Dynamics of cosmetic chain stores and imported high-end supermarkets

*On July 6, there were media reports that the trend retail eco-enterprise KK Group has recently completed a new financing with a financing amount of about 300 million U.S. dollars (approximately RMB 1.939 billion), led by JD, with a post-investment valuation of about 30 100 million U.S. dollars, equivalent to about 20 billion yuan.

*According to the information on the website of Shanghai Municipal Market Supervision and Administration Bureau, recently, Sephora (Shanghai) Cosmetics Sales Co., Ltd. was fined 400,000 yuan for the fact that related products constituted false or misleading commercial publicity.

*Alibaba's FRESHIPPO launched a new community e-commerce project "Hema Neighborhood" before its birthday, with the internal codename "NB Project".

Authoritative release

*On July 5, the State Food and Drug Administration issued a notice on the National Cosmetics Safety Risk Monitoring Plan for the Second Half of 2021, kicking off the prelude to cosmetics safety risk monitoring in the second half of 2021.

*The notice pointed out that the key monitoring products include children's cosmetics, freckle whitening products, anti-wrinkle and anti-acne products, anti-itch products, hair growth promotion products, eye skin care products, and children's toothpaste products.

Recently, the Ministry of Human Resources and Social Security of the People's Republic of China issued a notice on the public consultation on 21 professional standards including the National Professional Skills Standards for Internet Marketers (Draft for Comment) (hereinafter referred to as the "Draft for Comments").

The "Draft of Opinions" clearly stipulates that Internet marketers select product staff, live broadcast salesmen, video creators, and platform administrators. In addition to professional skills assessment, they also need to pass theoretical knowledge examination such as labor law, contract law, and advertising law and so on.

Brand and industry related dynamics

*Recently, Shanghai Kaijie E-commerce Co., Ltd., the operator of Shiseido/Colgate, applied for a GEM IPO and it was accepted.

*On June 29th, the thirteenth love journey of the pioneer of hard-core whitening technology COGI and the new product launch conference of the high-profile skin whitening series was held.

*On July 7, Renhe Pharmaceuticals announced that it plans to acquire 80% of each of the seven cosmetics companies for 719 million yuan.

*A few days ago, L’Occitane International announced its 2021 fiscal year report. During the reporting period, the group's revenue increased to 1.5378 billion euros (approximately RMB 11.8 billion), a comparable decrease of 1.1%. Among them, operating profit increased by 17.6% to 220.2 million euros (about 1.7 billion yuan), while operating profit margin increased by 2.9 percentage points to 14.3%.

*Recently, Winona won the Kantar "Consumer's Preferred Brand" award.

International Group News

Recently, the L'Oréal Group announced the launch of an innovative cosmetic packaging bottle, which is entirely made of plastic recovered by Carbios bio-enzymatic hydrolysis recycling technology. The L'Oréal Group plans to put this disruptive and innovative product into production in 2025.

It is reported that Unilever will invest 5.5 billion Mexican pesos (275.2 million US dollars) in the next three years to expand the production capacity of its four factories in Mexico for export and manufacturing development.

Hainan Duty Free Shop News

On July 5, China Free Shipping issued an express report on the first half of 2021. According to the data, the company's revenue during the reporting period was 35.501 billion yuan, an increase of 83.9% year-on-year; operating profit was 8.607 billion yuan, a year-on-year increase of 626.8%; net profit attributable to shareholders of listed companies was 5.435 billion yuan, a year-on-year increase of 484.1%.