S'YOUNG has become the third Chinese beauty company with a revenue of more than 5 billion yuan (over $750 million) after Shanghai Jahwa and Yasten E-commerce. PROYA and BTN also exceeded 4 billion yuan (over $600 million), reaching new highs. Eight of China's listed beauty companies reached a total of $5.1 billion in 2021 in sales revenue, which has ushered in a new pattern! As of April 30, Beijing time, the sales data of China's major listed beauty companies in 2021 have been released one after another. According to statistics, after divesting the non-cosmetics business, the top 8 listed companies of beauty brands in China by sales revenue in 2021 are Shanghai Jahwa, Yasten E-commerce, S'YOUNG, PROYA, BTN, Bloomage Biotech, and MARUBI. LUSHANG, the total sales revenue of these 8 companies is $5.063 billion. By observing the 2021 annual reports of these eight Chinese beauty listed companies, it is found that the sales revenue of Shanghai Jahwa, Yasten E-commerce, and S'YOUNG has exceeded 5 billion yuan (over $750 million). PROYA and BTN exceeded 4 billion yuan (over $600 million) in sales revenue in 2021. It is worth noting that PROYA has entered the fast lane of development since it went public in November 2017. In 2021, PROYA's exceeded 4 billion yuan (over $600 million) in sales revenue. Combing the financial report data of PROYA in the past five years, it is found that it has always maintained a growth rate of more than 20% in sales revenue and net profit from 2018 to 2021, which contributed to the fact that PROYA’s soared from less than 2 billion yuan (about $300 million) in sales revenue to over $690 million in just 5 years, which is 2.6 times that of 2017. At the same time, BTN has also ushered in rapid development under the background of China's effective skincare products. Its operating income in 2021 was $603 million, a year-on-year increase of 52.57%, with the net profit attributable to the parent company being $129 million, a year-on-year increase of 58.77%. BTN's performance mainly comes from the core brand WINONA. WINONA’s single brand achieved an operating income of $591 million, accounting for more than 98% of the company’s revenue. According to the statistics from Euromonitor, WINONA ranks first in the field of dermatological skincare products in China in 2021, with a market share close to the sum of the second and third. Although PROYA and BTN have developed rapidly and exceeded 4 billion yuan (over $600 million) in sales revenue, their growth rates are not the highest in the Chinese cosmetics industry. According to the financial report, LUSHANG exceeded $224 million in 2021 in the sales revenue of the cosmetics segment, with a growth rate of 117.01%. Bloomage Biotech reached $498 million in sales revenue in the segment of functional skincare products, an increase of 146.57%. On the whole, except for Shanghai Jahwa and MARUBI, the revenue of the other six companies showed double-digit growth. Behind the high-performance growth, there are hidden worries. Among the top 8 Chinese cosmetic companies, the most dangerous one is Yasten E-commerce. In April this year, Yasten E-commerce announced that the company received a delisting warning because its share price continued to fall below the trading price compliance standard of $1 on the American stock market. If Yasten E-commerce fails to make the company’s share price rise above $1 within 6 months, it will enter the period of suspension and delisting procedures on the New York Stock Exchange. In other words, Yasten E-commerce is now facing the risk of delisting.

Tencent smart retail and Sephora (China) innovative brand booster "Private Domain Fresh Force" were launched. In 2021, the DAU of mini-programs exceeded 450 million and the beauty mini-program GMV of its cooperation achieved 100% growth. The necessity of laying out private domains has become the consensus of the industry, dismantling the "four-force growth model" proposed by Tencent smart retail and mastering the "code of grasping customs". On May 6, Beijing time, the Tencent smart retail innovative brand booster "Private Domain Renaissance", a business of Chinese Internet giant Tencent, was officially launched, and the first phase of the first phase joined hands with LVMH's high-end beauty retailer Sephora (China) to jointly help the development of the innovative brand private domain format. The event was attended by more than 50 beauty, daily chemical and 3C brands such as usmile and SOBER BEAUTY. In 2021, the DAU of mini-programs exceeded 450 million. According to the statistics of Tencent smart retail, the GMV of the beauty mini-program it cooperates with has achieved 100% growth in 2021. The private domain is the independent operation position of the brand's online and offline integration. Retail enterprises reach sales on mini-programs and do not have to blindly rely on the platform to distribute traffic because they have traffic. In the private domain environment, customer stickiness is enhanced and the sense of trust in the brand is continuously consolidated, which will bring about an increase in the unit price multiple of customers. Moreover, the private domain also breaks the previous restrictions of single-point customer repurchase. Through the sharing mechanism, the repurchase can be constantly divided, from a person to the surrounding relatives and friends, bringing 10 times or even a hundred times the value. The necessity of laying out private domains has become the consensus of the industry and deeply cultivating "private domains" will still be a mandatory question for retail enterprises. So, how do businesses/brands accumulate private domain resources? How can you make performance grow rapidly? Tencent smart retail answered this question with the "four-force growth model", that is, product power, commodity power, operation power and organizational power. The "product power" of beauty includes aspects such as users shopping in the private domain, the page layout they see and the experience of enjoying services. If there is no sense of beauty or appearing a frozen payment page, customers are easy to lose. Therefore, the user interface and user experience are worth continuously improving by beauty brands. The "commodity power" of beauty. First of all, it depends on the SKU of the brand product. Whether all the SKUs are placed on the Mini Program, if the SKU is not complete, consumers will feel awful. Secondly, it depends on the price of goods. Many Chinese e-commerce platforms like to offer sales promotions, if the price of Mini Program goods is much higher than on other platforms, then consumers will not pay for them. Finally, it depends on the product promotion. There are many other platforms of publicity that will claim "global debut" and "limited discount/sale" to accumulate private domain traffic for the brand's own Mini Program and also make consumers feel that the Mini Program is not worse than other platforms. The "operational power" of beauty is the ability of the company/brand operation team to obtain traffic and convert traffic, including BA, live streaming, operation, advertising, etc. Brands should cater to the psychology of consumers as well as the market popularity to launch different promotions and advertising to maintain a closer relationship between consumers and brands. In addition, brands need to pay close attention to the frontier and think about how to connect with technology and their own business. The "organizational power" of beauty refers to the ability of the brand/company team to organize work. The brand has various teams and each team needs to cooperate with the other, but in the process of cooperation, there will inevitably be controversy. At this time, it is necessary to determine a project leader, who can be responsible for the project and play a leadership role, so that the cooperation between the teams is more efficient and more in tune. High-end beauty Dior has shown strong organizational strength and in cooperation with Tencent smart retail, not only China but also global executives are involved. It is reported that the "new force of private domain" plan lasts until mid-August, Tencent smart retail will provide innovative brands with WeChat private domain ecosystem operation guidance and provide the traction of technical operation resources. In addition, Unilever will also provide systematic training resources for new brands participating in the private sector. In addition, innovative brands will also have the opportunity to sell and test products in Tencent Huiju and Sephora's (China) WeChat Mini Program channel.

On May 5, Beijing time, GIANT BIOLOGY officially submitted a prospectus to the Hong Kong Stock Exchange, with Goldman Sachs and CICC acting as joint sponsors. GIANT BIOLOGY is the world's first company to achieve mass production of recombinant collagen skincare products, with brands such as Comfy and COLLGENE. On May 5, Beijing time, Giant Biogene Holding Co., a Chinese skincare products company, officially submitted a prospectus to the Hong Kong Stock Exchange for listing on the mainboard, with Goldman Sachs and CICC acting as joint sponsors. GIANT BIOLOGY said in the prospectus that the net proceeds from the IPO will be mainly used for R&D investment to strengthen the R&D team through recruitment, expanding R&D facilities and conducting testing and verification research, etc. It is reported that GIANT BIOLOGY intends to raise funds from $500 million to $1 billion. GIANT BIOLOGY's main business is the design, development and production of professional skincare products with recombinant collagen as the key bioactive ingredient. At present, GIANT BIOLOGY's product portfolio has a total of 105 SKUs, covering eight major brands of functional skincare products, medical dressings and functional foods, namely Comfy, COLLGENE and so on. According to the data from FROSTF SULLIVAN, the GIANT BIOLOGY is the second largest professional skincare product company in China in 2021 (in terms of retail sales revenue). It has been the largest collagen professional skincare product company in China (in terms of retail sales revenue) for three consecutive years since 2019 and it is the first company in the world to achieve mass production of recombinant collagen skincare products. GIANT BIOLOGY can achieve 90% purification and recovery of the Escherichia. target proteins after a round of processing. As of the last practicable date, GIANT BIOLOGY's recombinant collagen production capacity is 10,880.0 kg per year, which is one of the largest companies in the world with a recombinant collagen production capacity. In addition, the purity of the Recombinant Collagen of GIANT BIOLOGY is 99.9%, which is in accordance with the industry standard of medical-grade materials. In terms of the financial data, from 2019 to 2021, the operating income of GIANT BIOLOGY was about $143 million, $178 million and $232 million respectively, with a net profit of about $86 million, $124 million and $124 million, the adjusted net profit of about $86 million, $101 million and $125 million respectively, and the gross profit margin of 83.3%, 84.6% and 87.2% respectively. It is worth mentioning that most of the income of GIANT BIOLOGY is excessively dependent on the two brands of Comfy and COLLGENE. In 2019, 2020 and 2021, the sales revenue of the speciality skincare products under these two brands accounted for 80.6%, 82.4% and 91.7% of total revenue respectively. GIANT BIOLOGY said in the prospectus that the sales of these two brands will continue to be a major part of the company's total sales revenue. Since the sale of the products relies on consumer perceptions of their brands and products, any damage to the brands (such as negative comments and product issues) will lead to a decline in the sales of the products. If they are unable to maintain product sales, price levels and margins for these two major brands, or unable to increase the sales revenue from other brands, their total revenue and profitability may be adversely affected. The Chinese investment circle joked that they cannot have the opportunity to invest in the financing of GIANT BIOLOGY. At the end of 2021, GIANT BIOLOGY completed only one round of financing before the IPO and the investors brought together several first-line institutions such as Hillhouse Group, CPE, JINYI CAPITAL and Legend Capital. However, the specific amount of financing is not disclosed.

Nivea Men launched a campaign for young men to raise awareness of their mental health. It also released a 60-second film showing its wish for asking men to share their feelings. This campaign also improves Nivea Men's brand image. Notably, the demand for male beauty in the last two years can even be compared to women. Nivea Men, from Beiersdorf, has launched a campaign called Strength in Numbers with Digitas for raising awareness about the mental health crisis among young boys. It suggested men open up about their mental health in its latest campaign run in conjunction with the charity Talk Club. The campaign is Digitas's debut for Nivea Men after it won the account in September. The skincare brand brought on the agency to drive its digital strategy, create its social media content, and for community management. A 60-second film was released on Nivea's official website featuring members of Liverpool FC U8 academy and kids from local primary schools. The film shows the kids speaking lines from the iconic Liverpool FC song You'll Never Walk Alone, and concludes with the stat that 50% of mental health problems begin before the age of 14. The spot directs audiences to the Nivea Men Strength in Numbers webpage, which offers support and advice, as well as asks men to share their feelings and mental health stories. The project was inspired by the stat that one in three men claim they often feel lonely, but they don't know how to talk about how they feel. NIVEA MEN believes that care goes beyond the skin. So together with the charity Talk Club, we're championing a simple way to help men of all ages start talking and improve their mental fitness together. "Our ambition with the 'Strength in Numbers' campaign is to change that narrative by helping men to learn how to talk about their feelings and showing that there's strength in coming together both on and off the field," Nivea Men's senior brand manager Emily Marcham said. Emma de la Fosse, chief creative officer, of Digitas, said: "We created the Strength in Numbers campaign to help Nivea Men drive real change for men's mental health and get more men talking and checking in with each other. But we're not only focused on today – we wanted to establish a future-ready platform that will become a key strategic pillar for the brand." Nivea was created in 1911. In 1922, it introduced our first product for men, NIVEA Shaving Soap, followed a few years later by the first shaving foam. These products finally gave men the creamier shaving experience they had been searching for. In 1980, Nivea set another trend by releasing our alcohol-free After Shave Balm. For the first time, men had an affordable and widely available aftershave that soothed and relieved the irritation of shaving, rather than adding to it. It was an instant success and led to a revolution in men's skincare. From creams to electric razors. From oil control to anti-aging. From face scrubs to body washes. The line-up of NIVEA for Men products has multiplied since that first jar of shaving soap. And it will continue to evolve as the skincare needs of men evolve. The demand for male grooming in the last two years can even be compared to women. The development of men's beauty brands first started in the fashion world due to the demands of male models in the showroom. In 2003, French fashion designer Jean Paul Gaultier was the first to launch men's cosmetics under his brand, which at the time had not yet launched women's cosmetics. Since then, designer brands such as Tom Ford and Marc Jacobs have followed, and Dior has launched its genderless makeup line Dior Backstage inspired by the show. The 2020 Report on the Trend of Domestic Cosmetics shows that the transaction volume of the men's grooming products line increased by 24.5% compared to 2018, and the sales of men's cosmetics increased by 67.9%. Data from KaoLa Haigou shows that in 2020, the growth rate of cosmetic consumption from boys born after 2000 has far exceeded that of girls born after 2000, with the number of boys buying foundation increasing twice faster than girls; and eyeliner, four times. In addition to basic care products like cleansing and moisturizing, hair care and dyeing, makeup concealers, nail polish, makeup products, and even health and beauty products are making their way onto the shopping lists of male consumers, who are increasingly willing to try new products. Just like women, a complete series of grooming steps is becoming their new habit. According to data from Sina, the media coverage of "men's cosmetics " in 2021 has almost doubled compared to the previous year. In addition, the growth rate of views on men's beauty was higher than the overall beauty content broadcast on TikTok in the third quarter of 2021. From the perspective of pronged sectors, the preponderance of the cosmetic and the skincare categories are evident. The men's cosmetics market is drawing more and more attention from consumers. With the soaring of the male beauty economy, driving the awareness of personal image management among male consumers, a younger generation of men is embracing beauty and skincare with a more open attitude.

Estée Lauder Company updated Too Faced leadership. Its co-founders Jerrod Blandino & Jeremy Johnson will depart the brand. Tara Simon has been promoted to global brand president. In 2021, news spread on Chinese social media platforms that the Too Faced was in liquidation and may be ready to exit the Chinese market. On May 6, Estée Lauder Company announced a change in leadership for its Too Faced brand, with Tara Simon taking on the role of global brand president, effective July 1, 2022. Too Faced co-founders Jerrod Blandino and Jeremy Johnson will leave the brand effective June 30, 2022, to start a new venture. Tara Simon has been an exceptional leader since joining the Too Faced two years ago and will continue to leverage her brand-building expertise to continue to drive emotional connections with consumers through products and unique consumer experiences, said Estée Lauder Company CEO Fabrizio Freda. Founded in 1998, Too Faced is a well-known American makeup brand and was acquired by Estee Lauder in 2016. Its official website describes the brand's founder, Jerrod Blandino, who worked at Estee Lauder counters, and Jeremy Johnson, who also worked at Estee Lauder, Armani and Chanel. The new global brand president, Tara Simon, joined Too Faced in 2020 from ULTA Beauty. She previously worked as senior vice president of merchandising for Estée Lauder's Prestige Beauty division. Estée Lauder said that in the two years since Tara joined the brand, Too Faced has maintained the first-mover position, successfully launching new distribution channels such as Target and ULTA Beauty, and consistently leading in sales. Since Dec. 2021, Too Faced has been testing out TikTok’s new livestream shopping feature. And as a result of its success, it is now adopting it as a core omnichannel opportunity. On its first episode in Dec. 2021, Too Faced saw 72,500 unique tune-ins and 69,400 engagements, which were measured in comments, likes and follows. Too Faced offered livestream viewers a unique promo code and saw that 84% of the customers who purchased through the first live shopping event were new to TooFaced.com. “Products that sell well through a livestream are those that are ‘highly demonstratable,'” said Tejwani. This includes the brand’s Better Than Sex mascara and Lip Injection Maximum Plump. Another live shopping episode on March 9, as part of the brand’s International Women’s Day campaign, resulted in a total of 42,000 views. Too Faced's global executive director Elyse Reneau, one of the hosts of the brand's live shopping livestream, said TikTok users tend to be more engaged and like to ask questions compared to Instagram users, especially Gen Z users. Probably Too Faced has captured loyal users in TikTok, so its live stream is longer. In its 2-hour live broadcast, the host will solicit questions from users in the form of giveaways, every 30 minutes for retaining the audience in the live streaming. Too Faced was founded in 1998, in the United States is quite well-known national makeup. Too Faced star products are known to be popular with Hollywood stars for their innovative formulas, rich colors and individual packaging. The brand has 12.8 million followers on social media and Instagram. On the Chinese social media platform, Too Faced has also been quite hot in the beauty world. Searching for "Too Faced" on Douban, Xiaohongshu and other social media, can be seen a lot of information about the brand's Melted Matte lipstick, Born Like This eyeshadow and skin foundation are discussed and swatched. In July 2020, 38 Too Faced iconic beauty products, including the Diamond Light Highlighter, Sweet Peach Eyeshadow Palette and the Asia Pacific debut of the new Matte Lip Glaze, were launched on Tmall International. "We hope that through Tmall International the Too Faced will reach a wide range of China's Generation Z population." said the head of Estee Lauder. In 2021, news spread on Chinese social media platforms that Too Faced was in liquidation and may be ready to exit the Chinese market. It is understood that at that time in Too Faced Tmall overseas flagship store, several products were marked 50% off. The most popular products in Too Faced's official overseas flagship store on Tmall International include Too Faced Party 16 Color Eyeshadow Palette", "Too Faced Diamond Light Highlighter", "And Too Faced Party Matte Cream Lip Glaze priced from $26.25 to $59.25.

MARUBI held a performance exchange meeting for the 2021 annual and 2022 first quarter, introducing the company's performance, brand marketing, social responsibility and scientific research. It is understood that the company is known as the "First Share of Eye Makeup in China" and its core brand MARUBI is known as the "Master of Eye Care". However, the core financial data has declined this time both in the company and the MARUBI brand. According to the financial report, MARUBI achieved about $268 million in operating income in 2021, an increase of 2.41% year-on-year, with $37.16 million in net profit attributable to shareholders of listed companies, down 46.61% year-on-year. The main brand "MARUBI" achieved about $239 million in operating income in 2021, down 3.82% year-on-year, accounting for 92.36%. "MARUBI" has become a leading brand with high-end positioning in China and occupying a considerable market share, known as "Eye Care Master" and has been selected as "the TOP 1 in the Anti-aging Category" by the industry media for 7 consecutive years. Founded in 2002, MARUBI is a well-known skincare brand in China, mainly dedicated to the field of eye care, and became a household name in China in the early years because of the advertising slogan "bouncing, bouncing, bouncing, bouncing away crow's feet". According to the financial report, the total R&D investment of MARUBI in 2021 is about $7.57 million, accounting for 2.83% of the operating income. Although this is still far from the default benchmark of 3% in the Chinese cosmetics industry, Guo Chaowan, the director of MARUBI Basic Research Center, revealed at the performance exchange meeting that MARUBI has a very complete transnational R&D system after more than 20 years of construction. Guo Chaowan said that MARUBI owns a Tokyo Frontier Center, a Guangzhou Scientific Research Center, and a Shanghai Innovation Center. It has a world-class R&D team, with 97 R& D personnel, 32% of whom have a master's degree or above, of which 6 are doctors. There are 60 professional scholars in different forms of cooperation. In 2021, 3 new self-developed raw materials have been added, 30 self-developed raw materials have been completed so far, and 5 models have been mass-produced and converted. In the same year, MARUBI added over 298 new product formulas, 361 new patent applications, 90 invention patents, and 9 new high-level papers. In 2021, the proportion of new products in MARUBI reached 30%, so it is not difficult to see that the brand has indeed been making efforts in product research and development. In January 2021, MARUBI launched the new Series “Crystal Revitalizing Luxurious” with the core concept to combat structural ageing. The average price of this series of products is about $75 and the annual sales volume reached nearly 400,000. In October 2021, MARUBI launched the Recombinant human collagen series, which has accumulated 500,000 sales volume from its listing to the present. In addition, judging from the sales results of MARUBI's main anti-ageing product series, MARUBI not only attaches importance to research and development but also understands which direction to develop, MARUBI firmly grasps the keyword of "anti-ageing" to create bestselling products. In 2021, MARUBI's overall anti-ageing product sales accounted for 70%. MARUBI's chief marketing officer Zeng Lingchun revealed at the performance exchange meeting that MARUBI's "RECOMBINANT COLLAGEN ESSENCE", reached over 10 million yuan (more than $1.5 million) in sales revenue in a very short period of time on the market. MARUBI's "ELASTINE ESSENTIAL DAY & NIGHT EYE ESSENCE" which contains anti-ageing ingredient- A alcohol has become the company's most popular product, accounting for a large share in the sales revenue of the flagship store on Tmall. Zeng Lingchun said that MARUBI will continue to find increments through new products. This means that MARUBI will continue to make efforts in product development and innovation. Although MARUBI's performance in 2021 is not good, MARUBI said in the financial report that the decline in net profit is mainly caused by the company's active layout of new channels and the growth of various expenses to expand new businesses. That is to say, the decline in performance is not because the company has encountered difficulties or impacts, but has invested in developing channels and expanding businesses. Then, the next performance of MARUBI, which attaches so much importance to research and development, is still worth looking forward to.

China's mainstream e-commerce platform JD.com opens the platform for quality certification quality standards for lotions, creams, and essence cosmetics. The "Quality Certification" label was launched. The product inspection and analysis indicators include four dimensions: safety, stability, usability and efficacy. Moreover, the judging dimensions and requirements are formulated. Recently, China's mainstream e-commerce platform JD.com has released the "Quality Standards for Quality Certification of Cosmetics of Lotions and Creams" (hereinafter referred to as the "Standards"). The "Standards" took effect on May 6, Beijing time. This time, JD.com launched the "Quality Certification" label. The "Standard" stipulates that only products that meet the qualifications will be marked with the "Quality Certification" label, which will then be displayed on the product search list and product details page as well as corresponding quality documents. According to the release rules of the JD platform, the launch of the "Quality Certification" label is to improve the quality of products on the platform. Merchants can upload their qualifications through three steps: the background, the product management and the product qualification management page. JD.com will review the qualifications and evaluate the quality of the products. If the products meet the quality certification quality standards of their categories, they will be marked with a "quality certification" label. At the same time, JD.com will conduct regular random inspections of "quality certified" products. If it finds that the quality index does not meet the standard, or there is negative public opinion, the label will be canceled. First, JD.com stipulates normative reference documents in the "standards", including general cosmetic regulations and documents in China and the European Union, the United States, Japan, and South Korea. It should be noted that if these regulations and documents are dated reference documents, then only the dated version applies to this "Standard". For updated documents, the latest edition (including all amendments) applies to this "Standard". Secondly, JD divided the inspection and analysis indicators into four dimensions: safety, stability, usability and efficacy. In terms of safety, the platform will test and determine cosmetics in seven dimensions, including banned ingredients, restricted ingredients, allergenic ingredients, irritating ingredients, heavy metals, environmental safety and filing inspections. The test is qualified for safety compliance. The stability is divided into five dimensions: physical and chemical test evaluation, sensory quality evaluation, weather resistance evaluation, light stability evaluation and consistency evaluation for product evaluation. In terms of usability, the platform will evaluate products in three dimensions: appearance evaluation, odor evaluation and sensory evaluation. Specifically, a survey method will be used and the scoring method will be subject to the survey questionnaire. Efficacy will be evaluated from four dimensions through the efficacy claim of the product: human efficacy evaluation test, consumer use test, laboratory test, literature or research data and the method of evaluation or report acceptance will be used. The JD platform also sets different scoring standards for "products exempted from submitting efficacy evaluation abstracts" and "products that require efficacy claim evaluation and submit efficacy claims based on abstracts" in China's Cosmetic Efficacy Claim Evaluation Specifications. JD.com is a comprehensive online retailer in China. Currently, JD.com has nearly 10 million SKUs of self-operated products and over 8 million active corporate customers. Over 91% of international groups in China choose to open stores on JD.com, such as Estee Lauder, L'Oreal, Procter & Gamble, Unilever, etc. JD.com launched this label to improve the quality of products on the platform. It can also prevent bad money from driving out good, help consumers choose high-quality products in a mixed market and make some inferior products have no room on the platform.

Recently, Winkey completed the filing of NMN raw materials. NMN can increase the level of NAD+ in the human body and is considered to be a product with anti-ageing properties. Therefore, NMN has always been promoted by merchants as an “elixir”. However, in China, NMN has not been approved for use in food and medicine, so the filing of NMN cosmetics new raw materials is regarded as a turning point. Recently, according to the information released by the National Medical Products Administration Cosmetic Raw Material Filing Information Platform, another NMN (β-nicotinamide mononucleotide) raw material has been filed, and the filing person is Shenzhen Winkey Pharmaceutical Research and Development Co., Ltd. (Hereinafter referred to as Winkey). According to the “Technical Requirements” published by Winkey, the purpose of use of this raw material is anti-wrinkle, skin protectant and antioxidant, which can be used in various skin cosmetics, and the maximum allowable concentration should be less than 3%. Previously, two companies in China applied for the filing of new NMN cosmetics raw materials in January and March 2022, namely Geneharbor Lifespan Health Technology Co., Ltd. (hereinafter referred to as Geneharbor Lifespan) and Kangying Hongmei (Zhongshan) Biotechnology Co., Ltd. (hereinafter referred to as Kangying Hongmei). Among them, the technical requirements item submitted by Geneharbor Lifespan shows that the purpose of use of this raw material is a skin protectant, moisturizing agent and antioxidant, which can be used in various cosmetics except for lip products, oral hygiene products and spray products. The maximum allowable concentration is ≤3%. According to the technical requirements published by Kangying Hongmei, the purpose of this raw material is a skin protectant and moisturizing agent, which can be used in various skin cosmetics. The maximum allowable concentration should be ≤10%. In contrast, the three have certain differences in the application level, especially since the value range of the maximum allowable concentration is quite different. Why does this happen? Some Chinese industry insiders have analyzed that “At present, there are not many people studying NMN in China. Each company can only base its own research and understanding, but the general direction is similar.” As for why the maximum allowable concentration they fill in is so different? “This is declared by the enterprise itself, and it should be because the number of animal experiments conducted by the enterprise at that time was different.” The staff of the Inspection and Quarantine Division of the Chinese Academy of Inspection and Quarantine explained that the impact of different concentrations on the subsequent use in the human body is still unclear. It’s hard to say, it depends on the actual user feedback later. The scientific name of NMN is “β-nicotinamide mononucleotide”. According to public information, it is the precursor of NAD+ (coenzyme I), which is closely related to energy metabolism, glycolysis, DNA replication and other activities in the human body. Therefore, NMN, which can increase the level of NAD+ in the human body, is considered to be a product with anti-aging functions. Therefore, NMN has always been promoted by merchants as an “elixir”. However, in China, NMN has not been approved for use in food or medicine. Previously, in 2021, the State Administration for Market Regulation of China issued the Letter on Investigating the Illegal Operation of “elixir”, which clarified that the β-nicotinamide mononucleotide (NMN) cannot be produced and traded as food in China and requires the relevant operators to screen out and conduct a full investigation. Therefore, the filing of new raw materials for NMN cosmetics is regarded as a turning point in the Chinese market.

Revlon has announced Q1 reported net sales of $479.6 million, compared to $445.0 million during the prior-year period, an increase of $34.6 million, or 7.8 percent. The CEO of Revlon said that it is the highest first quarter as reported operating income in six years. NEW YORK--(BUSINESS WIRE)--May 4, 2022-- Revlon, Inc. (NYSE: REV) (“Revlon” and together with its subsidiaries, the “Company”) announced its results for the quarter ended March 31, 2022. As Reported net sales were $479.6 million in the first quarter of 2022, compared to $445.0 million during the prior-year period, an increase of $34.6 million, or 7.8%. As Reported operating income was $23.7 million in the first quarter of 2022, compared to an operating loss of $12.7 million during the prior-year period, an improvement of $36.4 million. The higher operating income was driven primarily by higher As Reported net sales, a gross margin improvement of 190 basis points, $3.6 million in lower selling, general and administrative expenses (SG&A), and $3.5 million in lower restructuring charges. Adjusted operating income in the first quarter of 2022 increased by $27.2 million to $29.0 million from $1.8 million over the prior-year period. As for segments, the Revlon segment is comprised of the Company's flagship Revlon brands. Revlon segment products are primarily marketed, distributed and sold in the mass retail channel, large volume retailers, chain drug and food stores, chemist shops, hypermarkets, general merchandise stores, e-commerce sites, television shopping, department stores, professional hair and nail salons, one-stop shopping beauty retailers and specialty cosmetic stores in the U.S. and internationally under brands such as Revlon in color cosmetics; Revlon ColorSilk and Revlon Professional in hair color; and Revlon in beauty tools. The Elizabeth Arden segment is comprised of the Company's Elizabeth Arden branded products. The Elizabeth Arden segment markets, distributes and sells fragrances, skincare and color cosmetics primarily to prestige retailers, department and specialty stores, perfumeries, boutiques, e-commerce sites, the mass retail channel, travel retailers and distributors, as well as direct sales to consumers via its Elizabeth Arden branded retail stores and elizabetharden.com e-commerce website, in the U.S. and internationally, under brands such as Elizabeth Arden Ceramide, Prevage, Eight Hour, SUPERSTART, Visible Difference and Skin Illuminating in the Elizabeth Arden skincare brands; and Elizabeth Arden White Tea, Elizabeth Arden Red Door, Elizabeth Arden 5th Avenue and Elizabeth Arden Green Tea in Elizabeth Arden fragrances. In fact, the parent company of the American makeup brand Revlon was facing a possible bankruptcy in 2020 due to debt problems. For the past few years, poor performance has been the sword of Damocles hanging over Revlon's head. Revlon's 2019 annual report showed operating income of $2.420 billion, down 5.65% year-on-year, and net profit of $158 million, a loss that expanded 46.4%. After a few days, Revlon then received enough support from bondholders to eliminate a key debt and avoid filing for bankruptcy. Some banks that disagreed with Revlon's previous trading moves are no longer opposed and will support the company's continued debt swap, people familiar with the matter said. They added that Revlon may get enough support to avoid triggering a broader debt payoff. Representatives of Revlon and MacAndrews & Forbes, the holding company of majority shareholder Ronald Perelman, declined to comment. That was a series of plans by Revlon to reduce its debt load and buy more time to focus on recovering its business. Revlon has long faced stiff competition in a market that includes Estee Lauder Company, L'Oréal Group and a host of emerging beauty brands that use social media to attract customers. Revlon's products are sold in stores such as Walmart Inc., CVS Health Corp. and Macys Inc. but increasingly consumers are turning to specialty retailers such as Sephora USA Inc. and direct-to-consumer cosmetics brands such as Glossier. Furthermore, COVID-19 has added to the woes of its business, employees and supply chain. However, the company highlighted a significant recovery for its brands in China in the third quarter of 2019, with increased consumer demand for Revlon branded beauty products as well as Elizabeth Arden skin care products. It is worth noting that Revlon has had a bumpy road in the Chinese market. Although it was one of the first foreign beauty brands to enter China, having had a glorious time in the 1960s, opening more than 50 counters across the country, at the end of 2013, after suffering business losses in 2011 and 2012, Revlon announced that it would withdraw from the Chinese market, which employs 1,100 people. At the time, the China business accounted for only 2% of the Group's net sales in international operations. Revlon then opened a Tmall overseas flagship store online in 2016, followed by the opening of a Tmall flagship store in 2019 as the brand returned to the Chinese market. In a departure from its previous marketing approach of sticking to US celebrity endorsements, the brand appointed Korean star Jessica Jung as its global brand ambassador and in China appointed Modern Brothers Liu Yuning as the brand spokesperson. Instead, in late April 2019, Revlon's overseas flagship stores quietly ceased operations. By July, Revlon returned to the Chinese market again in the form of opening an official flagship store on Tmall, with the store operated by Liren Beauty on behalf of the brand. Back in China, Revlon has chosen to invest in China and e-commerce to be the key to growth. In 2020, according to Tmall data, Elizabeth Arden stormed into the TOP 10 in the first wave of Chinese Shopping Carnival Double 11 this year, and Jingdong data showed that Elizabeth Arden had grown 276% in the first 30 minutes of the opening on Double 11. Debra Perelman, Revlon's President and Chief Executive Officer, stated in the performance of Q1 of 2022: “While the supply chain challenges continue to have an impact, our first quarter results were strong on both the top and bottom line. Each of our reporting segments grew over the prior year, and we experienced our best Q1 Adjusted EBITDA in six years.

Sephora Korea recorded a deficit for two consecutive years. It is recorded that its sales dropped 12.7% compared to the same period of last year. However, despite the impact of a tightening of health restrictions in China in March, Sephora still performed well in China market in recent years. Sephora Korea is said to have reported a loss for the second year in a row, according to Korea Joongang Daily, leading the news outlet to speculate that the LVMH-owned retailer may be preparing to admit defeat and close part of stores in the Asian market. Sephora Korea saw sales drop 12.7 percent to $9.7 million in 2021, as compared to 2020 figures, Korea Joonang Daily reports, quoting figures from the Financial Supervisory Service, and posted an operating loss of $11.2 million. The Beauty retailer is said to be struggling to keep up with the fast-paced K-beauty industry; add to that repeated restrictions due to the pandemic and dwindling tourist numbers, and it’s not surprising that its stores, which opened in 2019, have failed to get the tills ringing. Sephora Korea closed its Myeong-dong branch in January. Founded in 1970 by the Louis Vuitton Moet Hennessy Group (LVMH), the company operates over 2,700 stores in 35 countries and is tied for the highest market share along with Ulta Beauty. In October 2019, Sephora Korea opened its first store at the Parnas Mall in Gangnam District, southern Seoul, and later opened five additional stores including one in the tourism hot spot of Myeong-dong in central Seoul. However, the Myeong-dong branch ended up closing this January as the number of tourists had significantly dropped due to the pandemic. Sephora Korea had initially announced plans to open 14 new stores including an online shop by the end of this year, but this now seems very unlikely. Experts also say Sephora needs to have a better understanding of the Korean cosmetics market. “The Korean cosmetics market is referred to as an innovative market globally,” said Jin Jeong-im, a beauty consultant. “Sephora failed in meeting Korean consumers’ expectations in terms of differentiating its products and operating both online and offline shops.” However, according to the financial report of Q1 in 2022 released by LVMH, its segment Selective Retailing, where Sephora is located, achieved organic revenue growth of 24% in the first quarter of 2022 compared to the same period of 2021. Sephora achieved excellent performance in the quarter with a strong rebound in the activity in its store network, which had been partly closed at the beginning of 2021. Momentum was particularly strong in North America, France and the Middle East, driven notably by perfume. Despite the impact of a tightening of health restrictions in China in March, Asia continued to grow over the quarter. In 2021, Sephora continued to innovate and invest in the Chinese market. In October, after China's new regulations on cosmetics animal testing, Sephora was the first to introduce five overseas high-end brands without animal testing to synchronize the latest global beauty trends and exclusive products with Chinese consumers. Ms. Alia Gogi, President of Sephora Asia, said that China is the largest market in Asia and we are always looking forward to providing Chinese consumers with more unique products, trends and delightful shopping experiences. To provide consumers with more of these amazing shopping experiences, Sephora has brought cutting-edge retail innovations to China, represented by the opening of Sephora's offline flagship store in TAI KOO LI in Beijing in May 2021. It is worth noting that the store is the first 24-hour digital flagship store. Recognizing the long-term impact of digital transformation on the industry's value chain, Sephora will also launch "stores of the future" to bring innovative retail experiences to consumers. The initiative will begin with one pilot store in Shanghai and one in Singapore, where consumers will see upgraded digital devices including Virtual Artist and Fragrance Studio, as well as VR experiences and enjoy better and more professional beauty consulting services. Customers can have an immersive consumer journey in newly designed stores. While expecting more new products and experiences, Chinese consumers are also becoming more socially responsible and want to minimize the environmental damage caused by their consumption behavior, and the environmental friendliness of beauty brands and products has become an important consideration when they consume. In response, Ms. Alia Gogi said Sephora has always been committed to bringing more sustainable brands to consumers, and this is true in China as well. At this year's 4th China Expo, Sephora presented its exclusive Sino-French luxury skincare brand CHA LING to the Chinese market and announced the launch of the brand's new "Name a Tree" tea tree naming project under the "Tea Spirit - Conservation Tea Forest Project", inviting consumers to participate in the brand's sustainable initiatives.

Recently, Abby's Choice, a skincare brand owned by Chinese cosmetics company Yatsen E-commerce, reached cooperation with channel marketing service provider YIFEI GROUP. In 2018, Abby's Choice began to launch products and in 2020 it was officially unveiled, with its star single product "CERAMIDE REPAIRING MASK" exceeding 100,000 in sales volume in the first month. In 2020, it participated in the Double Eleven shopping festival for the first time, with a turnover exceeding 10 million yuan (more than $1.51 million) for 33 minutes. Founded in 2005, YIFEI GROUP is an outstanding digital and intelligent ecological service enterprise in China's beauty industry committed to providing beauty industry chain partners with omnichannel marketing services, industrial platform services, supply chain services, digital intelligence services, brand investment incubation, and other 5 major section services. At present, the group has obtained the authorization and cooperation of about 60 brands such as AHC, Neutrogena and Dr.Yu at home and abroad. According to the official website of the Yatsen E-commerce, Abby's Choice was prepared in 2018, which is a skincare brand specially created by senior beauty consultant Abby, the professional dermatologists and formulators for the repair of young skin. Its star products include the ceramide series, "MOISTURISING GLOWING MASK" and "GENTLE SOFT CLEANSING BALM". Different from traditional brands, Abby's Choice was born from the insight of the beauty consultant team of Yatsen E-commerce on the needs of users. He Yifei, the head of R& D of Yatsen E-commerce, said that many users have feedback in their exchanges with the team that they have been plagued by skin problems such as dryness, seasonal sensitivity and oil pox, but they can not find suitable products on the market that can solve these problems. Therefore the team began to seek a solution to the skin problem. The R&D team judged that the root cause of the problem was the damage to the skin barrier. In order to repair the damaged skin, the team decided to use ceramides. After comparing dozens of suppliers, Yatsen E-commerce chose to co-create products with Intercos skincare R&D department, the only global manufacturer in the industry. By using patented technology to synthesize the ceramide compound essence of exclusive scientific ratio and more than 100 core formula adjustments, the "ceramide Raspberry Leaf Extract" was successfully developed by Abby's Choice after 14 months of painstaking work. Taking this as a starting point, the team decided to create a brand and named the brand's English name Abby's Choice after Abby, the first senior beauty consultant who joined the team, to represent the brand's original intention of catering for the user's beauty needs. In October 2018, Yatsen E-commerce launched the product of Abby's Choice for the first time. On June 8, 2020, Yatsen E-commerce officially released the Abby’s Choice brand, targeting young college students and white-collar women aged from 18 to 28, with a product line covering skincare, makeup, personal care and beauty equipment, etc. Abby's Choice flagship store on Tmall was set up and two physical stores Guangzhou Zhengjia Plaza store and Chengdu Chunxi Road store were set up as well. On June 12, 2020, on the fifth day of the official debut of Abby's Choice, China's top male star YiBo was officially announced on Weibo that he had become the spokesperson of the brand's mask. It is understood that the unit price of Abby's Choice products is not high, with the price ranging from about $6 to $48. Its target users are mainly young college students and white-collar women aged from 18 to 28. The reason why the brand chose YiBo as a spokesperson is his strong influence and wide recognition among young people. Abby's Choice is backed by the support of the parent company Yatsen E-commerce and blessed by the top star. In November 2020, it participated in the Double Eleven shopping festival for the first time, which was its official appearance in less than half a year, with the turnover exceeding 10 million yuan (more than $1.51 million) during 33 minutes and the total sales revenue during the event exceeding 35 million yuan (more than $5.29 million). The star product "CERAMIDE REPAIRING MASK" was sold more than 100,000 pieces in the first month of its launch and won the "Best Moisturizing Mask" award in the summer list of the 2020 International Beauty Awards in Harper's BAZAAR. In 2020, the "CERAMIDE REPAIRING MASK" was sold a total of 800,000 boxes across all channels. Although the momentum of Abby's Choice is good, its parent company Yatsen E-commerce is in having difficulty. First of all, in terms of performance, the net loss in 2021 reached $243 million. Followed by a stock price below $1, Yatsen E-commerce received a warning of the trading delisting of the New York Stock Exchange. At present, it is not clear whether the plight of the parent company will have a direct and large impact on Abby's Choice, but from the perspective of the brand's cooperation with YIFEI GROUP, the brand is still trying to develop.

The Chinese cosmetics company MARUBI CO., LTD. achieved an operating income of $270 million in 2021, a year-on-year increase of 2.41%, with $38 million in net profit attributable to shareholders of listed companies, a year-on-year decrease of 46.61%. It owns brands such as MARUBI, HARUKI, and PASSIONAL LOVER. With the completion of the 2021 annual report and the first quarter financial report of 2022 by Chinese listed cosmetics companies, the performance of beauty companies once again reflects the potential of China's cosmetics consumption. In 2021, BTN and PROYA, the leaders of China's cosmetics industry, continued their high-speed growth in both revenue sales and net profit. Shanghai Jahwa, which was undergoing channel adjustment before, recorded growth in the three indicators of revenue sales, net profit and non-net profit, especially the non-net profit recorded the highest growth in six years. However, when the sales revenue and net profit of these listed Chinese cosmetic companies have increased, MARUBI has become an exception, with the company's net profit experiencing a double-digit decline. On April 30, Beijing time, Chinese cosmetics company MARUBI announced its 2021 annual report and its first quarter 2022 financial report. In 2021, MARUBI achieved an operating income of $270 million, a year-on-year increase of 2.41%, with the net profit attributable to shareholders of listed companies being $38 million, a year-on-year decrease of 46.61%, and the net profit attributable to shareholders of listed companies after deducting non-recurring gains and losses being $27 million, a year-on-year decrease of 55.70%. In the first quarter of 2022, MARUBI's revenue and profit declined, with an operating income of $58 million, a year-on-year decrease of 5.31%, with the net profit attributable to shareholders of the listed company being over $9.91 million, a year-on-year decrease of 34.61%. MARUBI CO., LTD. is a Chinese cosmetics company specializing in eye care. It owns brands such as MARUBI, HARUKI and PASSIONAL LOVER. In 2021, MARUBI, the main brand of MARUBI CO., LTD. achieved an operating income of $241 million, accounting for 92.36%, down 3.82% year-on-year, and the PASSIONAL LOVER achieved sales revenue of more than $10.01 million. In 2021, MARUBI reached $156 million in the online sales revenue, accounting for 59.54%, an increase of 8.17% year-on-year, mainly due to the push of Chinese short video platforms TikTok and Kwai live streaming. However, due to the fierce competition from other e-commerce platforms in China and the increase in marketing expenses, MARUBI still increased its sales revenue but not its profits. Its offline revenue was $106 million, accounting for 40.46%, a year-on-year decrease of 11.99%, because the recovery of MARUBI's daily chemical franchise store channel has not met expectations. It is worth mentioning that in terms of the net profit margin, MARUBI has always been a leader in Chinese cosmetics companies, but in 2021, MARUBI's net profit dropped by 46.61% year-on-year, and the non-net profit dropped by 55.70% year-on-year. So, MARUBI has maintained a leading position in the net profit among Chinese cosmetics companies all year round. Why did it drop so much in 2021? First of all, both sales expenses and administrative expenses have increased. Sales expenses increased by 31.41% year-on-year, mainly due to the increase in advertising, and advertising expenditures increased by $18 million over the same period last year. Administrative expenses increased by 27.68% year-on-year, mainly due to the company's business development and the increase of staff in functional departments, which led to an increase in employee compensation and office expenses. Secondly, the sales volume of MARUBI's daily chemical products was 34,018,200, a decrease of 4.93% over the previous year and the volume of the inventory was 5,251,900, an increase of 22.2% over the previous year. The decline in product sales and the increase in inventory all indicate that MARUBI is encountering sales bottlenecks. At the same time, the financial report for the first quarter of 2022 disclosed by MARUBI together with the annual report shows that the net profit of MARUBI is also falling sharply.