Retail channels

On August 31, the Census and Statistics Department of the Hong Kong SAR Government of China released data showing that the provisional estimate of the total sales value of the retail sector in July 2023 was HK$33 billion, up 16.5% year-on-year.

The revised estimate of total sales value in June 2023 increased by 19.5% compared to the same period last year; The provisional estimate of the total value of retail sales for the first seven months of 2023 increased by 20.1% compared to 2022. In July this year, the value of sales of pharmaceutical and cosmetics retailers increased by 45.7% year-on-year.

Recently, Bonjour Holdings announced that the company intends to issue about 1.242 billion subscription shares to Chen Jianwen at a subscription price of HK$0.062 per share to repay HK$76.99 million (approximately RMB72.1 million) of shareholder loans (including outstanding principal and accrued interest). Upon completion of the Subscription, the Shareholders' Loan shall be deemed to have been repaid in full and the Subscriber will forgive any balance of the Shareholder Loan.

Recently, online beauty retailer THG announced its half-year results. In the first half of 2023, the Group posted a pre-tax loss of £133 million, compared to £108.2 million in the same period last year. THG said it expects continued revenue growth in 2023 to be between 0% and 5%. Matthew Moulding, co-founder and CEO of THG, said in a statement: "Inflationary pressures have posed significant challenges for consumers and businesses over the past 18 months. And after THG cut its 2023 sales outlook, shares fell more than 20% on the London Stock Exchange on Thursday.

Online beauty retailer THG is the owner of online retailers Cult Beauty and Look Fantastic and brands Perricone MD and Espa. In the first half of 2023, the Group posted a pre-tax loss of £133 million, compared to £108.2 million in the same period last year. Despite THG's blockbuster IPO in 2020, with a market capitalisation of around £5.4 billion, it didn't get off to a smooth start in the public markets, with investors questioning the value of its regulation and platform.

Authoritative Release

The State Administration for Market Regulation (SAMR) newly revised and issued the Measures for the Supervision and Administration of Cosmetics Network Operations and the mandatory national standards for Limiting Excessive Packaging Requirements for Food and Cosmetics (GB 23350-2021), which will come into force on September 1.

The Measures for the Supervision and Administration of Cosmetics Online Operations stipulate that cosmetics e-commerce platform operators shall set up cosmetics quality and safety management organizations, or appoint full-time and part-time quality and safety management personnel.

The "Restriction of Excessive Packaging Requirements for Food and Cosmetics" regulates the packaging requirements of 31 types of food and 16 types of cosmetics.

Recently, the State Medical Products Administration issued 21 revised items such as "pH determination method of water-in-oil cosmetics" and incorporated into the notice of cosmetic safety and technical specifications.

Among them, 5 inspection methods are revised inspection methods, replacing the original inspection methods in the "Cosmetic Safety and Technical Specifications (2015 Edition)", and from March 1, 2024, the inspections related to the registration, filing and sampling inspection of cosmetics shall adopt the inspection methods issued in this notice. 14 new inspection methods were included in the "Safety and Technical Specifications for Cosmetics (2015 Edition)", which will be implemented from the date of issuance. Added the banned ingredient "Benvimod" in cosmetics. In addition, the management limit of benzene, a newly banned component in cosmetics, is (2mg/kg).

Brands and Industries

On August 22, Yixian E-commerce (NYSE: YSG) released its second quarter 2023 results. According to the announcement, the company achieved revenue of 859 million yuan in the second quarter, exceeding the upper limit of the company's previous revenue guidance. Among them, the skin care business, which is a key segment, achieved revenue of 325 million yuan, accounting for 37.9% of total revenue, maintaining a level of more than 30% of total revenue for five consecutive quarters, and the company's revenue structure continued to optimize.

With the deepening of strategic transformation, the company's operating efficiency has steadily improved. The gross profit margin has maintained an upward trend in the past four quarters, reaching 74.7% in the second quarter, an increase of 11.9 percentage points year-on-year, and the highest quarterly gross profit margin since the listing of Chuangyi Xian E-commerce.

DTC care brand Hims & Hers announces Q2 2023 earnings. As of June 30, the brand's revenue was $200 million, up 83% year-over-year. 

In the first half of 2023, Hims & Hers' revenue was $399 million, a year-on-year increase of 85.54%, and a net loss of $17.224 million, a year-on-year decrease of 52.06%. For the full year 2023, Hims & Hers expects total revenue to be in the range of $830 million to $850 million.

Huaye Spice released its performance report for the first half of 2023, achieving operating income of 133 million yuan during the reporting period, an increase of 11.56% over the same period of the previous year; Affected by the decline in sales gross margin and the increase in share-based payment expenses, the net profit was 1.7203 million yuan, down 89.49% from the same period of the previous year.

Recently, Jiangsu Xie Fuchun National Makeup Co., Ltd. released its financial report for the first half of this year. Among them, the operating income increased by 15.5854 million yuan over the same period of the previous year, an increase of 163% year-on-year to 25.1345 million yuan; the operating profit narrowed by 73% compared with the loss in the same period of the previous year, from -6.3365 million yuan to -1.6486 million yuan.

Coty Group recently released fiscal 2023 full-year and fourth-quarter financial data, and in the three months ended June 30, the company's net income rose 16% to $1.35 billion, beating analysts' expectations of $1.3 billion, and net income of $29.6 million, compared to a net loss of $286 million the previous year. Adjusted earnings per share improved to 1 cent from a loss of 1 cent the previous year, but fell short of analysts' forecasts of 2 cents. 

Recently, Chuanning Biotechnology (301301) disclosed the 2023 half-year report, the company continued the previous performance growth trend during the reporting period, achieving operating income of 2.417 billion yuan, a year-on-year increase of 21.84%, a net profit attributable to shareholders of listed companies of 391 million yuan, a year-on-year increase of 64.82%, and net profit attributable to shareholders of listed companies net of non-recurring profits and losses of 393 million yuan, a year-on-year increase of 65.49%.

On August 16, the β-nicotinamide mononucleotide produced by Jiangxi Haven Biotechnology Co., Ltd. completed the filing of new raw materials, with the record number of "National Makeup Original Character 20230031", which is currently in the monitoring period. The purpose of use of this raw material is a moisturizer, which can be used in various cosmetics except sprays and lip products, and the maximum allowable concentration when used as a cosmetic product should not be higher than 3.3%.

On August 2, the Hong Kong listed company Shanghai Mei Co., Ltd., the parent company of Hanshu, released the profit forecast for the first half of the year, showing that the revenue of H1 Shangmei Co., Ltd. was about 1.5527~1.6159 billion yuan, an increase of 23% to 28% year-on-year, and the profit was about 98 million yuan to 104.5 million yuan, a year-on-year increase of 50% to 60%. Among them, the performance contribution share of Hanshu single brand exceeds 60%, and domestic brands represented by Hanshu, Yiye and Red Elephant have become the backbone of the performance contribution of Shanghai Shu Co., Ltd.

On August 25, Marumi Co., Ltd. handed over its report card for the first half of 2023, and achieved double-digit growth in revenue and net profit attributable to the parent company, of which operating income was 1.059 billion yuan, a year-on-year increase of 29.64%; The net profit attributable to shareholders of the listed company was 131 million yuan, a year-on-year increase of 11.63%.

Recently, DR.WU Dalfa, a theatrical dermatology brand, was certified as "Asia's No. 1 Algdal Acid Skin Care Brand" by Euromonitor Research, an international data platform, with decades of accumulation in the field of amygdalic acid.

On August 24, Liuzhou Two-Sided Needle Co., Ltd. (hereinafter referred to as "Two-sided Needle") released its 2023 semi-annual report. The report shows that the operating income of two-sided needles in the first half of 2023 will be about 419 million yuan, an increase of 43.99% year-on-year; The net profit attributable to the shareholders of the listed company was about 998,600 yuan, turning losses into profits, and the net profit attributable to the shareholders of the listed company, net of non-recurring profits and losses, was about 834,900 yuan. Operating income and net profit both increased, and the development trend was stable.

According to the financial report, from the perspective of main business, the revenue of daily chemical products of two-sided needle is about 357 million yuan, a year-on-year increase of 62.9%, this type of business mainly includes oral care products, personal toiletries, hotel daily necessities and other major brands including two-sided needle, Mulanze, Xiaoyao, Fangcao, etc. Pharmaceutical revenue was approximately RMB49 million, up 49% year-on-year; The revenue of commercial trade business was about 6.082 million yuan, a year-on-year decrease of about 77.5% from the previous period.

On August 29, Proya announced its 2023 half-year results. According to the financial report, in the first half of this year, Proya achieved a total operating income of 3.627 billion yuan, a year-on-year increase of 38.13%; The net profit attributable to the parent was 499 million yuan, a year-on-year increase of 68.21%. In contrast, Proya's revenue and net profit exceeded the previously announced performance. In addition, according to a number of agency forecasts, Proya will move towards the 8 billion yuan mark this year.

On August 28, Juzi Biotech Holdings Co., Ltd. announced its performance report for the first half of 2023. According to the report, in the first half of the year, Juzi Biotech achieved revenue of 1.606 billion yuan, a year-on-year increase of 63%; gross profit was RMB1.351 billion, a year-on-year increase of 61.2%; The net profit was 666 million yuan, a year-on-year increase of 52.3%.

On the evening of August 28, Shanghai Jahwa (600315) disclosed its 2023 half-year financial report. According to the report, the company achieved operating income of 3.629 billion yuan in the first half of 2023, and the net profit attributable to shareholders of listed companies was 301 million yuan, a year-on-year increase of 90.90%, the highest increase in net profit of Shanghai Jahwa in the past 10 years.

Among them, the revenue of Shanghai Jahwa skin care brand was 871 million yuan, a year-on-year increase of 7.16%, accounting for 24.06% of the company's main business income.

On August 29, Bloomage Biotechnology Co., Ltd. released its financial report for the first half of 2023. According to the report, in the first half of the year, Bloomage Biotech achieved revenue of 3.076 billion yuan, a year-on-year increase of 4.77%; The net profit attributable to shareholders of the listed company was 425 million yuan, down 10.27% from the same period last year.

On August 29, the "first share of medical beauty masks" VOOLGA announced its first half-year results after listing.

According to the financial report, the company achieved revenue of 869 million yuan during the period, a year-on-year increase of 6.33%; The net profit attributable to shareholders of the listed company was 354 million yuan, down 1.09% from the same period last year.

Shuerjia, which originated from the "mechanical number", once again used its actual performance to draw a revenue growth curve after going to "machine" to "transform". As of press time, Shierjia closed at 52.93 yuan per share, with a total market value of 21.18 billion yuan.

On the evening of August 28, Yunnan Bethany Biotechnology Group Co., Ltd. released its 2023 half-year financial report.

According to the financial report, in the first half of this year, Bethany achieved an operating income of 2.368 billion yuan, a year-on-year increase of 15.52%; The net profit attributable to shareholders of the listed company was 450 million, a year-on-year increase of 13.91%. Basic earnings per share were 1.06 yuan per share.

On the evening of August 25, "Lushang Development" fully divested its real estate business and officially changed to "Freda", ushered in its first half-year performance report. The report shows that from January to June, affected by the divestiture of real estate business, Freda's operating income was 2.473 billion yuan, down -48.85% year-on-year; The net profit attributable to shareholders of the listed company was 190 million yuan, a year-on-year increase of 0.65%.

On August 30, Shanghai Mei (code: 02145. HK) released its performance report for the first half of 2023, during the reporting period, the company achieved operating income of 1.587 billion yuan, an increase of 25.7% over the same period of the previous year; The net profit was 101 million yuan, an increase of 60.7% over the same period of the previous year, and the revenue and net profit achieved double growth.

On August 25, Ruoyuchen disclosed the first half of 2023 results announcement, the financial report showed that during the reporting period, the company achieved operating income of 592 million yuan, a year-on-year increase of 10.55%, and the net profit attributable to shareholders of listed companies was 22.5692 million yuan, a year-on-year increase of 147.61%.

It is worth noting that in the first half of the year, Ruoyuchen's own brand achieved operating income of 110 million yuan, a significant increase of 92% year-on-year, accounting for 18% of the company's total revenue.

On August 28, the State Medical Products Administration issued the announcement that "recombinant type III humanized collagen solution for injection was approved for marketing", which is also another approval of Jinbo Biotech after obtaining the first recombinant humanized collagen class III medical device registration certificate in 2021 20233131245.

On August 24, Aimeke Technology Development Co., Ltd., a leading medical beauty enterprise, released its semi-annual report for 2023: during the period, Aimeke achieved revenue of 1.459 billion yuan, a year-on-year increase of 64.93%; The net profit was 963 million yuan, a year-on-year increase of 64.66%.

Recently, Beauty Beauty released its 2023 half-year performance report. In the first half of the year, Beauty Beauty achieved operating income of 1.439 billion yuan, of which the revenue in the second quarter was 825 million yuan, and the non-net profit was 1.15 million yuan, turning losses into profits. It is worth noting that the revenue growth rate of emerging channels represented by Tiktok exceeded 50%; Among them, Beauty Beauty's own brands achieved double-digit growth in emerging channels.

Blue Moon Group released its performance report for the first half of 2023. During the reporting period, the company achieved an operating income of about HK $2.22 billion and a net loss of HK $167 million, a year-on-year decrease of 12.49%. Gross margin increased to 55.2% from 53% in the same period last year.

E.L.F. Beauty, the parent company of E.L.F. Cosmetics, W3ll People and Keys Soulcare, announced on August 29 that the company has signed an agreement to acquire skincare brand Naturium for $355 million to strengthen its skincare business. Founded in 2019, Naturium sells on Target, Amazon, and more, with products including shower gel, VC serum, sunscreen moisturizer, and more, with an average price of $18.

 
In the second quarter ended July 29, Ulta Beauty's net sales rose 10.1% to $2.5 billion, in line with analysts' forecasts. Net income increased to $300.1 million from $295.7 million and diluted earnings per share increased 5.6% from $5.70 to $6.02, above analysts' expectations of $5.91 per share. Skincare remains one of the retailer's strongest categories, with double-digit growth in both the premium and mass segments.

Based on its strong second-quarter performance, Ulta raised its full-year forecast to net sales in the range of $11.05 billion to $11.15 billion, compared to its previous forecast of $11.0 billion to $11.1 billion, and diluted earnings per share forecast from $24.70 to $25.40 to $25.10 to $25.60.

Recently, Jiangsu Xie Fuchun National Makeup Co., Ltd. released its financial report for the first half of this year. Among them, the operating income increased by 15.5854 million yuan over the same period of the previous year, an increase of 163% year-on-year to 25.1345 million yuan; the operating profit narrowed by 73% compared with the loss in the same period of the previous year, from -6.3365 million yuan to -1.6486 million yuan. 

The data shows that "fermented skin care" has become a trend that has attracted much attention, and the volume of voice has increased by 127.67% in the past year. "Fermented skin care", because of its gentle non-irritating and overall conditioning effects, can meet the various skin care needs of many consumers, especially the increasing number of sensitive skin groups; In addition, microecological skin care and synthetic biology, which are closely related to fermented skin care, are very environmentally friendly, in line with the current trend of the times, "fermented skin care" is receiving increasing attention, and many brands have begun to increase their entry into the market.

It is understood that the global anti-aging market size has increased from 139.5 billion US dollars in 2015 to 216 billion US dollars in 2021, and the global anti-aging market size in 2021 increased by 11.1% year-on-year, and it is expected that the global anti-aging market will maintain a high growth rate in the future. Although the growth rate of China's anti-aging market has slowed down, the market size is still growing steadily, and it is expected to grow to 15.02 billion US dollars in 2024.

It is reported that Shanghai Good Sale was investigated for selling counterfeit cosmetics, involving the original Shiseido washing and care brands Ke Youran, Sibei Qi, Fino Fennon and so on. At present, the case is pending.

On August 29, Yunnan Baiyao (000538.SZ) released its semi-annual report for 2023, during the reporting period, the company achieved operating income of 20.309 billion yuan, a year-on-year increase of 12.73%. The net profit attributable to shareholders of the listed company was 2.828 billion yuan, a year-on-year increase of 88.47%. The net profit attributable to shareholders of the listed company, net of non-recurring profits and losses, was 2.737 billion yuan, a year-on-year increase of 65.43%. Basic earnings per share were $1.58.

On August 29, Northbell's parent company Qingsong Co., Ltd. (300132) released its 2023 half-year report, during the reporting period, the company achieved operating income of 924 million yuan, a year-on-year decrease of 34.75%; The net profit attributable to shareholders of the listed company was -61.5665 million yuan, and the loss decreased by 61.16%.

Among them, Northbell achieved operating income of 919 million yuan during the reporting period, down 3.93% year-on-year; Operating profit - 60.5645 million yuan, a year-on-year decrease of 48.89%, gross profit margin of 7.18%, a year-on-year increase of 4.60 percentage points; The net profit attributable to Northbell's owner's equity was -53.6121 million yuan, a year-on-year decrease of 47.77%. 

On August 28, Lafang Jahwa Co., Ltd. announced its 2023 semi-annual report. During the reporting period, the operating income was 372 million yuan, a year-on-year decrease of 6.34%; The net profit attributable to shareholders of the listed company was 54.3845 million yuan, a year-on-year increase of 19.28%; The net profit attributable to shareholders of the listed company was 50.6575 million yuan, a year-on-year increase of 17470.85%.

In the first half of the year, the single brand of "Lafang" achieved an operating income of 266 million yuan, accounting for 71.44% of the operating income, a year-on-year increase of 19.66%. The operating income of the "Ruiboxi" brand was 30.4449 million yuan, an increase of 30.11% over the same period last year.

On August 31, Guangzhou Langqi Industrial Co., Ltd. announced its semi-annual report for 2023, with operating income of 1.336 billion yuan in the reporting period, a year-on-year increase of 1.82%; The net profit attributable to shareholders of the listed company was 696,100 yuan, turning losses into profits from the same period last year, and the net profit attributable to shareholders of the listed company was 7,794,800 yuan.

On September 7, the General Administration of Customs released import and export customs data for August. In August this year, China imported 30,229 tons of beauty cosmetics and toiletries, a year-on-year decrease of 26.4%, and the amount was 9.99 billion yuan, a year-on-year decrease of 22.1%; From January to August, the import of beauty cosmetics and toiletries was 240,237.8 tons, a year-on-year decrease of 14.6%, and the amount was 85.25 billion yuan, a year-on-year decrease of 11.7%.

L Catterton has acquired a minority stake in Maria Nil, a Swedish sustainable professional haircare brand, to accelerate the brand's growth and international expansion, and the financial terms of the transaction have not been disclosed.

Recently, BAHEAL Pharmaceutical revealed in the investor relations activity record form that efficacy skin care products will become an important growth category of BAHEAL. According to the company's financial report for the first half of 2023, the company's revenue in the first half of the year was 3.635 billion yuan, and the net profit attributable to shareholders of the parent company was 302 million yuan, a year-on-year increase of 39.76%.

Data show that the global cosmetics market value is expected to reach 451 billion US dollars in 2023, about 3.27 trillion yuan.

This value is expected to reach US$663 billion, or about 4.8 trillion yuan, with an annual growth rate of 5% in 2031, and the fast-growing skincare sector and the Asia-Pacific market will be the main drivers of the industry.

According to data from Frostist & Sullivan and Star Map, by 2026, the market size of collagen products in China is expected to reach 128.6 billion yuan, surpassing hyaluronic acid to become the largest professional skin care raw material ingredient.

Recently, the financial reports of a number of listed companies show that the growth of some beauty brands in the OTC channel is at a high level.

In terms of brands, taking Bethany as an example, in the first half of this year, it sold nearly 300 million yuan in OTC channels, a year-on-year increase of 60.13%. According to this calculation, its sales in this channel may reach 600 million yuan this year, and next year, it may reach about 1 billion yuan. 

Similarly, Juzi Bio's financial report also revealed that due to the continuous increase in the store and product coverage of offline direct sales customers such as chain pharmacies, its offline direct sales revenue in the first half of this year was 37.1 million yuan, an increase of 50.8% over the same period in 2022.

On September 3, First Aid Beauty, a pure skin care brand owned by Procter & Gamble, closed its official Tmall flagship store and emptied the products in its flagship store on the Tiktok platform.

A few days ago, the flagship store of the cutting-edge fragrance brand Scentooze Santu Xiaohongshu issued a store closure announcement, saying that it will be closed on September 28, 2023 due to the adjustment of the company's business strategy and other reasons."

In the six months ended June 30, Inter Parfums' first-half sales surged 24% year-on-year to €396 million, while net profit jumped 43% to €77.9 million, mainly due to effective control of marketing and advertising expenses.

By brand, Montblanc perfume sales jumped 24% to €107 million, Jimmy Choo sales jumped 44% to €100 million and Coach recorded a strong growth of 27% to €86 million.

According to incomplete statistics from "Cosmetics Watch", there are currently 6 listed TP companies in China that disclosed their financial reports for the first half of 2023, of which Beauty Beauty Cosmetics held the top spot with a revenue of 1.439 billion, and Aoki Co., Ltd. began to "return blood" with a revenue growth rate of 17.18%, and there are still 2 companies with net profits in a state of loss.

On September 13, the China Dental Products Association released the oral care industry briefing from January to August 2023. From January to August 2023, the online retail sales of the oral care industry were RMB15.04 billion, a year-on-year increase of 5.3%. From the perspective of sub-categories, the toothpaste/tooth powder category in the first 8 months increased by 10.9% year-on-year, and its market share increased to 44.8%, which was the main force of the oral care industry. From the perspective of brand rankings in the toothpaste industry, the top five brands are Yunnan Baiyao, Hollywood (formerly black), Crest, Colgate, and Shuke, with their on line retail sales accounting for 11.2%, 7.8%, 6.5%, 6.0% and 5.3% respectively.

In recent years, the sales of Chinese color cosmetics products in the Japanese market have been strong, and the number of cosmetics imported by Japan from China has risen rapidly. According to the Japan Import Cosmetics Association, Japan's imports of color cosmetics products from China in 2022 increased by nearly 44% from the previous year, reaching a total of 10.4 billion yen (about 514 million yuan).

In the first half of this year, Japan's imports of color cosmetics products from China increased by about 45% year-on-year to about 6.1 billion yen (about 302 million yuan), of which the import value of eye makeup products reached 3.4 billion yen (about 168 million yuan), an increase of more than 51% year-on-year. In addition, according to data from China's General Administration of Customs, China's exports of beauty cosmetics and toiletries reached US$3.03 billion (about RMB 22.041 billion) in the first half of this year, a year-on-year increase of 23.7%.

 According to data monitoring, the market size of 2023.07MAT online facial care sets exceeded 61.4 billion yuan, and the skin care market share of the three major e-commerce platforms was more than 20%. The market size of facial care sets on Taobao Tmall platform is 41.92 billion yuan, about 4.4 times the market size of Jingdong, and the Tiktok platform has also surpassed the Jingdong market, with a market size of 10 billion ~ 25 billion yuan. Affected by the wave of live streaming e-commerce, the traditional e-commerce platform market is slightly weak, the market size of 2023.07MAT and 2023.01-07 is showing a downward trend, while Tiktok is strongly seizing market share, and the market size of 2023.01-07 is growing by nearly 40% year-on-year.

From the perspective of efficacy, in 2023.07MAT, the market size of Taobao Tmall facial care set anti-aging effect is 11.62 billion yuan, anti-allergy repair is 8.84 billion yuan, whitening and brightening is 5.4 billion yuan, and acne oil control is 3.44 billion yuan. At the same time, the higher the market share, the greater the impact of promotion, such as the 11.11 promotion pre-sale, the anti-aging efficacy package in October 2022 increased by 554.8% month-on-month, while the acne anti-oil efficacy package increased by only 85.1% month-on-month.

According to the documents of the Hong Kong Stock Exchange, on September 17, Tiantu Investment once again passed the listing hearing of the Hong Kong Stock Exchange; Tiantu Investment, which has been listed on the New Third Board, first submitted its listing to the Hong Kong Stock Exchange in June last year, and after passing the hearing in November of that year, it did not successfully IPO as scheduled, and the listing progress in February 2023 was shown as "invalid".

Recently, Japanese beauty device brand YA-MAN released its financial results for the first quarter of fiscal 2024 ended July 31. According to the financial report, Yameng's comprehensive operating performance in the first quarter was 9.627 billion yen (about 476 million yuan), compared with 11.688 billion yen (about 578 million yuan) in the same period last year, down 17.6% year-on-year; Operating profit was 1.674 billion yen (about 82.77 million yuan), down 6.2% year-on-year; Net profit attributable to the parent was 1.142 billion yen (about 56.46 million yuan), down 17.3% year-on-year.

Its sales in China fell 20% to 4.648 billion yen (about 230 million yuan), and the profit of its overseas business unit fell 11.6% to 2.025 billion yen (about 100 million yuan).

On September 16th, Perfect Diary "Bionic Film" essence lipstick was officially released. It is understood that the new product of Perfect Diary has two innovations:

First, Perfect Diary created this new makeup product from biotechnology. According to Perfect Diary, the piece uses biomimetic biotechnology to create a bionic sebum membrane for the lip skin.

Second, Perfect Diary has achieved makeup and maintenance in the category of "lipstick". Cheng Jing, Chief Scientific Officer of Yixian E-commerce, introduced that the "Bionic Film" essence lipstick combines the characteristics of lipstick makeup, lip essence and lip mask, allowing lipstick to truly enter the era of makeup and beauty.

Data show that in the first half of this year, the market size of domestic brands was 229.563 billion yuan, a year-on-year increase of 10%; Among them, GMV, a domestic brand on the Taoji platform, increased by 4.4% year-on-year, Kuaishou increased by 25.6% year-on-year, Tiktok increased by 60.9% year-on-year, and CS channel sales increased by 2% year-on-year. It can be seen that domestic beauty can be described as fully blooming.

It is reported that Shanghai Meilan Cosmetics Co., Ltd., a subsidiary of Shenzhen Datong Industrial Co., Ltd., has defaulted on supplier payments and employee wages, and the company has stopped production.

According to incomplete statistics from Cosmetics Watch, only four major international beauty groups, Shiseido, LVMH, Estée Lauder and L'Oreal, have obtained the production license of "on-site personalized service" for cosmetics, becoming the first batch of licensed operators of customized cosmetics in China.

According to foreign media citing people familiar with the matter, COTY is advancing the Paris listing plan, which may be carried out in the next few weeks as soon as possible.

E-commerce platforms

On August 16, JD.com Group disclosed its financial report for the second quarter of 2023. Data show that JD.com's revenue in the second quarter was 287.9 billion yuan, a year-on-year increase of 7.6%. Net income attributable to common shareholders was $6.6 billion.

In terms of beauty, official flagship stores such as Sisley, a high-luxury skin care brand in France, and Shulic, a professional and scientific skin care brand under L'Oreal Group, opened on JD.com, while brands such as Mason Margiela, BYREDO, FARMACY, and AESOP have also fully entered JD.com.

According to Feigua data, in Tiktok's June 2023 makeup/perfume/beauty tools category list of goods talents, Hua Xizi's official flagship store ranked first with a delivery index of 99.9. According to the store's sales information, the top selling product is Xiaodai umbrella sunscreen primer, priced at 199 yuan, and 1.7 million pieces have been sold, ranking second on Tiktok's "Plain Cream Hot Selling Gold List". The first place is the Gongfu Body Cream with the selling point of "moisturizing the skin and evening out the skin tone".

On September 15, Xiaohongshu Welfare Club released a letter to users "Farewell, but also the beginning", announcing that the welfare society will stop selling goods on October 16 and officially close its stores on November 16. The letter said that in order to better meet the rapid growth of user demand, Xiaohongshu will concentrate resources and forces to serve more buyers, managers, merchants and brands in the development of e-commerce. According to public information, Welfare Society is a self-operated store established by Xiaohongshu at the end of 2014, mainly selling makeup, perfume, sunscreen and other beauty products, and hot-selling brands include Origins, Fullers, L'Occitane and so on.

International conglomerates

The Estée Lauder Companies' fiscal year 2023 full-year and fourth-quarter financial results showed that in the three months ended June 30, ELC's net sales reached $3.609 billion, exceeding analysts' forecasts of $3.48 billion, with organic growth of 4%, with Asia Pacific growing 36% in the quarter, Chinese mainland achieving double-digit organic growth and further expanding market share in the premium beauty industry, with the e-commerce business outperforming every month of the quarter.

In fiscal 2023, the company's net sales were $15.91 billion, down 6%, while Asia-Pacific grew 4%.

Recently, MyBeautyBox, an emerging brand under L'Oréal Group's high-end cosmetics department, issued an important announcement that the official accounts of L'Oréal Group's Xiaomei Box WeChat, Weibo, Xiaohongshu and Douyin are scheduled to cease operations on August 31, 2023 and be cancelled on September 30, 2023; The official L'Oréal Group store is scheduled to close on September 30, 2023.

Following Kering and Prada, Cartier's parent company Richemont will also officially focus on the beauty sector, recently establishing a new beauty division and appointing Boet Brinkgreve as CEO. Boet Brinkgreve holds an MBA from INSEAD in France and has more than 30 years of relevant experience in the perfume and fragrance industry.

On September 22, L'Oréal announced a minority investment in Shanhai Innovation, an innovative Chinese biotechnology company, to establish a long-term partnership to develop novel and sustainable beauty solutions. The exact amount and investment details were not disclosed.

While continuing to focus on the Chinese market, L'Oréal, the world's largest beauty group, has begun to look for new growth engines, and its Indian company plans to capture important growth opportunities for the growing Indian middle class by further penetrating the market, and become a 1 billion euro enterprise within three to four years.

Fifteen of L'Oréal's 30 brands are already in India, following reports that Indian consumers buying beauty products are expected to increase to 150 million within five years.

It is reported that South Korean cosmetics company Amorei recently announced that it will enter the Mexican beauty market with its global popular skin care brand Laneige.

Tax Free Dynamics

On September 4, the General Administration of Customs issued a document saying that according to Haikou Customs statistics, in the five months since the implementation of the new regulations such as "buy and withdraw" and "guarantee and withdraw", the customs has supervised a total of 1.462 billion yuan of "instant purchase and withdrawal" duty-free shopping, with 1.63 million shopping pieces and 731,000 shoppers. The sales amount of "guarantee and withdrawal" was 35.71 million yuan, and the amount of tax-free items selected by the per capita was 99,200 yuan. According to the relevant person in charge of Haikou Customs, the duty-free goods on the outlying islands that are picked up by "buy and pick" mainly include cosmetics, perfumes, sunglasses, clothing and accessories, silk scarves, shoes and hats.