COSMAX, a cosmetic manufacturer development and manufacturing (ODM) company, achieved sales revenue of $1.265 billion, up 15.1% year on year. COSMAX is developing an OBM business based on traditional ODM, aiming to help new customers in the beauty industry solve the initial problems in the beauty industry. COSMAX, a Korean OEM/ODM company specializing in cosmetics, health function products and pharmaceuticals, announced its annual report showing that in 2021, COSMAX achieved sales revenue of $1.265 billion, up 15.1% year-on-year; operating profit of $85 million, up 367% year-on-year and its net income of $390 million, up 255% year-on-year. COSMAX' sales in China were $515 million, up 39% year on year, accounting for 40.89% of total sales. Among them, COSMAX (China) Cosmetics Co., Ltd. had sales of $403 million, up 50% year-on-year, while COSMAX Guangzhou had sales of $111 million, up 9.55% year-on-year. Founded in 1992, COSMAX has branches and factories in Korea, Shanghai and Guangzhou, Indonesia, Jakarta, Ohio, and other parts of the world, providing services for L'Oreal, Amore Pacific, LG and other global cosmetics groups, involving more than 300 brands. According to public information, COSMAX has officially established factories in China since 2004 and currently has 2 factories in Shanghai and Guangzhou respectively. On October 29, 2021, the monthly output of the COSMAX Shanghai factory exceeded 50 million units. Together with the Guangzhou factory, the monthly output was close to 70 million units, setting a record for the highest monthly output of COSMAX Group. In addition, COSMAX has built R&D centers in each of the two factories with a total of 350 R&D staff. On the whole, the COSMAX R&D center is divided into the skincare product R&D department and the cosmetics R&D department, which are responsible for the research and development of new formulations and new dosage forms for skincare and color cosmetics products respectively. It is worth noting that in addition to its own continuous R&D exploration, COSMAX has also established partnerships with universities and research institutions to further enhance its own R&D strength by absorbing external research strength. According to the introduction, COSMAX has established cooperation with Jiangnan University, Beijing Technology and Business University, Shandong University, Shanghai Institute of Technology, Southwest Minzu University and other universities. With the scientific research platform of universities, COSMAX can transform and apply the laboratory technology results, and jointly develop market competitive products for downstream brand customers. These collaborations with universities also have their own focus. For example, in the cooperation between COSMAX and Jiangnan University, the two sides mainly cooperate extensively in the field of cosmetics and its core ingredients and set up the "COSMAX (China) Cosmetics Co. In the cooperation with Shanghai Institute of Technology, the two sides established and operated the joint laboratory of Shanghai Institute of Technology and COSMAX(China) Cosmetics Ltd. based on the Collaborative Innovation Center of the Ministry of Fragrance, Flavor and Cosmetics, aiming at comprehensive cooperation in scientific and technological innovation, product performance and efficacy evaluation, and personnel training. It is worth noting that Zhang Liuyang, the OBM team leader of the strategic marketing department of COSMAX (China) Cosmetics Co., Ltd. said "COSMAX is developing OBM business based on traditional ODM, aiming to help new customers in the beauty industry to solve the initial problems in the beauty industry and the needs of those who have been working in the beauty industry for years and want to seek new changes. At the front end of the brand, we give our customers the greatest support." COSMAX announced on the 11th the launch of "COSMAX Plus", a platform where cosmetic development can be sought online. Through COSMAX Plus, customers can choose to seek cosmetic development under the ODM or OBM (manufacturer brand development and production) method, and COSMAX researchers will begin product planning after receiving various questionnaire application documents from customers. COSMAX also plans to increase opportunities for collaboration with new companies, influencers and celebrities that have not been exposed to cosmetic development through its online platform. Through digital transformation, we will continue to ensure that our services that transcend the constraints of time and space lead in a big way," said COSMAX CEO Li Bingwan, "We will proactively respond to future market changes by providing new digital experiences for our customers and helping them stay ahead of the trends ". It is worth mentioning that from January 1, 2022, newly recorded cosmetics must be evaluated for "cosmetic efficacy claims". To respond to customer needs in time, COSMAX has also taken several initiatives in response to this new regulation, such as building and operating an in-vitro efficacy laboratory in addition to the existing in-house clinical efficacy evaluation group, and evaluating various types of efficacy at the cellular level.

Global fragrance and perfume supplier Symrise disclosed its financial report of the first quarter in 2022 with its sales rise of 14.9 percent to $1.16 billion up 14.9%. Lao Shuquan, Sales and Marketing Director of Symrise Greater China, the Chinese cosmetic industry has grown rapidly in the last 10 years thanks to both the huge consumer market and consumer upgrading. On April 27, 2022, Symrise, a global fragrance and perfume supplier, has released its financial report of the first quarter in 2022(from January to March in 2022). It showed that its sales growth up by 14.9% in reporting currency during first quarter and the group sales increased to $1.16 billion with organic growth of 8.3%. The group commented on its performance in Q1 of 2022 as made a successful start into fiscal year 2022. And it targeted for 2022 and medium-term goals until 2025 confirmed as it continued to target organic sales growth of 5 to 7 % with an expected EBITDA margin of around 21 % for the current fiscal year. The ordering behavior of our customers clearly indicates that consumers have once again become more active with the reduction of many Coronavirus restrictions. This applies to travel and to areas like gastronomy and leisure. As a result, demand has increased for application areas such as sun protection and fine fragrances” said Dr. Heinz-Jürgen Bertram, Chief Executive Officer of Symrise AG. “As the year progresses, we will see an increased level of volatility in the business environment due to the war in Ukraine and the ongoing battle against the pandemic. Nevertheless, we expect reliable demand and are convinced that we are well positioned for the coming months. In terms of segments, Scent&Care, the fragrances, perfumery applications and cosmetic ingredients business, generated sales of $441.8 million and grew by 12.4 % (Q1 2021: $393.2 million) year-on-year. Sales increased organically by 4.9 %. In the financial report, Symrise still remains highly expectation to its future. It stated that in spite of the current volatile market environment resulting from the war between Russia and Ukraine, the global supply disruptions and the ongoing tangible impacts of the Coronavirus pandemic, Symrise considers itself well-positioned to continue its profitable growth course. The company has confidence in its robust business model, its diversified portfolio of applications and its broad regional presence and customer base. Symrise is a global supplier of fragrances, flavors, cosmetic active ingredients and raw materials, and functional ingredients for food to customers in the fragrance, cosmetics, food and beverage, and pharmaceutical industries, as well as nutritional supplement and pet food manufacturers. Having been in the Chinese market since 1982, Symrise's long experience in innovative research and development has met the cosmetic industry's need for cutting-edge, effective and proven ingredients. According to Lao Shuquan, Sales and Marketing Director of Symrise Greater China, the Chinese cosmetic industry has grown rapidly in the last 10 years thanks to both the huge consumer market and consumer upgrading, as well as the joint efforts of all upstream and downstream companies. Symrise keeps up with the development of the Chinese market and continues to cultivate the Chinese market, and now China has jumped to be the third largest market for Symrise in the world. In addition to serving multinational beauty groups such as L'Oreal, P&G and Johnson & Johnson, Symrise also pays more and more attention to emerging beauty brands in China, and has entered into close cooperation with SkinFuture, Lucenbase, WIS and Saselomo, expressing its confidence in long-term development and deep localization in China. Symrise also vigorously develops its fragrance market in China. On May 18, 2020, the company announced on its official website that it opened its largest personal investment, investing $52.73 million in a new production site for flavors and fragrances in Nantong China. The company said that Asia remains the center of growth for the global economy. It makes sense to expand the production of spices and condiments in the rapidly expanding Chinese market. Over the past decade, the company has grown by an average of about eight percent a year. China accounts for six percent of total sales, making it Symrise's third largest revenue-generating market after the United States and Germany. Yao Wenzhong, vice president of Northeast Asia for Symrise Shanghai, has said that "unlike the fragrance category, which has an uncertain future, home fragrances, especially flameless fragrances, have a better future." He explained that the frequency of Chinese consumers use perfume is too low, but the fragrance itself has the characteristics of volatile, natural consumables. Once consumers open and use it, it is easy to form a habit and repurchase, and the consumer stickiness is relatively strong. China's leading omnichannels brand management company for beauty and optical products, Eternal Group, has released a White Paper on China Fragrance Industry Research, which indicates that fragrance has become the fastest growing segment in the global cosmetics category. The Chinese fragrance market is even at a fast speed. In the next five years, China is expected to become one of the most important incremental markets in the global fragrance market. oIBP data showed that the Chinese perfume market has a compound annual growth rate of 14.9% from 2015 to 2020, and is expected to be 225% in the next five years. By 2025, the retail sales of the Chinese perfume market will reach $4.548 billion, while the global market will grow at a compound rate of about 7% in the next five years reaching $65.51 billion in 2025. The comparison showed that in the next few years, the growth rate of the Chinese market will be about three times that of the global market with huge development potential. International cosmetic giants are even betting resources in the Chinese market to strengthen the layout of their brand matrix. Editions De Parfums Frederic Malle, By Kilian of Estee Lauder Group entered China in 2020. L'Oréal Group's MUGLER, VIKTOR&ROLF entered China in 2021, and Maison Margila entered China in 2019. Eternal Group's analysis of the Chinese perfume market showed that the high-end perfume market has huge growth opportunities and new brands are ushering in a more friendly development environment (more open attitude of consumers). To be commercially successful, brands need to establish a clear brand positioning and build a stronger emotional connection with consumers. Brands should also actively embrace digital technology to create the ultimate experience.

On April 27, the Chinese cosmetics company S'YOUNG released its 2021 annual financial report with its net profit increasing by nearly 70% year-on-year. S'YOUNG's core brand UNIFON also achieved more eye-catching results in 2021. Founded in 2006, UNIFON is positioned as a national skincare brand that inherits the culture from the flourishing period of the Tang Dynasty. In 2016, the revenue of UNIFON was close to 1 billion yuan (approximately $151 million). And during the Double Eleven shopping festival in 2020, UNIFON's best-selling products achieved a proud result of selling 100,000 bottles in 1 minute and 17 seconds. In 2021, S’YOUNG achieved sales revenue of $758 million, an increase of 34.86% year-on-year, with a $35.7 million of net profit attributable to shareholders of listed companies, an increase of 68.54% year-on-year. S’YOUNG said that the main reason for the growth of revenue, net profit and net profit attributable to shareholders of listed companies in 2021 is the continuous growth of its brand and the rapid growth of its agency business. At the same time, the product structure improvement has improved the gross profit with an increasing level of profitability and a positive operating situation. It is understood that UNIFON is the core brand of S’YOUNG. S’YOUNG said in the annual report that in 2021, UNIFON is committed to promoting the precipitation of brand equity, the creation of production systems, and the expansion of Omni-channels. In terms of brand, UNIFON deepened the transmission of the culture from the flourishing period of the Tang Dynasty, focusing on combing the brand management system, continuously strengthening brand awareness, and systematically enhancing brand perception. In terms of products, in collaboration with the academician Chen Jian of the engineering academy, they broke through the technical barriers of hyaluronic acid, created the industry's smallest molecular weight of 800 Da hyaluronic acid, and launched a micro-800 hyaluronic acid repair secondary ejection essence. UNIFON continued to promote the intensity of scientific and technological innovation and the research and development of products. In terms of channels, the omnichannel operation ability of UNIFON has been further improved. It has set up a channel benchmark on TikTok to create the top 1 beauty activity on the platform. It has deeply cooperated with Xinxuan on Kwai to create the top 3 domestic beauty products on the platform. In VIPs, it has topped the annual ranking of mask brands and also won the Excellence National Tide Mask Gold Award on the top List on JD.com. At the same time, under the influence of the epidemic, offline channels still doubled, and the sales of masks ranked in the top two in the share of Watsons domestic products. Founded in 2006, UNIFON is positioned as a national skincare brand that inherits the culture of the flourishing period of the Tang Dynasty. In 2007, UNIFON was mainly based on online channels, relying on Taobao, with e-commerce traffic dividends, online sales continued to soar, and even once contributed more than 90% of UNIFON's sales, becoming a popular star brand on Taobao. On the day of the Double Eleven shopping festival in 2016, the sales of UNIFON exceeded 100 million yuan (over $15.13 million) and won the championship among mask categories. The number of followers on Wetao exceeded 3 million, ranking first in the skincare category in the country. According to the listing prospectus of S’YOUNG, the sales revenue of UNIFON reached 958 million yuan (approximately $145 million) in 2016, accounting for more than 80% of the main revenue. However, with the weakness of online traffic, and e-commerce channels for several cosmetics, especially mask brands, the dividend period is no longer obvious and products have entered the era of low profits. According to the data disclosed by Taobao and Tmall and Everbright Securities Research Institute, the sales volume of the flagship store of UNIFON on Tmall began to decline to various degrees from negative 18.21% to negative 60.13% from December 2018 to June 2019. Since then, UNIFON has made adjustments in a variety of ways by striving to create hot products and increasing marketing expenses. It created a joint model with the internet popular milk tea brand "cha yan yue se" and carried out brand upgrading and transformation. From some data in recent years, it has made small achievements. During the 2020 Double Eleven shopping festival, the Amino Acid Mask was sold 100,000 bottles in 1 minute and 17 seconds with the cumulative sales revenue of this single product exceeding 7 million bottles throughout the year, becoming a genuinee "mask sales champion". UNIFON has once again become the first brand in the annual mask sales on Tmall. In 2021, UNIFON won the "Golden Makeup Award on Tmall", and its single amino acid essence mask stood out from many brand masks and won the "2021 Mask of the Year Award". In October 2021, the live streaming influencer Dandan on Kwai released a new product of UNIFON in live streaming: FIRMING GINSENG SNAIL SLEEPING MASK. Due to its high-end quality and many advantages such as giveaways, the product sold out 53,000 singles after going public, with a single sale's revenue of more than 20 million yuan (about $3.03 million).

In the first quarter of 2022, the Chinese cosmetics company BOTANEE GROUP reached about $122 million of sales revenue, an increase of 59.32% year-on-year, with about $22.08 million of net profit attributable to shareholders of listed companies, an increase of 85.74% year-on-year. Founded in 2010, BOTANEE GROUP has several brands such as WINONA, BEAUTYANSWERS, DOU DOU KANG, Zirun and so on. On April 27, Beijing time (the time of this article is Beijing time), China's big health industry group BOTANEE GROUP released the first quarter report of 2022. During the reporting period, the company's total revenue in the first quarter exceeded $122 million, an increase of 59.32% year-on-year, with a $22.08 million net profit attributable to the parent company, an increase of 85.74% year-on-year, with a $19 million of the non-net profit attributable to the parent company, an increase of 61.82% year-on-year and a $95 million of gross profit, an increase of 58.65% year-on-year. Judging from the first-quarter financial report data of the past 3 years, BOTANEE GROUP has always maintained rapid growth in revenue and net profit. Especially in the first quarter of this year, BOTANEE GROUP's net profit attributable to the parent company maintained a super high growth rate of more than 85%. It is mainly because the company put "WINONA" as the core and continues to innovate products so that brand awareness and customer trust are further improved, sales scale and sales revenue growth are relatively fast. All along, BOTANEE GROUP has been based on the development strategy of "focusing on the main brand and expanding sub-brands". In 2022, BOTANEE GROUP continued to focus on the main brand "WINONA" and consolidated its "soothing sensitive skins" series as the leading skincare product in China. Citing Euromonitor's statistics, BOTANEE GROUP shows that WINONA ranks first in the Dermatological Skincare Products Chinese market, with a market share increase of about 2% in 2021 compared with 2020, with a significant effect. In addition, BOTANEE GROUP has always regarded R&D innovation as the engine of enterprise development. In the first quarter of 2022, the R&D expenditure was $4.69 million, an increase of $1.23 million over the same period last year, an increase of about 35.71%. At present, BOTANEE GROUP has set up R & D centers in Shanghai and Kunming, and at the same time it set up a Yunnan characteristic plant extraction laboratory at the end of 2021, focusing on Yunnan characteristic plant industry, tackling core technologies, jointly building shared scientific research facilities, to realize the whole chain of transfer and transformation of scientific and technological achievements, an open first-class innovation and entrepreneurship ecology. It is worth noting that BOTANEE GROUP's net cash flow from operating activities in the first quarter was negative, down 429.12% from 2021 to negative $25 million. Among them, the cash outflow from operating activities in the first quarter was $161.86 million, an increase of about 70.41%. This is mainly due to the combined impact of BOTANEE GROUP's payment of procurement of means of production and production services by the supply chain plan, as well as the company's targeted brand image promotion and continuous accurate investment in e-commerce channel expenses, as well as other increases in operating expenses. As of 15:00 on April 28, 2022, BOTANEE GROUP was quoted at $30 per share, with a total market capitalization of $12.645 billion.

Chinese skincare brand PMPM released an article on its WeChat public account entitled "Self-Introduction: Take You to See the Story Behind PMPM", revealing how the brand makes products. The PMPM product was officially launched in March 2020, and it can be said that it suffered from the impact of the covid-19 virus when it was launched. But the brand was unstoppable, and the GVM exceeded 300 million yuan (about $45.76 million) in the first year of the product listing and completed three financings in one go. In the next year, PMPM's GMV exceeded 1 billion yuan (about $153 million). PMPM is a skincare brand of PMPM E-commerce Co., Ltd., which was established in October 2019. PMPM products were officially launched in March 2020, but it encountered the threat of the epidemic at the beginning of its launch, but the brand still achieved rapid growth. From its launch to the Double Eleven shopping festival in 2020, the brand exceeded 100 million yuan (over $15.17 million) in sales in less than 6 months with the GMV exceeding 300 million yuan (about $45.76 million) in the first year. In the subsequent 2021, PMPM participated in the "618 (June 18) shopping festival" for the first time and exceeded more than 110 million (about $16.78 million), and the main lotion set and essential oil ranked top 1 and top 2 in the sales list. Since February 2021, PMPM has exerted its strength on the self-streaming of TikTok E-commerce. The brand self-streaming has become a basic sales resource of TikTok E-commerce with a high frequency and normalized streaming mode. From February 8 to February 14, TikTok E-commerce launched the Innovative Brand Week, in which PMPM with the hashtag "no distant place that cannot be reached". This brand activity achieved excellent results: the total online and offline exposure exceeded 260 million and the business increased by 239% compared with the previous week with the business target reaching 151%. In 2021, PMPM's GMV exceeded 1 billion yuan (about $153 million). It can be said that when PMPM is not afraid of the epidemic when it debuted and peaked, how does PMPM achieve good development in making products since its establishment? PMPM said that their products have passed through 5 major procedures of raw materials, formulation, extraction technology, efficacy testing and production, and 26 checkpoints before reaching consumers. In terms of raw materials, PMPM selects the world's top raw material suppliers according to international standards and has now left a footprint in 6 places in the world: the harun ingredient of the baobab tree in Madagascar, the sea fennel ingredient on the coast of Bretagne, the rose ingredient in Bulgaria, the white truffle ingredient in the Piedmont forest and so on. In addition, PMPM has reached a deep strategic cooperative relationship with Ashland, an international raw material supplier, and has carried out all-around cooperation based on R&D resources, formulation, product testing, and other fields. It has now applied advanced scientific research technology to carry out innovative research and development of exclusive raw materials in Ashland. In addition, in the more important efficacy monitoring link, PMPM said that its product efficacy has been tested by the authoritative institution China Academy of Quarantine and Inspection, coupled with the Sino-German cosmetics graduate students under the Chinese Academy of Inspection and Quarantine for 28 days of consumer measurement on the clinical double verification of product efficacy. It is not difficult to see that PMPM does maintain a rigorous attitude in terms of raw materials and efficacy testing. In addition, its marketing strategy is also awesome in the industry. On May 16, 2021, while other brands were immersed in the clamour of live streaming of promoting good sales, PMPM was in live streaming of a sea with the theme of "no distant place that cannot be reached". PMPM brings a day on the coast of Bretagne, 9,000 kilometres away from China, on Tmall, TikTok, WeChat, Bilibili, and other platforms in live streaming, allowing everyone to see the coast from sunrise to sunset in real-time, and immersively feel the surprise of the sea breeze and the waves. At the same time, PMPM also brought the exploration of the core natural ingredient of the Bretagne collection, "sea fennel", to the camera. It did not sell products through live streaming and only allured viewers to watch the sea. PMPM's ingenious design implements the brand's "exploration" spirit, resonating with the majority of consumers. In addition to online live streaming, PMPM has also been brought far away to the streets. In the form of large-screen delivery, PMPM directly brings Bretagne's sea to the bustling city center of Chengdu, which is particularly fresh and eye-catching in all product advertisements. PMPM even contracted a subway to restore the beauty of Bretagn and the sea fennel growing in the salt soil of the coast on Chengdu Metro Line 1, allowing busy urbanites to take the subway to "go to Bretagne and see the sea" and experience the distant coast in an immersive way. In addition, PMPM is also particularly favored by capitals. In the first year after its official launch of the product, the parent company, Shanghai PMPM E-commerce Co., Ltd., completed three rounds of financing. In January 2020, sourcecode capital completed an angel round financing of 10 million yuan (about $1.53 million). In June 2020, it completed the Pre-A round of financing led by BA CAPITAL, followed by XINYI CAPITAL and sourcecode capital. In October 2020, PMPM completed a round of A financing. In March 2022, PMPM received strategic investments from Tencent and HUPO CAPITAL (HK) LIMITED.

Recently, the President of Indonesia announced that it will suspend the export of palm oil and related raw materials from April 28 (local time). Chinese cosmetics industry veterans said that in addition to Indonesia, Malaysia and the Philippines and Thailand are also producing palm oil. There is no need to be overwrought about the fact that Indonesia bans the export of palm oil as the shortage of cosmetics-related raw materials is impossible. Recently, the Indonesian president announced that it will suspend the export of palm oil and related raw materials from April 28 (local time). As the world's leading producer and exporter of palm oil, 60% of the world's palm oil is produced in Indonesia. However, there have been insufficient supply and rising prices of edible palm oil in many parts of Indonesia recently, which is to cope with the shortage of palm oil supply in Indonesia and prevent prices from continuing to rise. According to data from the GENERAL ADMINISTRATION OF CUSTOMS.P.R. CHINA, the main importers of palm oil in China in the first quarter of 2022 are Indonesia and Malaysia, of which China imports 258,300 tons of palm oil from Indonesia, accounting for 52%, and 242,800 tons of palm oil from Malaysia, accounting for 48%. It is understood that in the daily chemical industry, palm oil is one of the most important commodity raw materials and more than 70% of the world's personal care products currently contain one or more palm oil derivatives. The merits of palm oil abound. One lies in its relative stability at high temperatures. The second relates to the fact that it can be well mixed with other oils. And the third is its very low production cost. Therefore, palm oil is widely used in shampoos, shower gels, soaps, disinfectants and other daily chemical products. Moreover, palm oil with the function of moisturizing and regulating texture is also widely used in the cosmetics industry. Its derivatives such as alcohols, fatty acids or fatty alcohols are applied to different products due to their properties of emollient or foaming. Since last year the price of palm oil-related raw materials has hit a record high due to the repeated global epidemics, the Russian-Ukrainian war and logistics obstructions, which has also pushed up the cost pressure on cosmetics companies. L'Oréal Group and RESUN, the supplier of Procter & Gamble, have disclosed that the prices of international crude oil, palm oil and other commodity raw materials at the end of 2021 increased by about 40% to 50% compared with the beginning of the year, with the prices of related commodities continuing to rise in the first quarter of 2022. The Chinese cosmetics company Shanghai Jahwa also mentioned in the announcement of the main operating data in the fourth quarter of 2021 that soap particles and oil raw materials in the fourth quarter of 2021 were affected by palm oil and palm kernel oil, leading to the average purchase price rising by about $915.6 per ton (excluding tax), an increase of 100%. Due to the rise of palm kernel oil and ethylene oxide, the average purchase price of surfactants rose by about $457.8 per ton (excluding tax), an increase of about 50%. However, DBS wrote in its research report: "We believe that given that the domestic demand in Indonesia accounts for one-third of its production, these restrictions may only be implemented for a short time." Once inventories are restored and prices are stabilized, restrictions may be lifted.” Chinese cosmetics industry veterans also said that in addition to Indonesia, Malaysia and the Philippines and Thailand are also producing palm oil. There is no need to be overwrought about the fact that Indonesia bans the export of palm oil as the shortage of cosmetics-related raw materials is impossible. Moreover, the policy also oscillates at any time, if Indonesia's domestic supply has kept up, then the policy of banning exports may also be cancelled.

L'Occitane achieved $1.904 billion of sales in its FY2022 up 16.7%. The growth is in line with expectations and L'Occitane Greater China achieved sales of $524 million in fiscal year 2022, accounting for 27.5% of total revenue. On April 26, L'Occitane announced its financial results for the fiscal year 2022 (the 12 months ended March 31, 2022). L'Occitane's sales for the fiscal year 2022 were $1.904 billion, up 16.7% at reported exchange rates and 14.6% at constant exchange rates. The growth is in line with expectations. L'Occitane Greater China achieved sales of $524 million in the fiscal year 2022, accounting for 27.5% of total revenue, with mainland China sales of $333 million, up 24.4% year-on-year, topping the list by increasing its share of the Group's business to 18.1% from 17.1% last year and contributing 19.4% to overall growth. The solid performance was driven by L'Occitane en Provence, ELEMIS and Sol de Janeiro, the body care brand acquired in 2021. Sales of the core brand L'Occitane were $1.461 billion, up 13.2% year-on-year, contributing 70% to overall growth, while ELEMIS sales were $238 million, up 37.4% year-on-year, contributing 26.2% to overall growth. By region, L'Occitane recorded growth in all major markets during the fiscal year. In addition to Japan, China, the U.K., the U.S. and Brazil all recorded double-digit growth, with revenue in China up 16.8% year-over-year to $345 million, making the largest contribution to the overall fiscal year at 19.4%. As of March this year, L'Occitane had 1,490 stores, with a net closure of 33 stores during the year. However, the number of self-operated stores in China stood at 208, an increase of 10 stores compared to the previous fiscal year. LOCCITANE is an international retailer specializing in the manufacture and sale of personal care and household products and was the first French company to be listed in Hong Kong, China. Founded in 1976 by Olivier Baussan, the company's corporate philosophy is "comfort and pleasure", "authenticity and purity" and "care and respect". The company's philosophy is "comfort and pleasure", "authenticity and purity" and "care and respect", and was included in the 2018 (15th) edition of the "Top 500 World Brands" list. It is worth noting that on September 16, 2021 (local time), L'Occitane changed its helmsman. André J. Hoffmann will take over as Group Chief Executive Officer from Reinold Geiger, who joined L'Occitane in 1995 and was responsible for the company's Asia-Pacific business from 1995 to 2017. At the same time, he also served as a director of Pacifique Agencies (Far East), the L'Occitane Group's distribution partner in the Asia-Pacific region from 1995 to 2004. This reveals the L'Occitane Group's continued increase in its presence in the Asia Pacific, especially in China. In fact, L'Occitane Group reported a strong performance in Mainland China in Q1 FY2022, recording sales of $59.595 million, representing 16.8% of the Group's global market share. In its Q1 FY2022, the US and Japan accounted for 16.4% and 13.6% of L'Occitane's global market share, respectively. L'Occitane has also frequently partnered with celebrities for endorsements in recent years. in March 2020, L'Occitane announced Zhao Liying as its body and hair care spokesperson. In May 2021, L'Occitane announced Zhao Liying as its brand spokesperson. In February 2022, L'Occitane announced young icon INTO1-Liu Yu and young actress Zhang Huiwen as brand ambassadors. In March 2022, L'Occitane announced young actress Tang Yixin, as brand ambassador. In the Chinese market, where the trend of high-end detergent consumption is escalating, L'Occitane's rapid turnover in terms of traffic spokespeople has also enabled L'Occitane's performance in the Chinese market to climb higher and higher. L'Occitane says that successful marketing campaigns are contributing to sales growth. In addition, L'Occitane's brand's China expansion will enter a downward trajectory to third and fourth tier cities. By channel, growth in L'Occitane's online channel is already strong, growing 5.8% in the fourth quarter of fiscal 2022 and accounting for 33.1% of overall sales. In L'Occitane’s flagship store on the Chinese e-commerce platform Tmall, the best seller is Creme Mains Hand Cream with total sale volume of 600 thousand units and monthly sale volume of 1,000 units. The store enjoys 7.33 million followers. The group said that during the COVID-19 crisis, L'Occitane showed strong resilience through a series of measures, such as launching new online campaigns, cutting costs and accelerating the new retail transformation. Former L'Occitane CEO Reynold Geiger has said:- "We are proud of the progress we have made in adapting to a post-epidemic world, for example in expanding online sales, which now account for more than a third of our total sales." In particular, L'Occitane became the biggest winner in body care in 2020 and entered the list of Tmall billion sales in 2021.

AVON launched the anti-gender violence public welfare project named "Breaking Barriers, Women Stand Up for You" in China to help women stay away from any form of gender violence. In marketing, especially for women’s rights, the Chinese skincare brand PROYA, also gained its highlight. Recently, AVON and Community Development Service Center in Beijing China announced the official launch of the anti-gender violence public welfare project named "Breaking Barriers, Women Stand Up for You" in mainland China. It is reported that 2021 was seen as the 135th anniversary of AVON's founding. In 1990, AVON entered the Chinese mainland market and has been cultivating for 31 years. It adheres to the brand's original intention of "born for women" and drives product innovation with the strong scientific research power of AVON's Asia Pacific R&D Center to continuously bring Chinese women. As a century-old brand, AVON has always stood with women and made continuous efforts to promote the safety and health of women. The All-China Women's Federation had statistics that by the end of 2019, 30% of married women in about 270 million families nationwide had suffered from domestic violence. In the face of brutality, women encounter violence an average of 35 times before they choose to report it to the police. At the beginning of this year, AVON joined hands with Beijing Weiping Women's Rights Organization, a public welfare organization focused on speaking up for women's rights and helping women to be free from violence, to launch the Avon-Weiping Women's Support Hotline, which aims to help women stay away from any form of gender violence. Ms. Zhang Liwen, head of AVON's marketing department, expressed her good wishes for this cooperation: "AVON always stands with the majority of women, and we hope that with the anti-gender violence public welfare project. We can combine the professional experience and legal assistance services of Yuanzhong to further awaken the public's awareness of anti-gender violence, provide Chinese women with practical and reliable channels of assistance, give them the courage to break the silence, speak up and actively seek help, and help them start a new life and embrace a better life." Along with the degradation of traditional social concepts and the sublimation of women's thinking comes the diversification of women's shopping needs, as well as the renewal and upgrading of consumer demands. In recent years, although still shrouded under the anti-epidemic, due to the rise of women's power from all walks of life, women's purchasing power and subsequently enhanced. The demands of female consumer groups have gradually gained attention so many beauty brands have launched products and marketing designed and produced specifically for women. YUESAI, a Chinese high-end beauty brand of L'Oreal Group, has been committed to creating the most suitable for Chinese women's skin characteristics of the products since its establishment in 1992. This year is the 30th anniversary of the establishment of the brand. When International Women's Day is approaching, YUESAI launched the art co-creation project #she becomes a pioneer# for respect to the pioneering spirit of the brand founder Ms. Jin Yuxi. 30 Chinese female artists were invited to recreate the classic The Icon of YUESAI, interpreting and conveying the diverse pioneering spirit of contemporary female artists. It also joined hands with an art website Artron to launch the "Youth Support Program" for injecting new power into the classics and inspiring a new generation of young women to become their pioneers. Furthermore, Chinese beauty brands even created marketing campaigns tailored to Chinese women. In recent years, PROYA has been calling for the "elimination of gender bias" to draw the attention of users through the continuous launch of common themes and different content. It respects women to pay tribute to "her power" thus gaining a high degree of recognition from users. This year, PROYA again launched the theme of "Gender is not a borderline, prejudice is", and shared the true story of Guangzhou Huxingtang Lion Dance Class, "Lion Dance Girls", to fully express its theme. To promote the theme of "gender is not a borderline, prejudice is" to a broader range, PROYA also promoted its marketing proposition to a wider area through outdoor advertisements by joining hands with brands such as Kwai, Meituan, babycare. On this year's Women's Day, the media led by People's Daily started to deliver more affirmative messages to users, such as the workplace has nothing to do with gender, be brave and be yourself, and women have the right to have children as well as the right not to have children. It also launched a discussion topic #Today you don't have to call the goddess#, making Women's Day a time to pay more attention to women's groups to pay tribute to her power, rather than just a time for brands to promote their products and make marketing efforts.

Recently, a criminal gang sold out genuine cosmetics by purchasing a large number of their empty bottles that were adulterated and diluted, with illegal gains amounting to more than $4.7337 million. Given recycling empty bottles of genuine cosmetics, enterprises and platforms should play their role in cracking down on the industry chain of manufacturing and selling fake cosmetics. Recently, a district-level people's court in Jiangsu Province, China, announced a case of selling cosmetics "fakes in real bottles". After investigation, the gang involved in the case sold out genuine cosmetics by purchasing a large number of their empty bottles that were adulterated and diluted from China's second-hand exchange websites, in the name of the versions of daigou in different regions to sell at low prices in China's online shopping platforms, with an amount of illegal income of more than $4.7337 million. According to the notice, from 2016 to early July 2020, the three defendants made cosmetics with counterfeit registered trademarks by purchasing empty bottles of cosmetics with registered trademarks, genuine cosmetics, and raw materials that were used to manufacture cosmetics without the permission of the owners of registered trademarks such as "LA MER", "Sisley", "SK-II", "La Prairie" and "Estée Lauder". And then they sold them by diluting genuine cosmetics and filling them into empty bottles. It was found that between July 2018 and July 2020, the gang's illegal business turnover reached more than $4.7337 million. In the end, the court sentenced the three defendants to prison terms ranging from four years, three years and two months, and two years and six months respectively for the crime of counterfeiting registered trademarks, confiscating all illegal gains, and fining them a total of $1.3132 million. The court judge said that this criminal gang equipped themselves with a certain knowledge of cosmetics sales. Therefore, to dispel consumers' concerns, they often deceive consumers by claiming that these goods are different versions of cosmetics, defective products of brands, and obtained from special channels. When consumers verify whether the cosmetics they buy are genuine, they usually tell from the container (bottle). Therefore, recycling empty bottles of big-name cosmetics have become a criminal industrial chain. After using the product, some consumers will sell empty bottles on Chinese second-hand exchange websites with empty bottle selling from a few dollars to dozens of dollars. Then, the bottles used by consumers will be especially collected and sold to the criminal gangs that make and sell counterfeits. "We've also gotten in touch with brands and learned that they will not offer empty bottle recycling." The case was disclosed by the police. In this regard, Chen Yinjiang, the deputy secretary-general of the Consumer Rights and Interests Protection Law Research Association of the China Law Society, analyzed that cosmetics companies may be able to provide a feasible solution to the problem of cosmetics in terms of "fakes in real bottles". It is a burden for businesses as the cost of recycling empty bottles of cosmetics is too high. However, the fact that enterprises can be guided or encouraged to recycle empty bottles is not only a manifestation of environmental protection but also conducive to enterprises safeguarding their interests and cracking down on the production and sale of counterfeits. In addition to the brand itself, second-hand trading websites and other platforms should also play a good role in their regulatory mechanism for the empty bottle trading of cosmetics. The account of the person who has recovered the empty bottle on the platform can be monitored and warned. Asking whether the account receives the agreement of recycling empty bottles from brands, if not receives, then the platform can show that the account is "dangerous" on the account homepage, so that consumers will be vigilant.

In 2021, China's first cosmetics company xiefuchun lost $940,000. With a very long history in China, Xiefuchun has been close to 200 years old. The brand has won the United States Panama Silver Medal Award, but in recent years it saw a decline in performance, is this brand not good? On the evening of April 22, xiefuchun released the 2021 financial report that the company reached about $5.89 million of sales revenue in 2021, an increase of 15.52% year-on-year with the net profit attributable to the shareholders of the listed company fell by a negative 57.36% year-on-year, with a loss of about $940,000. Xiefuchun said that the main reason for the decline in net profit was to buffer the impact of the epidemic and promote product sales. The company has carried out a series of promotional activities, resulting in an increase of 15.52% in sales revenue and a decrease in a gross profit margin of 2.8%. Second, sales expenses increased by 2.7368 million yuan, mainly due to the increase in employee salaries, e-commerce platform service fees, and brand promotion and publicity fees due to the reduction of preferential policies for social security payment and the increase in personnel. Third, the management cost increased by 1.7762 million yuan, mainly due to the reduction of preferential policies for social security payments and the increase in the salary of employees and consulting fees due to the reduction of preferential policies for social security contributions and the change of personnel and wage adjustments. According to the data, the Xiefuchun brand began with an incense powder shop in the 10th year of the Qing Dynasty's Emperor Daoguang (1830), created by Xie Hongye, as China's first cosmetics production enterprise. The brand is famous for making a variety of incense powder and sachets with its star products including face powder and solid balm. During the Ming and Qing dynasties, Yangzhou incense powder was presented to the imperial court as a "tribute powder", and xiefuchun, as the inheritance of Yangzhou incense powder, was designated as the royal brand on the court. In February 1912, the U.S. government celebrated the opening of the Panama Canal and scheduled to hold the "1915 Panama Pacific International Exposition" (the "San Francisco Exposition") in February 1915. Xiefuchun, as a giant in the Chinese incense powder industry, was jointly recommended by the government and the people. In addition, xiefuchun also had the strategic consideration of making a reputation for Chinese products and opening up overseas markets, so it took the initiative to register for the exhibition. Xiefuchun launched the three treasures of "incense, powder, and oil", passed the barriers all the way and successfully passed the selection. After 10 months of the Panama International Exposition, xiefuchun won the Panama Silver Medal award for its beauty, quality, pure taste, incense pieces, and incense powder. In the same year, xiefuchun incense powder and incense accessories won the bronze medal of the National Government's Ministry of Agriculture and Commerce Domestic Products Exhibition. During the Republic of China era, the development of xiefuchun's powder-making skills reached its peak. The face powder, comb oil, and incense pieces known as the oriental solid perfumes are known as xiefuchun's "three awesome products". Although xiefuchun has a deep cultural heritage and a long history, the brand's performance is not very good from its annual report data in the past three years (from 2019 to 2021). In 2019, xiefuchun saw a decline in its net profit. It achieved 64.77 million yuan of sales revenue, up 2.84% year-on-year, with a 12.21 million yuan of net profit attributable to shareholders of listed companies, down by a negative 8.78% year-on-year. According to the financial report, the reason for the decline in net profit is that xiefuchun saw a 1.7231 million yuan of growth in expenses in research and development year-on-year in 2019, an increase of 12411.58%. In 2020, xiefuchun's sales revenue was directly cut and there were huge losses with its sales revenue falling by negative 48.46% year-on-year to 33.38 million yuan and net profit attributable to shareholders of listed companies felling by negative 132.04% year-on-year to negative 3.91 million yuan. According to the financial report, affected by the epidemic, xiefuchun's offline physical store sales mainly in major tourist attractions across the country were seriously affected in 2020, resulting in a year-on-year decrease in the operating income of franchise and direct channels of 23.16 million yuan, down by 57.41%. Followed by the decline in the sales revenue of online platforms, with the operating income of e-commerce channels decreasing by 7.3952 million yuan year-on-year, down by 32.37%. In summary, it can be seen that in recent years, xiefuchun's performance has been mainly affected by the epidemic and research and development expenses, but as a time-honored domestic product, it attaches great importance to innovation and product research and development, which is understandable. At the same time, in terms of xiefuchun's channel layout, the brand is also advancing with the times. xiefuchun settled in Tmall in 2011, and then successively laid out on other e-commerce platforms. In May 2020, it established an e-commerce company and gradually made efforts in online channels. Although its current strategy of increasing R&D investment and expanding sales channels has not yet shown due returns on xiefuchun's performance, in addition to the brand having been hit by the epidemic. Xiefuchun, who has experienced nearly 200 years of ups and downs and is willing to keep pace with the times, is still worth being looked forward to.

CAUDALIE, a grape-researched skincare brand from France, will participate in the 2nd China International Consumer Products Expo. It plans to show in advance the new upgraded products to be launched in the Chinese market this year, presenting a new face of the brand. According to the official news of the China International Consumer Products Expo, CAUDALIE will make a grand debut at the second China International Consumer Products Expo. This is the first time for CAUDALIE to participate in a national exhibition in China. It expected to take advantage of the time and platform of the Consumer Expo to actively communicate with the Chinese and international consumer goods market. It plans to show in advance the new upgraded products to be launched in the Chinese market this year, presenting a new face of the brand. This time, CAUDALIE will bring the newly upgraded EAU DE BEAUTE ELIXIR, Radiance Series, Face Lifting Series and other new upgraded products to the Expo. "I created CAUDALIE because I firmly believe that I can find skincare products that combine efficacy, naturalness and charm, which has become the core value of the CAUDALIE and the source of motivation for my daily efforts." This is what the founder of the French brand, Miss Mathilde, has always maintained since the brand was founded. CAUDALIE is a natural skincare brand from France, the first wine therapy spa in the world, all its products do not contain any paraben preservatives, phenoxyethanol, colorants and mineral oil, no animal testing. Since the creation of CAUDALIE, he has been the scientific advisor of CAUDALIE research center. 1995, CAUDALIE officially registered the patent for the extraction and stabilization of grape seed polyphenols, the establishment of the CAUDALIE brand. According to CAUDALIE, before 2008, the popularity of the CAUDALIE- is still limited to France, its outlets are mainly concentrated in the French pharmacy channel. "Previously, 90% of the sales of the CAUDALIE came from the French domestic market." But with the advent of the Internet era, information began to spread rapidly, and the brand began to be gradually known by consumers in other countries in 2008, and the popularity of its iconic product EAU DE BEAUTE ELIXIR marked the beginning of CAUDALIE’s "fame" on the international stage. It is understood that CAUDALIE 2021 sales were $337.1 million, compared with 2021, up 10%. For many years, the beauty industry thought that you couldn’t be a luxury brand whilst being a clean and sustainable brand, but things are changing. In 2022, we believe that sustainability is a new luxury and soon all brands will realize that being sustainable is not just a marketing gimmick but a necessity"said its co-founder Mathilde Thomas. She also stated that CAUDALIE tends to adhere clean beauty. General Manager France Angélique Mahot believed that Today, being clean is essential. And it was clean much before it became a trend. But today we need to go much farther. Most of their products are based on patented, innovative ingredients developed in partnership with the best research laboratories specialized in anti-aging, like the Harvard Medical School and Dr David Sinclair, with whom it has worked for 10 years. Furthermore, in 2020, it undertook to change all its packaging so it could be refillable, recycled and/or recyclable. Between 2019 and 2020, they reduced their annual plastic waste by 44.33 tonnes. It represents 1,385,312 1.5-L bottles of water. Its clean commitments go beyond this: it is a partner of 1% for the Planet, so over the past ten years, it has given 1% of its turnover to associations that plant trees. At the end of the year, the brand will have planted 10 million! It is the main donor of 1% for the Planet in the French cosmetics industry, and it hopes other companies will draw inspiration from us and join the movement. Lastly, in 2020, it created the 100% Plastic Collect program with Tristan Lecomte. In Thailand, it collects the equivalent of its annual plastic production so it is recycled locally and reused by the local population. Mr. and Mrs. Mathilde and Bertrand Thomas, the founders of CAUDALIE, attach great importance to this exhibition at the Expo and said that "CAUDALIE has always attached great importance to the strategic position of the Chinese market, and since the founding of CAUDALIE, China has become one of the most important overseas markets for CAUDALIE. CAUDALIE will always adhere to the original intention to bring efficient, natural, and pure sustainable skincare products to Chinese consumers." At the same time, CAUDALIE will also complete the brand image upgrade in the Chinese market, not only in the outer packaging using 100% recyclable plastic bottles and recyclable packaging paper, and strive to achieve the goal of "zero" resource waste in the field of the sustainable beauty and skincare continue to lead, to achieve the brand in the Chinese region.

German-based Beiersdorf, which focused on skincare, celebrated its 28th anniversary of entering China. With its high-quality and safe skincare concept, it introduced multiple good-performance skincare brands and iconic products to Chinese customers. On April 26, 2022, Beiersdorf, known as the "leader in modern skincare", celebrated its 28th anniversary in China. As a leading global skincare group for over a century, Beiersdorf Group has always focused on the needs of Chinese consumers during these 28 years, insisting on scientific innovation, high quality, healthy and skin-friendly, safe and reliable skincare concepts and the introduction of different brands and high-quality products, bringing its NIVEA, Eucerin, La Prairie and other brands and many star products to China. Xue Wei, Managing Director of Beiersdorf Northeast Asia, said that Beiersdorf has walked alongside China for 28 years and has participated in and witnessed the development of China's cosmetics industry. It introduced groundbreaking technologies in the skincare industry such as water-in-oil technology, defined industry standards such as sunscreen SPF, cultivated a large number of talents, and shaped a large number of trusted brands and products. As a key growth driver for Beiersdorf and the world's number one skincare market, China has always been one of the focus areas of our C.A.R.E.+ strategic program. With its roots in Shanghai, the Beiersdorf Group has been leading the development of the Chinese cosmetics industry throughout the country. During this period, the number of the Group's varieties has expanded from 2 to more than 300, while its insistence on product quality, technical excellence and care for its employees and society has remained consistent. During its 28 years of development in China, Beiersdorf has developed a number of brands that are popular among Chinese consumers, the most notable being Nivea. Seeing its history development in China, it was brought to China by a postcard order from a Chinese pharmacy in 1905. And the Nivea Facial Cream, entered the Chinese market in 1937 and became a craze for people in Shanghai. In 1994, Beiersdorf and Shanghai Daily Chemical No.2 Factory set up a Sino-foreign joint venture named Nivea (Shanghai) Company Limited. It is worth noting that Beiersdorf was making its debut at the China International Import Expo in 2021. During the six-day period, Beiersdorf brought many of its internationally renowned brands and other new brands, products and technologies to the large interactive booth and fully demonstrated Beiersdorf's cutting-edge skincare technology and all-round care beyond skin by holding a grand opening ceremony, innovation center launch ceremony and other activities and various live broadcasts, attracting many media, exhibitors, industry professionals and visitors. "We are always confident in the Chinese cosmetics market." Ms. Xue Wei said, "China's insistence on hosting the Expo and implementing a high level of opening up to the outside world is an excellent opportunity for international cooperation to achieve mutual benefits and win-win results. As a leader in modern skincare, Beiersdorf Group will also take advantage of China's trend of inclusiveness and continue to deepen and increase its presence in the world's second-largest skincare market, so as to bring more innovative and high-quality skincare experiences to Chinese consumers." At the Expo, Beiersdorf Group made the Asian debut of its Nivea LUMINOUS630 product line in the form of live streaming. LUMINOUS630 is a patented, breakthrough ingredient that has been selected by Beiersdorf over 10 years from more than 50,000 ingredients to visibly reduce stubborn pigmentation in 4 weeks, inhibit melanin production at the root of the problem, effectively brighten the skin and make it clear and even. The financial results show that its core brand NIVEA grew sales by 5.5% in 2021, with the NIVEA LUMINOUS 630 Spotclear Intensive Treatment Serum performing well, helping NIVEA to expand its market share in the facial care category thanks to the success of the line. The line is said to be a new addition to NIVEA's product portfolio and includes products such as NIVEA LUMINOUS 630 Spotclear Intensive Treatment Serum, LUMINOUS 630 UV Protect and LUMINOUS 630 Anti Dark-spot Even Tone Night Cream. The products contain W630, an active ingredient patented by Beiersdorf that reduces pigmentation and age spots, gently and efficiently lightens blemishes and acne marks, whitens and brightens, and is therefore known by consumers as the "strongest whitening ingredient on the planet".