Recently, due to the failure to perform legal obligations on time, Mensoladum was enforced by the Jinjiang District People's Court of Chengdu, with an enforcement target of more than $141,300. The cause of the case was a contract dispute. In addition, Mensoladum has been punished many times for product quality problems, and for cosmetics brands, nothing is more serious than the collapse of word of mouth. Recently, a piece of news from China's executive information disclosure website has caused the internationally renowned cosmetics brand Mentholatum to fall into a whirlpool of public opinion. Recently, Mentholatum (China) Pharmaceutical Co., Ltd. (hereinafter referred to as "Mensoladum") was compulsorily executed by the Jinjiang District People's Court of Chengdu due to its failure to perform its legal obligations on time, and the execution target was $141,300. According to the China Judgment Documents Network, Chengdu Mingjia Cosmetics Co., Ltd. (hereinafter referred to as "Chengdu Mingjia") sued Mentholatum in court due to arrears in fees in 2020. In January 2021, the Jinjiang District People's Court of Chengdu ruled in the first instance that Mentholatum should pay Chengdu Mingjia $95,200 and bear the interest (the above arrears are based on the basis) within ten days from the date when the judgment takes legal effect and pay the occupancy fee of funds at the same time. (Based on $57,600). As of May 6, Beijing time, due to the failure to perform its legal obligations on time, the Jinjiang District People's Court of Chengdu listed Mentholatum as the executor, and the subject of enforcement was $141,300. According to public information, Mentholatum has been involved in dozens of legal proceedings, including contract disputes, product liability disputes, trademark infringement rights and interests. Mentholatum was founded in the United States in 1889. At present, Mentholatum's products have involved lip balm, men's skincare, women's skincare, sunscreen, anti-acne, hand cream, facial masks, etc. According to Nielsen's data in 2015, Mentholatum's market share in China's lip balm market has reached 60%, ranking first. In addition, according to the Top 10 Online Development Ranking List of Chinese Lip Balm Brands in November to December 2020 released by iiMedia Ranking, the number one is still Mentholatum in the online lip balm sales list from November to December 2020. It is worth mentioning that this is the second punishment that Mantholatum has accepted in less than half a year. Previously, Mentholatum has been punished many times for product quality problems. At the end of last year, Mentholatum's SPF15-cooling lip balm for men was randomly tested and showed that the test result of ethylhexyl salicylate was 5.13% and the re-test result was 5.22%, which did not meet the requirements. Mentholatum violated the relevant regulations on Chinese cosmetics and therefore was given the following administrative penalties. First, it was the confiscation of 1,427 pieces of men's lip balm SPE15-Cool. Second, it was the confiscation of illegal gains of $73,712. It is reported that the appearance of ethylhexyl salicylate is a transparent to light yellow liquid, the maximum amount of this ingredient is 5%, that is, the above-mentioned Manshotun men's lip balm SPF15-cold type of ethylhexyl salicylate in the addition of excess. Just as the saying goes," Rome was not built in one day". The establishment of a brand image cannot be successful in a day or two, but consumers' trust in a brand can collapse in an instant. Product quality problems and excessive use of chemical additives result in unstable product quality, which will directly affect market sales, and more seriously, the quality and reputation of Mentholatum lip balm will plummet in the minds of consumers.

Chinese beauty brand HEXSE ranked first in the platform brand self-streaming list in China's mainstream live streaming platform Kwai e-commerce for the fourth consecutive month. HEXSE entered Kwai in 2020 with its brand founder Wang Ni starting live streaming in person for promoting good sales. In merely about a year, the number of her followers on Kwai has exceeded 10 million. During the "2021 Kwai 116 Super Brand Day" event, HEXSE's total sales exceeded 50 million yuan (about $7.45 million). Recently, China's mainstream live streaming platform Kwai E-commerce released the brand live streaming list in April and Chinese beauty brand HEXSE once again reached the top, which is the fourth consecutive month since 2022, HEXSE ranked first on the brand self-streaming list. Founded in 2012, HEXSE is a beauty brand under Guangzhou Angtai International Trade Co., Ltd. (former name: Guangzhou Angtai Electronics Co., Ltd.), with the main products covering cushion compact, lip balm, pressed powder, toning cream, and other makeup products. In 2013, HEXSE entered Tmall and became the leading brand in the sales ranking of Taobao and Tmall in just six months, of which the monthly sales volume of HEXSE lipstick, pressed powder and eyeliner exceeded 60,000, becoming the highest-selling product on online platforms. It also owns more than 4.8 praise and 88% of the return rate of old customers, becoming one of the top ten outstanding brands of makeup cosmetics in China. With the rise of live streaming, HEXSE also chose to follow the trend. In 2019, HEXSE invested hundreds of millions of yuan (more than $14.89 million) to attract traffic on Tmall and invested 2 million yuan (about $300,000) in early 2020 for live streaming, but neither of them achieved satisfactory results. At the end of 2020, HEXSE decided to settle in Kwai due to the discovery of the high participation, loyalty, and repurchase rate of Kwai users in live streaming. In the early days of entering Kwai, HEXSE also signed live streamers with training and makeup artist backgrounds, but due to the high cost of communication with live streamers, coupled with the fact that the live streamers did not understand HEXSE's products and supply chains, so they could not reflect the advantages of brand production and research. Therefore, Wang Ni, the founder of HEXSE, decided to start live streaming in person with "HEXSE Ni Jie" ("Ni" is the family name and "Jie" means sister in Chinese and here also means boss) as the ID with the identity of HEXSE's boss. Wang Ni opens her live streaming from 6 a.m. to 12 a.m. every day and there is almost no interruption during the live streaming. Later, her assistant substitutes her in live streaming until 4 p.m. There are about 10 hours a day for live streaming. In order to increase followers, Wang Ni will connect the microphone to make a list on Kwai in the evening and HEXSE also uses “Kwai Fentiao” (a paid promotion service officially launched by Kwai) to increase exposure on the home page of Kwai. Despite the efforts of HEXSE and Wang Ni, HEXSE's account data growth is still at a relatively slow pace due to the lack of understanding of the tactics of Kwai. In order to break through the dilemma, in April 2021, HEXSE chose to cooperate with Kwai Cili Jinniu (a tool for promoting products through short videos and live streaming). Cili Jinniu, in collaboration with marketing central edge (as a bridge for connecting the front-end and back-end together) and side activities of e-Commerce, jointly assisted HEXSE in planning growth strategies and providing traffic delivery services, and thereby HEXSE began to make full efforts from streaming and quickly achieved a double breakthrough in followers and GMV. In May 2021, in the Championship of Kwai Brand Self-Streaming, HEXSE ranked first in both stages of GMV, with a cumulative GMV of about $950,000 in 19 days, about $420,000 ahead of the second place. In May 2021, the number of HEXSE's followers on Kwai reached 1.5 million and the number of followers exceeded 3 million in July. On the “2021 Kwai 116 Super Brand Day”, HEXSE garnered a swathe of followers with ceremonies of sending 10 million units of products as gifts for its followers and the event of sending 400,000 single units of products. The market price of about $43 HEXSE’s “POLYPEPTITIDE FIRMING NECK CREAM”, directly dropped to 1.1 yuan (about $0.16) in a second kill. HEXSE's custom watches, custom scarves and custom thermos have also attracted many users. During the event, the sales revenue of best-selling products reached about $1.07 million and the total sales revenue of the brand exceeded $50 million (about $7.45 million). The exposure of online platforms exceeded 280 million, the number of viewers in the live streaming reached 120 million and the brand followers increased by 1 million which creates a miracle. The success of live streaming has also contributed to the development of HEXSE's research and development. HEXSE's followers can directly meet the brand founder in the live streaming, so they can communicate without obstacles and the opinions of consumers can be directly conveyed to the end of production, research and development. It is understood that HEXSE will launch 1 to 2 SPUs per month (SPUs: standardized product units, such as 17 shades of HEXSE’s “HEART STEALER” lipstick, which is actually counted as an SPU) and 2 to 3 new shades. After the product is listed, the management leaders then will make a decision based on the data report obtained and the product with poor sales data is directly eliminated. In April 2022, HEXSE, in collaboration with Super Brand Day, held the anniversary celebration ceremony, achieving total sales of about $8.46 million, with about $4.02 million in brand self-streaming sales revenue and total exposure of 190 million on online platforms. The event also invited Kwai e-commerce virtual live streamers "Guan Xiaofang" and Wang Ni to connect the microphone for the first time, which became the highlight of the anniversary. At present, Wang Ni's followers on Kwai have exceeded 15 million. Feigua data show that Wang Ni's live streaming sales revenue in the past 30 days has exceeded 62 million yuan (about $9.23 million), and the average daily sales revenue has exceeded 2 million (about $300,000). The average sales volume is 15,000 in every live streaming, and the average sales revenue in every live streaming is more than 1.2 million yuan ($180,000).

American multinational beauty company Coty Inc., which owns brands including Gucci, Chloe, Hugo Boss and Lancaster, etc, reported third quarter results for the fiscal year 2022 with a net income of $1.186 billion and its adjusted gross margin was as high as 64.6%. Sue Y. Nabi, Coty's CEO emphasized that in China, during January and February, though the onset of COVID-related restrictions has weighed on the business exiting March. On May 9, local time, Coty Inc. reported third quarter results for the fiscal year 2022 (i.e., January - March 2022). Coty's net income for the third quarter was $1.186 billion, up 15 percent year-over-year; adjusted operating income was $113.6 million, up 11 percent year-over-year, and adjusted gross margin was 64.6 percent. Coty Inc. said in its financial reports that its sales were driven by strong results in both Prestige and Consumer Beauty, with overall revenue growth in line with sell-out performance. The report shows that in the third quarter, Coty's Prestige beauty division reported net revenues of $726.4 million, or 61% of Coty's total net revenues, up 21% year-over-year. The growth was driven by the recovery in EMEA (Europe, Middle East and Africa), the U.S. market and travel retail markets, as well as growth in sales of premium fragrances. Its Prestige fragrance sales continued to accelerate, increasing over 20% in Q3, with particularly strong growth from Gucci Beauty, Chloe, Burberry, and Hugo Boss. This was driven by the continued in-market success of Coty's Q1 fragrance innovations, Gucci Flora Gorgeous Gardenia and Burberry Hero, combined with the success of Q3 launches of Hugo Boss The Scent Le Parfum and Burberry Her EDT. The two strong female fragrance launches this fiscal year demonstrate clear progress on Coty's strategy to further elevate its position in the large female fragrance market. Prestige cosmetics nearly doubled YoY in both Q3 and fiscal year-to-date, led by the continued momentum of Gucci Beauty, as well as solid performances by both Burberry and Kylie Cosmetics. Coty Inc. Said: "we maintained outstanding trends within our Prestige fragrance business, even as we further reduced low-quality sales, as consumers globally continue to gravitate towards the fragrance category, and our recent innovations continued to resonate with consumers. Meanwhile, we are as confident as ever regarding our expansion into prestige cosmetics, as Gucci Beauty, Burberry, and Kylie continue to deliver great results with plenty of room ahead to further build out both distribution and the product portfolios." In its Consumer Beauty segment, the revenues increased 8% as reported and 10% LFL in Q3, with strong performance across color cosmetics, mass fragrances, and body care. While the global mass beauty market was moderately positive in the quarter, Coty continued to outperform the market and grow its share on a global basis for the past 5 consecutive months. Its digital momentum also gained good results, which is its fourth strategic pillar. It continued to build, including double-digit e-commerce sales growth, global momentum in brand live streaming and social commerce, viral activations on TikTok, and the initial deployment of virtual try-on capabilities across markets. In particular, Coty also saw the Chinese market, its fifth pillar, performing well. Its brand Lancaster had an outstanding quarter in both Hainan and mainland China, with Lancaster's iconic 365 Serum resonating with Chinese consumers and rapidly becoming the hero SKU in the portfolio. During January and February, though the onset of COVID-related restrictions has weighed on the business exiting March in China, importantly, Coty's Prestige business was once again the fastest growing amongst the leading prestige beauty companies in China, with double-digit sell-out growth in a flat market backdrop. Meanwhile, Gucci Beauty has also seen exceptional success since opening the brand's Tmall flagship store making it one of the top four luxury beauty brands to open on Tmall since 2018. Coty also noted significant growth opportunities for artisanal fragrance brands including Chloe, Tiffany & Co. and Baudrillard. Commenting on the operating results, Sue Y. Nabi, Coty's CEO, said: "Our Q3 earnings mark the seventh consecutive quarter of Coty reporting results inline to ahead of expectations. I am extremely proud of the organization for delivering these results and outperforming the overall beauty market, in an increasingly volatile environment. This confirms that Coty has the brands and the people to win in the beauty market, guided by our strategic priorities of delivering above-market sales growth and expanding gross margin, allowing for brand reinvestment, profit expansion and continued deleveraging."

On May 9, Juliangsuanshu, Ipsos and others jointly released the Report on Beauty Ingredient Trend Insight in 2022. The report synthesizes multi-dimensional data such as TikTok content and e-commerce data, builds a prediction model for the popularity and potential composition of beauty ingredients and publishes a list of beauty ingredients and top ten ingredient trends. The rise of the "ingredient party" is giving rise to many apps on the Chinese market to inquire about and interpret cosmetic ingredients where consumers can easily view the targeted effect of each ingredient. For instance, the main role of niacinamide is whitening and Centella asiatica is soothing repair. It is easier for consumers to check the ingredients and the corresponding efficacy on these apps. And it is the rise of these ingredients that have changed the cosmetics industry chain. In this context, on May 9, Beijing time, Juliangsuanshu and Ipsos jointly released the Report on Beauty Ingredient Trend Insight in 2022. The report shows that in 2021, the growth rate of GMV of beauty ingredient products on TikTok and the growth rate of product sales are outstanding, with a GMV growth rate of 366% and a sales volume growth rate of 367%. Judging from the popularity of social media discussions on beauty ingredients in China, the growth of beauty ingredient-related content exceeds that of beauty industry content. The report shows that the online data of beauty ingredients in China's online platforms increased by 157% in 2021 and the growth rate of the beauty industry will be 140%. The report combines the data on TikTok and the data of Ipsos social media and makes them become indexes to obtain the ingredient popularity list and potential list in 2021. In the popular list, amino acids, hyaluronic acid, rose, niacinamide and aloe vera ranked top 5. In the potential list, Prinsepiautilis Royle, Olea europaea, almond acid, Tricholoma matsutake (S. Ito & S. Imai) Singer and Rhodiola rosea L. ranked top 5. It can be seen from the list that chemical components and plant components are the two mainstream components, the time-honored and popular ingredients such as amino acids, hyaluronic acid and niacinamide are still at the top of the popular list, while salicylic acid, Alpha Hydroxy Acid, ceramides, polypeptides, retinol and etc. are also in the top 30 of the list. It is worth noting that plants, flowers, Chinese medicines and etc. have become popular. In addition to the ingredients that coexist on the two lists, anti-aging is still the main ingredient effect. Moisturizing and whitening are also the focus of attention in the popular list. Soothing and repair in the potential list are potential ingredient effects. However, due to the landing of new regulations on Chinese cosmetics, the number of new products for freckle minimizing and whitening skins in 2022 has decreased and the number of new products for freckle minimizing and whitening skins in China and imports has added up to less than 70. Some insiders have said that they are not ready to launch new whitening products this year. On the contrary, a number of Chinese brands have begun to target the anti-aging market. It is worth noting that the report also released ten major component trends, which are divided into five major sections: efficacy trends, ingredient trends, concept trends, scientific research trends and crowd trends. The ten major trends are 1. The anti-aging effect is still mainstream and the demand for young people is at the forefront. Anti-aging ingredients occupy almost half of the TOP 50 ingredients popular list. At the same time, the proportion of the TOP 50 ingredients potential list has reached 46%, with vast development potential. With the deepening of market education, more people born after the 1995s and 2000s have stimulated their anti-aging consciousness, preventing aging in advance and maintaining the state of young skin for a longer time. 2. The everlasting whitening appeal and the rational choice of ingredients. In the TOP 50 ingredients popularity list, the whitening ingredient is also one of the more mainstream functional ingredients. The whitening market is more comprehensive than other efficacy markets and consumers will choose whitening products with different ingredients according to different needs. 3. Soothing and repair products have great potential. In the TOP 50 ingredients popular list, the proportion of soothing and repair ingredients ranks after the anti-aging and whitening ingredients. In the TOP 50 ingredients potential list, the soothing and repair ingredients account for 18%, followed by the proportion of anti-aging ingredients. In response to different skincare problems, soothing and repair have also produced subdivided efficacy needs, in addition to the basic skin-soothing repair, and antibacterial and anti-inflammatory effects, the new concept of balancing skin microecology emerged. 4. Plants, flowers and traditional Chinese medicine ingredients have become popular and Chinese local brands have consolidated their brand share in the beauty market. In the popularity and potential list, plants, flowers and traditional Chinese medicine ingredients account for nearly half. The opportunity for the development of such ingredients on the one hand comes from consumers' love for Chinese brands, and on the other hand from the strengthening of local Chinese brands in the research and development and marketing of local plants. 5. The upgraded consumer cognition tends to be the effective concentration of ingredients. Led by international brands, they launch different concentrations of product versions around core functional ingredients to reach wider market consumers and build product ingredient awareness advantages. 6. Scientific formula is concerned and the compounding achieves the optimal solution. The composite formula products launched by brands have attracted the attention of users, and the amplification of the single effect of products and the multiple effects of a single product are the main reasons why such products are popular with consumers. 7. The craze for "applying Vitamin C in the morning and Vitamin A in the evening" gives rise to the concept of "ABC skincare". In recent years, the sweeping skincare method of "applying Vitamin C in the morning and Vitamin A in the evening" has still attracted the pursuit of the ingredient party. "ABC skincare " means the addition of vitamin B ingredients between the period of morning and evening, which means mainly adding niacinamide (vitamin B3 derivative) and B5, enhancing the effect while improving the mildness. 8. Clean beauty concept with natural mild and green environmental protection is prevalent. In 2021, a number of overseas clean beauty brands focusing on safety and harmlessness began to lay out in the Chinese market. At the same time, after the epidemic, Chinese consumers' awareness of cosmetics safety has increased significantly, and the number of videos on clean beauty-related topics on TikTok increased by 944% year-on-year and the average number of single videos viewed increased by 3.917% year-on-year. 9. Specializing in ingredients is the secret to helping the brand become a benchmark. International brands took the lead in paying attention to the importance of beauty ingredients, represented by the international enterprise L'Oréal who first entered the ingredient sector, launching Pro-Xylane while using ingredients as the main point of market communication, giving consumers an impression that Pro-Xylane is the exclusive and specialized ingredient for L'Oréal. 10. The demand for men's skincare grows fast as their awareness of focusing on ingredients is gaining ground. Males have increased their awareness of image management. The increase in ingredient products in men's skincare on TikTok has caught up with the market with men beginning to pay attention to skincare ingredients in skincare choices.

Zheng Chunying, the chairman of the Chinese cosmetics company JALA, said, "It is expected that from May to August, the Chinese cosmetics industry will gradually have supply chain problems and may face the situation of 'out of stock'." On the afternoon of May 9th, Beijing time (all times in this article are Beijing time), the Chinese cosmetics company JALA held the "Change and Fight" Epidemic Conference. At the conference, Zheng Chunying, the chairman of JALA, mentioned a very important point. It is expected that from May to August, supply chain problems will gradually occur in China's cosmetics industry because raw materials cannot be matched and end products cannot be supplied normally. This situation will continue until late October to early November. Since the first quarter of this year, China's cosmetics industry has had a very difficult time. The two major cosmetic capitals, Shanghai and Guangzhou, have both been shut down due to the epidemic. Affected by multiple factors such as epidemic control, logistics stagnation and rising raw material prices, China's cosmetics industry is under unprecedented pressure. In addition to Chinese cosmetics companies, international beauty groups have also suffered to varying degrees. Recently, international beauty groups released their first-quarter financial report. The financial reports of Estee Lauder, Procter & Gamble, Unilever and other groups have reflected the fact that the performance in the Chinese market has declined. In the first quarter of this year, the sales of skincare products and hair care products of P&G in China declined year-on-year. Amorepacific's performance in the Chinese market fell by 10% and Estee Lauder's performance in the Asia-Pacific market fell by 4%. As Shanghai has achieved a staged victory in the fight against the epidemic, cosmetics-related companies in Shanghai have also begun to resume production. On April 20, JALA, as the first batch of beauty companies, took the lead in resuming production. Subsequently, many international beauty companies such as Amorepacific Trading Co., Ltd., L'Oreal (China) Co., Ltd. and SHISEIDO (China) Investment Co., Ltd. were approved to resume work. However, despite the resumption of production, the current situation is still grim. Zheng Chunying said at the meeting that in 2022, China's economy will have three pressures, namely demand contraction (consumer demand will decline), supply shock (supply chain instability), and weak expectations (GDP growth rate will decline). "We expect the biggest impact this year to be the impact of the supply chain. Currently, the entire supply chain in China is inventory consumption. Once the inventory is consumed, supply chain problems will break out. Factories will face shutdown, logistics will be blocked and raw materials will not be able to import. If the product cannot be shipped out, the price of raw materials and freight will increase sharply,” Zheng Chunying said. Zheng Chunying added: "If we want to do a good job in ensuring supply, we need to increase the amount of inventory from now on to prevent the risk of out-of-stock in advance. We will increase the 4-month inventory of finished products of best-selling and important products and 3-month raw material inventory." JALA includes 7 brands including MAYSU, CHANDO, Spring Summer, COMO, and ASSASSINA, with over 43,000 retail terminals and 42 million members in China. It is worth noting that, according to relevant media reports, under the influence of the international environment and the global energy crisis, global raw material giants such as BASF SE and Dow Chemical Company have issued emergency notices, saying the supply of some products is difficult. Among them, Dow Chemical Company interrupted its ability to supply key raw materials to Dow Chemical Company's business due to an accident at a supplier of upstream raw materials. Therefore, Dow Chemical Company announced that propylene glycol stopped supplying as a result of force majeure and the recovery time will be notified later. It is reported that propylene glycol is one of the more common basic raw materials for cosmetics. In addition, the President of Indonesia announced the suspension of the export of palm oil and related raw materials last month. RESUN, the supplier of L'Oreal and Procter & Gamble disclosed that the prices of international crude oil, palm oil and other bulk raw materials at the end of 2021 would increase by about 40% to 50% compared with the beginning of the year, while the prices of related commodities were going to continue to rise in the first quarter of 2022.

The Chinese oral care brand blispring and genderlessess fashion brand WHIKO jointly launched a new chewing gum-flavoured toothpaste. Blispring was established in 2019 and gum-flavoured toothpaste is its representative product. The sales volume of bispring's first product exceeded 12 million within 3 months of its launch (equivalent to more than 100,000 daily sales volumes). In 2021, the GMV of blispring reached more than 65 million on online platforms. The new chewing gum-flavoured toothpaste launched this time is called Hawthorn Love and Raw Coconut Blossom, claiming to use Alpine glacier water, xylitol, phytic acid dodecasodium from rice and other ingredients. According to the official website of blispring, the brand is a high-end oral care brand launched in 2019, focusing on the applications of fresh breath and oral fragrance. Under the technical guidance of the French CISCO&CAMPARI laboratory, the first chewing gum-flavoured toothpaste in China was developed by combining the weak alkaline glacier water of the French Alps and the international refined fragrance. The positioning of blispring is young, trendy, fashionable and colourful. In October 2019, blispring's first product was launched with its sales revenue exceeding 12 million yuan within 3 months (equivalent to more than 100,000 daily sales volume). Less than half a year after blispring was launched on Tmall, it became the top 1 in toothpaste sales volume. In May 2021, omnichannel sales exceeded 80 million yuan (about $11.9 million) and ranked first in the oral categories on TikTok and Kwai for more than a year, of which TikTok's monthly sales volumes reached more than 35 million, Tmall always has ranked in stably in the top 8 and Watsons can also occupy the top 3 seats. As an emerging brand, blispring started from "mouth fragrance" as an attraction at the beginning of its birth, it carried out a category innovation and became an unexpected winner in the Chinese toothpaste market. In terms of product research and development, blispring avoids traditional functional products and caters to young consumers who pursue taste, beauty and social preferences. It enters the market with the concept of chewing toothpaste and successively launches various types of chewing toothpaste with unique tastes, such as the chewing gum-flavoured toothpaste series, with different flavours like peach, cherry, mint, white tea, cucumber and orange. In addition, there are also milk tea flavoured toothpaste, ice cream flavoured toothpaste, chocolate flavoured toothpaste and other series. In order to stand out, blispring toothpaste has made great efforts in the aspect of "mouth fragrance". The fragrance components of blispring toothpaste are extracted from natural flowers and fruits. Moreover, blispring has joined hands with the world's four top fragrance companies and international fragrance masters, creating a pleasant fragrance that is difficult to have in its rivalry products with its fragrance being closer to the fragrance of real flowers and fruits. But at the same time, such high R&D and production costs have also led to the fact that blispring targets the mid-to-high-end market and sets its pricing relatively high. Blispring's flagship store on Tmall shows that the brand's toothpaste products are priced from $6 (children's toothpaste) to $74 (chewing gum-flavoured toothpaste gift box). In addition to the toothpaste category, blispring is also constantly expanding its product categories, which currently cover adult toothpaste, children's toothpaste, toothbrush, mouthwash, oral spray, electric toothbrushes and other categories. In terms of technology research and development, blispring has more than 20 patents and cooperates with universities and scientific research institutions in formula research. In terms of channels, blispring pays attention to multi-line parallelization, covering a wide range of traditional e-commerce platforms such as Tmall, JD.com, Vipshop, SUNING and Pinduoduo. It also focuses on the early-stage recommendations in new e-commerce channels and social platforms like TikTok, Kwai, Xiaohongshu and other platforms with a large amount of content being placed. Among them, on TikTok, the mainstream live streaming platform and short video platform in China, blispring pays attention to interesting and rich content display methods, such as evaluation, plot and other forms, to show the aroma characteristics of products to target users and to create a marketing selling point that is just needed for a quality life. In the product packaging design, blispring boldly chooses a multi-colour outer packaging with pink and blue as the main colours of the brand. Pink represents sensibility and is full of romance, which is in line with blispring's mouth fragrance concept. Blue shows the scientific research and technical level of the product, which not only conforms to the brand personality of young, fashionable and trendy but also stimulates the senses of consumers with an innovative vision. As an innovative brand that only entered the market in the second half of 2019, in less than three years, blispring's GMV in 2021 increased by 300% year-on-year, with offline coverage of more than 30,000 outlets and over 65 million kinds of toothpaste sold online. Blispring's shining performance has also attracted the favour of capitalists. At present, blispring has completed tens of millions of dollars in A and A+ rounds of financing and B rounds of financing. This co-branding with the genderless trendy brand WHIKO is another cross-over cooperation after blispring launched the blispring Taohuayuan toothpaste with the "Back to Field Season Ⅴ" (a very popular variety show in China) and the popular IP "Iris". At present, cooperation with classic IP and cross-border brands has become a marketing trend for major brands. It can be seen that blispring has also taken this step. Judging from the outstanding achievements of blispring in the past in terms of research and development, channels and packaging design, its follow-up performance in brand marketing is also very expected.

Gucci announced that it is accelerating its digital payments in cryptocurrencies in its US offline stores. It contributed to reaching Gen Z customers by developing the digital world. Moreover, multiple international and Chinese cosmetic brands are stepping into the digital and meta world. Gucci will accept payments in cryptocurrencies in the U.S. starting this month, as the luxury industry takes tentative steps into the digital-asset universe. Customers in some stores in New York, Los Angeles, Miami, Atlanta and Las Vegas will be able to pay using digital tokens from the end of May, the Italian fashion house said in a statement. It will adopt this payment option throughout its North American stores this summer. Gucci, owned by Kering SA, will initially accept 10 cryptocurrencies including Bitcoin, Bitcoin Cash, Ether, Dogecoin and Shiba Inu. Kering Chief Executive Officer Francois-Henri Pinault in February said Gucci and other fashion houses like Balenciaga had innovation teams looking at opportunities related to the metaverse and web3 -- versions of the internet built around blockchain technology, cryptocurrencies and nonfungible tokens. The decision to embrace crypto payments shows how luxury brands are trying to appeal to younger generations of consumers by catering to emerging trends, such as creating outfits for digital characters and metaverse. In fact, since Facebook announced its transformation into a metaverse company within 5 years, events have propelled the metaverse to become one of the hottest concepts in the tech space. Major cosmetic brands have also entered the metaverse. Citi GPS recently released its latest study, Metaverse and Money: Decrypting the Future, which predicts that the total market for the metaverse economy will grow between $8 trillion and $13 trillion by 2030 and forecasts that the number of metaverse users has a chance to reach 5 billion. In February, global cosmetics giant L'Oréal Group applied for virtual goods trademarks on behalf of its L'Oréal subsidiaries, including 17 brands under cosmetics companies Kiehl's, Maybelline, Pureology, Urban Decay and Redken, which L'Oréal said it tended to provide a virtual world for people to browse, accumulate, buy, sell and trade virtual cosmetics. Last October, Estee Lauder Group's beauty brand Clinique launched its first NFT digital collection. The NFT piece, called "MetaOptimist," is a dynamic digital sphere model that comes in three different versions for consumers to express their joy and optimism. Giving shoppers who sign up for its rewards program the opportunity to receive 10 years of free product and one of three versions of NFT artwork, the campaign helped increase brand searches by 60 percent and social engagement by 20 percent by opening up NFT access to members of its loyalty program. Most recently, Estée Lauder was the exclusive beauty brand partner for the virtual world of Decentraland Fashion Week from March 24 to March 28, rewarding 10,000 NFTs inspired by its flagship product, the Advanced Night Repair Serum in a free virtual image for users. The brand is offering a "glowing face" to enhance the user's immersive experience. Chinese beauty brands are more likely to launch avatars and virtual live streamers. In June 2021, the oriental makeup brand Florasis announced its brand avatar "Florasis" to the public. Visually, she has the facial features of classical oriental beauty with gentle eyebrows and a dignified demeanor with both fresh and elegant. She has a wisp of diaphanous color in her hair, which symbolizes the brand color of Florasis, and holds a lotus, which symbolizes the character's temperament as the old saying natural and refreshing like a lotus rising out of water. The image of the avatar "Florasis" is the personification and symbolization of the brand, and is the first ultra-realistic virtual image created by a Chinese makeup brand. The virtual live streamer has 24-hour work for customers. Multiple Chinese cosmetic brands released their virtual live streamers such as The Perfect Diary virtual live streamer "Stella", CHANDO of Tang Xiaomei, L'Oreal's "Ou Xiaomei" and Florasis' "Florasis". These virtual live streamers in the Chinese e-commerce platform Taobao live streaming is based on Damo Academy from Alibaba(Taobao's parent company). Their expression action, live content can be changed according to the demand. Reaching the meta-universe can also somehow facilitate brands to attract more attention and widely reach the Gen Z group who are willing to try new things and follow the new sub-culture. Relying on the blockchain technology of digital assets, brands have the opportunity to provide users with innovative experiences of scarcity, transform intangible brand values into assessable brand digital assets, and achieve unique customer relationship management.

The year 2022 has frequently seen more than 100 million yuan (more than $15 million) in financing. The Beauty collection store HARMAY raised $200 million, the cosmetics ODM/OBM company BAWEI Corporation raised more than 100 million yuan (more than $15 million) and Mistine received more than $30 million in the financing. Some investors have publicly stated that Chinese beauty brands have ushered in another spring. So, which sector will capitalists choose to invest in this year? Are beauty brands still "capitalists' favourites"? Since last year, the continuation of the epidemic and geopolitical conflicts have led to a major crisis in China's cosmetics industry, with rising raw material prices, logistics obstruction, factory shutdowns and epidemic closures... But even so, China's capital markets remain enthusiastic because cities across China have stimulated consumption to fuel the economy and promote the recovery of China's new consumer market by introducing policies and giving away consumption coupons. China's capital market has always maintained confidence in Chinese beauty companies because the market saw its strategy to cope with the epidemic and the strong recovery of China's consumer market. According to incomplete statistics, from January to April this year, there have been 36 public financing incidents by related enterprises in China's cosmetics industry with the total financing amount exceeding $818 million. Among them, there are 19 financing projects at the level of 100 million yuan (more than $150 million), accounting for about 52.8%, which has exceeded half. Among them, the Chinese beauty new retail brand HARMAY raised a high amount of $200 million, becoming the most expensive beauty financing project in China's cosmetics industry this year. However, compared with the same period last year, the overall amount of financing in China's cosmetics industry has declined slightly this year. According to the public information, from January to April 2021, China's cosmetics industry completed a total of 37 financings, with 12 financing projects of 100 million yuan (more than $15 million). In contrast, although the total number of financing in China's cosmetics industry from January to April this year was basically the same as that of the same period last year, the number of financing projects of 100 million yuan has increased, which reflects that the leading enterprises with great strength are still being contended by capitalists. From the perspective of the brand, the investment in Chinese beauty brands is stuck in a dilemma. Unlike capitalists who bet on innovative beauty brands in 2021, the number of cosmetics brands that received financing from January to April this year fell sharply, with only 14 brands successfully financing, down 44% year-on-year. Cosmetics brands received a total financing amount of about $117 million, down 62% from the same period in 2021 and even less than the financing amount of $135 million in the same period in 2020. There are only 4 brand financing projects of 100 million yuan (more than $150 million). At the same time, from January to April this year, there were 12 financing incidents for Chinese beauty operators and service providers, of which 7 companies raised more than 100 million yuan (more than $15 million), nearly surpassing the beauty brands. It can be seen that as more beauty brands enter online e-commerce, a number of excellent beauty operation service providers have emerged, who help beauty brands operate online stores. With the further growth of China's scale of the internet, the demand for service providers in the beauty industry is also increasing. So, back to brands, which one does capitalists value this year? Among the above 14 beauty brands, Dewy Lab is particularly favoured by capitalists. In February this year, Dewy Lab announced the completion of tens of millions of dollars in financing, led by China Growth Capital and followed by Xiaohongshu, which is also the first cosmetics brand invested by Xiaohongshu, a Chinese social sharing platform. Public information shows that since the product was launched in January 2021, it has completed three rounds of financing in one year. One important reason that capitalists are optimistic about Dewy Lab is that Dewy Lab is located in a subdivision of the sector - the clean beauty sector which is still lacking in the Chinese market. From the perspective of categories, skincare is still a popular sector and capitalists are still "not optimistic" about makeup. According to the incomplete statistics, among the 14 beauty brands that have been invested, only Dewy Lab, which positions at pure beauty. While Y.O.U and Mistine have made good results in both the makeup and skincare categories. In summary, in the first half of this year, some beauty brands were stuck in dilemma and the pace of capital investment in beauty brands was slowed down, which means that the game of throwing money and traffic at the problem is no longer sought after and the market is gradually returning to rationality. In fact, capitalists are not favouring beauty brands anymore but are looking for more valuable companies or brands. The logic of investment has not changed, beauty is still a sunrise industry whose profits and growth space are still the demand of capitalists who are still very optimistic about this sector, but more cautious and no longer blindly following the trend.

Brazilian beauty giant Natura&Co has reported its results for the first quarter of fiscal 2022, which witnessed consolidated net revenues reaching $1.599 billion, down 12.7% year-on-year. Natura&Co said that its Q1-22 performance was notably impacted by rising inflation affecting discretionary spending, cost pressures in the supply chain, and the war in Ukraine. On May 6, Brazilian beauty giant Natura&Co reported its results for the first quarter ended March 31, 2022. During the period, the Group's consolidated net revenues reached $1.599 billion, down 12.7% year-on-year at current exchange rates and 4.6% at constant exchange rates, and adjusted EBITDA was $115.4 million, down 38.1% year-on-year. It is reported that in early 2020, Avon announced that it officially joined the Natura&Co Group. After Avon joined, Natura&Co Group became the fourth largest cosmetics group in the world, with four iconic cosmetic companies under the group, namely Avon, Natura (Brazilian skincare brand), The Body Shop (British organic skincare brand), and Aesop (Australian organic skincare brand). Natura Latam achieved net revenue down 1.9% in Q1-22 in BRL and up a solid +5.3% at CC, reflecting the appreciation of the BRL versus Hispanic market currencies. In Brazil, net revenue was +3.1% in Q1-22 (+27.5% vs. Q1-19), with a significant market share gain in the quarter, according to Kantar, on the back of a strong comparable in Q1-21. Productivity per consultant resumed growth, gaining a strong +10.5%. Natura launched a complementary fragrance for Brazil's largest perfume brand company that uses 45% recycled glass, and 100% recyclable plastic caps, and reduces waste by 35% and carbon emissions by 56% compared to standard perfume bottles. Avon International Q1 net revenue was down 22.1% in BRL (-10.1% at CC), mainly impacted by the war in Ukraine, lower disposable income in Europe from rising inflation, and fewer representatives, reflecting a higher comparable base last year when the channel benefited from lockdowns, as well as intentional optimization linked to the implementation of the new commercial model. It continued to see progress on Avon's business fundamentals, including sequentially higher productivity since the rollout of the new commercial model (14 markets), with an increase of +9.1% in productivity and stable activity (excluding Russia and Ukraine). Aesop's net revenues increased by 9.6% year-on-year to $24.1 million, with an adjusted EBITDA margin of 21.7%. The brand achieved double-digit growth in all markets, with strong performances in North America and the Asia Pacific. The brand's online sales accounted for 23.5% of net revenues during the period. In its financial report, it highlighted that Aesop Asia outperformed despite Covid impacts from lockdowns, mainly in China. And its China entry plans are ongoing, including investments in digital platforms. Natura& Co's Aesop has also been on a digital path in China. 2012 saw the acquisition of Australian brand Aesop by Natura&Co. On May 24, 2021, Brazilian beauty giant Natura& Co's Aesop officially launched its official WeChat mini-app store, offering a wide range of products including skincare, hair care, and body care. Aesop is now available on the Chinese e-commerce platform Taobao. Currently, Aesop's overseas flagship store has more than 670 thousand followers on the Chinese e-commerce platform Taobao. The top seller is Aesop Resurrection Aromatique Hand Balm with total sales of 80,000+ and a price of $29. It is reported that Natura&Co Group has business in more than 100 countries and regions. In terms of sales markets, in the first quarter, more than 45% of the Group's net revenue came from regions outside Latin America, with growth mainly coming from Asia and North America. Currently, Body Shop and Aesop have suspended trading in Russia due to the Russian-Ukrainian war, and Avon has suspended its exports to Russia. On March 23, Natura&Co announced the suspension of its NYSE listing plan and focused on a major push to transform its brand Avon. Natura&Co said that Avon International's new business model has helped improve some key performance indicators, with China becoming an important market for the group's layout. And in 2018, Natura Group's CEO João Paulo Ferreira said that he hopes that one day Natura Group can surpass L'Oreal, Unilever, and Estee Lauder Group in the first place in the global beauty company ranking. To achieve this goal, the layout of the Chinese market has become a must for Natura Group's expansion. Natura & Co also strives to defend Human Rights and be Human-Kind. On International Women's Day, Natura &Co used the power of our collective to amplify the message for peace, standing in solidarity with women everywhere, especially those facing unacceptable military aggression in Ukraine. Angela Cretu, Avon International CEO, used the day to create even more momentum and activate Avon networks across the world. It has made progress on equitable pay, with a significant reduction in our explained pay gap and remaining at just -1.19% in our unexplained pay gap. It has a history of creating economic opportunities for its Consultants and Representatives, arming them with tools, and support to scale their businesses, giving them flexibility and financial independence.

L'Oreal established its first investment company in China, The Shanghai Meicifang Investment Co., which is dedicated to investing in innovative beauty technology and promoting the high-quality development of open innovation in China. At the entrance of the next 25 years, L'Oreal will continue co-developing with China. Together with all partners in the ecosystem, it will co-evolve and create the beauty that moves the world! The Promotional Investment and Contract Signing Online Conference 2022 Fengxian Shanghai was successfully held in the form of an online video conference. At the conference, the global beauty giant L'Oreal Group and China's top cosmetics hub, The Oriental Beauty Valley, once again joined forces and held a signing ceremony for L'Oreal's first investment company in China, The Shanghai Meicifang Investment Co. "The conference is emblematic of Fengxian's economic restoration and will accelerate the resumption of work in the city after the COVID-19 resurgence is brought under control," Shanghai Mayor Gong Zheng said in a video speech at the meeting. This time, L'Oreal, an international giant cosmetics group that has been in China for 25 years, officially announced the establishment of its first investment company, The Shanghai Meicifang Investment Co., in the Chinese market, located in the Lingang Nanqiao Science and Technology City in the core area of the Oriental Beauty Valley in Fengxian District, Shanghai, dedicated to investing in innovative beauty technology and promoting the high-quality development of open innovation in China. The Company is supported by L'Oréal's innovative venture capital fund BOLD (Business Opportunities for L'Oréal Development) will accelerate the cosmetics industry's scientific innovation and contribute to the development of Shanghai and China's cosmetics sectors, according to the newly BOLD is committed to investing in high-quality products and services. BOLD is committed to investing in high-growth potential innovative technology companies in Marketing, Digital, R&I, Communications, Supply Chain, Packaging, and other areas. BOLD supports the development of startups at a financial level and provides them with access to the L'Oréal global ecosystem. Fabrice MEGARBANE, President of L'Oréal North Asia Zone and CEO of L'Oréal China, highlighted the strategic importance of China for the L'Oréal Group, which has proven over 25 years in China to be a key growth engine for the Group and a unique location for technological innovation. In L'Oreal's 25th year in China, it brought Open Innovation investment to China, demonstrating its commitment to the Chinese market and its determination to further enhance and empower China's innovation ecosystem, accelerating open innovation and results translation in China. " L'Oréal started the "Big Bang Beauty Tech Startup Challenge" program in China three years ago. Last year, L'Oréal China held the campaign in collaboration with Fengxian and Oriental Beauty Valley, the Chinese beauty industry's first technological entrepreneurship contest. At the second edition of the China International Import Expo, the project was extended internationally in partnership with Business France. So far, the program has been very fruitful attracting more than 1000 domestic startups and 50 French startups, and more than 30 projects have been successfully implemented. At the same time, the project has become a benchmark for Sino-French cooperation in the cosmetics industry. The third edition of BIG BANG was officially launched in March, and it continued to work together with Oriental Beauty Valley. With the help of the new investment company, L'Oréal is confident to work with more partners and talented people to discover more potential innovative companies and incubate forward-looking innovations and promote their commercial implementation to promote the construction of an open innovation ecosystem in China and lead the high-quality development of the beacon industry in the consumer field of beauty. Beauty companies, especially in Shanghai, have been hit hard by the epidemic that has been going on in Shanghai since March. However, it is worth noting that according to L'Oréal Group's financial report for the first quarter of 2022, L'Oréal achieved a 13.5% year-on-year growth in global sales during the period with sales recording $9.53 billion, a growth rate of nearly five years, and a 19% increase in consolidated statements. In China, L'Oréal continued to achieve double-digit growth. "Despite the uncertainty, L'Oréal maintained solid growth in the first quarter," Fabrice stated that thanks to L'Oréal China's successful campaigns during Chinese New Year, Valentine's Day, and Women's Day in the past few months, the first quarter still saw double-digit growth exceeding the average for the beauty market. Fabrice added that "We are now seeing a milestone victory in the response to the epidemic in Shanghai. We hope to resume full production and normalcy as soon as possible. " In 2007, L'Oréal upgraded Shanghai as the headquarters of the L'Oréal Group in North Asia and one of the three global beauty technology centers. This is a move that also reflects the important strategic position of China for the L'Oréal Group - not only as an engine of business growth but also as a source of scientific and technological innovation for the Group to achieve the beauty of the future.

The Chinese makeup brand Little Ondine officially announced the brand upgrade and released a brand film and a new slogan “On The Basis Of True Colours” to position the trendy and cool makeup. The brand also put forward the concept of "BREAK AS YOU ARE" makeup in this upgrade. Little Ondine is a brand of Yatsen E-commerce, the representative product is eyeliner pen and its single product "no NG" eyeliner liquid pen has topped China's mainstream e-commerce platform Tmall, JD as well as Vipshop in the sales list among eyeliner categories. During the Double Eleven shopping festival in 2020, Little Ondine’s flagship store on Tmall exceeded 100 million yuan (more than $15 million) in sales revenue. Founded in 2013 by designer Simon Yu who is a returned talent after studying in Britain, Little Ondine is a beauty brand that focuses on water-based finger color nail polish and peripheral products, focusing on tasteless and safe, instant dry, tear-and-remove nail art experiences. In 2019, Little Ondine was acquired by Perfect Diary's parent company, Yasten E-commerce and has since embarked on a strategic transformation, launching a series of eye makeup, lip makeup and base makeup products, while the original characteristic nail polish category has gradually marginalized in the new brand. As of September 2021, the official WeChat public account of Yasten E-commerce shows that Little Ondine's positioning is trendy and cool makeup, hoping to leave people with the impression of cool and interesting from the use of colour, concept creation, and visual presentation of the product. As a brand under Yasten e-commerce, the same positioning as a makeup brand, Little Ondine is often taken out and compared with perfect diary with relatively higher popularity, believing that the positioning and audience of the two brands have a certain degree of overlap. However, Little Ondine relies on eyeliner products to avoid the most competitive subdivision sector of domestic makeup competition such as Perfect Diary. According to the official website of Yasten E-commerce, in 2020, the sales of The Little Ondine's flagship store on Tmall exceeded 100 million yuan (more than $15 million), rushing into the top 10 of the Tmall's makeup list. According to the official WeChat information of Yasten E-commerce, during the “618” (June 18) shopping festival in 2021, Little Odin's single product "no NG" eyeliner liquid pen became the top seller in the eyeliner category of Tmall, JD, and Vipshop. In addition to creating representative products, Little Ondine also attaches great importance to the development of channels. On September 17, 2021, Little Ondine opened its first offline store in Shanghai TX Huaihai. The opening day is also the eighth anniversary of its establishment. In March 2022, Little Ondine made a new breakthrough in online channels and entered the 1688 platform. The 1688 platform, the predecessor of Alibaba, with its wholesale and procurement business as the core, is China's leading e-commerce platform for domestic trade for small businesses. In addition, in terms of product packaging and marketing, Little Ondine can also be described as painstaking and varied. In January 2021, Xiao Odin officially announced that Huang Zitao, China's top male star, served as the partner of the brand tide play, and jointly launched products such as blue orange contrast X eyeliner and Little Ondine not NG eye color pencil with the new color ocean wave blue. In February 2021, Little Ondine and Bubble Mart launched a new "Big Orange Dali" makeup gift box. The gift box contains co-branded customized doll ORANGE BUNNY, co-branded polarized orange Little Ondine night highlight, and other products; the entire gift box adopts a folding structure, and the top floor of the gift box can be three-dimensionally unfolded into a "Bunny bathroom", which is quite playful. Other items in which Little Ondine and Bubble Mart have joined include a colorful tonal eyeliner, a double-headed mini-thin eyebrow pencil, a toy-color mascara, and an ice mist-held powder blind box. In addition to Bubble Mart, Little Ondine has also launched a "two-colour baking tray gift box" with Cat and Mouse, and a "gacha machine gift box" with Jumbo Pearl. In November 2021, Little Ondine and Disney collaborated to launch the VILLAINS collaboration series of makeup inspired by the Queen in Snow White and the Seven Dwarfs, Ursula in The Little Mermaid, and Maleficent in Sleeping Beauty. In December 2021, Little Ondine 'White Fantasy' winter record box was launched, the gift box packaging is designed with snow and records as elements, containing four winter limited edition products, the most noteworthy of which is the newly launched "White Gum Record" eyeshadow disc, whose mist pink brown color scheme is inspired by the snowy mountains under the sunset, presenting a dream-like and quiet winter color. On the occasion of Valentine's Day in 2022, Little Ondine once again subverted the design of conventional makeup products to play with new ideas and launched the "Love has an echo" phonograph gift box, through the characteristics of the phonograph which can record the sound, advocating that lovers boldly say exclusive romantic confessions. The gift box contains three Valentine's Day "Love Echoes" themed products for smoked Kasugano Rose makeup. The positioning of Little Ondine has been upgraded from the previous "tide play makeup" to "tide cool makeup", perhaps to further distinguish it from the perfect diary and completely break the situation that the previous brand image and the perfect diary overlap. As for the effect, it also depends on the performance of the brand in all aspects.

CELINE, the top fashion brand of LVMH Group, officially launched its official flagship store on the Chinese well-known e-commerce platform Jingdong. Previously, CELINE remained slow pace in digitalization in China. This collaboration signs CELINE’s hope to bring consumers a more convenient shopping experience. On May 6, CELINE, the top fashion brand of LVMH Group, officially joined hands with the Chinese well-known e-commerce platform Jingdong to grandly open its official flagship store in Jingdong Luxury. From now on, consumers can search for "CELINE" through Jingdong APP and reach directly to CELINE's official flagship store in Jingdong to purchase handbags, apparel, accessories, fragrance, shoes, and boots, as well as the new CELINE 520 capsule collection and spring/summer 2022 products. as well as the simultaneous launch of the CELINE 520 capsule collection and the new spring/summer 2022 products. To better meet the gift-giving needs of the targeted audience, CELINE's official Jingdong flagship store not only offers home delivery and offline pickup at the nearest store but also offers a special "gift message" to convey gift-giving intentions. So far, LVMH has more than 20 brands in Jingdong, and Louis Vuitton, Dior, and other brands have reached deep cooperation with Jingdong. The core brands under the LVMH group have been cooperating with Jingdong Luxury to a certain extent, which reflects the top luxury brands' recognition of Jingdong's ecology and user quality. This in-depth cooperation across all categories may indicate that LVMH is accelerating its strategic cooperation with Jingdong, which also reflects the luxury brands' belief in Jingdong's positive image and high trust in the user community. In the past two years, CELINE has also accelerated the momentum of its digitalization. Industry analysis that the launch of CELINE’s Jingdong official flagship store online is recognizance of Jingdong's previous reputation as well as its high matching quality user population. CELINE is expected to draw support from Jingdong Luxury to reach a wider range of quality customer base, and bring consumers a more convenient shopping experience. In response to the diversified and personalized needs of young consumers, CELINE has maintained an intensive rhythm of new products: new products are launched every 2-3 weeks to bring consumers the latest fashion information, and it is expected that the same frequency will be maintained in the official flagship store of Jingdong. As early as 1964, CELINE launched the first perfume "Vent Fou". From 2001 to 2011, the brand's perfume business license is held by the perfume manufacturer Interparfum. , LVMH didn’t take back the business license until 2011 and CELINE has not launched a new fragrance since then. In 2019, CELINE announced the launch of its first fragrance collection after eight years followed by the opening of its first fragrance boutique in Paris. As with the opening of its e-commerce, CELINE's movements in the fragrance sector have been slow. It is reported that CELINE's official Instagram posted 15 videos and pictures of the fragrance when it was launched. There are 11 savors in the collection. As seen in its promotional images, its designer Hedi Slimane has designed a simple square bottle packaging for it, which was officially launched in October 2019. At present, in its official flagship store in Jingdong, there are 21 SKUs of CELINE fragrance on sale including high-definition series Reptile Series, Nightclubbing Fragrance, Rimbaud Fragrance, etc. The highest price is Reptile Fragrance 200 ml priced at $438.37. According to the statistic, Jingdong Luxury has reached official cooperation with more than ten brands under the LVMH Group so far. LV, CELINE, and other brands seem to have official flagship stores only in Jingdong exclusively. Furthermore, up to now, Jingdong Luxury has gathered more than 300 official flagship stores of international and Chinese luxury brands, which can continue to bring consumers richer and more diversified authentic goodies and a more pleasant shopping experience. For beauty giants, luxury beauty brands, especially perfume brands, are the key to their recovery this year. Estee Lauder's skincare and perfume divisions, which had the highest growth rates in fiscal 2021, were both driven by high-end brands with perfume division growth of more than 100% in the second quarter of this year. Unilever's luxury beauty brands recorded double-digit growth. L'Oreal's premium cosmetics division grew 40.9% in the second quarter with the Perfume category surging, which significantly surpassed market levels with particularly strong growth in North America and mainland China. Coty also mentioned in its earnings report the strong demand for fragrances in the U.S. and Chinese markets with sales in the luxury beauty division up 159.9% in the second quarter. The luxury beauty market in the U.S. grew 66% in the second quarter and the fragrance market grew 82% in the first half of the year also achieving 35% growth compared to the same period in 2019, according to NPD data. At a time when makeup is becoming less important in the after-pandemic era, skin care is gaining traction and emotional comfort is the new demand of beauty consumers. High-end skincare and fragrances are starting to capture more market share. "Even among luxury beauty, the fragrance is the most luxurious category," said Larissa Jensen, vice president of NPD's beauty division and industry consultant, “it's also the higher-priced products that sell better, and that ultimate luxury is the ultimate treat for yourself." In addition, the soar of luxury fragrances has also led to a recovery in performance for fragrance suppliers, with Givaudan's premium fragrance segment, Swiss fragrance supplier Firmenich's fine fragrance business, and American International Flavors & Fragrances' fragrance division all recording double-digit growth.