for these big brands to "test the waters" of the beauty sector for the makeup products launched by these luxury brands and these brands will keep the price of a single lipstick in the range of $45 to $90. Less than two months after Hermès entered the beauty market, Gucci also announced its full entry into the beauty market and released its first lipstick collection, which features lipstick colors, textures and packaging that incorporate Gucci's design elements, with 58 products priced at $38 each. However, Gucci stepped into the cosmetics market as early as 2014, when it launched a line of products that included lipsticks, eye shadows and foundations. Publicly available information showed that Burberry also increased its makeup business as early as 2010 when it launched lipsticks, eye shadows and foundations. In 2021, Burberry launched a new exclusive logo glowing gold limited makeup series including makeup plates, limited lipstick, foundation and mascara, dedicated to creating star makeup products. In addition, Valentino in 2021 also a high-profile announcement in the Chinese makeup market, the first time in the Chinese market to introduce a full line of beauty collections, including foundation, lipstick, eye shadow, perfume and other full makeup categories, a total of 182 products for Chinese consumers. Currently, Valentino Beauty is not only present in the Tmall flagship store, but has also opened its first offline flagship store in Shanghai, China. The Chinese market has made a great contribution to the growth of the beauty and fragrance business of various groups. L'Oréal announced its financial statements for the first quarter of 2022. The Group posted sales of $9.57 billion, up 13.5% year-on-year, with double-digit growth in L'Oréal's Fine Cosmetics Division, Professional Hair Products Division and Active Health Cosmetics Division, while L'Oréal continued to outperform the beauty market average by a wide margin thanks to double-digit growth in mainland China. Seeing the huge potential of the Chinese market, the luxury beauty brand is vigorously developing the Chinese market. To date at the end of February, 23 overseas luxury and beauty brands have opened new boutiques in Sanya, Hainan, China, pop-up stores and limited-time brand events in partnership with resorts. These brands include Armani Beauty, CPB, Lancaster and more. According to Bain's China Luxury Market Report 2021, luxury beauty consumption accounts for a significant proportion of personal luxury consumption in China. This report shows that personal luxury consumption accounts for 95% of sales in Hainan duty-free stores, with over 50% of sales coming from the beauty category.

On May 18 BST, Bee&Flower, a well-known Chinese brand, topped the list of most searched items on China's social media platform Weibo. It is reported that on May 17, a Weibo account said, "The boss of Bee&Flower personally made a live broadcast show with a tearful statement: With a history of 37 years, Bee&Flower it is not a inferior brand. And we have no violations in the past 37 years, and have only increased the product price by $0.3 in the past 10 years!" In this regard, on the evening of May 18 BST (all times of this article are Beijing time), Bee&Flower's official Weibo account responded: "We have actively implemented the epidemic prevention requirements of Shanghai. Since the closure and control measures from March 17 to now, our boss has been busy with the resumption of work and production recently, and there is no time for him to do any live broadcasting. We are sorry to occupy public resources in such an extraordinary period. Thank you for your attention and love. We hope everyone can purchase after the lifting of lockdown for non-urgent needs, because the supply of goods is very tight at present." The weibo received a lot of attention, with some netizens leaving comments in the comment section saying they wanted to know more about the company's products and even wanted to stock up on them. When interacting with netizens, Bee&Flower expressed that the current problem is the lockdown for two and a half months, leaving no enough goods storage. While the remaining inventory and the first batch of products to resume production will be distributed as epidemic prevention materials. After Bee&Flower boarded the top trending topic, a large number of netizens poured into the live room of the flagship store of Taobao, a Chinese e-commerce platform. During the live broadcast on the night of May 18, a total of 167,000 people crowded into the live broadcast room, which increased tens of times overnight compared to the daily viewing capacity of only a few thousand people. Founded in 1985, Shanghai Huayin Commodity Co. Ltd mainly produced Bee&Flower brand shampoo, conditioner, skin care, and cleaning products. For a long time, Bee&Flower has taken the route of friendly price. In the Taobao flagship store, the lowest price commodity is "Bee&Flower Ginger Healthy Hair Lotion", which costs $1.50. The product with the highest sales volume in the store is "Bee&Flower Conditioner Set Wheat Protein", which costs the US $3 and has a monthly sales volume of 40000 +. It is worth mentioning that before the hot incident, the monthly sales volume of this product was 20000 +, and the monthly sales volume doubled in just one night. With its cheap prices, Bee&Flower has very stable revenue and has always been in a leading position in China's conditioner segment market for a long time. The sales volume of conditioner on Tmall has always been among the best. Its products have been distributed in more than 1600 cities in China. Physical terminals have also entered more than 630 hypermarkets, supermarkets, and chain stores, and have also settled in many Chinese e-commerce platforms such as Taobao, JD, and Pinduoduo. At present, Bee&Flower has two production bases. And the new Bee&Flower intelligent factory has 12 production lines, of which 7 are fully automatic production lines, with an annual production capacity of more than 100,000 tons, and is equipped with intelligent production equipment and product testing equipment. At the same time, in terms of R&D, institutions such as Bee&Flower Technology R&D Center and Shanghai Bee&Flower Academician Expert Workstation have also been established. "When it comes to products, you have to be willing to invest more and quality control must be firmly held in our own hands." According to Gu Jinwen, founder of Fenghua, product safety in the daily chemical industry is the life of an enterprise while product quality is the root of development. If these two points are completed well, the enterprise can live safely.

In the financial reporting season of e-commerce giants, JD took the lead in handing in the paper, recording a net income growth rate of 18%, which is the lowest growth rate since listing. In order to increase its performance, JD began to seek the adjustment of its product structure. During 618 this year, it will also launch a new fashion life collection format - "JD New Department Store", integrating online and offline consumption experience. May 17 BST (all times of this article are Beijing time), JD COM, Inc., a leading supply chain based technology and service provider, released the financial report for the first quarter of 2022, which is also the first quarterly report since Xu Lei officially became CEO of JD group. In the first quarter of 2022, the net income of JD group was US $37.8 billion, a year-on-year increase of 18.0%; The operating cost was US $32.5 billion, a year-on-year increase of 18.5%; The operating profit was US $400 million, compared with 1.7 billion yuan (about US $251 million) in the same period last year; The net loss attributable to ordinary shareholders was US $500 million, compared with a net profit of 3.6 billion yuan (about US $532 million) in the same period last year. As of March 31, 2022, the number of active purchase users of JD group in the past 12 months had reached 580.5 million, with a year-on-year increase of 16.2%. The user scale of JD group has expanded steadily. In the first quarter of this year, the average shopping frequency of users reached a new record, and the average revenue per user (ARPU) was the highest in recent three years. Revenue rising and losses decreasing, and the average number of purchases by users reached the new highest record. From the data of this quarter alone, JD's financial report in the first quarter of 2022 was stable. However, JD's net loss attributable to ordinary shareholders was $500 million, the first loss in six years since the first quarter of 2016. At the same time, net income in the first quarter rose 18 percent, the lowest record since its listing. It is worth noting that in the first quarter JD ushered in a series of high-end brands Beauty brands, including Shu Uemura, Yves Saint Laurent from L 'Oreal Group, and men's skin care brand Lab Series, Estee Lauder Re-Nutriv series, frpm Estee Lauder Group's. In addition, during 618 this year,will also launch a new fashion life collection format - "JD New Department Store", integrating online and offline consumption experience. At present, the "JD New Department Store"channel has been officially launched in its app, and the first batch of new stores focusing on different "theme modes" will also be opened in Beijing, Chengdu, Xi'an, Shenzhen and other places. With the continuous growth of China's beauty consumption demand, the new channel has gathered global beauty brands such as Estee Lauder, Lancome and YSL, as well as Chinese innovative cosmetics brands such as BIOHYALUX and Judydoll. Especially at the arrival of 520, the beauty gift box meeting the diversified gift demand will be highlighted on the home page. In addition, for the upcoming "618" promotion, JD said that it has released 30 "Lightening and optimizing" merchant support measures, which will help small and medium-sized businesses increase the input-output ratio of JD 618 by at least 20%, and the enthusiasm of businesses to participate in activities reached the new highest point. Xu Lei, CEO of JD Group, said his company is ready for "618". Due to the epidemic and other reasons, brands and merchants are under great sales pressure. Therefore, the platform sees that this year, brands and merchants will be more actively involved in the JD 618 event than in previous years. JD also hopes to make good use of this sales node to improve its business performance in the second quarter as much as possible on the premise of the epidemic improving. However, in the current situation of uncertainty about the epidemic situation and consumption, JD has no special requirement of the "618" KPI, "But it is still very important for us to ensure the user experience and promote the performance of the contract", Xu Lei said.

La Prairie teamed up with CDFG(China Duty Free Group Co., Ltd.) to unveil its pop-up store with the theme of "The Dance of Light and Water" for the upcoming promotional campaign of 520 on May 20th (Chinese another Valentine's Day. 520 sounds like I love you in Chinese). Recently, La Prairie and CDFG(China Duty Free Group Co., Ltd.) launched a pop-up store with the theme of "The Dance of Light and Water" at International Duty Free City in Sanya. This La Prairie immersive pop-up store not only showcases a digital retail entertainment experience for customers but also offers carbon neutral products and a limited NFT digital art collection in collaboration with Swiss environmental organization Climeworks. The official announcement of the partnership between La Prairie and CDFG at this time was also for the upcoming promotional campaign of 520 on May 20th (Chinese another Valentine’s Day. 520 sounds like I love you in Chinese). Noelle Goris, Vice President of Global Travel Retail of La Prairie, said: "The launch of this pop-up store is an outstanding achievement, reflecting the perfect synergy between the brand's global business and travel retail teams, combining the strong ideas of the global business team with the forward thinking of the travel retail team and the in-depth understanding of the needs of Chinese tourists. This new campaign combines science, art and nature La Prairie wants to contribute to the environment together with its customers. It was a very meaningful and beautiful trip. Special thanks to CDFG for their invaluable support in helping the "Light and Shadow - Mantra in Water" pop-up store make its debut at Duty Free City. CDFG and La Prairie's partnership is dedicated to showcasing the latest products in Hainan and bringing innovative and digital experiences to travelers, and this event is the perfect embodiment of that goal. Designed around the concept of light and water, the La Prairie immersive pop-up store is an open structure consisting of five zones where consumers can explore each zone with the guidance of an on-site beauty assistant. The pop-up store also offers an immersive AR experience for consumers. When consumers tap on their phones, they can make a wish to protect the planet and share their experiences. To echo the brand's spirit, La Prairie partnered with Climeworks, an industry leader in direct air carbon capture (DAC), based on their shared vision of protecting the beauty of nature - La Prairie funded Climeworks to help the brand recycle the amount of carbon emitted during product manufacturing by capturing carbon dioxide from the air, making it possible for the brand to reduce its carbon footprint emitted during the production of its products, allowing customers to contribute to protecting the planet. In addition, Climeworks will capture the carbon footprint of one La Prairie product for each customer who consumes it on site. Consumers who purchase the Pure Fairness Firming Collection will not only receive a carbon-neutral product but will also be awarded an electronic certificate by the brand as a token of appreciation. In addition to the environmental program, La Prairie is offering customers the opportunity to receive a limited edition NFT digital art collection. This innovative initiative marks a new era of digital services for La Prairie. Commenting on the partnership, CDFG said, "We are delighted to partner with La Prairie Travel Retail to offer our travelers a luxurious, immersive and art-filled retail experience. For the first time, the brand is also offering a limited-edition NFT digital art collection at the event, inviting customers to immerse themselves in the virtual world of La Prairie, an innovative, interactive experience that echoes the brand's core values. We look forward to further collaboration with La Prairie to bring even more exciting experiences to travelers in Hainan and beyond." Thanks to the continued optimism of international brands in the Hainan duty-free market, the first Hainan store of Shiseido's high-end skincare brand TEH GINZA and the first Hainan store of the American luxury makeup brand HOURGLASS have also joined hands with the brand's star products to enter CDFG Sanya International Duty Free City, greatly enriching the duty-free shopping experience of in-store visitors. Recently, China Travel Group CDFG released its 2021 annual report and 2022 first quarter report. According to the report, CDFG's annual revenue for 2021 was about $10.01 billion, up 28.67% year-on-year, and net profit attributable to shareholders of the listed company was about $1.428 billion, up 57.23% year-on-year. The first quarter of 2022 was $2.48 billion, down 7.45% year-on-year, and net profit attributable to shareholders of the listed company was $379 million, down 9.99%. This year's CDFG failed to continue the good momentum of last year, with negative revenue growth in the first quarter. In this regard, CDFG said that during the reporting period, the company closely focused on its main business of duty-free and focused on key markets, and maintained rapid growth in its main business from January to February. However, since March, the company's operation was greatly affected by the unfavorable impact of the multi-point distribution and local outbreak of the Chinese epidemic. In the face of the adverse impact brought by the epidemic, CDFG indicated that it would pay close attention to the key market in Hainan, always pay attention to the management for efficiency, scientifically formulate marketing strategy and profit assessment index, and focus on the operation of membership system and online business development.

Recently, the Anti-monopoly Bureau of the State Administration for Market Regulation Of China released the news that Tianjin Pharmaceuticals intends to purchase the equity of Yumeijing Group to obtain 87.7671% of the equity, and the acquisition right of 1.1% of the equity held by relevant shareholders, and become the controlling shareholder of Yumeijing. Yumeijing Group was established in 2000, but the history of its brand can be traced back to the 1990s. According to Yumeijing's official information, Tianjin Second Daily Chemical Factory, the predecessor of Yumeijing Group, was born in 1979. And in the second year, Yumeijing children's cream was independently developed, which was China's first children's cream, with sales of $473,600 in 1981. The production and sales of Yumeijing children's cream once ranked the first of similar products in China, and its products even covered more than 90% of the Chinese market, with sales revenue of nearly 30 million US dollars in 2003. According to the public notice, Tianjin Pharmaceuticals intends to acquire Tianjin Haisheng Yumei Investment Partnership (limited partnership) held 87.7671% Yumeijing equity, and at the same time to obtain the right to purchase 1.1% Yumei Yu Held by Haisheng yumei equity. After the completion of the transaction, Tianjin Pharmaceutical will hold 87.7671% of Yumei Jing's equity, and enjoy the acquisition right of 1.1% of the target company's equity held by relevant shareholders, and become the controlling shareholder of Yumeijing. So why has the takeover plan attracted the attention of China's anti-monopoly authorities? It is understood that in addition to pharmaceuticals, Tianjin Pharmaceuticals is also engaged in a small amount of adult skin care products production and sales business, in line with the relevant requirements of China, "In the same relevant market, the sum of the market share of all operators involved in the concentration should be less than 15%". In the adult skincare market, the net market share of Tianjin Pharmaceuticals and Yumeijing is 0-5%; In the baby skin care products and baby bath products market, Yumeijing net market share is also 0-5%. According to oIBP, the market size of China's mom and child skin care products reached $4.203 billion in 2020, with a year-on-year growth of 10% and a compound growth rate of 13.61% in the recent five years. It is expected to reach $7.4 billion in 2025. At this present stage, China's mom-and-child skin personal care market as a whole is divided by Chinese brands and international brands with still relatively fierce overall market competition. French sensitive skincare brand Avene has listed children's care products in China, and Botanee Group, the parent company of Chinese brand Winona, has also launched the efficacy care brand "Winona Baby", which focuses on infant skin care. In the past decade, although traditional top brands are still in the forefront, their market share is declining year by year. With the help of new channels, new brands rise and develop rapidly, occupying some market share of old brands, and the whole market share tends to be decentralized. Moreover, with the official release of The Regulations on Supervision and Administration of Children's Cosmetics, China's first regulatory document for children's cosmetics: It is not allowed to declare "food grade" or "edible", mark children's cosmetics. Also, the three principles of "safety first, efficacy necessary, and formula minimalist" should be followed in formula design. More importantly, detailed provisions on safety assessment and necessary toxicological tests will also further promote the standardized development of China's infant and child care industry, raising the entry threshold and accelerating the reshuffle of the industry. In the future, when China's infant and child care market gradually tends to be professional, refined, and high-end, it will undoubtedly bring more difficulties to traditional brands like Yumeijing .

Vichy and its parent company L'Oréal are sued by the pharmaceutical company for using its hyaluronic acid and polymer matrix compositions in six cosmetic products. As hyaluronic acid is more popular across the world, the world's largest hyaluronic acid production and sales company in China Bloomage Biotech also gained great benefit from this raw material. Vichy Laboratories and its beauty owner L'Oréal are being sued by pharmaceutical company GlycoBioSciences for patent infringement. The Canadian group accused the two beauty companies of using its hyaluronic acid and polymer matrix compositions in six cosmetic products. Documents obtained by Cosmetics Business, filed through the US District Court of Columbia, said that L'Oréal and Vichy had refused to halt production, which triggered the lawsuit. The products in question include L'Oréal’s Revitalift 1.5% Pure Hyaluronic Acid, 1.5% HA Revitalift and Revitalift Filler 1.5% Hyaluronic Acid and Vichy's Liftactiv Supreme HA Wrinkle Filler 1.5% Hyaluronic Acid Serum + Vitamin C, Liftactiv Ha Wrinkle Filler and its Liftactiv Supreme Night 1.5ml Firming Anti-Ageing Cream. All of the products are sold in the US, including the judicial district. “Upon investigation, testing, information and belief, the above products contain high concentrations of hyaluronic acid in a polymer matrix, which includes a non-ionic polymer and are formulations that have all of the elements of one or more of the claims of the Glyco Patents and/or have formulae that are equivalent to the claimed formulas,” court documents read. Glyco said that it has suffered lost profits due to L'Oréal and Vichy's use of its patented complexes. The ultimate goal of the court proceedings is to ban L'Oréal and Vichy from using its patented ingredients. Glyco is also seeking damages from the companies. In the official Tmall L'Oreal hairdressing flagship store, there are 6 shampoo products related to hyaluronic acid for sale, with the highest sales volume being L'Oreal Hyaluronic Acid Hydrating Shampoo, with total sales volume of 60,000+ and a price of $8.7. In Tmall Vichy's official flagship store, there is no hyaluronic acid shampoo on sale, the highest selling shampoo products for Vichy Dercos, sales of 100,000 +, priced at $8.7. Hyaluronic acid, a hot ingredient in the cosmetics industry in the last two years, is being sought after by more and more consumers, which provided various beauty brands and companies to see business opportunities. Hyaluronic acid, which is a natural straight chain polysaccharide present in human and animal tissues, has strong water shrinkage, a molecule of hyaluronic acid can absorb 1000 times its weight in water. It is the human body from the origin of the substance, widely distributed in various parts of the body, has good biocompatibility, can be degraded in the body. Hyaluronic acid was first discovered in 1934 by Meyer, an ophthalmologist in the United States, who first extracted this polysaccharide from the vitreous humor of a bull's eye and named it hyaluronic acid. In the decades that followed, hyaluronic acid was made only by animal extraction, and the amount extracted was particularly low. It was until the 1980s that a biochemical pharmacologist in China extracted hyaluronic acid for the first time from chicken crowns and human umbilical cords, and only then did China really acquire this technology. After continuous deep cultivation. In the 1990s, the domestic market promoted and spread this raw material. Later within 10 years, hyaluronic acid finally broke through the technology and was able to be made by plant extraction as well as microbial fermentation. This technological breakthrough made the cost of this raw material reduced by more than 10 times, and the hyaluronic acid industry achieved a reverse flip. Since then, most of the hyaluronic acid raw materials come from the Chinese market. After that, hyaluronic acid has developed strongly in China and with the help of hyaluronic acid, the world's largest hyaluronic acid production and sales company, Bloomage Biotech, was born. In the 2021 financial report of Bloomage Biotech, the revenue of Bloomage Biotech 2021 was $734 million, an increase of 87.93% year-on-year; the net profit attributable to owners of the parent company was $116 million, an increase of 21.13% year-on-year. The net profit attributable to owners of the parent company after non-recurring gains and losses was $98 million, an increase of 16.74% year-on-year. It is noteworthy that this is also the largest increase in the performance of Bloomage Biotech since its listing in 2019. In this regard, Bloomage Biotech said that the company has been steadily promoting the "four-wheel drive" business: the raw material business and medical terminal business are growing steadily, the functional skin care products business continues to maintain high growth, and the functional food business has gotten a good start. At the beginning of 2022, Bloomage Biotech formally launched its high-end personal care brand Sensewoods, which mainly promotes hyaluronic acid shampoo. Since January when Sensewoods’ store was launched, the hyaluronic acid volumizing shampoo priced at $38.4 has been paid by over 300 people. Another shampoo from the brand "Ruyi", claiming to use Bloomage Biotech hyaluronic acid, has more than 40,000 orders. The shampoo claims to "reshape the scalp micro-ecology", and the shampoo claims that the "micro-glass" technology is "the first time the unique biotechnology ingredients of Bloomage Biotech micro-meso and patented cationic hyaluronic acid applied to hair care products."

LVMH's board member Hubert Védrine luxury brands should reduce their dependence on China as much as possible and stop increasing or even reducing their exposure in that market. Although multiple beauty giants don’t have expected performance in China in Q1 of 2022, they still boast confidence in the Chinese market. According to a new article published by Miss Tweed, the Chinese market has played a crucial role in the accelerated growth of luxury brands in recent years, But all good things come to an end. While the Chinese market still holds great potential, luxury sales growth over the next 20 years will not be as strong as it has been over the past 20 years. Luxury brands will need to look elsewhere in Asia as well as in Africa and North America for new growth points. In an interview with Miss Tweed, LVMH's board member Hubert Védrine also said that the proper strategy for top luxury brands such as Louis Vuitton, Hermès and Chanel is to reduce their dependence on China as much as possible and to stop increasing or even reduce their exposure in that market. The major beauty brands have recently issued their first quarter 2022 earnings reports, with no shortage of references to their performance in China. Although L'Oreal's first quarter performance in China exceeded expectations, L'Oreal also confessed that the impact of the epidemic in China caused the group's revenue to decline in February and March, achieving only low double-digit growth beyond expectations. Estee Lauder's first quarter results were less positive. For the three months ended March 31, Estée Lauder's sales rose 10% year-on-year to $4.25 billion, slightly below market expectations. The Group revenue in the Asia Pacific, where China is located, fell 4 percent to $1.203 billion and operating profit plunged 71 percent to $72 million. Tracey Travis, Estée Lauder's group CFO, noted that the group's distribution center in Shanghai has been out of service since the end of March and distribution logistics have been severely impacted as a result. In addition, the growth in the online channel was offset by a sharp decline in traffic to offline brick-and-mortar stores, despite a significant 25% increase in the group's online business in China. In a recent report, HSBC analyst Ciara Oshea pointed out that Beiersdorf is also facing uncertainty in the Chinese market. "Currently, almost all of the challenges Beiersdorf faced in the second quarter came from the Chinese market. In addition, 75 percent of La Prairie's sales in China come from offline stores, meaning that various levels of restriction will have an impact on La Prairie's sales, such as the already declining number of travelers to Hainan, which will have a significant impact on the brand's duty-free business." In addition to the luxury group, U.S. affordable luxury giant and Coach parent company Tapestry Group has also been affected by headwinds in China, with Tapestry noting in its Q3 FY2022 results that due to the ongoing dynamic nature of the Covid-19 pandemic, financial results could differ materially from the current outlook due to several external events, including the potential for more widespread resurgences of the pandemic globally and the resulting pressure on trends, as well as further supply chain disruptions, including potential continued production and distribution delays as well as increased costs, not contemplated in the Group's estimates. Group revenue for the period increased 13% year-over-year to $1.44 billion. Fortunately, the decline in China was offset by strong growth in Europe and the US. Most beauty groups reported earnings in China in the first quarter citing factory closures, logistics shutdowns and store closures due to the Shanghai outbreak pandemic that began in March. But as people get used to the regular epidemic control measures again and the normal pace of production and life resumes, brands have reason to be optimistic about future expectations for the Chinese market. Joanne Crevoiserat, CEO of Tapestry Group, said: "We think the Chinese market will continue to face headwinds, but we expect things to improve from June onwards, especially in Shanghai. This recovery will be gradual and we will not be looking for a strong 'V-shaped rebound, but for more solid growth." The same optimistic outlook is reflected in the earnings reports of fashion luxury and beauty groups such as L'Oréal, LVMH, Kering and Hermès. Not long ago, L'Oréal officially announced the establishment of its first investment company in the Chinese market, Shanghai Meicifang Investment Co., Ltd, located in Fengxian District, Shanghai, dedicated to investing in innovative beauty technologies and promoting the high-quality development of open innovation in China. L'Oréal's Chief Financial Officer said: "China is strategically important to the L'Oréal Group. 25 years of development in China have proven that China is not only a key growth engine for the Group but also that its unique technological innovation development and digital marketing ecosystem have become one of inspirational places to lead the Group's future innovation. In our 25th year in China, we are bringing our open innovation investment to China, demonstrating our commitment to the Chinese market and our determination to further enhance and empower the Chinese innovation ecosystem and accelerate open innovation and result in a transformation in China." Although the global macro environment is still affected by the war in Russia and Ukraine, the supply chain crisis and inflation, China, one of the most important fashion consumer markets, is still confident in the brand's future development despite the brief epidemic prevention.