Dynamics of cosmetic chain stores and imported high-end supermarkets

Recently, Sephora announced that it has formally reached a strategic partnership with JD to home, an instant retail platform under the Dada Group. As of now, more than 70 stores covering first- and second-tier cities in mainland China have successfully settled on JD to home. Both parties plan to launch all Sephora stores by the end of 2021.

Recently, Sephora opened its first store-in-shop in Kohl’s. The two parties stated that they will set up more than 70 store-in-shops in the United States by the end of August, and plan to reach 850 stores by 2023.

On August 5, Watsons parent company CK Hutchison Industrial Co., Ltd. announced its first half of 2021 results. Data Display,

1. During the period, Watsons global sales were 82.621 billion Hong Kong dollars (approximately RMB 68.775 billion), a year-on-year increase of 12%.

2. Among them, sales in China were 11.599 billion Hong Kong dollars (approximately RMB 9.655 billion), a year-on-year increase of 32%. Excluding exchange rate changes, the actual increase was 21% year-on-year. This is Watson's largest increase in the Chinese market in the past five years.

On August 12, Dmall and the German Metro Group reached an international strategic cooperation intention.

On August 5, Carrefour announced that the first member store in the Chinese market will be opened in Shanghai.

According to incomplete statistics, since 2020, there have been at least 16 new types of beauty retail in China, with more than 800 stores across the country.

Authoritative release

Recently, the State Administration for Market Regulation issued the "Administrative Measures for the Supervision and Administration of the Production and Operation of Cosmetics", which includes seven parts: General Provisions, Production Licenses, Cosmetics Production, Cosmetics Operation, Supervision and Administration, Legal Responsibilities, and Supplementary Provisions, with a total of 66 articles, It will be implemented on the 1st. January 2022.

On August 17, the State Administration for Market Regulation issued a notice for soliciting opinions on the "Regulations on Prohibition of Online Unfair Competition (Draft for Public Comment)", which is intended to stop and prevent online unfair competition and maintain fair competition in the market order.

On July 30, the State Administration for Market Regulation issued General Administration Order No. 44. The content shows that the "Administrative Measures for the List of Seriously Violated and Untrustworthy in Market Supervision and Administration" has been deliberated and adopted at the 11th Executive Meeting of the State Administration for Market Supervision on July 22, 2021.

In the relevant regulations in the field of cosmetics, it is clearly stated for the first time that the production and sale of cosmetics that illegally add substances that may harm human health will be included in the list of untrustworthy.

Brand and industry related dynamics

On August 10, Yunnan Betteni Biotechnology Group Co., Ltd. disclosed the 2021 semi-annual report.

1. During the reporting period, the company's operating income was 1.4 billion yuan, a year-on-year increase of 49.94%; operating profit was 317.48 million yuan, a year-on-year increase of 66.82%;

2. The profit attributable to the parent company was 265 million yuan, a year-on-year increase of 65.28%. In addition, the gross profit margin of sales reached 77.19%, which is higher than that of traditional listed skin care companies.

In the two years since MAJE STEPHANIE entered the Chinese market, it has entered 26 provinces and covered nearly 1,000 stores.

On the evening of August 5th, Revlon released the second quarter performance report of this year, revealing that sales increased by 43.1% to 3.21 billion yuan, and compared with the same period last year, the net sales of all market segments in the second quarter of 2021 achieved two digits. The number of growth. Throughout the first half of the year, Revlon's sales reached 6.09 billion yuan.

A few days ago, oral care brands have announced that they have received 400 million yuan in B round of financing. This round of financing was led by Huaxing New Economic Fund, and Jinding Capital, Cornerstone Capital and Asia Commercial Capital participated in the investment.

 Recently, Marumi launched an AI skin test applet. Through the applet, consumers can understand their skin quality and aging analysis in multiple dimensions, and get professional anti-aging skin care solutions and smart product recommendations based on skin quality analysis.

On August 11, the National Medical Products Administration released a popular science article titled "Scientific Understanding of "Brushing Acid" Beauty". The article interprets the definition of "acid scrubbing" for the first time, and introduces the adverse reactions that may be caused by "acid scrubbing".

A few days ago, SK-II and JD.com jointly launched the first online virtual city SK-II CITY. Consumers can explore this 3D virtual city by sliding the screen with the company of Joy, the mascot of JD.com.

Recently, the Testing Center of Proya Cosmetics Co., Ltd. has obtained a national laboratory accreditation certificate issued by the China National Accreditation Service for Conformity Assessment (CNAS).

Recently, L’Occitane released the first quarter financial report data for the 2022 fiscal year.

In the three months ending June 30, 2021, L’Occitane’s sales rose 23% year-on-year to 337 million euros, a year-on-year increase of 27.7% at a constant exchange rate, mainly due to its brands in China, Japan, Russia and Brazil. It recorded 28.7%, 25.1%, 112.1% and 163.1% growth.

According to relevant research data, China's oral health market is expected to exceed 500 billion yuan in the next 15 years. Looking at the sub-categories, the "2021 Jingdong Dental Industry Trend Insight White Paper" pointed out that the Z generation loves to try new things in oral consumption, and the refined track such as oral sprays, denters, and dental stickers is growing rapidly.

According to data from Mingtel, in the next five years, the Chinese perfume market will grow at a compound annual growth rate of 17%. It is estimated that market sales in 2025 may reach 15.439 billion yuan.

Currently, Virospack is opening a foreign trade company in Shanghai and is preparing to build its own warehouse, so that the efficiency of serving Chinese local customers will be greatly improved.

According to data from iiMedia Consulting, the global skin care product market has reached US$148.3 billion in 2020 and is expected to grow to US$189.3 billion in 2025.

According to data from the National Bureau of Statistics, from January to December 2020, the national retail sales of cosmetics was 340 billion yuan, and China has become the world's second largest consumer of cosmetics.

Recently, Pellet Group launched a new brand of care and care-RiVi. It is understood that as the first facial care brand of Pellet Group, RiVi's product formula adds facial care level ingredients, such as niacinamide, VC, etc., so it is different from traditional care brands.

Short video and e-commerce platform dynamics

On August 2, station B disclosed data related to "Huahuo" for the first time.

1. The data shows that as of June 30, 2021, the number of brands entering Huahuo has increased by 2050% year-on-year, and the re-investment rate of brands on station B has reached 85%.

2. Among them, beauty has become the category with the highest occupancy rate at station B.

3. In addition, in the past year, the UP owners who received the first order in Huahuo accounted for 45%, and the order rate of the mid-waist UP owners increased by more than 100% year-on-year.

There are rumors a few days ago that Xiaohongshu has started a new round of financing, and its valuation will exceed $10 billion.

Recently, Vipshop released its second quarter 2021 financial report. The financial report shows that in the second quarter, Vipshop’s revenue was 29.6 billion yuan, a year-on-year increase of 22.8%, and the market expected 29.7 billion yuan; net profit attributable to the parent was 1.1 billion yuan, 1.5 billion yuan in the same period last year; the GMV in the second quarter was 48.1 billion yuan, year-on-year An increase of 25%.

According to the data and public information released by Huachuang Commercial Co., Ltd., from May to July 2021, the GMV (transaction value) of domestic products and cosmetics on the Ali platform was 62.966 billion yuan, a decrease of 2.51% year-on-year. If the scope of statistics is expanded to January-July, the total sales will be 833 million yuan less than last year, which is equivalent to an average of 119 million yuan less sales per month.

On August 2nd, Xiaohongshu announced the implementation of the "integrated shop" mechanism, bringing new changes including "opening a store with zero threshold", "BC direct connection" and "commission-free for merchants with monthly sales of less than 10,000 yuan".

1. In the future, there will only be two authentication systems for professional and non-professional numbers. All accounts certified as professional numbers can apply to open a shop.

2. At the same time, the shop system in Xiaohongshu Station will be fully integrated, and there will no longer be a distinction between mall shops and personal potato shops. With the strong binding of accounts and stores, the communication and transaction links between merchants and users on the Xiaohongshu site will also be shortened.

It is reported that Kuaishou will officially close its short video product Zynn on August 20. In response to this, Kuaishou officially responded: "This time the service is discontinued by Kuaishou, a product in the US market, Zynn, and Kuaishou's overseas market strategy remains unchanged."

International Group News

On August 5, Shiseido Group announced the key financial data for the first half of 2021 (January 1-June 30, 2021).

1. During the reporting period, Shiseido’s sales reached 507.7 billion yen (approximately RMB 29.93 billion), a year-on-year increase of 21.5%, the highest increase in the past 6 years.

2. The net loss attributable to shareholders of the parent company narrowed to 17.3 billion yen (approximately RMB 1.02 billion) from 21.4 billion yen (approximately RMB 1.26 billion) in the same period last year.

Recently, the Japanese cosmetics company Pola Orbis Group released the first half of 2021 financial report.

1. During the financial reporting period, the net sales of Pola Orbis Group increased by 6.3% year-on-year to 89.055 billion yen (approximately RMB 5.25 billion).

2. Gross profit increased by 7.6% year-on-year to 75.584 billion yen (approximately RMB 4.45 billion). Operating profit increased by 54.7% year-on-year to 9.095 billion yen (approximately 536 million yuan).

On August 2, the 2021 Fortune Global 500 list was released. In the list, beauty-related companies include Johnson & Johnson, Procter & Gamble, Dior, Unilever, Changjiang Hutchison, and L'Oreal, ranking 94, 128, 210, 175, 353 and 387 respectively.

On August 5, Shiseido China announced that it has reached a strategic cooperation framework agreement with Boyu Investment, a domestic alternative asset management company, and plans to launch China's first special investment fund in the field of beauty and cosmetics "Ziyue Fund" within the year after completing relevant regulatory filings.

Hainan Duty Free Shop News

On August 18, the first "zero-tariff" imported aircraft from Hainan Free Trade Port was officially unveiled at Jinlin Haikou Jiazi Airport. The helicopter is exempted from tariffs and import value-added tax during the import process, and the reduction is about 15%, which indicates that the Hainan Free Trade Port's "zero-tariff" imported vehicles and yachts have achieved full coverage of sea, land and air.

The Shilla Duty Free Store of South Korea stated that it recently signed a strategic cooperation agreement with Hainan Travel Investment Duty Free Co., Ltd. The two parties plan to establish a joint venture company to jointly carry out all-round business cooperation such as procurement of goods, market development, exchange of talents, and product development.

Recently, Huayang Lianzhong and Hainan Travel Investment established a joint venture company to develop Internet duty-free shop operations.