LANEIGE, a Korean well-known brand from Amore Pacific, entered the Chinese short video e-commerce Kwai for getting closer to the most potential consumers in China and providing richer content, better quality products, and more intimate services to Kwai's users. On May 3, the Chinese short video e-commerce platform Kwai posted on its official social media platform Weibo, saying that the internationally renowned brand LANEIGE had recently announced its presence in Kwai's e-commerce, which becomes another internationally renowned beauty brand introduced since Kwai's e-commerce "big branding" strategy. On April 30, the official flagship store of LANEIGE in Kwai launched an interactive live broadcast with the official account of Racer e-commerce, which has 200 million followers. According to LANEIGE, its official flagship store will be live-streamed from 17:30 to 23:00 every day regularly. As a young high-end high efficacy beauty brand, since its inception in 1994, LANEIGE has continued to explore and research for 28 years to reveal the ability of hydration efficacy. In 2002, LANEIGE entered the Chinese market. It strove to introduce beauty industry innovation products such as water sleeping mask, Skin Veil Base, Blemish Balm Air Cushion, Lip Mask, and Layering Lip Bar, which are all-star products loved by young Chinese women. In recent years, LANEIGE has also successfully launched Perfect Renew Youth Regenerator, Youth Retinol Eye Cream, Radian-C Cream, Water Bank Blue Hyaluronic Cream, and other efficacy products, which are recognized and sought after by consumers for their advanced technology and excellent ingredients in the industry. This time, LANEIGE is involved in the Kwai platform. LANEIGE expressed its hope to get closer to the most potential consumers in China and provide richer content, better quality products, and more intimate services to Kwai's users. In recent years, Korean makeup has reached a crossroads in the Chinese market with news of store closures and withdrawals of low- and mid-range brands. And in 2021, two high-end brands, Sulwhasoo and Whoo, seized the live e-commerce bonus to soar and maintain a good performance. According to the data, fast Top10 hot skincare brands are mainly composed of Chinese well-known, international brands (South Korea), and other Chinese brands. In the top ten, Whoo and Sulwhasoo were ranked second and seventh becoming the only two international big brands. From the category, skin care compared to makeup has tended to be white-hot competition which shows a lot of potentials. It is worth noting that both LANEIGE and Sulwhasoo are from the Korean Amore Pacific Group. Recently, the Amore Pacific Group also released its first quarter 2022 financial results, with Luxury Business, where Sulwhasoo is located, down 15% year-on-year, with revenue of $310 million. The decline was partly due to the resurgence of COVID-19 which inhibit the growth of travel retail. In this segment, Sulwhasoo accounted for 35% of revenue. Domestic Business, which included LANEIGE, declined 3% year-on-year to $150 million, but online sales grew by double digit and continued strong growth. In 2002, LANEIGE launched the first generation of water sleeping masks which brought the concept of "sleeping after applying" to the Chinese mask market and created a new category. In 2005, the sleeping mask was updated to the second generation, adding a moisturizing effect to the original one. In 2009, the sleeping mask was updated to the third generation focusing on the "moisturizing + whitening + sleeping" effect. In 2015, the LANEIGE sleeping mask was upgraded to the fourth generation adding skin purifying technology. In 2015, the LANEIGE sleeping mask was upgraded to the fourth generation with the addition of skin purifying technology and aromatic technology for restful sleep. In 2021, LANEIGE innovatively launched the fifth generation of functional "probiotic blue jar mask" adding probiotic lactic acid bacteria essence to the sleeping mask for the first time. It led to the new concept of night skin micro-ecological repair. Once the mask was launched, it received a lot of positive feedback from the Chinese social platform Weibo, Xiaohongshu, and others "In the following 8 years, LANEIGE Air Cushion has undergone 5 innovative upgrades, and the feedback from Chinese consumers has become an important reference when updating the product." Gao Xiangqin, president of Amore Pacific China, said at the 4th China International Import Expo. Since entering the Chinese market in 1992, Korean cosmetics giant Amore Pacific has been rooted in China for nearly 30 years, and there have been silences and peaks along the way. Now, as competition intensifies and the Korean makeup landscape changes in China, Amore Pacific is keeping pace with changes in the Chinese beauty market, adjusting its pace and ushering in growth in the new quarterly earnings report. "Amore Pacific has been paying attention to the changing consumer habits and attaches great importance to the China market. To respond to consumer demand, the company has promptly adjusted its brand positioning, laid out a differentiated and competitive brand camp, and launched several new products one after another."Mr. Gao Xiangqin said.

On May 4, Beijing time, the listing application materials of KK Group, the parent company of THE COLORIST, on the Hong Kong Stock Exchange have been "invalid" and cannot be viewed or downloaded, resulting in the process of Hong Kong stock IPOs. The longest time spent on Hong Kong stock IPOs is the stage of submitting the table to the hearing, generally needing to wait for March to June. Therefore, if the company fails to complete the hearing or go public within 6 months, the company's prospectus will automatically expire. On May 4, Beijing time, the official website of the Hong Kong Stock Exchange showed that the listing application materials of KK Group on the Hong Kong Stock Exchange had been "invalid" and could not be viewed or downloaded. This also means that the KK Group's first try on the Hong Kong Stock Exchange temporarily declared defeat. According to public information, KK Group is a Chinese enterprise focusing on trendy retail stores, with four self-incubated retail chain brands of KKV, THE COLORIST, X11 and KK, with its product portfolio covering major categories such as beauty and art toys. According to the prospectus, by covering 31 provinces in China and Indonesia, the total number of retail stores owned by KK Group has reached 680. According to the prospectus, KK Group achieved $28 million, $99 million and $341 million respectively in the GMV from 2018 to 2020, with a compound annual growth rate of GMV of 246.2%. In addition, the revenue sales were $23 million, $70 million and $249 million respectively for the same period. KK Group quoted the report from the FROST & SULLIVAN, saying that the competition in China's trendy retail market is fierce and fragmented. In terms of GMV, the total market size of the top five players in 2020 is over $4.62 billion, accounting for about 15.6% of the GMV in China's trendy retail market. In terms of GMV, KK Group is the third-largest trendy retail market participant in China in 2020. In addition, based on the compound annual growth rate of GMV from 2018 to 2020, KK Group is also the fastest-growing among the top five trendy retail market players in China. However, while maintaining high revenue growth, KK Group has experienced a trend of continuous expansion of losses. According to the prospectus, from 2018 to the first half of 2021, KK Group's net losses were $12 million, $78 million, $305 million and $665 million respectively, while the corresponding adjusted net losses were $6 million, $12 million, $26 million and $6 million respectively. KK Group explained, "Due to the continuous investment in the development of retail brand portfolios and the expansion of the store network, the company has been in a persistent loss of money. But the company's profitability is improving and the adjusted net loss ratio is gradually decreasing." The Company expects to further improve its financial performance and achieve profitability in the future through continued revenue growth and cost-effectiveness, in particular by further expanding and optimizing its physical store network.” According to the composition of KK Group in the brand sales revenue, its performance is mainly driven by KKV and THE COLORIST. Among them, KKV has 315 physical stores, which increased from $12 million in 2019 to $159 million in the first half of 2021 in sales revenue, soaring by more than 10 times in just three years. From 2019 to the first half of 2021, THE COLORIST achieved sales revenue of $3 million, $67 million and $70 million respectively, covering more than 5,500 SKUs in 12 categories such as skincare and makeup and covering 185 Chinese brands (including private labels) and 246 overseas brands from Japan, South Korea, Thailand and the United States. And why did KK Group's prospectus suddenly invalidate this time? This is due to the process of Hong Kong IPO. "The process of listing a company is relatively complicated due to the financial, legal and other compliance requirements. Taking Hong Kong IPOs as an example, they generally include the submission of the form, the hearings, roadshows, public offerings, public offering results, grey market transactions and listings. The time required for each link is different, and the longest time spent is from the submission of the form to the hearing, which usually takes 3 to 6 months. Therefore, if the company fails to complete the hearing or go public within 6 months, the company's prospectus will automatically expire, which is a normal mechanism. " The relevant senior Chinese source said. So, after the prospectus expires, can't KK Group continue to list? The above-mentioned senior person said that the invalidity of the prospectus does not mean that the company's IPO on the Hong Kong stocks is terminated, nor does it mean that the Hong Kong Stock Exchange has a negative opinion of the company. If the company can supplement the new financial data within 3 months, it can continue to be listed.

L'Oréal remained Top 1 in the report on Cosmetics 50 2022, which represents the world's most valuable cosmetics brand. Estee Lauder followed L'Oreal as the Top 2. It is worth noting that L'Oréal achieved double-digit growth in China. As for Estee Lauder, despite double-digit growth in e-commerce it was still unable to offset the decline in physical retail, with sales of skincare and cosmetics in particular showing declines. According to the report on Cosmetics 50 2022 released by Brand Finance(the world's leading independent branded business valuation and strategy consultancy), the world's most valuable 50 brands have been shown up. L'Oreal has kept its performance as the Top 1. L'Oréal (brand value up 10% to $11.2 billion) remains the world's most valuable cosmetics brand. After a tough two years due to the COVID-19 pandemic which substantially reduced cosmetics sales across the world, the brand value of L'Oréal has almost returned to its pre-pandemic value. L'Oréal continues to lead the global cosmetics industry on the back of its valuable brand portfolio, led by the L'Oréal Paris brand. The French brand has built significant value over 100 years of operation by continuing to innovate and acquire complementary brands that build upon its significant history, value and tradition. This year has seen a transition of leadership from outgoing CEO Jean-Paul Agon, who led L'Oréal for 15 years, to incoming CEO Nicolas Hieronimus. Industry analysts believe that the promotion of key lieutenant Hieronimus from within represents an effort to build on the existing strategy to lead the brand out of the pandemic. Annie Brown, an associate, from Brand Finance said that L'Oréal is-again-the world's most valuable cosmetics brand, but with consumers forecast to increase spending as they reemerge from the pandemic, the brand has significant growth opportunities. The key challenge for new CEO Hieronimus will be to serve as an effective brand guardian for L'Oréal as it seeks to return to growth, especially throughout Asia. Furthermore L'Oréal reported on April 19 that it gained $9.82 billion with a rise of 19% year on year. With double-digit growth in mainland China, L'Oréal continued to outperform the beauty market thanks to successful campaigns for Chinese New Year, Valentine's Day and Women's Day. The Group further strengthened its lead in the country, gaining market share online and offline. In Hainan, L'Oréal outperformed the Travel Retail market, which remained very dynamic. L'Oreal was followed by Estee Lauder, Gillette, Nivea and Guerlain in the top five respectively with Estee Lauder's brand value soaring 39% this year to be the fastest growing brand. To the detail, Estée Lauder (brand value up 39% to $7.9 billion) jumped three places from 5th in the cosmetics ranking this year to become the 2nd most valuable cosmetics brand in the world, and the fastest growing. In doing so, it passed Gillette (brand value down 8% to $6.9 billion), Nivea (brand value up 10% to US$6.8 billion), and Guerlain (brand value up 8% to $6.1 billion) in brand valuation. It is understood that On May 3, Estee Lauder Company released its results for the third quarter of the fiscal year 2022. In the three months ended March 31, Estee Lauder Company sales increased 10% year-over-year to $4.25 billion, missing market expectations of $4.31 billion. Its net income recorded $560 million, up nearly 22% from $460 million in the previous year. However, the Estée Lauder Company, headquartered in Shanghai, China, is not immune to the impact of the pandemic. In its earnings report, Estée Lauder Company noted that cases resurfaced in many Chinese provinces beginning in mid-March 2022 and restrictions were implemented to prevent further spread of the virus. Despite double-digit growth in e-commerce it was still unable to offset the decline in physical retail, with sales of skincare and cosmetics in particular showing declines. It is reported that Estee Lauder began to raise the prices of its brands at the beginning of the year with a price increase of about 2%. According to industry sources, Estee Lauder's previous price increases in recent years have not been frequent, which is about 1-2 times a year. Each time rise is 1-2 percentage points or so with slowly upward, such as some of MAC's products last year recommended retail price at $25.7 with two price increases reaching $27.2. Each price increase is floating around 2%. Estee Lauder's FY2021 report showed that it achieved revenue of $16.22 billion during the reporting period, up 13% from $14.29 billion in the previous fiscal year. In particular, China was a key engine of growth for Estée Lauder with double-digit growth across all channels in the region. In addition, Estée Lauder's online sales in the Asia Pacific reached 36%. In 2021, Estée Lauder surpassed L'Oréal and Lancôme at top of the "2 billion club" on the Chinese e-commerce platform Tmall's Double 11(Chinese Shopping Carnival). "For international well-known brands, after the epidemic, rapid growth in e-commerce is good, but how to maintain this performance of stable, sustainable growth, to investors, the head office is not an easy task. The price increase may also be due to this consideration." A brand source said.

Recently, China's first men's skincare brand gf officially announced that Chinese actor Zhang Yunlong has become its brand image spokesperson. Judging from the information over the years, continuous cooperation with celebrities, classic IP, and well-known cross-border brands has become a marketing method for gf. And at the same time, gf's performance can be regarded as living up to expectations. On April 29, gf, a Chinese professional men's technology skincare brand, officially announced that Zhang Yunlong whose fans on mainstream Chinese social platforms are close to 15 million has become its brand image spokesperson. Gf was born in 1992. It is a men's skincare brand under the Chinese cosmetics company Shanghai Jahwa and the first men's skincare brand in the Chinese cosmetics market. Committed to the continuous research and development of advanced customized products for Chinese men, it has created a total of 18 series and more than 140 single products. The product series spans the four fields of skincare, hair products, bath, and perfume. According to the data, this is not the first time that gf has officially announced a celebrity spokesperson in recent years. Judging from its moves over the years, the brand has been focusing on cooperating with celebrities including stars, classic IP, and well-known cross-border brands for many years, which turns out to be a fixed marketing model for the brand. According to gf's official website and public media reports, gf's announced spokespersons include the Chinese actor and singer Tony Leung Chiu Wai, the Chinese actor Louis Koo, the Chinese actor William Feng and well-known Chinese crosstalk comedian Guo Qilin. In 2016, gf cooperated with "ONE", an electronic magazine platform owned by the well-known Chinese male writer Han Han, and launched a literary youth version of the packaging. Gf set the theme of this marketing as "farewell to complexity, gf is enough" and advocated that men should say goodbye to complicated procedures and make skincare simple. In October 2017, gf joined hands with the world's home video game console giant Microsoft Xbox to launch a global limited edition of 50 sets of gf Xbox customized limited-edition gift boxes, which assembled gf's Moisturizing Series and "Microsoft Xbox ONE S co-branded custom model Great Sage Host". In December 2017, gf and Chinese contemporary calligrapher Zhu Jingyi launched gf's "One Bag of Yan Wang" for men's special moisturizing mask and released a joint promotional video, announcing that Zhu Jingyi was the first "Dai Yanren" (spokesperson) of gf's new products.". In May 2021, gf joined hands with China's well-known car maintenance service brand Tuhu to launch cross-border cooperation "from car maintenance to car owner maintenance". The two parties launched a limited-edition gift box with a pre-sale price of 129 yuan. The gift box contains a bottle of gf's facial cleanser, one sterilization of Tuhu's air-conditioning pipeline (contract for labor and materials), and one Tuhu "Tai Ge" blind box. This gift box is exclusively sold by Tuhu. In June 2021, gf joined hands with the trendy brand NPC to launch co-branded T-shirts, bags and other products. In October 2021, gf teamed up with the classic IP Doraemon to launch a joint facial cleanser, repair lotion, gift box, canvas bag, mug derivatives and 3D blind box. Under the constant cross-border cooperation and the marketing strategy of launching various co-branded products, gf's achievements in recent years can be regarded as remarkable. In June 2016, Shanghai Jahwa announced its promotion record on the "618 (June 18) shopping festival", and its gf men's skincare category ranked first in sales revenue and it was the only men's brand in Tmall Beauty that made it to the top 25. At the Double Eleven shopping festival in 2016, the gf flagship store on Tmall successfully won the first traffic in the beauty category and ranked first in the sales of men's skincare products and in the sales of men's cleansing products on the online platforms on Double Eleven shopping festival. Gf flagship store won first place in sales revenue in a single store in the men's beauty category on Tmall. At Double Eleven shopping festival in 2020, gf won No.4 in men's skincare and No.1 in domestic products on Tmall. In December 2021, Shanghai Jahwa appeared at the first Global Cosmetics Wuhan Trade Expo. Various industry lists and awards were released on the night of the conference. Gf won the first place in 2021 China Cosmetics Sub-category in the men's category. According to the research report of HUAXI SECURITIES, gf's performance and market share have steadily increased in recent years. From 2015 to 2019, gf's retail sales increased from nearly 800 million yuan to 950 million yuan. From 2016 to the first half of 2019, gf’s share of the offline retail market of men’s facial cream in China increased from 6.3% to 6.8%, ranking fourth in the market. But at present, the top Chinese men's skincare brand is L'Oreal Group. At the same time, there are also brands such as Biotherm Men and Kiehl's Men who divide up the Chinese men's skincare market. At the same time, Mentholatum in the United States is also developing continuously. These famous brands continue to carry out market education and brand promotion, while among domestic brands gf was the only one to break out of the siege, but gf ranked only fifth. Therefore, how to improve its own competitiveness and not be "besieged" by foreign investors is a problem that gf must ponder next, and this is by no means a problem that can be solved by excellent marketing alone.

For the three months ended March 31, Estee Lauder Company sales rose 10% year-on-year to $4.25 billion, missing market expectations of $4.31 billion. Relative to the past, the Asia-Pacific market did not start the year as well as expected due to the pandemic. On May 3, Estee Lauder Company released its results for the third quarter of the fiscal year 2022. In the three months ended March 31, Estee Lauder Company sales increased 10% year-over-year to $4.25 billion, missing market expectations of $4.31 billion. Its net income recorded $560 million, up nearly 22% from $460 million in the previous year. Organic net sales, which exclude the impact of brand restructuring and currency exchange rates, increased 9 percent. Operating profit grew to $738 million up 19.8% year-over-year. According to the results, the Company's skincare category sales grew 6% year-on-year to $2.359 billion and 3% organically led by double-digit sales growth of LA MER and Clinique. The net sales in the fragrance category grew 28% due to high premiums for luxury fragrances, the opening of brick-and-mortar retail and the beginning of tourism recovery in Western markets and grew 31% to $579 million. Its brands such as LA MER, Clinique, Jo Malone London, M-A-C, Tom Ford Beauty, Le Labo and Aveda were all named and praised in the earnings report all achieving handsome double-digit growth due to factors such as product launches and social media marketing. Estee Lauder's skincare net sales declined due to logistical challenges in Greater China, but fragrance and cosmetics both achieved double-digit growth. Relative to the past, the Asia-Pacific market did not start the year as well as expected with net sales of $1.203 billion in 2022, down 4 percentage points year-over-year. Data from previous years show that the Asia-Pacific market led the way with an increase of about 30 percent, except during the pandemic in 2020, which reported a 29 percent increase in fiscal 2021. The Estée Lauder Company, headquartered in Shanghai, China, is not immune to the impact of the pandemic. In its earnings report, Estée Lauder Company noted that cases resurfaced in many Chinese provinces beginning in mid-March 2022 and restrictions were implemented to prevent further spread of the virus. These temporary restrictions reduced consumer traffic and travel, and the company's distribution facility in Shanghai was temporarily impacted in its ability to fulfill physical and online orders. Despite double-digit growth in e-commerce it was still unable to offset the decline in physical retail, with sales of skin care and color cosmetics in particular showing declines. "We believe our business in China will rebound and accelerate our momentum when COVID subsides." said Fabrizio Freda, President and CEO of Estée Lauder Group. Fabrizio Freda concluded, "Despite the headwinds we experienced in the quarter, including the limitations of the COVID-19 epidemic in Asia Pacific, we achieved strong sales growth and higher than expected profitability driven by the excellent performance of our fragrance business globally and the revival of our Western markets with organic growth in every category. 11 brands contributed double-digit organic growth further demonstrating our diversification and multi-engine growth strategy, which has allowed us to maintain strong consumer demand even in an environment of increased inflation." Travel Retail has been a contributor to Estee Lauder Group's business growth and, as seen in this quarter's results, global travel retail net sales continued to achieve double-digit growth. However, Estée Lauder's business in Hainan duty-free was also affected by the reduction in travel due to the outbreak that began in March. At the beginning of the year, Estee Lauder also cooperated with CDF to actively expand its business in Hainan and boost consumption. During the promotional campaign on March 8th and International Worker’s Day, Estee Lauder and cdf members once again sent out special benefits. Estee Lauder also made two important personnel changes at the group level this quarter. Israel Assa was appointed President of Global Travel Retail and Javier Simon, currently President of Travel Retail Asia Pacific, will replace Israel Assa who will be appointed as President of Global Travel Retail Commercial. In addition to the new moves in travel retail, Estee Lauder is also moving into the metaverse in online marketing. In March this year, Estee Lauder announced an exclusive in-depth cooperation with 3D virtual technology platform Decentraland meta-universe fashion week, users can use virtual images into the "Advanced Nigh Repair", receive a wearable NFT update avatar. With a series of NFT projects, Estee Lauder earned enough traffic on the network. As early as last year, Clinique also held an NFT-related online interactive prize inviting users to answer relevant questions and their own experiences in social media.

From January 2021 to February 2022, the average monthly growth rate of the TikTok market was 10.32% and the average monthly growth rate of TikTok’s beauty category was 25%, which was much higher than that of the entire TikTok E-commerce market. In February this year, the sales of TikTok's beauty industry increased by multiples compared to February last year. In February this year, the growth rate was 21.55% compared with that in January. The TikTok e-commerce beauty industry is in a stage of good development. With the increasing demand for beauty and individuality among Chinese consumers, the beauty industry has ushered in a positive trend in China. According to the data from the National Bureau of Statistics, the Chinese cosmetics industry accounted for 1.02% of the annual market consumption in 2021 with the sales of cosmetics growing by 14% year-on-year compared to 2020, exceeding the year-on-year growth rate of the overall consumption in the Chinese market. Cosmetics occupy a small share of the overall market consumption as they are not necessities for the daily life of the Chinese people. However, with the awakening of more and more young people's awareness of "beauty" and the enhancement of their spending power, the current cosmetics industry has been promoted. There is still room for growth in the consumer market. In just a few years, TikTok e-commerce has become one of the largest sources of business growth in China's beauty industry. From promoting goods sales in the form of short videos and live streaming by influencers to the official announcement of interest in e-commerce, this rapidly evolving platform has also brought more growth opportunities for beauty brands. From January 2021 to February 2022, the average monthly growth rate of TikTok’s broader market is 10.32% with the average monthly growth rate of TikTok’s beauty category being 25% and the growth rate of TikTok’s beauty category being higher than that of the entire TikTok category. Since last year, the live streaming has built the daily sales base of TikTok e-commerce for many beauty brands, which has become one of the most important GMV incremental sectors. From January 2021 to February 2022, the TikTok e-commerce beauty industry has maintained a good growth rate, and the main increase comes from live streaming. Due to the e-commerce activities set up by the TikTok platform, the TikTok beauty industry will refresh the historical high point of sales in the current month. The sales data in February this year increased exponentially compared with February last year. In February this year, the TikTok beauty industry increased by 21.55% in sales revenue month-on-month compared to January. And the TikTok e-commerce beauty industry market is in an upward growth stage. From the perspective of consumers, female consumers account for more than 80% in terms of viewing live streaming and transactions, indicating that in the TikTok beauty category, female users have strong content consumption power and commodity purchasing power. In terms of age, users aged 18 to 23 have stronger purchase intentions, and consumers aged 24 to 30 are more inclined to content consumption. From the perspective of cities, users in China’s new first-tier cities watch live streaming the most, while China’s second-tier cities and above have the most transactions, accounting for as high as 90%, while the small-town and rural market needs to be penetrated. According to the official classification of TikTok, the beauty category is divided into 4 first-level categories: "makeup/perfume/beauty tools", "beauty skincare", "beauty/personal care equipment" and "beauty body medical equipment". From the monthly sales data, from January 2021 to February 2022, "beauty and skincare" accounted for 75% of TikTok's beauty industry sales, ranking first, with monthly sales increasing steadily throughout the year. Followed by "cosmetics/ Perfume/beauty tools ", accounting for 22% of the sales revenue in the beauty industry, ranking second. The sales revenue of “beauty/personal care equipment” accounted for 2.53% and the current market volume of “beauty and body medical equipment” is small, with only 0.14% sales revenue of the total. It is worth mentioning that facial skincare ranks first in TikTok’s beauty industry, accounting for 62.55% of TikTok’s secondary category sales revenue. Facial makeup is the most important subcategory of all makeup, accounting for 9.92% of sales revenue in TikTok’s secondary category. It can be seen that the demand for skin care is significantly higher than the demand for makeup as users pay great attention to the maintenance of the overall face. This is because the skin around the corners of the eyes is relatively thin and the deterioration of the skin condition will first be reflected in the eyes, so some users have certain eye care demands. And with the popularity of sunscreen products in recent years which can prevent UV sunburn and protect the skin, as an indispensable part of daily skincare, the sales volume is also increasing. From January 2022 to February 2022, 200 yuan (about $31) and 400 yuan (about $67) are the watersheds in the pricing of TikTok beauty and skincare products. The price of goods that is less than 500 yuan (about $77) are mostly Chinese brands with the average CR3 being 15%, while the prices of goods above 500 yuan (about $77) are dominated by international brands with the average CR3 being 36%. This shows that in the TikTok skincare industry, Chinese beauty brands tend to be affordable and friendly to consumers with a relatively weak brand concentration. The international brands tend to aim at the high-end market with a relatively high industry concentration and less competition. (CR3: Brand CR3 refers to the sum of the market shares of TOP3 brands in a certain industry.) Among the TOP50 sales of TikTok e-commerce cosmetics, the number of Chinese brands accounted for 72% with the sales revenue of Chinese brands accounting for 82%. Chinese cosmetics brands performed well. Through the analysis of brand CR3 in each price segment of the product, the brand concentration of the cosmetics industry is significantly higher than that of the entire beauty market, and users are more trusting of brands. In the part of the product price above 400 yuan (about $67), the brand CR3 is as high as 50% or more, and the advantages of Chinese brands such as Florasis, PRAMY, and MAOGEPING are becoming growingly obvious. As the portal for merchants to undertake online traffic, the most important core function of brand live streaming is product sales. However, with the normalization of live streaming e-commerce, brand live streaming has become an online real-time window for businesses to face users and industries. Judging from the number of live streaming (from June 2021 to February 2022), the TikTok beauty industry had a high output of live streaming content in the fourth quarter of 2021 and maintained a monthly increase in the fourth quarter. In 2022, due to the logistics outage during the Spring Festival and holidays, the data in January and February this year decreased slightly compared with the fourth quarter of 2021. From the perspective of live streaming, it reached its peak in October 2021 and then decreased month by month. Judging from the number of short video releases (from January 2021 to February 2022), the content release volume of short videos is relatively stable and average throughout the year with the corresponding beauty video viewing volume being also increasing, indicating that users’ demand for beauty content is still in an increasing. quantity status. TikTok e-commerce live streaming has been incorporated into the long-term planning of e-commerce business by more and more brands. It even carries some public relations and information publicity functions. Based on the "promoting goods sales field", it has also become a "detonation field" for new product incubation, user mental education and spokesperson official announcement.

Beiersdorf released its performance in the first quarter of 2022 with $2.3 billion of organic sales up 10.3%. Its high-end skincare brand La Prairie enjoyed the fastest growth. It is worth noting that La Prairie has changed its CEO to Philippe Lamy who deeply involved in China for many years. On April 28, Beiersdorf announced its results for the first quarter of 2022, with Group sales reaching €2.2 billion (approximately $2.3 billion) and organic sales up 10.3%. In the first quarter, sales in Africa, Asia and Australia amounted to €714 million (approximately $753 million), representing organic growth of 9%. Sales in Europe amounted to €993 million (approximately $10.47 billion), representing organic growth of 6.2%. Sales in the Americas amounted to €508 million (approximately $536 million), representing organic growth of 22.1%. Specifically for the consumer segment, sales in Africa, Asia and Australia were €561 million (approximately $591 million), up 10.0% organically. Sales in the Americas were €441 million (approximately $465 million), up 24.3% organically. Sales in Europe were €787 million (approximately $830 million), up 7.0% organically. Notably, Beiersdorf CEO Vincent Warnery said that the business is facing a period of exceptional economic uncertainty, given the war in Ukraine, the partial block due to the epidemic in China, and the inflationary pressure on raw material and logistics costs. Beiersdorf has now taken a number of measures to mitigate costs and will continue to invest in the CARE+ strategic plan. In 2021, the results of Beiersdorf's implementation of the CARE+ strategy include the successful expansion of the NIVEA LUMINOUS630 serum product line in Europe, the successful integration of the sunscreen brand Coppertone, the acquisition of the well-known beauty brand Chantecaille, etc. By division, organic sales of the consumer division reached €1.8 billion (about $1.9 billion), up 10.3% year-on-year. Among them, product categories such as deodorant, facial cleansing and lip care recovered significantly. Beiersdorf's core brand Nivea grew organically by 9.2% year-on-year, while the sunscreen business also showed good growth prospects. In addition, Nivea is gradually gaining market share in China and Korea. The Eucerin and Aquaphor outperformed the market in the first quarter with strong organic sales growth of 27.5%. Luxury brand La Prairie achieved organic sales growth of 11.1 percent. Growth was driven by the recovery of both North America and the brick-and-mortar business. In China, La Prairie further expanded its business, with a strong performance in travel retail around Hainan in particular. Indeed, Beiersdorf announced two months ago that Philippe Lamy will take over as CEO of its luxury beauty brand La Prairie, effective April 2. Looking at Philippe Lamy's resume, it can be seen that he has been deeply involved in the Chinese market in many companies. Earlier in his career, Philippe Lamy was Chief Operating Officer of the Chinese luxury brand "Shang Xia", a Hermès brand, for almost three years. He also spent 13 years in the L'Oréal Group, where he held various leadership positions in the Asia Pacific and Americas markets. Beiersdorf's fiscal 2021 report showed that La Prairie achieved strong growth of 20.1% in fiscal 2021, driven by the recovery of its travel retail business. In China in particular, La Prairie posted above-average sales, as well as higher levels than before the epidemic crisis at the end of 2019. The data shows that in the global market, La Prairie grew rapidly in 2017, 2018 and 2019, three years before the epidemic,with growth rates of 11.50%, 38.50% and 20%, respectively. It suffered with a decline of 23.9% in 2020. While expanding new channels, La Prairie has been maintaining strong momentum in the Chinese department store channel. A department store manager said that in recent years, La Prairie in its department store system sales have increased year after year, especially the brand's beauty workshop appointments are in short supply. The reporter also saw in the social media platform, even if La Prairie is relatively low-key, but in Xiaohongshu a large number of promotional post can be searched, especially the single product are sold for more than 10,000 yuan of Platinum Rare Haute-Rejuvenation Elixir series, which also gained widely acclaimed. In addition to the strength of high-end skin care La Prairie, Beiersdorf also expanded the layout of the entire group. At the end of last year, Beiersdorf announced the acquisition of Chantecaille Beaute Inc, the parent company of the expensive beauty brand Chantecaille, and would operate independently under the Beiersdorf Group. Prior to this, Beiersdorf has successively acquired the U.S. sunscreen brand with Coppertone, skin care brands Skin Stories, CHAUL and O.W.N, and the German natural personal care brand STOP THE WATER WHILE USING ME! At present, Beiersdorf Group already owns 20 brands.

Recently, the China International Import Expo announced the two themes of the 5th CIIE Beauty and Daily Cosmetics Zone as "Green and Sustainable" and "Beauty Black Technology". It is worth mentioning that the Fifth China International Import Expo released the buyer's intention to demand for the first time. In this way, exhibitors will be able to find new business opportunities and promote new cooperation more efficiently. Recently, the online promotion meeting about beauty and daily chemical products in the consumer goods exhibition area on the 5th China International Import Expo was successfully held. At the promotion meeting, the 5th China International Import Expo announced the two themes of the beauty and daily chemical products zone of the fifth CIIE as "green and sustainable" and "beauty black technology". This year, the special zone will carry out a series of theme activities around hot topics such as "beauty technology" and "green and low carbon" to comprehensively enhance the sense of participation and gain of exhibitors and visitors. Liu Fuxue, deputy director of the China International Import Expo Bureau, pointed out that the import expo will also usher in the fifth year, so it is of extraordinary significance to run the fifth import expo well. The current preparatory work is steadily advancing, enterprises are actively participating in the exhibition and the signed area exceeds the planned area by 70%. With the improvement of the income and living standards of Chinese residents, the consumption trend is moving from "demand consumption" to the era of "quality consumption". It is believed that the imported beauty skincare market in China will continue to expand in the future. The China International Import Expo is the world's first national exhibition with import as the theme. The total exhibition area of the fourth CIIE enterprise exhibition is 366,000 square meters, with an over 80% return rate of the world's top 500 and industry-leading enterprises, over 2900 enterprise exhibitors, and a one-year intentional transaction amount of $70.72 billion. In the special area of the beauty and daily chemical products of the 4th CIIE, L'Oréal won the first place with a large advantage and 39.27 in popularity. L'Oréal Group's five new brands were all unveiled, "lipstick printers that can print thousands of colors", "water-saving shampoo and hair care artifacts with up to 80% water saving" and other "black technology" new products appeared at the Expo, which attracted many exhibitors to stop. Shiseido brought the blockbuster skin beauty technology "Daily Throwing Muscle", the new oral beauty brand INRYU, the pure skincare brand Drunken Elephant, and more than ten debut new products of its 13 popular brands, attracting the attention of many media, prompting its popularity to reach 17.93, ranking second in the rankings. At present, the 5th China International Import Expo confirms that L'Oréal Group, Procter & Gamble, Unilever, Estée Lauder, Shiseido, Kao, Amorepacific, KOSE, Coty, and many other global cosmetics companies are participating in the exhibition. It is worth mentioning that the Fifth China International Import Expo released the buyer's intention to demand for the first time. In this way, it will help exhibitors to find new business opportunities and promote new cooperation more efficiently, help supply and demand sides to find "connection points" more accurately to achieve a new situation of mutual promotion and progress. The first batch of buyer intentions released mainly came from the central enterprise trading group, the China Health Commission trading group, the Beijing trading group, the Zhejiang trading group, the Jiangxi trading group, and the Gansu trading group, covering all 6 exhibition areas, including 35 categories and 194 products. The second batch of buyer intentions and demands mainly comes from the central enterprise trading group, the Chinese health commission trading group, the Liaoning trading group, the Hubei trading group, the Yunnan trading group, and the Ningxia trading group, involving 28 categories and 140 kinds of products. Among them, the first batch of Zhejiang trading group procurement demands includes daily chemical supplies and cleaning kits. Jiangxi trading group wants to purchase beauty products. Gansu trading group procurement needs involve skincare products, perfumes, and detergent supplies. The second batch of Liaoning purchasing groups wants to purchase daily chemical fast-consuming products. Hubei trading group purchases skincare products and maternal and infant products. It is reported that the 5th China International Import Expo was held at the National Exhibition and Convention Center (Shanghai) from November 5 to 10, 2022 Beijing time.

The revenue of Shanghai Jahwa, a Chinese cosmetics company, was about $319 million in the first quarter, an increase of 0.11% year-on-year, with the net profit attributable to shareholders of listed companies being about $29.95 million, an increase of 17.81% year-on-year. Shanghai Jahwa has several brands such as MAXAM, Herborist, and Dr.Yu. On April 28, Beijing time, Shanghai Jahwa, a Chinese cosmetics company, released the first quarter of the 2022 performance announcement. During the reporting period, the company achieved approximately $319 million of revenue, an increase of 0.11% year-on-year, with an approximately $29.95 million net profit attributable to shareholders of listed companies, an increase of 17.81% year-on-year. The net profit after deduction of non-recurring gains was approximately $32 million, the highest in nearly 23 quarters. Shanghai Jahwa focuses on three major areas of beauty, personal care, and family care, and maternal and infant, which has brands such as MAXAM, Liushen, Herborist, Giving and Dr.Yu. In terms of the category, the revenue of the Shanghai Jahwa skincare products declined in the first quarter, down about 18% year-on-year. The income of the personal care category increased by 10% year-on-year and the income of the maternal and infant categories increased slightly year-on-year. According to the brand, Liushen reached a double-digit growth and Dr.Yu is on par with last year, while other brands have shown different degrees of decline, with HomeAegis and Giving having a double-digit decline. In terms of the channel, in the first quarter, the online business e-commerce channel was negatively affected by the live streamer influencers, the revenue of the special channel business fell by more than 40% year-on-year, the growth rate of the commercial supermarket revenue in the offline business was about 10%, the revenue of the department store business was basically on par with last year, the community income fell by 40% and the revenue of the CS channel fell by about 20%. Shanghai Jahwa revealed: "In the first quarter of this year, the company's channels were affected to varying degrees by the epidemic, special canal adjustment and the lack of live streamer influencers.” Since February this year, Shanghai Jahwa has been deeply affected by the epidemic. With the headquarters based in Shanghai, shanghai Jahwa's has been in the center of the epidemic storm with its online business and offline business having been affected to varying degrees. Due to the lockdown of the epidemic in Shanghai, the traditional CS, department stores and Watsons stores in Shanghai Jahwa have a rate of nearly 30% of closing down. In addition, the impact of the epidemic, logistics suspension and the fact that the delivery warehouses cannot be delivered led to a soaring product return rate and a decline in revenue. Since the reform of Shanghai Jahwa last year and the transformation of the retail business, the first half of this year has been still facing the year-on-year pressure of a high base in the same period. However, the retail business of the Shanghai Jahwa special channel has recovered at double-digit growth and the overall business is expected to stabilize in the third quarter of this year. For the lack of live streamer influencers, Shanghai Jahwa has adjusted its channel strategy and structure since the end of last year to resist the adverse impact of the lack of live streamer influencers. During the reporting period, excluding the factor of the lack of live streamer influencers, the operating income of Shanghai Jahwa E-commerce increased by about 13% year-on-year, with the self-streaming GMV increasing by 615% year-on-year, accounting for more than 16% of the overall e-commerce, and some brands exceeding 30%. It is expected that with the optimization of the company's e-commerce and the improvement of operational capabilities, it is expected to see the initial adjustment results in the third and fourth quarters of this year. According to reports, in the next second quarter, Shanghai Jahwa will continue to promote brand value improvement through events like key activities and word-of-mouth marketing and will also respond and promote synchronously with the recovery of the channel's ability to undertake product sales. In addition, the online team actively tries to explore the family environment to carry out live streaming. It has increased the promotion of the home platform offline in supermarkets and Watsons and has also promoted the design of the epidemic prevention product group set page activities on community group buying, online stores, and home platforms. At the same time, it stocks up for dealers in advance to ensure that out-of-stocks are reduced as much as possible when the epidemic affects logistics operations.

Recently, LAF released its 2021 financial report with its net profit falling by more than 40% year-on-year. With Lafang as the core brand of LAF, a Chinese shampoo brand, which once had daily sales of more than 140,000 yuan (more than $21,200) and won the title of "king of Chinese shampoo". Recently, LAF released its 2021 financial report, with about $168 million in sales revenue in 2021, an increase of 11.91% year-on-year, with approximately $10.51 million in the net profit attributable to shareholders of listed companies, down 40.98% year-on-year. Among them, the sales revenue of the daily chemical business reached about $167 million, an increase of 11.81% year-on-year, with a 51.12% of gross profit margin. According to the official website, founded in 2001, LAF is a personal care products enterprise integrating research and development, production, sales, and independent brands and is one of the leading enterprises for washing shampoo of national brands in China. According to the financial report, Lafang and RACLEN are still the main sources of income for LAF, with sales revenue of $115 million, accounting for 68.78% of the total revenue. According to the official website of LAF, Lafang is the national leading brand of Chinese shampoo. Over the years, the brand has collaborated with the internationally renowned suppliers of Germany Symrise, German WACKER, Switzerland Givaudan, and other strategic cooperation in selecting global high-quality raw materials, spending huge sums of money to create fully automated production equipment and GMP production environment, with the air cleanliness reaching 100,000 levels and reaching the pharmaceutical-grade standards. In terms of research and development, Lafang joined hands with the Chinese Academy of Sciences to establish Lafang Hair Research Institute, Lafang International Daily Chemical Research Center, Guangdong Cosmetics Engineering Technology Center, and established Lafang Postdoctoral Research Workstation in 2018, applying for 146 authorized invention patents. In the early years, the two advertising slogans "Love Life, Love Lafang" and "Lafang, create the beauty of Chinese hair" were almost well-known in China. In the era of the star economy boom, Lafang invited stars including Zheng Xiuwen, Ren Xianqi, Zhao Wei, Yang Mi, An Yixuan, Sun Honglei, Tang Yan and other stars to endorse and cooperate, and quickly made fame for the brand. In the supermarket, Lafang products at that time were piled up on the shelves and could compete with international giants such as Procter & Gamble and Unilever. From 2014 to 2016, the market share of Lafang's washing and care products ranked sixth for three consecutive years, ranking first among domestic brand enterprises. For a while, Lafang won the reputation as "the first brand of Chinese local shampoo" and "the king of China's domestic shampoo". In 2015, in July, which was recognized as the sales off-season of the daily chemical industry, Lafang launched three large-scale promotional activities in three different regional systems across the country, achieving sales of more than 2 million yuan (over $300,000) in 14 days, which means that the daily sales of these three regions exceeded 140,000 yuan (over $21,200). During the event (from June 26 to July 9), the highest sales revenue of some stores exceeded 100,000 (over $15,200). At that time, Lafang was dominated by traditional retail methods, with sales revenue contribution of dealer channels and supermarket channels reaching 70.78% and 24.2% respectively in 2016. In 2017, Lafang's parent company LAF entered the capital market and was successfully listed, with a market value of up to 12 billion yuan (over $1.82 billion) at that time, laying the foundation for Lafang's status as a "giant" in China's shampoo industry. However, as the competition in China's shampoo market has become more intense, and the rise of e-commerce platforms, the over-reliance on the dealer model has become a drawback for Lafang. A large wave of overseas brands have begun to show up among Chinese consumers through cross-border e-commerce channels, and local brands such as seeyoung and KANS have also won a place for themselves with innovative concepts such as "silicone-free oil". In contrast, Lafang failed to adjust the strategy of channels, marketing, products, etc., so it encountered a series of problems such as ageing product channels, low-end products, and lack of innovation. In recent years, from the series of operations of Lafang's parent company LAF, the company seems to have decided not to rely solely on the main brand Lafang, but to carry out other aspects of the layout to save itself. For example, the traditional washing and care brand will be upgraded to the high-end and youthful direction, and a number of high-end shampoo sub-brands such as Mese, Taoran, MLESNA, Jiaocaotang, and so on have been launched. It intervenes in the field of beauty and skincare products through independent research and development, overseas brand agency, outsourced production, and other ways. In 2019, China's domestic animation NE ZHA: I am the destiny became popular. La Fang first obtained the exclusive authorization of the shampoo category of NE ZHA: I am the destiny, and officially launched the Nezha joint brand new product at the Double Eleven shopping festival in 2019, which brought a wave of heat and exposure to Lafang. A series of adjustments to LAF have also been successfully reported accordingly. LAF's 2020 annual report shows that the company's annual net profit increased significantly by 135.72% to over $17.76 million thanks to the "combination fist" layout of products and channels. According to the annual report data, the net profit of LAF fell by more than 40% in 2021, but the company did not explain the reason in the financial report. But in any case, today's Chinese shampoo industry competition is becoming increasingly fierce, which can be described as not advancing or retreating. As the former "king of domestic shampoo", there is still a long way to go for La Fang who wants to take a place.

Tmall Global 2022 Online Trend Report of the Beauty Hair Care Industry: For shampooing, the trend towards getting some volume on the top to make hairs look thicker and fuller, preventing hair loss and growing fresh hairs anew, and having a high-luxury shampooing experience has gained positive results. For hair care, the trend towards all-around hair care, hair loss prevention, high-luxury washing, the integration of hair dyeing and hair caring and nourishment and smoothness has gained positive results as well. With the improvement of consumer economic ability and the increase in demand for personalized services, the hair beauty and hair care industry is about to stage a hot war in the Chinese market. From the perspective of consumer demand, Chinese consumers have increased their demand for hair care as they hope hair beauty and hair care can be integrated. Consumers both desire a good-looking style and good hair care, not hoping to sacrifice hair quality for beauty. Recently, China's mainstream e-commerce platform Tmall released the 2022 Online Trend Report on the Beauty and Hair Care Industry, from scalp care, which explains the development space of China's future washing and care market from 5 trends: scalp care, high-luxury washing, oil control and fluffiness, hair care and hair dyeing. The report shows that the annual turnover index of China's shampoo market increased by 12.3%, the annual turnover index of China's hair care market increased by 28.7%, the annual turnover index of China's hair beauty market increased by 4.7%, and the annual turnover index of China's overall hair beauty and hair care market increased by 12.3%. From the perspective of the overall growth contribution rate of the hair beauty and hair care market, the contribution rate of the unit price of goods is much higher than the contribution rate of the number of purchasers and the purchase volume of single customers. This is due to the increasing demand for scalp and hair and the demand for scalp cleaning and care products are rising, consumers have begun to treat scalp care as important as skincare. In addition to hair repair, experiential care is important as well, so the demand for the texture and fragrance of the product is getting higher and higher. Hair care has been able to continue to grow at a high level mainly thanks to high-end line products. According to the report, in the overall population of hair care in China, 70% of the buyers on Taobao and Tmall are women, with the largest group of the young group aged 18 to 34. The proportion of consumers in China's first- and second-tier cities is 45%. At the same time, the data also shows that high-income people account for nearly 50%, high-consumption groups reach 25%, and people with a bachelor's degree or above account for more than 50%. In summary, the group of highly educated, high-income young women is the core group of hair beauty and hair care. From the perspective of the segmentation of consumer demand, in the past, hair care was divided into shampoos and care products, and now they are more and more finely divided, such as shampoos with different textures, distinctions on different parts of the body, such as scalp and hair targeted different shampoos. Care is also divided into essential oils, lotions, and hair spray products, which form the needs of washing and care into a particular segment. From the perspective of shampooing, women for shampoo products account for nearly 70% of China's mainstream e-commerce platforms Tmall and Taobao, it is universal as a whole. Women account for 80% of Tmall Global, with a more high-end population compared with the overall hair care market. From the perspective of hair care, women account for nearly 80% of Tmall and Taobao, women account for 91% of Tmall Global with younger crowds. From the perspective of hairdressing, the crowd on Taobao and Tmall is more dispersed and has both the demand for covering white hair and fancy hair dyeing. The female population for hairdressing accounts for 89% of Tmall Global with a younger group. The report points out that with the increasing maturity of the hair washing and care market and the continuous self-growth of consumers, the criteria for everyone to choose products are far more than basic functions, which can bring added value, such as making hairs look thicker and fuller, preventing hair loss and growing fresh hairs anew and having a high-luxury shampooing experience, which has also become important factors in shaping the advantages of products. Moreover, under the concept of exquisite from head to toe, consumers are also more and more concerned about every hair. Rare product ingredients and the integration of beauty, medical beauty, and high-end ingredients into hair care products have also attracted the attention of consumers. At the same time, young people who pursue trends and aspire to achieve "hair color freedom" as well as middle-aged and elderly people who have the demand to dye black are more inclined to choose natural hair dyeing products that are not stimulating, safe, and the combination of dyeing and hair care. Note: The data in this report is available for the most recent year ending in March 2022.

South Korean cosmetics giant Amore Pacific Group released its earnings for the first quarter of this year, showing sales and operating profits of $997 million and $136 million, down 9 percent and 13.4 percent, respectively YOY. On April 28, Amore Pacific Group announced key figures for Q1 FY2022, with the Korean beauty giant reporting sales of $997 million, down 9% year-on-year, operating profit of $136 million, down 13.4% year-on-year, and net profit of $104 million, down 25.2% year-on-year. The earnings report noted that domestic sales in Korea continued to account for the largest share of sales at 62.9%, down 9.9% year-over-year, while overseas sales fell 6.1%. In addition, in its fiscal 2021 earnings report, it noted that the Korean beauty giant's sales rose 8% to $4.26 billion in 2021, which ended on December 31 last year, while operating profit soared 136.4% to $286 million, with sales up 8% year-over-year to $4.2 billion and net profit of $240 million, a 1224% jump compared to 2020. For the reason that its revenue decreased by 10%, Amore Pacific Group said pure domestic (Korean) revenue increased from strong online sales growth (over 20%) but travel retail revenue declined by double digit (24% of total revenue). In the first quarter of 2022, group revenue in Asia fell 10% to $300 million due to revenue decline from the resurgence of COVID-19 and restructuring of offline stores. Notably, in Asia, Amore Pacific's premium brand Sulwhasoo contributed accounting for 35% of its Luxury Subsidiary. Sulwhasoo strengthened representative anti-aging solution line of Sulwhasoo strengthened its representative anti-aging solution line of "Concentrated Ginseng Renewing Serum Ex, eye cream". In its Premium Subsidiary, the online sales grew by double digit and continued strong growth with its brand Laneige accounting for 14%. Laneige nurtured the engine product category by renewing major products and launching limited editions including 9 products of "Water Bank Blue Hyalruronic" with innovative design and ingredients. In its financial report in the fourth quarter of 2021, Amore Pacific noted that revenue in China declined by about 10% in won terms, but that sales of Sulwhasoo increased by more than 30%, with strong sales of the Sulwhasoo concentrated ginseng renewal line during the Double 11 period. In its financial report in Q1 of 2022, China revenue declined by 10% in Korean won due to its offline sales decreased as some stores were temporarily closed for the resurgence of COVID-19 but Sulwhasoo sales grew by nurturing the "Concentrated Ginseng Renewing" line and solid growth from the online channel. It is worth mentioning that in this financial report, its brand Innisfree achieved $56 million with a decrease of 19.3%. Innisfree reinforced high functional product category portfolio with Black Tea/Retinol Cica ampoule and the reason for revenue decline was sales Innisfree reinforced high functional product category with Black Tea/Retinol Cica ampoule and the reason revenue decline was sales in the travel retail channel. At the beginning of this year, it was announced that Innisfree would be "withdrawing stores" in China, with the number of stores eventually shrinking to about 140. According to relevant information, at its peak, Innisfree had more than 600 stores in China. In other words, compared with the peak period, the withdrawal rate of stores was as high as 77% today. In response to the news of store closures, the person in charge of Amore Pacific said that the group is optimizing the channels of the brand, and such store adjustments will continue in 2022. The person in charge also said that the Amore Pacific Group will make a new round of strategic adjustments for the Chinese market, but only for the optimization and reduction of the stores of Innisfree, not involving other brands. As a matter of fact, Innisfree is not the first Amore Pacific brand to close a large number of stores in the Chinese market. Etude, one of the group's brands, closed all its offline stores in China in March 2021, retaining only its offline beauty collection point, the "Colorist" channel, and switching to online operations. According to its official website, Etude entered the Chinese market in 2013, and at its peak, it had opened 58 directly-managed stores in 25 cities, including Beijing, Shanghai, Guangzhou and Wuhan. However, the Group also has its own plan for its brand Innisfree and Etude. According to the Group’s news, Innisfree enhanced awareness of the high functional category through various collaborations with influencers(Na-yong Kim, Kangna, etc.) and launched “No-Sebum & Peanuts Edition”(IP collaboration). Etude released additional colors of “Fixing Tint”, a popular lip product within major multi brand shop channels and launched “Play Tone Eyes”, a joint production with Youtube influencer Jeyu and collaboration products with “Loacker” brand.