Retail channels

On February 2, KK Group released its January briefing. As of the end of January, KKV set a record for the highest monthly performance, and the GMV of a single store increased by more than 30% year-on-year, successfully achieving a good start to 2023.

The COLORIST colorist won the first battle in January, with single-store GMV increasing by more than 40% year-on-year, single-day performance hitting a new 480-day high, and monthly GMV hitting a 23-month high.

This month, X11 set a record for the highest monthly performance, with the average monthly sales of a single store increasing by more than 30% year-on-year and month-on-month sales increasing by more than 230%.

On February 1, MINISO released its New Year success, and the sales of offline stores in China exceeded 1.3 billion yuan in January 2023, a record high in a single month.

It is understood that on November 14, 2022, MINISO (MNSO.US) released its financial report for the first fiscal quarter of fiscal 2023. According to the financial report, as of September 30, 2022, MINISO's total revenue was 2.77 billion yuan, of which overseas revenue was 920 million yuan, a year-on-year increase of 48%; Non-IFRS net income was $420 million, up 127% year-over-year, and adjusted net margin was 15.1%.

Recently, Creighton Kiper, vice president of beauty product sales at Walmart, said that recruiting independent beauty start-up brands to enter Walmart is its top priority in 2023.

A few days ago, MINISO's first flagship store in China opened in Chengdu, with nearly 7,000 SKUs, and the average daily flow of people entering the store exceeded 10,000 during the soft opening period, and the sales volume reached 135,000 in a single day.

Brands and industries

On the evening of January 30,Lily & Beauty released its 2022 performance forecast. It is expected that the net profit attributable to shareholders of the listed company in 2022 will be about -139 million yuan to about -112 million yuan, a year-on-year change of about -523 million yuan to about -550 million yuan, and there will be a loss compared with the same period of the previous year.

On the evening of January 30, Liuzhou Two-sided Needle Co., Ltd. released the 2022 annual performance forecast, and the net profit in 2022 is expected to be -29 million yuan to -39 million yuan, compared with 8.6583 million yuan in the same period of the previous year, from profit to loss; the net profit is -3 million yuan to 3 million yuan.

On January 30, Qingsong Co., Ltd. released its 2022 annual performance forecast, expecting a loss of 680 million yuan to 780 million yuan in 2022, a decrease of 14.44% to 25.41% over the previous year.

Recently, the China Securities Regulatory Commission (CSRC) updated the progress report on the initial public offering and listing counseling of Guangzhou Yuanxiang Biotechnology Co., Ltd. According to the report, Yuanxiang Biotech intends to list A-shares, and the counseling institution is Guosen Securities, and the listing counseling has reached the fourth phase.

On February 1, Australian care brand Straand raised $2 million from Unilever Ventures, a venture capital arm owned by Unilever, which will be used for Straand's global market expansion, including the United States, the United Kingdom, Europe and China.

On February 1, Bijia Industrial issued an announcement that the company's shares will be suspended from February 2, and the reason for the suspension is to voluntarily apply to the national stock transfer company to terminate the listing. According to the official website of Bijia Industry, the company was founded in 2010, formerly known as Henan Bijia Cosmetics Co., Ltd., is a listed company integrating its own brand - TAUTROPFEN (Germany Tianlufen), channel brand - ecoology (organic customer), and agent brand Yi Herb.

On January 30, Lushang Health Industry Development Co., Ltd. released the 2022 annual performance forecast, which is expected to achieve a net profit attributable to shareholders of listed companies of 18.095 million yuan to 54.2851 million yuan in 2022, which will decrease by 307.6157 million yuan to 343.8058 million yuan compared with the same period of the previous year, a year-on-year decrease of 85% to 95%.

It is expected that the net profit attributable to shareholders of the listed company net of non-recurring profits and losses in 2022 will be 36.0058 million yuan to 72.0116 million yuan, which will decrease by 288.0465 million yuan to 324.0524 million yuan compared with the same period of the previous year, a year-on-year decrease of 80% to 90%.

On January 30, Langzi Co., Ltd. released the 2022 annual performance forecast, and it is expected that the net profit attributable to shareholders of listed companies in 2022 will be 20 million yuan to 30 million yuan, and the profit in the same period of the previous year will be 187.4489 million yuan, a year-on-year decrease of 84%-89.33%.

According to the announcement, the net profit after deducting non-recurring profits and losses is expected to be 9 million yuan to 13.5 million yuan in 2022, compared with 184.1577 million yuan in the same period of the previous year, down 92.67% -95.11% from the same period of the previous year.

On January 16, Meitian Medical and Health Industry Co., Ltd. rang the bell on the Hong Kong Stock Exchange and successfully won the "first share of beauty salon" in Hong Kong.

According to user monitoring, in October 2022, the sales of MAT (rolling annual data) Taobao Tmall facial makeup reached 25.93 billion yuan, and only setting spray, shadow and concealer maintained growth in facial makeup, especially the growth rate of the setting spray category reached 50.6%. Magic Mirror market intelligence data shows that the setting spray increased by 238.2% year-on-year in 2021.

Recently, Dongea Ejiao Co., Ltd. declared two new cosmetic raw materials, donkey oil (national makeup original preparation 20230001) and donkey milk powder (national makeup original preparation 20220040), have been filed by the State Medical Products Administration.

On January 27, before the U.S. stock market, Colgate (CL.US) announced its financial results for the fourth quarter and full year of 2022. According to the financial report, in the fourth quarter, Colgate clean sales were $4.629 billion, up 5.0% year-over-year, and organic sales increased 8.5% year-over-year, better than market expectations of $4.57 billion. Net income attributable to the Company was $5 million, compared to $148 million in the year-ago quarter.

On January 11, Covestro released the 2022 annual performance forecast, and the net profit attributable to shareholders of listed companies during the reporting period was 36,000.00 million yuan – 40,000.00 million yuan, an increase of 170.95% to 201.05% over the same period of the previous year.

Recently, Givaudan, a well-known Swiss supplier of perfume ingredients, showed a year-on-year increase in sales of 5.3% to CHF 7.1 billion and net profit of 4.2% year-on-year to CHF 856 million in fiscal 2022.

The group achieved good growth in all product areas and regions. Among them, business in mature markets increased by 1.9% year-on-year, and business in high-growth markets increased by 9.9% year-on-year.

Recently, the China Securities Regulatory Commission (CSRC) published the "Report on the Initial Public Offering and Listing Guidance of Nieson Technology (Guangzhou) Co., Ltd. (hereinafter referred to as "Niesheng Technology"). According to the report, Nieson Technology intends to be listed on the Beijing Stock Exchange, and the tutoring institution is Zheshang Securities.
  

On the evening of February 2, Bejiajie Group Co., Ltd. issued the "Announcement on the Acquisition of 16.4967% Equity of Weimeizi Industrial (Guangdong) Co., Ltd.", and the transaction target price was 471 million yuan. This is also the first equity acquisition case in the industry with a volume of hundreds of millions of yuan this year.

On February 6, Givaudan announced the groundbreaking launch of RetiLife™, an anti-aging ingredient.

According to statistics, the French cosmetics industry saw record export growth in 2022, with French cosmetics sales abroad generating €19.2 billion in 12 months, up 18.8% year-on-year, particularly boosted by the perfume, cosmetics and facial care categories.

The EU accounts for almost 37% of French cosmetics sales and remains the country's first export destination, according to the data.

Germany is its largest market with sales of €1.9 billion, up 21% compared to 2021; The United States and China ranked second and third respectively in French cosmetics sold overseas.

In the three months ended December 31, Coty Group sales fell 3% year-on-year to US$1.523 billion, mainly due to a 5% decline in the performance of Gucci's beauty and fragrance division, and net profit jumped 24% to US$235 million. In the first half of fiscal 2023, the group's revenue fell 1% to US$2.9 billion, while net profit jumped 23% to US$360 million.

For fiscal 2023 as a full, Coty Group is optimistic, expecting adjusted earnings per share to be in the range of 35 cents to 36 cents, up from its previous forecast of 32 cents to 33 cents per share.

Recently, Guangzhou Langqi released the 2022 annual performance forecast, the company is expected to have an operating income of 2 billion to 3 billion yuan, a net profit attributable to shareholders of listed companies of -85 million to -57.5 million, and a year-on-year decrease of 105.84% to 103.95%.

Recently, the National Standards Commission issued a notice that, in accordance with the provisions of the Standardization Law and the Measures for the Administration of Mandatory National Standards and the annual review arrangement, the relevant administrative department of the State Council will review the mandatory national standards for centralized management and submit the review conclusion. After demonstration, the State Administration for Market Regulation (Standards Committee) intends to abolish 10 mandatory national standards such as "Procedures and Methods for Safety Evaluation of Cosmetics" (GB 7919-1987), and is now open to the public for comments. The deadline for comments is March 30, 2023.

On February 6, the Guangzhou Municipal Administration for Market Regulation issued a notice on the cancellation of the "Cosmetics Production License", and 7 batches of enterprises took the initiative to cancel it.

On February 1, American makeup brand E.L.F. Beauty announced a 49 percent increase in third-quarter revenue to $146.5 million, and the brand's chairman and CEO Tarang Amin said the current quarter was the result of E.L.F. Beauty posted net sales growth for the 16th consecutive quarter.

Recently, "Dr.Ci:Labo", a Japanese-style specialized research institute line brand under Johnson & Johnson Consumer Goods, reached a strategic cooperation with Lige (Beijing) Medical Beauty Investment Chain Group Co., Ltd. to open China's first medical beauty clinic with "Dr.Ci:Labo" as its brand - Beijing Dr.Ci:Labo Medical Beauty Clinic in Chaoyang District, Beijing.

Firmenich recently announced its results for the half year ended December 31, 2022, with revenue of CHF 2.44 billion, up 11.5% at constant exchange rates, and adjusted EBITDA of CHF 440 million, up 7.3% at constant exchange rates, despite record revenue growth and strong adjusted EBITDA growth despite inflation and exchange rate fluctuations.

A few days ago, Revlon Tmall official flagship store issued a store closure announcement, intending to terminate its operations on March 15, 2023.

On February 15, French luxury giant Kering released financial data for the fourth quarter and full year of fiscal year 2022 ended December 31, 2022: Driven by Western Europe and Japan, consolidated sales revenue for 2022 increased by 15% on a reported basis to EUR 20,351 million (up 9% on a comparable basis), operating profit increased by 12% year-on-year to EUR 5,395 million, and net profit increased by 14% year-on-year to EUR 3,718 million, operating free cash flow of over EUR 3.2 billion, remains high. In the fourth quarter of 2022, the Group's consolidated sales revenue decreased by 2% year-on-year and decreased by 7% on a comparable basis.

Recently, Shuiyang issued the "Progress Announcement on Carrying out Foreign Exchange Hedging Business". According to the preliminary statistics of the company's financial department, the total floating profit and loss of fair value change generated by its foreign exchange hedging business was 32.71 million yuan, accounting for 13.84% of the company's audited net profit attributable to shareholders of listed companies in 2021, of which the fair value change profit and loss generated by the foreign exchange hedging business that has not yet been completed is 800,000 yuan.

On February 16, the parent company of domestic beauty brand Judydoll and Fermented Color "Orange Yi Group" posted on its official public account, disclosing the group's performance for the first time, saying that its sales in 2022 will reach 1.76 billion, a year-on-year increase of nearly 30%. Among them, the annual sales of Judydoll exceeded 1 billion yuan, and the annual sales of fermented color exceeded 750 million yuan. According to the group, the performance has maintained double-digit growth for many consecutive years and has continued to be profitable.

According to iResearch data, from 2016 to 2022, the growth rate of the domestic foundation makeup (liquid foundation, loose powder, etc.) market has outperformed the beauty market for 7 consecutive years, even in 2022, which is full of uncertainty, the scale of the foundation makeup market will still achieve about 47.7 billion yuan, and it is expected to officially exceed the 60 billion yuan mark in 2025.

Recently, Marumi Co., Ltd. released a record of investor relations activities, introducing the company's operation, market conditions, and main business initiatives.

Marumi said that the net profit rate expectation for the whole year in 2023 is 12%-15%, Marumi e-commerce will become one of the growth engines this year, and Marumi's cutting-edge brand PL will also become a growth engine, predicting that offline will not drag its feet, and strive for a full recovery. Its makeup brand Lianhuo launched the "Invisible" series for dry leather in 2022, and its revenue in the first three quarters of 2022 reached 2.5 times that of the whole year of 2021, and it still performed well during Q4.11, with an estimated year-on-year growth of more than 300%.

Recently, Xiamen Meiyi Beauty Co., Ltd. and Shenzhen Wanhong Tai Health Technology Co., Ltd. have successively issued the "Risk Warning Announcement that the Company may be terminated from stock listing", the former brand PBA is the first generation of domestic beauty Tao brand, the latter is a beauty chain brand operator, its brands include V Beauty Space and so on.
 

On February 14, the State Food and Drug Administration issued a notice pointing out that after inspection by the Shanghai Institute of Food and Drug Inspection and other units, the product labels were marked as 15 batches of cosmetics such as Hansheng Yi lavender acne slurry produced by the entrusted Fangji South Equator Economic and Trade Co., Ltd. and the entrusted party Guangzhou Biying Cosmetics Co., Ltd., and the prohibited raw materials specified in the "Cosmetics Safety and Technical Specifications (2015 Edition)" were detected, including ciprofloxacin, clindamycin and other undetectable antibiotics.

On February 10, the State Food and Drug Administration announced that 19 batches of cosmetics with banned raw materials were detected, and the labels were labeled as 19 batches of cosmetics such as Shangpin Whitening Spot Removal Essence Cream produced by the manufacturer Guangzhou Shangpin Biotechnology Co., Ltd. and the general distributor Guangzhou Yongjiumei Biotechnology Co., Ltd., and the prohibited raw materials specified in the "Cosmetic Safety and Technical Specifications (2015 Edition)" were detected.

A few days ago, the State Food and Drug Administration issued a notice on the detection of banned raw materials in cosmetics (No. 8 of 2023), involving 19 batches of products such as essence creams, hair dyes and shampoos. Among them, Nanjing Tongrentang blue copper peptide mask is prominently listed due to the illegal addition of glucocorticoid "disonide".

According to the latest announcement of SK-II Tmall official flagship store, the brand will adjust the official retail price of some products from 0:00 on February 15. Some sources said that SK-II price increase this round may reach 20%, and seventy percent of products are within the price increase range. It is worth noting that this is the fourth and highest price increase for SK-II since 2018, and the price increase of SK-II products has been concentrated in 5%-10% in the past five years.
 

E-commerce platforms

News on January 28, Tiktok Supermarket has launched the Tiktok App, and users can conduct online supermarket shopping experience in Tiktok. Search for "Tiktok Supermarket" in the search bar or shopping entrance to enter the Tiktok Supermarket for shopping.

On February 6, more than half of the products on the Temu platform of Pinduoduo's cross-border e-commerce platform have begun testing on the Canadian site at the same time, and will officially enter the North American market. According to Sensor Tower data, Temu has been installed 10.8 million times in the US market since its launch in September 2022, making it the most downloaded app in all categories in the US market between November 1 and December 14.

International conglomerates

On February 2, The Estée Lauder Corporation released its fiscal 2023 second quarter financial results. According to the report, during the period, the net sales of Estée Lauder Group were US$4.62 billion (about 31.095 billion yuan), down 17% year-on-year; Net income was US$397 million (approximately RMB2.672 billion), down 64% year-on-year.

Overall, Estée Lauder Group's net sales in the first half of fiscal 2023 (July-December 2022) recorded US$8.55 billion (approximately RMB57.545 billion), down 14% year-on-year; Net income recorded US$887 million (approximately RMB5.97 billion), down 50% year-on-year.

On January 31, French beauty company L'Occitane announced its results for the three months ended December 31, 2022 (third quarter of fiscal 2023) and the first nine months of fiscal 2023.

According to the financial report, L'Occitane sales in the first three quarters of fiscal 2023 reached 1.6 billion euros (about 11.74 billion yuan), an increase of 16.5% year-on-year at the reported exchange rate and 10.6% at the constant exchange rate. On a comparable basis, excluding the impact of the Group's exit from the Russian market, new brands entering the account, and excluding the impact of not consolidating U.S. subsidiaries in the year, sales in the first three quarters of fiscal 2023 increased by 2.3% year-on-year at constant currency rates.

Recently, in the 12 months ended December 31 last year, the sales of LVMH, the world's largest luxury goods group, rose 23% year-on-year to 79.18 billion euros, a record high, operating profit also rose 23% to 21.055 billion euros, net profit increased 17% to 14.1 billion euros, and operating free cash flow exceeded 10 billion euros.

A few days ago, L'Oréal Group CEO Nicolas Hiernimus revealed in a letter to shareholders that L'Oréal is the world's largest beauty group, selling more than 7 billion products and 32 billion euros in sales every year, accounting for 14% of the global beauty market, and will continue to invest effectively in brands in the future.

On February 2, global daily chemical giant Kao Group released its 2022 annual financial report, achieving sales growth of 3.7% against the backdrop of a continuing tough market environment. Kao said in its annual report that in yen terms, its sales increased by 9.3% from the previous year to 1,551.1 billion yen (about 81.6 billion yuan), and the real increase was 3.7% after considering the impact of exchange rates. Operating profit was 110.1 billion yen (approximately 5.6 billion yuan), down 23.3% y/y to 110.1 billion yen (approximately 5.6 billion yuan).

On February 9, Unilever's fourth quarter 2022 and annual report were announced. In 2022, Unilever's turnover was 60.1 billion euros (about 438.237 billion yuan), a year-on-year increase of 14.5%; Operating profit was 10.8 billion euros (about 78.751 billion yuan), a year-on-year increase of 23.6%; Net profit was 8.3 billion euros (about 60.522 billion yuan), a year-on-year increase of 24.9%. Unilever's revenue in the fourth quarter of 2022 increased by 11.4% to 14.61 billion euros (about 106.46 billion yuan).

On February 10, L'Oréal Group announced key financial data for 2022 and the fourth quarter. Data show that L'Oreal's sales last year were 278.35 billion yuan, a year-on-year increase of 18.5%, setting the highest sales and growth record in 10 years. At the same time, the group's operating profit also exceeded the 50 billion mark for the first time, an increase of 21% year-on-year.

Specifically, from the perspective of various business segments, the financial report shows that the four major departments of L'Oréal Group have achieved full-line growth in 2022, of which the sales of professional hairdressing products will be 32.57 billion yuan, a year-on-year increase of 18.3%; the sales volume of mass cosmetics was 102.01 billion yuan, a year-on-year increase of 14.6%; High-end cosmetics achieved sales of 106.49 billion yuan, a year-on-year increase of 18.6%; Active health cosmetics were 37.28 billion yuan, a year-on-year increase of 30.6%. 

On January 31, LG Life Health released its fourth quarter and annual performance report for 2022. According to the report, in the fourth quarter of 2022, LG's total sales of healthy life were 1,807.8 billion won (about 9.94 billion yuan), down 10.6% year-on-year; Operating profit was KRW 128.9 billion (approximately RMB 710 million), down 46.5% year-on-year. In fiscal 2022, LG Life & Health's total sales were KRW 7,185.8 billion (approximately RMB 39.52 billion), down 11.2% year-on-year, and operating profit was KRW 711.1 billion (approximately RMB 3.91 billion), down 44.9% year-on-year.

On February 10, Shiseido announced its 2022 performance report, which showed that in 2022, Shiseido Group's global sales were 1,067.355 billion yen (about 54.7 billion yuan), a year-on-year increase of 5.7%; Operating profit was 46.572 billion yen (about 2.388 billion yuan), down 53.7% year-on-year; Net profit attributable to owners was 34.202 billion yen (about 1.754 billion yuan), down 27.1% year-on-year.

Specifically, net sales in China were 258.2 billion yen (approximately 13.241 billion yuan), down 6.0% year-on-year, and 9.8% year-on-year, excluding the impact of foreign exchange and business transfers. Core operating loss was 3.9 billion yen (approximately CNY 200 million), mainly due to lower profit margins due to lower sales.

Net sales in Japan were JPY 237.6 billion (approximately CNY 12,185 million), down 8.2% and essentially flat after excluding the impact of business transfers. Core operating loss was 13.1 billion yen (approximately 672 million yuan), down 19.6 billion yen year-on-year, mainly due to lower margins due to the transfer of personal care business, which exceeded costs.

On February 13, Kose released its 2022 annual financial report. According to the report, Kose's total sales in 2022 were 289.1 billion yen (about 14.889 billion yuan), a year-on-year increase of 7.5%; Operating profit was 22.1 billion yen (approximately 1.138 billion yuan), a year-on-year increase of 41.1%. Among all of Kose's major brands, the DECORTE brand remains one of its most important sources of revenue, achieving sales of 96.2 billion yen (approximately 4.954 billion yuan) in 2022, an increase of 7.5% year-on-year, with particularly active growth in Japan, which achieved sales growth of more than 26% every quarter. 
                  

Tax Free Dynamics

On January 26, according to statistics provided by the Department of Commerce of Hainan Province, five days before the Spring Festival holiday this year (January 21-25), the total sales of 12 outlying island duty-free shops in the province were 1.685 billion yuan, an increase of 20.03% over the first five days of the Spring Festival in 2022 and an increase of 325% over the first five days of the Spring Festival in 2019.

Among them, the total sales of the 6 outlying island duty-free shops in Haikou were 470 million yuan, an increase of 140% over the first five days of the Spring Festival in 2022 and an increase of 641% over the first five days of the Spring Festival in 2019; The total sales of Sanya's four outlying island duty-free shops reached 1.158 billion yuan, an increase of 253% over the first five days of the Spring Festival in 2019.

On the evening of February 3, China Exempt released the 2022 annual performance express announcement, the company achieved a total operating income of 54.463 billion yuan in 2022, a year-on-year decrease of 19.52%; achieved an operating profit of 7.605 billion yuan, a year-on-year decrease of 48.63%; The net profit attributable to shareholders of the listed company was 5.025 billion yuan, down 47.95% from the same period last year; Basic earnings per share were $2.52.