Retail channels

After re-entering the UK market and opening its first store in London, Sephora plans to open a second store in Westfield Stratford City in November. In March, Sephora's 6,000-square-foot store in London's Westfield White City opened and sold more than 135 brands.

Recently, Sasa International Holdings Limited released the latest sales data for the first quarter of fiscal year 2024 (April 1 to June 30, 2023).

According to the financial report, from April 1 to June 30 this year, Sasa International's turnover increased by 30.9% year-on-year to HK$1.05 billion (about RMB 964 million). By region, SaSa International's offline sales in Hong Kong and Macau increased by 60.7% year-on-year, and same-store sales increased by 69.6% during the reporting period. In the Chinese mainland market, Salsa International same-store sales increased by 0.8% year-on-year, and sales recovered to 67.2% of the same period last year, with online sales accounting for 52.5% of total sales in Chinese mainland quarter. As of June 30 this year, Sasa International had a total of 188 stores, down 35 from the same period last year. Among them, 81 are in Hong Kong and Macao, 38 in Chinese mainland and 69 in Southeast Asia.

Authoritative Release

On July 12, the Central Inspection Institute issued a notice on the public solicitation of opinions on the "Inspection Methods of Two Raw Materials such as Azelaic Acid in Cosmetics". Among them, the "Inspection Method for Two Raw Materials such as Azelaic Acid in Cosmetics" stipulates the determination of the content of azelaic acid and potassium azelaic diglycinate in cosmetics by high performance liquid chromatography. It is suitable for the determination of azelaic acid and potassium azelaic acid in creams, liquids, gels, powders, muds, and film cosmetics; "Photoreactive Oxygen Species (ROS) Determination Test" specifies the basic requirements and methods for the determination test of photoreactive oxygen species (ROS) for chemical raw materials used in cosmetics. It is suitable for evaluating the potential phototoxicity of chemical raw materials for cosmetics; "Determination of Selenium Disulfide in Cosmetics" specifies the determination of the content of selenium disulfide in cosmetics by hydride atomic fluorescence spectrophotometry. It is suitable for the determination of selenium disulfide content in dandruff shampoo cosmetics containing selenium sulfide.

On July 17, the Shanghai Xuhui District Market Supervision Administration issued the Notice on Carrying out Special Self-Inspection and Self-Correction Work for Illegal Acts of "No. 1 Multi-Use" of Cosmetics, and relevant enterprises are required to report the self-inspection and rectification situation (including the number of self-inspection products, the number of problem products, the completion of rectification, etc.) to the local market supervision institute before July 19, 2023.

Brands and Industries

On June 26, Plaza Premium disclosed a new prospectus, completed the update of financial information, and Shenzhen Stock Exchange resumed its issuance and listing review.

In the past 618, Proya has won a number of firsts:

The Proya brand ranked among the top 1 domestic beauty products on Tmall, with a year-on-year increase in GMV of more than 80%; Ranked in the top 1 of Tiktok's domestic beauty products, GMV increased by more than 80% year-on-year; Jingdong domestic beauty TOP1, GMV increased by more than 70% year-on-year.

Caitang won the top 2 domestic products of Tmall Makeup, and the GMV increased by more than 50% year-on-year; And won the top 4 of Tiktok makeup, GMV increased by more than 70% year-on-year. Caitang Tmall self-broadcast room, also ranked No.1 in Tmall domestic makeup self-broadcast list.

The total sales of OR (Off & Relax) double stores increased by 300%+ year-on-year, and the sales of 33 minutes exceeded last year's full period, and OR hot spring hair mask ranked No.1 on Tmall International imported care hair mask hot selling list.

Yuefu Tian polyacid mud film ranks TOP1 on the Tiktok spreadable mud film explosive list...

On June 26, Galderma, the parent company of Stauff, announced that it will advance its plan to issue new shares in a private placement, raising about 1 billion US dollars (about 7.217 billion yuan). The private placement is expected to be completed in the coming weeks. Galderma said it plans to improve its balance sheet with the funds raised to provide organic growth momentum for its comprehensive dermatology strategy.

NMPA added two new cosmetic raw materials for the record, namely cyclic peptide-161 (national makeup original preparation 20230023) and tripeptide-105 (national makeup original preparation 20230024), and the filing companies were Zhejiang Pai Peptide Biotechnology Co., Ltd. and Shenzhen Weiqi Technology Co., Ltd.

French luxury giant Kering has announced that its beauty unit, Kering Beauté, has acquired all of the shares of British salon perfume brand Creed in cash.

Misve issued the "Indicative Announcement on the Application for Public Offering of Shares and Listing on the Beijing Stock Exchange and Completion of Guidance and Acceptance". According to the "Announcement", the company has passed the guidance and acceptance of the Jiangsu Securities Regulatory Bureau under the guidance of the counseling institution Soochow Securities. This marks that the next step is to formally submit the prospectus of the Beijing Stock Exchange and is expected to be listed.

On June 28, the Guangzhou Municipal Administration for Market Regulation announced a typical case of cosmetics companies being fined for "one number of multiple uses". It was disclosed that Guangzhou Pin Hard Biotechnology Co., Ltd. marked the words "Nanjing Tongrentang Green Gold Home" on the packaging container of "Hanlu amino acid shampoo" produced by it, which was prohibited from labeling on cosmetics labels, and was fined and confiscated a total of 16,200 yuan.

Canada's Budget Implementation Act includes an amendment to the Food and Drug Act that prohibits the use of animals in Canada for cosmetic testing and prohibits false and misleading labeling related to animal testing of cosmetics.

Recently, the Beijing Stock Exchange announced the "Reply on Approving the Registration of Public Offering of Shares by Shanxi Jinbo Biopharmaceutical Co., Ltd. to Unspecified Qualified Investors". Jinbo Biotech is about to become the second listed recombinant collagen company in China.

Recently, some consumers have reported that they have seen a number of live broadcast rooms with the name "bee flower" on social platforms "counterfeiting", and many netizens have questioned whether the English trademark bee flower is pirated.

In response, Liao Damei, secretary of the party committee and chairman of Shanghai Soap (Group) Co., Ltd., responded that the original trademark could only produce bee flower sandalwood soap, liquid soap, etc., but in order to allow more consumers to experience the product, a new English trademark was registered.
 
Recently, Italian hair and skincare brand Pettenon Cosmetics announced key financial figures for 2022:

Revenue increased by 10.4% year-on-year to 197 million euros, of which overseas market revenue accounted for 70%, and Pettenon Cosmetics has reached 114 countries.

The Shenzhen Municipal Bureau of Statistics released the economic operation of Shenzhen from January to May.

Among them, from January to May this year, the total retail sales of consumer goods in Shenzhen were ¥407.769 billion, a year-on-year increase of 13.2%, and by consumption type, retail sales of goods increased by 12.4%. Among them, the retail sales of cosmetics above designated size increased by 13.5%. Online retail sales continued to grow rapidly, with retail sales of goods above designated size increasing by 34.0% over the Internet.

On June 28, Zhejiang Peptide Biotechnology Co., Ltd., a biotechnology company deeply engaged in the field of peptides, released a draft prospectus, making an initial public offering and impacting the ChiNext IPO. On the same day, the Shenzhen Stock Exchange also released the listing review information, and the IPO of Peptide Biotech Growth Enterprise Market has been accepted.

On July 4, Suzhou Misskin Cosmetics Co., Ltd. issued the "Announcement on Withdrawing the Application Documents for Public Offering of Shares to Unspecified Qualified Investors and Listing on the Beijing Stock Exchange". According to the announcement, after careful analysis and comprehensive judgment, MixSkin decided to withdraw the relevant application documents for the public offering of shares to unspecified qualified investors and listing on the Beijing Stock Exchange after careful analysis and comprehensive research and judgment. At present, the company is operating normally, and there are no major adverse matters affecting the company's continuous and stable operation.

On July 3, the Shenzhen Stock Exchange website announced the decision to terminate the review of the initial public offering of Guangzhou Larami Information Technology Co., Ltd. and its listing on the main board.

Earlier this year, Bio-Botanica, a global manufacturer of specialized plant and herbal extracts, discovered a new ingredient,ashwagandha root extract. The ingredient has remarkable anti-photoageing and anti-stress properties, effectively enhancing the ability to resist external disturbances and become the skin's immune regulator. This ingredient is highly in line with the current trend concept of adaptogens.

On July 5, the evaluation blogger @dad, who was highly praised by consumers for exposing the "big-headed doll" incident, posted an article titled "Prohibited Addition!" on his public account. This "poisonous" cream is simply unconscionable! article. The article said that after a fan used a "red snail baby first cream" on a six-month-old baby, the baby's face began to have acne, hair and red spots. After a series of investigations, it was reported that the baby care product contained the antibiotic tacrolimus; The recordator of the product involved, Guangzhou Zhonghao Biotechnology Co., Ltd., was the same address as Guangzhou Henglan Biotechnology Co., Ltd., which had previously been revoked and banned, and was an affiliated company. It is reported that the local Municipal Supervision Bureau in Guangzhou has intervened.

According to the statistics of Autoo International Consulting Company, in the latest year (June 2022-May 2023), the sales of shower gel products on the whole network were 9.229 billion yuan, an increase of 11.5%, the retail volume reached 194 million pieces, and the average transaction price was 47.7 yuan.

According to data from multi-party data platforms such as Big Math, Data Aggregation, and User Talk Database, in the past year, the shower gel category accounted for 54.31% of the body cleaning category, an increase of 110.1%. The reason for these data growth is essentially that the shower gel category has entered a comprehensive innovation phase.

According to data from the Prospective Industry Research Institute, the size of China's men's skin care products market exceeded the 10 billion mark for the first time in 2022, with an average annual compound growth rate of 16.26% from 2022 to 2027, which means that the men's skin care market is expected to double in 2026.

On July 12, Proya Cosmetics Co., Ltd. released the first performance forecast since its listing - "2023 Half-year Performance Forecast".

According to the forecast, in the first half of 2023, Proya's net profit attributable to the owners of the parent company is expected to be 460 million yuan to 490 million yuan, an increase of 55% to 65% year-on-year.

It is worth noting that the growth rate of Proya's net profit hit a new high in the past six years. This also means that since its listing in 2017, Proya's net profit in the first half of the year has successfully increased for seven consecutive years, which is the strongest increase in net profit in the first half year since listing.

"Pure" fragrance brand Sana Jardin has completed a $2 million funding round from existing investors that will be used to expand Sana Jardin's market. Founder Amy Christiansen says the brand has also previously raised £3.4 million from a wide range of private investors and is now at an inflection point in growth.

Recently, the State Food and Drug Administration's cosmetic raw material filing information platform shows; "Galactomannan " of Beijing Guarrun Technology Co., Ltd., "PARIS FARGESII Rhizome Extract" of Yunnan Baiyao Group Shanghai Technology Co., Ltd. and "Cellulose Propionate Acetate" of Eastman Chemical Company have been recorded, and all three raw materials have entered the monitoring period.

MEDIPLEDGE, a new dermatology-grade skincare brand, was officially launched.

Jinbo Biotech announced the list of war investment in the IPO of the Beijing Stock Exchange, and CITIC Securities Jinbo Biotech employees participated in the strategic placement No. 1 collective asset management plan of the Beijing Stock Exchange, Chenming (Qingdao) Asset Management Co., Ltd., and New Long-term (Hainan) Private Equity Fund Management Co., Ltd. 3 war investment plans to subscribe for a total of ¥49 million.

The offering price of Jinbo Biotech is ¥49.00 per share, the price-to-earnings ratio is 32.44 times, and the online application time for this offering is 2023-07-10.

On July 10, the Financial Times reported that according to people familiar with the matter, the purchase price of France's high-end independent fragrance brand Creed was 3.5 billion euros (about 27.744 billion yuan). According to previous reports, Kering announced the acquisition of all shares of perfume brand Creed, and the details of the transaction were not disclosed at that time, in part because the two companies did not want to disclose Creed's high profit margins.

On July 13, Yunnan Baiyao Group Co., Ltd. released the 2023 half-year performance forecast. After preliminary calculations by the company's financial department, Yunnan Baiyao expects the net profit attributable to shareholders of listed companies in the first half of the year to be between 2.61 billion yuan and 3.00 billion yuan, compared with a profit of 1.50 billion yuan in the same period last year, a year-on-year increase of 74% to 100%. It is expected that the net profit after deducting non-recurring profit and loss in the first half of the year will be between 2.529 billion yuan and 2.909 billion yuan, compared with a profit of 1.655 billion yuan in the same period last year, an increase of 53% to 76% year-on-year. In addition, the forecast shows that the basic earnings per share in the first half of this year were 1.46 yuan / share to 1.68 yuan / share, compared with 1.10 yuan / share in the same period last year.

On July 13, A-share listed company Lishang Guochao released a half-year performance forecast, the company expects that the performance from January to June 2023 will decline significantly, and the net profit attributable to shareholders of the listed company will be 33.00 million yuan - 46.00 million yuan, compared with the same period of the previous year, it will decrease by 125 million yuan to 112 million yuan, down 79.06% to 70.81% year-on-year.

On July 13, BASF announced that it lowered its full-year sales guidance and adjusted EBIT guidance. According to preliminary estimates, the company's adjusted EBIT in the second quarter was 1 billion euros (about 7.984 billion yuan), analysts expected 1.06 billion euros, and sales in the second quarter were 17.3 billion euros (about 138.1 billion yuan), analysts expected 19.43 billion euros. The weaker-than-expected second quarter results were due to a significant decline in the price and volume of the company's products. BASF said it will lower its full-year guidance to expect full-year adjusted EBIT of 4.0 billion to 4.4 billion euros (approximately 31.951 billion yuan to 35.146 billion yuan), compared with the company's original forecast of 4.8 billion to 5.4 billion euros (about 38.326 billion yuan to 43.12 billion yuan). At the same time, the annual sales are expected to be 73 billion to 76 billion euros (about 582.8 billion yuan to 606.7 billion yuan), and the company originally expected 84 billion to 87 billion euros (about 670.6 billion yuan to 694.6 billion yuan).

Recently, Shanghai Beauty Beauty Cosmetics Co., Ltd. (hereinafter referred to as Beauty Beauty) released its 2023 half-year performance forecast.

In the first half of the year, the net profit attributable to listed companies was -27.5 million yuan to -23 million yuan, a year-on-year decrease of 29.108 million yuan to 33.608 million yuan, and there will be a loss compared with the same period of the previous year. Beauty Beauty has seen revenue decline for two consecutive years. According to the financial report, from 2021 to 2022, the revenue of beauty makeup will be 4.155 billion yuan and 3.242 billion yuan, respectively, down 9.67% and 21.98% year-on-year; The net profit attributable to shareholders of the parent company was 411 million yuan and -139 million yuan, respectively.

Jinbo Biotech (832982) was listed on the Beijing Stock Exchange on July 20 and delisted from the New Third Board on the same day. According to reports, Jinbo Bio's main products are recombinant collagen products and anti-HPV biological protein products, and it is a national "specialized, specialized and new" small giant enterprise, with a net profit of 109 million yuan in 2022, a year-on-year increase of 90.24%.

On July 19, the Listing Review Committee of the Shanghai Stock Exchange announced the results of the 65th deliberation meeting in 2023: Zhejiang Dinglong Technology Co., Ltd. met the issuance conditions, listing conditions and information disclosure requirements.

Procter & Gamble's global skincare leading brand OLAY unveiled the newly upgraded "Signal Cream" at WCD, and released a milestone scientific research result - the first scientific image of the real growth process of collagen, achieving a major breakthrough in the history of human anti-aging, and showing the world the strong scientific research strength behind OLAY skin care.

Shanghai Jahwa released the first half of 2023 performance forecast:

It is expected that 23H1 will achieve a net profit attributable to the parent of 2.85~315 million yuan, yoy+81%~100% (single Q2 will achieve a net profit attributable to the parent of 0.55~085 million yuan, yoy+132%~204%).

 It is expected that 23H1 will achieve a net profit of 2.49~275 million yuan, yoy+24%~37% (single Q2 will achieve a net profit of 0.21~0.48 billion yuan, yoy+189%~418%), and the fair value of the Ping An Consumer Technology Fund (Phase I and Phase III) invested by the company will increase significantly, resulting in a significant increase in non-recurring income.

On the evening of July 13, Zhangzhou Pian Zixi Pharmaceutical Co., Ltd. issued an announcement on the 2023 half-year performance express.

In the first half of this year, the company's total operating income was 5.045 billion yuan, a year-on-year increase of 14.08%.

POLA ORIBIS 2022 FINANCIAL REPORT SHOWS. In fiscal 2022, the overall business showed a downward trend, sales fell 7.18% to 161.65 billion yen, about 8.3 billion yuan, and operating profit fell 19.15% to 13.793 billion yen, or about 711 million yuan. IN THE EARNINGS REPORT, POLA ORBIS SAID THAT THE DECLINE WAS DUE TO THE FACT THAT THE JAPANESE COSMETICS MARKET IN FISCAL 2022 DID NOT RETURN TO PRE-CROWN LEVELS. However, it is emphasized that its brand Riley has grown in the Chinese market.

On July 17, the National Bureau of Statistics released retail sales data of consumer goods in the first half of 2023. In the first half of the year, the total retail sales of consumer goods 227588 billion yuan, a year-on-year increase of 8.3%; In June, the total retail sales of consumer goods were 3,995.1 billion yuan, a year-on-year increase of 3.1%. Among them, the total retail sales of cosmetics in the first half of the year were 207.1 billion yuan, a year-on-year increase of 8.6%; Total retail sales of cosmetics in June were RMB45.1 billion, up 4.8% year-on-year.

In terms of customs import data, China's imports of beauty cosmetics and toiletries in June were 30,359.7 tons, with an import amount of 9.29 billion yuan; in the first half of the year, the cumulative import was 182,213.6 tons, down 10.7% year-on-year, and the import amount was 66.19 billion yuan, down 8.7% year-on-year.

According to enterprise investigation data, as of July 19, 2023, 1,286 cosmetics production-related enterprises have been cancelled and revoked (the data caliber is the enterprise name, business scope, and product name containing "cosmetics production"), an increase of 52.2% over the same period last year.

Following the exposure earlier this month that "the drug ingredient tacrolimus was detected in Red Snail Infant First Cream", on July 19, Daddy Evaluation published an article again, saying that "there is illegal addition of 3 'children's products', including Lematang Dandelion Medical Cold Compress Gel, Wendetang Medical Antipyretic Gel, and Yinghe Baby Bao Medical Cold Compress Gel". Children's products have problems one after another, which has once again attracted widespread attention in the industry.

Recently, Harbin Shierjia Technology Co., Ltd. disclosed its prospectus that it intends to issue new shares and list in the Shenzhen market in the near future, and began to apply on July 20.

E-commerce logistics

According to the statistics of Magic Mirror Market Intelligence, during the rolling year of MAT in May 2023 (June 2022 to May 2023), the total sales of men's cosmetics on Taobao Tmall, JD.com and Tiktok exceeded 7.7 billion yuan.

Among them, Taobao Tmall men's cosmetics sold 48.481 million pieces, a total of 5.084 billion yuan, with an average price of 105.51 yuan; on the Jingdong platform, the average price of men's cosmetics was less than 100 yuan, 99.5 yuan, with sales of 18.991 million pieces, a total of 1.890 billion yuan; while the average price of Tiktok men's cosmetics was lower than that of the previous two platforms, 69.2 yuan, with a total of 11.321 million products sold, with a total sales of 783 million yuan.

In the Tiktok 618 Good Things Festival Beauty TOP30 list, domestic products accounted for 16 seats, and brands such as Proya, Hanshu, Hua Xizi, Winona, Kefumei, Mao Geping, HBN, Gu Yu, Ou Shiman, Marumi and so on entered the list. Specific to the TOP20 list of skin care categories, Proya and Hanshu entered the top ten, in addition, Winona, Kefumei, Gu Yu, Ou Shiman, HBN, Skin Future and other domestic brands entered the top 20. In the TOP20 list of Tiktok makeup category, there are as many as 16 domestic brands.

Recently, Taobao officially launched a new version of "Night Taobao", users can switch to a 24-hour life entertainment version of Taobao through the entrance in the upper right corner of Taobao's homepage.

 "Night Taobao" began gray testing last week, itself originated from the Taobao summer version, and may exist as a long-term product in the future. Taobao said that this is the biggest revision of Taobao in three years, and it is also another exploration of content after the comprehensive information streaming of the homepage in 2020.

International conglomerates

On June 26, French beauty company L'Occitane announced its financial results for the year ended March 31, 2023. L'Occitane pointed out in the report that the group's sales exceeded the milestone of 2 billion euros in fiscal 2023, reaching 2.137 billion euros (about 16.860 billion yuan), an increase of 19.8% at the reported exchange rate; The reported operating profit was 239 million euros (about 1.886 billion yuan), down 23.0% year-on-year, which L'Occitane explained was mainly due to the impairment of two underperforming brands.

According to Fashion Business News, The Estée Lauder Group has raised the price of its main products of the eponymous brand from July 1, from 540 yuan to 550 yuan for the small brown bottle eye cream, from 760 yuan to 810 yuan for the 15ml version of the platinum series cream, and from 1800 yuan to 1900 yuan for the 30ml version of black truffle essence. LAB SERIES and Tom Ford products, which also belong to the group, also saw price increases, ranging from 4% to 25%.

Coty Group has agreed to sell its $150 million stake in Wella, which it said today expects to sell a 3.6 percent stake in the professional haircare brand to investment firm IGF Wealth Management, with the proceeds going to pay down debt, in a deal expected to close within the next two months.

Tax Free Dynamics

It is reported that in the three years of 2020-06~2023-05, the total import and export value of Hainan's trade in goods was ¥504.48 billion, an increase of 101.4% over the previous three years, and the growth rate ranked first among all provinces and cities in the country during the same period. The total amount of duty-free shopping on Hainan's outlying islands exceeded 130 billion, an increase of 290%. Hainan's foreign trade imports were ¥354.79 billion, an increase of 127%, of which imported consumer goods were ¥133.84 billion, a significant increase of 254.9%, and Hainan has become the ninth largest importer of consumer goods and the second largest import province of cosmetics in China.

On July 7, China National Tourism Group China Duty Free Co., Ltd. announced its half-year performance report, and in the first half of the year ended at the end of June, China's total operating income was 35.858 billion yuan, a year-on-year increase of 29.7%; Net profit attributable to shareholders decreased by 1.87% to MOP3,864 million. During the period, the gross profit margin of the Group's main business increased steadily, up 7.81 percentage points from the second half of last year, and the gross profit margin in the second quarter increased by 3.67 percentage points quarter-on-quarter.