Retail channels

Recently, according to the Tianyancha App, the legal documents of the first instance of the advertising contract dispute between Shanghai Zhiqu Advertising Co., Ltd. and Shanghai Ocean Terminal Network Technology Co., Ltd. were made public.

The documents show that the applicant, Zhiqu Company, requested that the bank deposits of the respondent Ymatou Company continue to be frozen of more than 4.98 million yuan, and if the amount was insufficient, the property of the corresponding value would be sealed and seized. After examination, the court found that the applicant's application complied with the law and ruled to enforce it. According to the legal documents of the judgment in March this year, Ymatou Company was sentenced to compensate Zhiqu Company for its promotion expenses of more than 3.34 million yuan.

In addition, it is worth mentioning that at present, Ymatou Company has a number of property preservation documents, and the cumulative amount of frozen deposits exceeds 11.74 million yuan.

On November 3, the WeChat public account of "Hong Kong New World Department Store Kunming" released the "Notice of Termination of Operation of Yunnan New World Department Store Co., Ltd." The notice said that due to the adjustment of the company's business strategy, the Kunming store of New World Department Store will cease operations on November 20, and the mall will do its best to provide the best service before then.

Recently, the first store of zero-tariff cross-border beauty collection store "UYUY Yuwai" opened in Shenzhen ONE AVENUE Bonjour Center.

MINISO released its financial report for the first fiscal quarter of fiscal 2023. In the quarter, MINISO's total revenue was 2.77 billion yuan, of which overseas revenue was 920 million yuan, a year-on-year increase of nearly 50%, and non-IFRS net profit was 420 million yuan, a year-on-year increase of 127%; The gross margin was 35.7%, the adjusted net profit margin was 15.1%, and the gross margin and net profit margin reached record highs. During the quarter, MINISO had 5,296 stores worldwide, including 2,027 overseas stores.

Sun Art Retail released its fiscal year 2023 half-year report for the year ended September 30. In the first half of the year, Sun Art's retail revenue was 40.611 billion yuan, down 2.2% year-on-year; The net loss attributable to the parent was 69 million yuan, compared with a net profit of 117 million yuan in the same period last year, and the net profit excluding store impairment was 20 million. According to the financial report, during the reporting period, same-store sales decreased by 0.2% due to the repeated new crown epidemic, but the increase in online customer orders drove online business growth by 14.3%.

Authoritative Release

On November 2, the Beijing Municipal Medical Products Administration issued the Guidelines for the Investigation and Handling of Minor Violations in the Field of Cosmetics Business Supervision in Beijing (Trial) (Draft for Comments), clarifying that eight types of illegal acts, including cosmetics with non-compliant labels, can be exempted from punishment if they are minor violations.

Brands and Industries

On November 4, Juzi Biotech was officially listed on the Hong Kong Stock Exchange with the stock code "02367", with an issue price of HK$24.3 and a net proceeds of HK$496 million. As of 9:41, Juzi Biotech quoted HK$30.5 per share, with a total market value of about HK$30.2 billion (about 28.1 billion yuan). At this point, the "first stock of recombinant collagen" was officially born.

On October 28, Bloomage Biotechnology Co., Ltd. (hereinafter referred to as "Bloomage Biotechnology") released its financial report for the third quarter of 2022, which showed that in the first three quarters, Bloomage Biotech achieved revenue of 4.32 billion yuan, a year-on-year increase of 43.43%; The net profit was 677 million yuan, a year-on-year increase of 21.99%. Among them, the revenue in the third quarter was 1.385 billion yuan, a year-on-year increase of 28.76%; The net profit was 204 million yuan, a year-on-year increase of 4.86%.

Recently, skincare brand "Rodan + Fields" launched a new hair care series and officially entered the field of hair care. The collection includes two products for hair volume and suppleness and two styling products, all focused on the scalp. Formulated with proprietary RF TriEnergy Complex ingredients, it nourishes hair roots. The product went live on the official website on November 1.

On October 31, the Guangzhou Municipal Administration for Market Regulation issued two notices in succession, announcing the cancellation of the filing of domestic ordinary cosmetics that had not submitted an annual report as of June 30, 2022, about 170,000 products; The cancellation of the filing of domestically produced ordinary cosmetics that were not claimed through the new filing platform as of July 6, 2022, involving nearly 60,000 products.

Recently, E.L.F. Beauty announced its second-quarter results, and in the three months ended September 30, E.L.F. Beauty sales surged 33% year-over-year to $122 million, the 15th consecutive quarter of revenue growth, mainly due to the strong performance of its retail and e-commerce businesses, and net profit more than doubled from $5.7 million in the same period a year ago to $11.7 million.

 In the first half of the fiscal year, the collective's sales jumped 30 percent to $245 million, and net profit soared to $26.2 million from $14 million last year.

On October 28, Colgate (CL.US) announced its third quarter 2022 results. Data showed that Colgate's Q3 net sales were $4.455 billion, up 1.0% year-on-year, organic sales increased 7.0%, and the market expected $4.472 billion; Net income attributable to the company was $618 million, compared to $634 million in the year-ago quarter and market expectations of $644 million.

Recently, French Rémy Cointreau announced the creation of a new fragrance brand, Maison Psyché, officially entering the high-end fragrance field.

Recently, a company that sold unlabeled cosmetics at an in-app purchase meeting was fined by the Tianjin Food and Drug Administration. Previously, the company's products were labeled "for pregnant women", and the production of unregistered special cosmetics was also penalized.

Recently, Intercos announced its performance report for the first three quarters of this year, which showed that the company's net income in the first nine months of 2022 was 597.1 million euros (about 4.33 billion yuan), an increase of 23.0% compared with the same period in 2021.

Among them, the growth accelerated in the third quarter, with net sales reaching 229.1 million euros (about 1.66 billion yuan), an increase of 34.1% year-on-year, and the positive trend of new orders continued. Adjusted EBITDA was €84.4 million (approximately RMB610 million), up 19.6% year-on-year.

 On November 7, the General Administration of Customs released the national import and export customs data for October. In October this year, the total value of China's imports and exports was 3.55 trillion yuan, an increase of 6.9% over the same period last year, of which exports were 2.07 trillion yuan, an increase of 7%; Imports were 1.48 trillion yuan, an increase of 6.8%.

The cumulative total import and export value from January to October this year was 34.62 trillion yuan, an increase of 9.5% year-on-year, of which exports were 19.71 trillion yuan, an increase of 13%; Imports were 14.91 trillion yuan, an increase of 5.2%.

In October, cosmetics and toiletries imported 35,637.7 tons, down 24% year-on-year; The import value was 15.04 billion yuan, a year-on-year increase of 1.4%. Cumulative imports from January to October were 354,257.3 tons, down 10.9% year-on-year; Imports amounted to MOP126.08 billion, down 5.2% year-on-year.

On November 07, 2022, international flavor giant IFF (IFF.US) announced that its revenue in the first three quarters of fiscal 2022 was US$9.596 billion, compared with US$8.625 billion in the same period last year, an increase of 11.26% year-on-year, and a net loss of US$1.840 billion in the first three quarters of fiscal 2022, compared with a net profit of US$187 million in the same period last year.

A few days ago, beauty group Revlon, which filed for bankruptcy restructuring in June this year, announced its third-quarter results, with sales falling 10% to $468 million, gross profit falling 13% to $260 million, and net loss widening to $153 million in the three months ended September 30.

Recently, Coty Group announced its first financial results for 2023. In the fiscal quarter ended Sept. 30, Coty Group sales rose 1 percent year-on-year to $1.39 billion, beating analysts' expectations of $1.38 billion, but slowed significantly from the 10 percent growth rate in the previous quarter, with net profit tumbling 41.2 percent to $134 million.

Qingsong responded to the letter of concern received by the Shenzhen Stock Exchange earlier. On November 2, the Shenzhen Stock Exchange asked Qingsong to explain the reasonableness of the transfer of two subsidiaries, Fujian Nanping Qingsong Chemical Co., Ltd. and Longsheng (Hong Kong) Trading Co., Ltd. In this reply, Qingsong detailed the specific calculation method and main parameter data of asset sale assessment. In response to the Shenzhen Stock Exchange's request to explain whether the pricing of this transaction was fair and reasonable, Qingsong Co., Ltd. combined industry data and its turpentine business product sales and other data to detail the operating asset value of Qingsong Chemical and Hong Kong Longsheng to prove that the transaction was fair and reasonable.

According to the CSRC's website, on November 10, Shanghai Xiangyi Materia Medica Cosmetics Co., Ltd. signed a listing guidance agreement with China International Capital Corporation to start the A-share IPO process. This means that after the first prospectus was submitted in 2012 and the listing road was reopened in 2020, Xiangyi Materia Medica's IPO hit for the third time.

Relevant data shows that during Double 11, Mistine co-launched marketing activities with trend culture IP bubble mart, brand sun protection ambassador Wu Lei, brand makeup ambassador Ju Jingyi, etc., with a total exposure of more than 800 million and a total interaction of more than 4 million. As of the end of November 11, Mistine's GMV increased by 200% year-on-year, and 1 million pieces of the star big item - Little Yellow Hat Sunscreen were sold.

It is reported that Marumi achieved operating income of 1.144 billion yuan in the first three quarters of 2022, a year-on-year increase of 0.53%, of which only the third quarter achieved operating income of 327 million yuan, a year-on-year increase of 23.72%. For the strong growth in the third quarter, Marumi attributed it to a breakthrough in online sales.

Recently, Bolton Spice Co., Ltd. launched A-share IPO counseling.

Recently, Kuaishou 10 million fan anchor "Yu Dagongzi" was falsely claimed by the domestic brand operator of the well-known Korean brand "Whoohou" that no official authorization documents were issued to "Yu Dagongzi".

On November 14, Beauty Farm Medical and Health Industry Inc. from Shanghai once again submitted a prospectus to the Hong Kong Stock Exchange to list on the main board of the Hong Kong Stock Exchange, which is another application after its submission expired on April 22, 2022.

On November 15, the National Bureau of Statistics released retail sales data of consumer goods in October 2022. In October, the total retail sales of consumer goods were 4,027.1 billion yuan, down 0.5% year-on-year. From January to October, the total retail sales of consumer goods reached 360575 billion yuan, an increase of 0.6% year-on-year.

From January to October, the retail sales of supermarkets, convenience stores, specialty stores and specialty stores in retail units above designated size increased by 3.7%, 4.6%, 4.6% and 0.7% respectively year-on-year, while department stores decreased by 6.8%. From January to October, the national online retail sales 109542 billion yuan, a year-on-year increase of 4.9%. Among them, the online retail sales of physical goods were 9,450.6 billion yuan, an increase of 7.2%, accounting for 26.2% of the total retail sales of consumer goods; Among the online retail sales of physical goods, food, clothing and use goods increased by 16.7%, 5.3% and 6.5% respectively.

In terms of cosmetics-related data, in October, the total retail sales of cosmetics were 30.9 billion yuan, down 3.7% year-on-year; Compared with the previous month, both total retail sales and growth rate declined. From January to October, the total amount of cosmetics was 308.4 billion yuan, down 2.8% year-on-year. 
  
Recently, DTC aggregator Heyday acquired personal care brand ZitSticka.

Following the submission of the prospectus in June this year, Zhejiang Dinglong Technology Co., Ltd. recently updated its prospectus again and intends to be listed on the Shanghai Stock Exchange.

On November 21, perfumer Inter Parfums announced that it expects Group sales to increase 8% to $1.11 billion in 2023, up from its previous forecast of $1.025 billion, and diluted earnings per share of $3.7, up 9% from 2022, due to the company's strong brand portfolio and new product sales.

In the nine months ended Sept. 30, Inter Parfums sales jumped 16 percent to $776 million, while net income jumped 18 percent to $104 million. 

On the evening of November 22, Yixian E-commerce (YSG) released its third quarter 2022 performance report. According to the announcement, Yixian E-commerce achieved revenue of 858 million yuan in the third quarter, gross profit margin increased steadily, sales and marketing expenses were further reduced, adjusted net loss narrowed by 41.5% to 127 million yuan, and the company's operating cash flow was about 21.8 million yuan, turning positive for the second consecutive quarter.

It is worth noting that Yixian E-commerce's skincare business maintained a strong growth momentum, achieving revenue of 269 million yuan in the third quarter, a year-on-year increase of 33%, accounting for 31.4% of total revenue.

A few days ago, Etude House, a subsidiary of South Korean cosmetics group Amorepacific, reported that due to the brand's strategic adjustment, all products in the official flagship store of Tmall were removed and the operation of online stores was suspended.

Recently, according to foreign media news, India's largest group company Tata Group (Tata Group) will continue to develop its business territory and is planning to enter the cosmetics field. According to its company documents and people familiar with the matter, Tata Group plans to open at least 20 "beauty tech" stores and use virtual cosmetics kiosks and digital skin testing in stores to attract high-end consumers.

E-commerce platforms

On November 1, Baozun E-Commerce-W (09991) announced that with effect from today, the company voluntarily converted its secondary listing status on the main board of The Stock Exchange of Hong Kong Limited (Hong Kong Stock Exchange) into a primary listing status.

Jingdong's Double 11 battle report shows that one minute before Double 11 went on sale, the turnover of thousands of brands instantly exceeded 100 million yuan. Ten minutes before the start of sales, the peak number of user visits per second on JD Cloud increased by 62% year-on-year, and massive consumers poured in instantly, ushering in a record high in order peaks.

Ten minutes before the start of Double 11 sales, the overall turnover of all beauty categories of JD.com New Department Store increased by 112% year-on-year, of which the turnover of more than 100 international beauty brands such as L'Oreal, Helena, Shiseido, and OLAY increased by more than 110% year-on-year; The turnover of 253 domestic beauty brands such as Proya, Pechoin, Muscle, and HBN increased by more than 100% year-on-year, and many beauty brands ushered in explosive growth.

News on November 15, Amazon announced that this year's "Black Friday" will start on November 24 and last for 48 hours. There will be millions of deals at different prices worldwide, and consumers will be able to get great discounts on must-have items in various categories, including toys, electronics, fashion, beauty, and Amazon devices.

On November 14, Southeast Asian e-commerce Lazada released the first day of cross-border business report of Double 11, and the order volume increased by 3 times compared with the average daily value. Among them, the first-day order volume of LazMall's cross-border beauty category doubled compared with 9.9 promotions in the same period; Lazada's cross-border women's clothing category double-11 all-day orders reached 9.9%, 182% of the same period of promotion, of which the Malaysia site reached 240%. The first-day orders of women's sweatshirts, outerwear and sweaters increased by more than 128%, 76% and 143% respectively compared with the 9.9 promotion.

Alibaba's latest financial report shows that for the quarter ended September 30, 2022, Alibaba's direct sales and other revenue increased by 6% year-on-year to 64.725 billion yuan, mainly due to the growth of Freshippo's revenue, and its online order revenue accounted for more than 65%. As of September 30, 2022, excluding stores that have been open for less than 12 months, the vast majority of Hema stores have positive cash flow.

On November 22, Kuaishou Technology (01024. HK, "Kuaishou") disclosed its results for the third quarter of fiscal 2022. According to the financial report, Kuaishou Q3 revenue reached 23.128 billion yuan, a year-on-year increase of 12.9%; For the nine months ended September 30, 2022, the cumulative revenue reached RMB65.890 billion, a year-on-year increase of 16.3%, mainly due to the growth of live broadcast business, online marketing services and e-commerce business.

Vipshop released its financial report for the third quarter of 2022. Vipshop's revenue in the quarter was 21.6 billion yuan, down 13.3% year-on-year; Adjusted net profit was 1.6 billion yuan, a year-on-year increase of 55%. Vipshop's GMV in the third quarter was 37.6 billion yuan, compared to 40.2 billion yuan in the same period last year. Vipshop expects total net revenue in the fourth quarter of 2022 to reach RMB30.7 billion to RMB32.4 billion, down about 10% to 5% year-on-year.

On November 17, Kuaishou E-commerce issued an announcement that in order to optimize the business order of Kuaishou e-commerce service providers, protect the rights and interests of multiple users, standardize the business behavior of service providers on the platform, and jointly maintain the order of the platform, the "Kuaishou E-commerce Service Provider Violation Management Rules" will be revised.

These Rules were amended on November 17, 2022 and became effective on November 24, 2022. The core adjustments of this revision are: penalty adjustment; Reduce the intensity of restrictions on investment promotion and refund, and increase the amount of penalties for liquidated damages. new management measures; Prohibited list evaluation: It is forbidden to participate in various evaluation lists of service providers, including but not limited to comprehensive list/incubation list/brand list, etc. Other violation scenarios and violation explanations are revised.

International conglomerates

On the evening of November 2, The Estée Lauder Companies announced its main results for the first fiscal quarter of fiscal 2023 (July-September 2022). During the reporting period, The Estée Lauder Group's net sales were US$3.93 billion (approximately RMB28.693 billion), down 11% year-on-year; Operating profit was US$661 million (approximately RMB 4.826 billion), down 29% year-on-year.

On November 4, according to the Wall Street Journal, Gucci's parent company Kering and Estée Lauder have been in talks with designer brand Tom Ford about an acquisition, and Kering is currently leading the acquisition war, and the deal may be closed soon.

Recently, Amorepacific Group (hereinafter referred to as "Amore") released its third quarter 2022 performance report.

According to the report, in the first three quarters of 2022, the group's revenue fell 13.9% year-on-year to 3,047.2 billion won (about 15.57 billion yuan), and its net profit fell 55.5% year-on-year to 104.7 billion won (about 535 million yuan).

Among them, Amore's third-quarter revenue was 936.4 billion won (about 4.785 billion yuan), down 15.6% year-on-year, and its net profit fell 43.3% to 21.8 billion won (about 111 million yuan), which is Amore's profit fell again after the net profit fell 12.8% in the first quarter of this year and the net profit loss in the second quarter was 37.2 billion won (about 190 million yuan).

On November 8, Coty Group disclosed its fiscal 2023 first quarter operating data. According to the report, in the first fiscal quarter of fiscal year 2023 ended September 30, Coty's revenue increased by 1% year-on-year to US$1.39 billion (approximately 10.075 billion yuan, all converted to RMB), including a 7% negative foreign exchange (FX) impact, exceeding analysts' expectations of US$1.38 billion, but significantly slower than the 10% growth rate in the previous quarter.

Operating profit reported in the first quarter was $172 million (about 1.245 billion yuan), and adjusted profit rose 24% to $250 million (about 1.810 billion yuan). This was driven by higher sales and gross profit and a decrease in depreciation expense of $19.7 million. Adjusted EBITDA (EBITDA) increased 11% to $308 million ($2,233 million), representing a strong 190 basis point margin increase of 22.2%.

According to the latest news from the Financial Times, The Estée Lauder Group beat many bidders, including Gucci's parent company Kering, for about $2.8 billion to acquire American designer brand Tom Ford.