Retail Channel

Recently, the beauty collection store HARMAY Huamei (demand area: 500-700 square meters) announced that it will officially stop operating the HARMAY Xi'an Xiaozhai store on October 10. The store opened in October 2021 and is the only HARMAY store in Xi'an.

According to HARMAY's official mini program, after the closure of the Xi'an Xiaozhai store, HARMAY still has 12 offline stores across the country.

Recently, the Hong Kong Census and Statistics Department released data showing that the provisional estimate of the total value of retail sales in August 2023 was $32.4 billion, up 13.7% year-on-year. Of the total sales, online sales were provisionally estimated at $2.4 billion, accounting for 7.3%, down 9.0% from the same period in 2022. The revised estimate for July 2023 of the value of retail online sales increased by 1.6% compared to the same period in 2022. The provisional estimate of the value of online sales in the retail sector fell by 5.6% in the first eight months of 2023 compared to the same period in 2022.

In terms of provisional estimates of the value of retail sales, the value of sales of jewellery, clocks and precious gifts increased by 57.2% in August this year compared with August last year, followed by medicines and cosmetics by 42.9%, department stores by 14.9% and other unclassified consumer goods by 23.4%.

Sa Sa International recently released preliminary results for the second fiscal quarter, with revenue surging 46.2% year-on-year to HK$1.097 billion, of which offline sales surged 50.6% to HK$915 million, and online sales surged 27.7% to HK$180 million. The group said the turnaround was mainly due to the recovery of travel retail and the effectiveness of cost containment initiatives. As of Thursday's close, the group's share price rose nearly 1% to HK$1.07, with a market capitalization of about HK$3.3 billion.

Recently, Sephora unveiled China's second future concept store in Wuhan Chuhe Han Street business district, as Sephora's first single-family store in China, Wuhan Future Concept Store highlights a strong modern retro atmosphere through the brand's classic black and white striped elements and classical red bricks. In addition, the store is also equipped with a new "Beauty Delivery" service: consumers only need to place an order on the Sephora official app or WeChat mini-program, and they can enjoy the "two-hour delivery" service within 5 kilometers or "next-day delivery" within 5 kilometers of the store.

On October 13, A.S. Watson launched its first "Beauty Playground" at Shanghai Pudong Century Place store, which is a new exploration of the offline retail experience scene after the previous release of the fragrance zone and the upgrade of the health and happiness zone, bringing consumers a one-stop beauty experience. With the help of the fusion of classic and trendy elements, the "Trendy Makeup Zone" revitalizes the O+O beauty consumption experience and attracts more young consumers to enjoy a one-stop beauty experience in the store.

Recently, Walmart partnered with Perfect Corp to launch a virtual try-on service that provides customers with "try-ons" of lip gloss, blush, eyeshadow and other cosmetics, increasing the adoption and conversion rate of AR solutions through a new "try before you buy" approach.

Authoritative release (cosmetics inspection)

Announcement note: In order to implement the "Regulations on the Supervision and Administration of Cosmetics" and the "Measures for the Supervision and Administration of Cosmetics Production and Operation", the State Food and Drug Administration organized the drafting of the "Measures for the Administration of Cosmetics Inspection (Draft for Comments)", which is now open to the public for comments.

The public comment period is from October 19 to November 10, 2023. Relevant units and individuals can give feedback to the hzpjgc@nmpa.gov.cn, please indicate "Measures for the Administration of Cosmetics Inspection - Feedback on Suggestions and Suggestions" in the subject of the email.

Brand & Industry

Recently, the German chemical giant BASF announced that it will invest millions of dollars to produce and plan to expand the production of emollients for skin care and sunscreen products at the new cosmetics plant in Düsseldorf, which will be launched in the fall of 2025.

Recently, 9 departments including the Beijing Municipal Bureau of Commerce issued the "Several Measures to Support the High-quality Development of the Beauty and Health Industry", proposing 21 measures in five aspects: creating an innovative ecology, innovating the regulatory model, cultivating industrial clusters, strengthening consumption leadership, and improving the guarantee mechanism.

Recently, global flavor and fragrance giant Symrise increased its stake in its acquired company Kobo Products Inc. (hereinafter referred to as Kobo), increasing its stake to 49%. As early as September 2, 2021, Symrise acquired a 25% stake in Kobo, and reached an agreement with Kobo on the forward disposal plan and corporate governance of the remaining share capital.

Since the beginning of this year, L Catterton, a consumer goods fund co-founded by LVMH and the Arnault family, has been increasing its investment in the beauty sector, especially in the skin and hair care sector. Following the acquisition of a minority stake in Italian cosmetics brand Irene Forte Skincare in July last year, the company invested in two more beauty brands, Maria Nila and Eventh Day, last month.

E-commerce group Trafilea has announced the acquisition of DTC "pure" skincare brand The Spa Dr., the financial terms of the deal were not disclosed.

Winona's parent company, Bethany Group, recently announced that it would acquire 48.55% of the equity of Yuejiang (Guangzhou) Investment Co., Ltd. at a valuation of 486 million yuan, and at the same time subscribe for about 2.45% of the equity of Yuejiang Investment with its own funds of 50 million yuan, and indirectly acquire the two brands of Za Jirui and PURE&MILD.

It is worth noting that the two brands were previously owned by Japan's Shiseido Group, and were later sold to a wholly-owned subsidiary of Yuejiang Investment in January last year.

On October 10, 2023, Orange Group and PIERRE FABRE LABORATORIES announced that they will enter into a long-term strategic partnership based on the "René Furterer" brand. Fresh Deya is one of Pierre Fabre's high-end dermatological skincare brands focusing on hair and scalp care. Under the agreement, Tangerine will have full responsibility for the brand's entire business in China on a long-term basis. This partnership will leverage the complementary strengths of Tangerine and Pierre Fabre to drive the company's continued growth in the Chinese market and further strengthen its leading position in the premium hair and scalp care sector.

The cooperation agreement will enter into force on January 1, 2024.

A-9Code, a cell-level anti-aging skincare brand, has officially entered the anti-aging skincare market. At the same time, the blockbuster new Time Fuyuan series was launched. With nearly 30 years of cell biology research background, A-9Code has established a strategic partnership with AVIC Biotech, a leading high-tech state-owned enterprise, and Hainan Cell, a technology unicorn.

The Aurelius Group, the parent company of the British pharmacy chain Lloyds, has shown its first interest in investing in the cosmetics sector and has joined the list of companies that have acquired The Body Shop, which also includes Elliot Advisers, the private equity firm that owns the bookstore chain Waterstones. In addition, Natura &Co has entered into a partnership with Morgan Stanley Bank and hopes to "reach a provisional agreement on the sale by the end of this month".

Perfect Diary's new "Biomimetic Mask" essence lipstick was officially launched on September 10. According to the data of the Tmall list in September, this lipstick has only been on the Tmall lipstick hot list for only half a month, and it continues to sell well. According to reports, this lipstick has both lipstick makeup effect, lip essence and lip mask effect.

Recently, Baikaisheng (Shanghai) Biotechnology Co., Ltd. completed a new round of financing, the amount of which was not disclosed, and the investors were Bell Capital and Shenzhen High-tech Investment Group.

Recently, "Fantastic Days", a beauty social intelligence platform, announced the completion of a $8.5 million Series A financing, which was exclusively invested by Fuel Ventures, a British venture capital firm.

Recently, according to the official website of the Shanghai Stock Exchange, the IPO status of Mao Geping Cosmetics Co., Ltd. has now been shown as "suspended (financial report update)". According to the information of the Shanghai Stock Exchange, Mao Geping needs to be supplemented because the financial information recorded in the issuance and listing application documents has expired.

Recently, according to the cosmetic raw materials filing information platform of the state food and drug administration, zhejiang lien biotechnology co., ltd.'s "schizophyllum commune mycelium fermentation product extract" has completed the filing and entered the monitoring period.

Beauty distributor SuperOrdinary raised $58 million in a Series B funding round with participation from investors such as Manzanita, and the company is currently valued at more than $800 million.

It is learned that the plant-based cleaning brand "Plant Healing" has completed an angel round of financing of millions of yuan, and the investors are two industrial funds, and this round of financing is mainly used for product innovation and marketing.

Recently, there has been news that Jialan (Group) Co., Ltd., the parent company of Naturetang, is cooperating with Huatai International and UBS on an IPO, considering listing in Hong Kong as early as 2024, and plans to raise no more than 500 million US dollars (about 3.67 billion yuan). However, the move is still in the preliminary review stage, and details such as the size and timing of the IPO may change.

According to user data, in the second quarter of this year, the sales of makeup removers/creams increased by 78.26%, and the sales growth rate was as high as 189.01%, surpassing the cleansing cream in terms of market share. Searching for "makeup remover" on Xiaohongshu, there are 4700+ notes, among which, among the brand words bound to makeup remover, "PLANT PARK" appears frequently. According to third-party data, plant park has more than 300 related notes on xiaohongshu in the past three months, with a total of more than 700,000 readers.

At the same time, on the Douyin platform, the number of impressions of "Zhifang" search results was as high as 125,600, an increase of 215.5% month-on-month compared with the previous cycle (with a 30-day cycle).

On September 25, Tianshan Snow Lotus cell culture and finger orange extract completed the filing of new raw materials, which are currently in the monitoring period. Cell Culture of Saussurea Involucrate, with the record number of "National Cosmetics Original Character 20230033", is produced by Ansebo (Chongqing) Biotechnology Co., Ltd. The raw material is used as a moisturizer and chemical inhibitor, and can be used in all kinds of cosmetics, except for sprays. The maximum permissible concentration for cosmetic use is ≤ 5 %. Finger orange extract (Microcitrus australasica (F. Muell.) Swingle extract), the record number is "National Cosmetics Original Character 20230034", produced by Guangdong Marubeni Biotechnology Co., Ltd. The raw material is used as a skin protector and moisturizer, and is only used for cosmetics (except for spray products). The safe use limit is 100%.

IFF (International Flavors & Fragrances) has announced the results of a study demonstrating the effectiveness of Aurist™ AGC in improving the performance of shower gel products. Clinical studies have shown that after using cleansers containing this ingredient, skin roughness is significantly reduced and the residue feels smooth and silky. The study also evaluated rinsing ability, with a significant reduction in rinsing time when using formulations containing the ingredient.

Winner of the 2023 Gold Award for the Global Innovation Zone within Cosmetics, AURIST™ AGC is a readily biodegradable hair and skin conditioning biopolymer that will revolutionize the beauty and personal care landscape. Developed using IFF's proprietary Enzymatic Biopolymer (DEB) technology, AURIST AGC is a new polysaccharide derived from the enzymatic polymerization of glucose from responsibly sourced natural sugars.

According to the requirements of the regulations, starting from May 1, 2024, cosmetics registrants and record-filing persons are required to provide a complete version of the product safety assessment report in accordance with the requirements of the Technical Guidelines for the Safety Assessment of Cosmetics (2021 Edition), and no more simplified product safety assessment report can be submitted.

According to public data, from January to June 2023, the number of special cosmetics registered was 3,103, which has reached nearly ninety percent of the annual registration volume in 2022.

On the morning of October 17, Runben Biotechnology Co., Ltd. (stock abbreviation: Runben shares, stock code: 603193) was officially listed on the main board of the Shanghai Stock Exchange.

The number of shares issued by Runben is 60.69 million shares, with a total share capital of about 405 million shares and an issue price of 17.38 yuan per share. Runben shares have become the "first share of baby care" and "the first share of domestic mosquito repellent" in the A-share market.

Recently, Beauty Brands Global, the holding company, announced the acquisition of La Bouche Rouge, a French luxury beauty brand. Founded in 2017 by former L'Oréal veteran Nicolas Gerlier, La Bouche Rouge is positioned as a natural luxury brand with a range of lip, eye and face make-ups. Recently, the brand has ventured into the world of fragrances with the launch of five natural and upcycled fragrances.

Recently, Flaus, a DTC oral care brand, announced that it has received a $2 million seed round led by YETI Capital, and the total amount raised has now reached $4 million.

It is reported that L Catterton, a consumer investment company, recently officially acquired the DTC health care brand Thorne. The companies initially revealed the proposed deal at the end of August at a price of $10.20 per share, or $680 million.

Líha Beauty, a natural and sustainable skincare brand that combines West African botanicals and British aromatherapy traditions, has completed a £1 million funding round.

IFF (International Flavors & Fragrances) has released the results of a study demonstrating the effectiveness of Aurist™ AGC in improving the performance of shower gel products. The results of clinical studies have shown that after using cleansers containing this ingredient, skin roughness is significantly reduced, and the residue feels smooth and silky. Developed using IFF's proprietary Enzymatic Biopolymer (DEB) technology, AURIST AGC is a new polysaccharide derived from the enzymatic polymerization of glucose from responsibly sourced natural sugars.

Recently, according to the filing information platform of cosmetic raw materials of the State Food and Drug Administration, BASF (China) Co., Ltd.'s "Cestrum Latifolium Leaf Extract" has completed the filing and entered the monitoring period. Saisheng Company's "Bakuchiol" updated the filing materials.

A few days ago, mushroom mushroom, a sensitive skin care brand with a background in pharmaceutical companies, opened a farewell live broadcast, which means that there is no longer such a brand in the cosmetics industry. 

Recently, according to the blue eye survey, at least more than 8,400 cosmetics companies established in the past year have "closed down" or "disappeared". 

The European Commission has banned the use of ingredients such as microplastic glitter powder or glitter agents in cosmetics and household products, and the law came into effect in mid-August, but the transition period varies for different product categories. "As of October 17, 2023, it is prohibited to sell microplastics individually, or in products where there is no defined transition period," a spokesperson for the committee said. ”

Recently, COSMAX announced the establishment of a new "OTC Lab" within the Korea Research Institute to specialize in over-the-counter (over-the-counter) products for UV protection to meet the needs of its customers entering the U.S. sunscreen market. COSMAX said it has identified trends in the U.S. market based on its OTC product development experience and manufacturing expertise since 2016. We will continue to develop innovative products that comply with regulations.

In the three months to Sept. 30, sales of Swiss perfume maker Givaudan fell 4.3% year-on-year to 1.73 billion Swiss francs, missing analysts' expectations of 1.76 billion Swiss francs. Excluding the impact of currency exchange and recent acquisitions, the Group's sales rose 4 percent to CHF 1.88 billion in the quarter, with North America being the only region to see a year-on-year decline in the first nine months of the year.

Recently, global flavor and fragrance giant Symrise increased its stake in its acquired company Kobo Products Inc. (hereinafter referred to as Kobo), increasing its stake to 49%. As early as September 2, 2021, Symrise acquired a 25% stake in Kobo, and reached an agreement with Kobo on the forward disposal plan and corporate governance of the remaining share capital.

Since the beginning of this year, L Catterton, a consumer goods fund co-founded by LVMH and the Arnault family, has been increasing its investment in the beauty sector, especially in the skin and hair care sector. Following the acquisition of a minority stake in Italian cosmetics brand Irene Forte Skincare in July last year, the company invested in two more beauty brands, Maria Nila and Eventh Day, last month.

E-commerce group Trafilea has announced the acquisition of DTC "pure" skincare brand The Spa Dr., the financial terms of the deal were not disclosed. Santiago Zabala, CEO of Trafilea, said The Spa Dr. will leverage Trafilea's large female audience in the U.S., technology, and its proven AI-powered marketing platform to rapidly scale the brand. ”

It is reported that A-9 CODE, an anti-aging skin care brand officially announced for listing recently, not only has a high-precision technology background in cell biology, but also is the first skin care brand in China based on cell biology scientific research. In the increasingly involuted anti-aging track, A-9 CODE has formed a differentiated competition with other domestic brands on the market, and has shown great development potential.

On October 11, the fourth episode of "All Girls' Offer 3" was launched, and Mistine became the first brand to appear, which was also the first time that Mistine had face-to-face "negotiations" with Li Jiaqi. In addition to the ace sunscreen products, Mistine's technology base makeup products and new makeup series have also become important targets of this "negotiation". Judging from the product portfolios that are about to participate in the Double 11 promotion, Mistine is trying to break the fixed perception of consumers about the brand, and is accelerating the creation of a diversified product matrix and building a comprehensive development curve.

On October 18, the National Bureau of Statistics released the retail sales data of consumer goods in September 2023. In September, the total retail sales of consumer goods reached 3,982.6 billion yuan, a year-on-year increase of 5.5%. From January to September, the total retail sales of consumer goods 342107 billion yuan, a year-on-year increase of 6.8%. In terms of cosmetics, the total retail sales of cosmetics in September 2023 were RMB32.6 billion, up 1.6% year-on-year, and from January to September, the total retail sales of cosmetics were RMB296.6 billion, up 6.8% year-on-year. According to the National Bureau of Statistics, the national economy continued to recover in the first three quarters, and high-quality development was solidly promoted, laying a solid foundation for achieving the annual development goals. However, it should also be noted that the external environment has become more complex and severe, domestic demand is still insufficient, and the foundation for economic recovery still needs to be consolidated.

On October 16, Pien Tze Huang released the third quarter report of 2023, the company's revenue in the first three quarters was 7.6 billion yuan, a year-on-year increase of 14.88%, and the net profit attributable to shareholders of listed companies was 2.405 billion yuan, a year-on-year increase of 17.16%. Among them, the company's revenue in the third quarter was 2.555 billion yuan, a year-on-year increase of 16.48%, and the net profit attributable to shareholders of listed companies was 864 million yuan, a year-on-year increase of 17.03%. In the first three quarters, its cosmetics business achieved main business revenue of 431 million yuan, a year-on-year decrease of 6.53%.

Recently, Indonesia's Ministry of Trade issued the "Minister of Trade Order No. 31 of 2023", which prohibits e-commerce transactions on social media platforms. The regulation clearly stipulates that social media and e-commerce must remain independent and that transactions must not be conducted directly on social media platforms.

The regulations also make it clear that social commerce only promotes the promotion of goods or services, and prohibits the provision of payment transactions. In order to maintain healthy business competition, social commerce must: ensure that e-commerce does not have a relationship with each other through the electronic systems of the Electronic System (PMSE) and are not associated with facilities outside the PMSE, and protect the data of social media users and not use it for PMSE or affiliates.

Recently, the national group standard information platform released the group standards of "Centella Asiatica Extract for Cosmetics" (T/QLMZ 10-2023) and "Paeonol Microcapsule Powder for Cosmetics" (T/QLMZ 11-2023), which are the first group standards for centella asiatica extract and paeonol microcapsule powder for cosmetics in China, which are the first group standards for centella asiatica extract and paeonol microcapsule powder for cosmetics in China. These two standards are under the control of the Shandong Cosmetics Industry Association, and the text of the standards has not been made public.

Kao is strengthening its presence in the therapeutic skin care space with the launch of its first eczema care brand, Re/cover, which will be launched via the DTC channel on November 1. Within 12 to 18 months of the brand's launch, Kao will also introduce Re/Cover to Amazon. Although the company did not specify the sales expectation for the new product, industry insiders believe that Re/cover's sales in the first year of listing may exceed 5 million US dollars (about 36.58 million yuan).

Recently, Moodify, an American fragrance technology company, announced that Procter & Gamble and Moodify will jointly develop AI perfume design solutions, aiming to help the research and development of perfume products.

Recently, Dong'e Ejiao Co., Ltd.'s new raw material "Ejiao powder" has completed the filing and has now entered the monitoring period, which is also the second new raw material for Dong'e Ejiao to complete the filing this year.

According to the technical requirements of raw materials, "Ejiao powder" is an animal raw material, and the purpose of the raw material is anti-wrinkle agent and moisturizer, and it can be used for all kinds of skin cosmetics, and the safe use amount is ≤ 62.0%.

Proya released its financial report for the third quarter of 2023, with revenue and net profit increasing by more than 20%. Among them, during the period, the operating income was 1.622 billion yuan, a year-on-year increase of 21.36%, and the net profit was 246 million yuan, a year-on-year increase of 24.24%. So far, Proya has 14 consecutive quarters of year-on-year earnings growth.

In terms of performance, this is the first time that Proya has exceeded 5 billion in the first three quarters to 5.249 billion, with a growth rate of 32.47%, which is also at a high level in the past five years. In terms of net profit, its 50.60% year-on-year growth rate has hit a new high in the past five years, and its net profit has reached 746 million yuan, and it is expected to exceed 1 billion yuan within the year.

On the evening of October 25, Shanghai Jahwa released its financial report and organizational adjustment announcement for the third quarter of 2023. According to the financial report data, from January to September 2023, the company achieved operating income of 5.091 billion yuan and net profit attributable to shareholders of listed companies of 394 million yuan, a year-on-year increase of 25.83%. It is worth noting that in the third quarter, the company increased its brand marketing efforts, which has achieved remarkable results, with the interest e-commerce business achieving a rapid growth of nearly 200% from January to September, and the offline new retail business achieving a rapid growth of about 23%.

Fuerjia announced its results for the third quarter of 2023, which showed that the company's operating income in the third quarter was 471 million yuan, down 5.47% year-on-year, and the net profit attributable to the parent company fell 37.26% to 183 million yuan. From the first to the third quarter of 2023, the company achieved revenue of 1.339 billion yuan, a year-on-year increase of 1.86%, but the net profit attributable to the parent decreased by 17.33% to 536 million yuan.

On October 24, Aimeike Technology Development Co., Ltd., a medical aesthetic company, released its third-quarter financial report. In the first nine months of 2023, Aimeike's operating income was RMB2.17 billion, up 45.71% year-on-year, and its net profit attributable to the parent company was RMB1.418 billion, up 43.74% year-on-year. Among them, the net profit in the third quarter was 455 million yuan, an adjusted year-on-year increase of 13.27%.

It is reported that Thai beauty brand HARNN has recently opened a retail store in Singapore, starting the next phase of expansion, while establishing a presence in the spa and hotel industry in Asia. HARNN opened its first retail store in Singapore on 11 September and plans to enter the e-commerce space in the near future. Prior to this, the brand was acquired by Thailand's Tanachira Group in 2018 and has since propelled its next phase of development.

On October 25, Dettol's parent company, Reckitt Benckiser, announced its financial data for the third quarter of 2023. According to the financial report, Reckitt Benckiser's net income in the first three quarters was 11.046 billion pounds (about 98.121 billion yuan), a year-on-year increase of 5.1%, and in the third quarter, Reckitt Benckiser's net income was 3.600 billion pounds (about 31.978 billion yuan), a year-on-year increase of 3.4%.

The website of the State Food and Drug Administration issued a notice on October 24 stating that in the 2023 national cosmetics sampling inspection work, after inspection by Qinghai Provincial Drug Inspection and Testing Institute and other units, the product label indicated that 20 batches of cosmetics such as Qiaodi Huier herbal seaweed mask produced by Guangzhou Kaixiu Cosmetics Co., Ltd. did not meet the regulations.

According to the Regulations on the Supervision and Administration of Cosmetics, the Measures for the Supervision and Administration of Cosmetics Production and Operation, and the Measures for the Administration of Cosmetics Sampling Inspection, the State Food and Drug Administration requires the drug regulatory authorities of Guangdong Province to file a case for investigation against the filing persons and entrusted production enterprises involved in the above-mentioned non-compliant cosmetics in accordance with the law, and order the relevant enterprises to immediately take risk control measures and carry out self-inspection and rectification in accordance with the law.

The drug regulatory departments of all provinces (autonomous regions and municipalities) shall order the relevant cosmetics operators to immediately stop operating the above-mentioned cosmetics, investigate their purchase inspection records in accordance with the law, and trace the illegal products back to the source;

Recently, Kao Group's luxury skincare brand "SENSAI Brilliant Color" held the opening ceremony of its first flagship store at No. 8 Hengshan Road in Shanghai. With Japanese aesthetics and ingenuity in technology, Kao hopes to take the opening of the flagship store as a starting point to bring Chinese consumers an extraordinary experience with the unique brand value of "exquisite and delicate life".

According to the semi-annual report disclosed by Pony Testing, the company's operating income in the first half of 2023 was 1.187 billion yuan, a year-on-year decrease of 29.5%, a net profit of 93.3323 million yuan, a year-on-year increase of 2.92%, and a basic earnings per share of 0.33 yuan. 

The main reason for the fluctuation of the company's performance is the decline in the demand for medical infection business, so after excluding the medical infection business, the company's operating income in the first half of the year increased by 45.61% year-on-year.

According to the report, in the third quarter, Covestro achieved revenue of 584 million yuan, a year-on-year increase of 36.28%, and the net profit attributable to shareholders of listed companies was 186 million yuan, a year-on-year increase of 73.06%, and the revenue in the first three quarters was 1.774 billion yuan, a year-on-year increase of 42.07%, and the net profit attributable to shareholders of listed companies was 536 million yuan, a year-on-year increase of 110.99%.

In the three months to Sept. 30, perfume manufacturing and distributor Inter Parfums sales surged 31% year-on-year to $368 million, a record high, and sales in the first three quarters jumped 27% to $989 million. During the period, the Group's three brands, Coach, Montblanc and Jimmy Choo, recorded growth of 32%, 20% and 6% respectively.

Recently, the Medical Device Technical Evaluation Center of the State Drug Administration released the latest batch of master file registration lists of medical device raw materials. The master file of "Recombinant Mussel Mucin Solution Raw Materials" submitted by Baiyin Biotech has been registered (No. M2023118-000), becoming the first enterprise in China to complete the registration of the master file of "Recombinant Mussel Mucin Solution" medical device raw materials.

Zhizhi Biotech uses the AI-empowered self-assembled peptide library, and through a series of rigorous processes such as structure prediction, kinetic simulation, functional screening, experimental verification, and theoretical calculation, it simulates the design of yeast protein sequences to construct a series of self-assembled short peptides, among which acetyl octapeptide-1 has completed the filing of new raw materials on October 20, 2023 (record number: Guozhuangoriginal preparation word 20230040).

Recently, Juyan Biotechnology Co., Ltd. has completed the first round of financing, which is exclusively invested by CDH Baifu, and the financing funds will be mainly used for the research and development, market expansion and capacity construction of synthetic biology biomaterials and terminal products.

Silber Equity, a U.S. investment firm focused on the beauty and personal care market, announced the further expansion of its portfolio with the acquisition of skincare brand Alpha Skincare and haircare brand Pure Brazilian Hair. Sol Silberstein, founder of Silber Equity, initially ventured into the beauty industry by distributing beauty brands.

French luxury giant Kering announced on October 17 that its Kering Beauté has completed the acquisition of British salon perfume brand Creed. The transaction is within the terms disclosed on June 26, 2023 and has been approved by antitrust authorities.

On October 25, German flavor and fragrance manufacturer Symrise announced its financial results for the third quarter of 2023. According to the financial report, in the first nine months of this year, Symrise's sales reached 3.61 billion euros (about 27.962 billion yuan), achieving an organic sales growth of 7.4%, and an increase of 3.3% over the same period in 2022 considering the impact of the portfolio and exchange rate.

Sales grew organically by 6.4 percent in the third quarter. However, a negative exchange effect of 9.4 percent resulted in a 3.0 percent decrease in sales in the reported currency. By segment, Fragrance & Care (which includes Perfumes, Fragrances & Ingredients) achieved organic sales growth of 4.1 percent in the first nine months and 7.1 percent in the third quarter. Taking into account the impact of investment portfolio and exchange rates, sales in the reporting period were 1.343 billion euros (about 10.402 billion yuan).

On October 22, it was reported that Marc Puig, CEO of Puig Group, which owns brands such as Charlotte Tilbury, recently talked about the IPO for the first time in an interview, saying that the listing will alleviate the challenges that the group will encounter in the next ten years.

At the end of 2022, Puig Group's debt amounted to €638 million, 1.6 times its EBITDA. However, with the recovery of demand for beauty and fragrance products, the group expects revenue to exceed 4 billion euros (about 30.972 billion yuan) this year. According to a previous Reuters report, the Spanish cosmetics group Puig hired Goldman Sachs Group and JPMorgan Chase Bank as its listing consultants, and plans to go public in 2024, with an estimated valuation of 8 billion euros (about 61.973 billion yuan).

On October 26, Liuzhou Liangmeizhen Co., Ltd. (hereinafter referred to as "Liangmeizhen") announced its third quarter report for 2023. According to the report, the operating income in the third quarter was 256 million yuan, a year-on-year increase of 38.57%, the net profit attributable to shareholders of listed companies was 38 million yuan, and the net profit attributable to shareholders of listed companies after deducting non-recurring gains and losses was 23 million yuan, a year-on-year increase of 47.41%.

In the first three quarters of this year, the total revenue of the two sides was 675 million yuan, a year-on-year increase of 41.88%, the net profit attributable to shareholders of listed companies was about 39 million yuan, and the net profit attributable to shareholders of listed companies after deducting non-recurring gains and losses was 24 million yuan, a year-on-year increase of 186.45%.

According to public data, in 2021, China's export volume of cool oil will be as high as 4029.5 tons, with an export value of 23.682 million US dollars (about 173 million yuan).

Recently, Nanjing Shengde Baitai Biotechnology Co., Ltd. has filed the new raw material "vitamin K2", and Hunan Shuiyang Biotechnology Co., Ltd. (hereinafter referred to as Shuiyang Biotechnology Co., Ltd.) has filed the "black ginseng extract" for the record, and the two raw materials have entered the monitoring period.

Among them, "vitamin K2" is a biotechnology raw material, and the purpose of the raw material is skin protector and antioxidant, which can be used for all kinds of cosmetics except spray and loose powder products, with a maximum safe dosage of 0.389% in facial cream and 0.277% in hand cream; The maximum safe dosage in body lotion is 0.076%; In other categories of products, the recommended maximum usage for enterprises is 1%.

"Black ginseng extract" is a plant raw material, and the purpose of the raw material is anti-wrinkle agent and skin protector, and it can be used for all kinds of cosmetics except spray or aerosol cosmetics, and the safe dosage is 2%.

On the evening of October 26, Shanxi Jinbo Biopharmaceutical Co., Ltd. released its financial report for the third quarter of 2023. In the first three quarters of this year, the company achieved revenue of 517 million yuan, a year-on-year increase of 105.64%; net profit attributable to shareholders of listed companies was 192 million yuan, a year-on-year increase of 173.75%.

Among them, in the third quarter of this year, the revenue was 201 million yuan, a year-on-year increase of 106.43%; The net profit attributable to shareholders of listed companies was 82.8427 million yuan, a year-on-year increase of 168.75%. The company said that the increase in performance was mainly due to the increase in sales scale and sales revenue in the current period.

On the evening of October 27, Freda released its financial report for the third quarter of 2023. From January to September 2023, Freda achieved an operating income of 3.395 billion yuan, a year-on-year decrease of 60.2%, and a net profit attributable to the owners of the parent company of 238 million yuan, an increase of 54.79% year-on-year. In the third quarter, Freda achieved operating income of 922 million yuan, a year-on-year decrease of 75.05%, and realized a net profit attributable to the owners of the parent company of 47.6096 million yuan.

In terms of business segments, from January to September 2023, Freda cosmetics segment achieved operating income of 1.654 billion yuan, a year-on-year increase of 15.75%, of which Yilian brand achieved revenue of 612 million yuan and Dr. Aier brand achieved revenue of 893 million yuan. In a single quarter, from July to September 2023, Freda cosmetics segment achieved operating income of 549 million yuan, a year-on-year increase of 31.63%, Yilian brand achieved revenue of 220 million yuan, a year-on-year increase of 44.32%, and Dr. Er's brand achieved revenue of 295 million yuan, a year-on-year increase of 33.95%.

On October 26, Shuiyang Co., Ltd., the parent company of Yu Nifang and Da Shuidi, released its financial report for the third quarter of 2023. In the first three quarters, Shuiyang achieved operating income of 3.377 billion yuan, a year-on-year increase of 1.04%, net profit attributable to shareholders of listed companies of 180 million yuan, a year-on-year increase of 51.36%, and net profit attributable to shareholders of listed companies after deducting non-recurring gains and losses of 195 million yuan, a year-on-year increase of 77.91%. In the third quarter, Shuiyang achieved operating income of 1.088 billion yuan, down 4.68% year-on-year, net profit attributable to shareholders of listed companies was 37.6143 million yuan, year-on-year increase of 4.03%, and net profit attributable to shareholders of listed companies after deducting non-recurring gains and losses was 47.7021 million yuan, up 30.21% year-on-year.

On october 26, youmagic officially announced that its r&d company, vein, recently received new financing from bethany group, the specific amount of which has not yet been disclosed. It is reported that this financing will further consolidate the technical barriers of Weimai Medical and improve the layout in the field of medical energy.

E-commerce platform

Taobao plans to add the "Taobao Store Comprehensive Experience Score Specification" to clarify the definition, index composition, and score application of the store's comprehensive experience score.

At the same time, the online store comprehensive experience score query dashboard, merchants can view the score and indicator details through Qianniu-store-comprehensive experience score. This new addition will be announced on October 7, 2023 and will take effect on October 18, 2023.

In September 2023, the total sales of beauty categories (skin care/personal care cleaning/makeup and perfume/personal care equipment/personal care tools) on the Tmall platform was 12.166 billion yuan, a decrease of 6.83% month-on-month. Among them, the sales of skin care products were 4.712 billion yuan, a decrease of 11.24% month-on-month, and the sales of makeup and fragrance products were 1.938 billion yuan, a decrease of 12.46% month-on-month.

In September 2023, the total sales of beauty categories (skin care/personal care cleaning/makeup and perfume/personal care equipment/personal care tools) on the JD.com platform were 4.847 billion yuan, a decrease of 456 million yuan compared with the sales of 5.303 billion yuan in the previous month. Among them, skin care products decreased by 335 million yuan, personal care devices decreased by 287 million yuan, and cosmetics and perfume products decreased by 88 million yuan.

In September 2023, the total sales of beauty categories (skin care/personal care cleaning/makeup and perfume/personal care equipment/personal care tools) on the Douyin platform will be 10.4 billion yuan, a decrease of 7.96% month-on-month, of which the sales of skin care products in September decreased by 1 billion yuan, and the total sales of makeup and fragrance categories remained stable at 2 billion yuan.

At 8 p.m. on October 24, the pre-sale of the 2023 Tmall Double 11 will be opened, and the brand transaction will usher in strong growth at the beginning. Within one hour, there were more than 1,300 brands with a year-on-year increase of more than 200% in turnover, and nearly 700 brands with a year-on-year turnover of more than 500%. Proya, L'Oreal, Haier, Fila, Lancôme, Midea, Guerlain, Nike and other brands have exceeded 100 million yuan in turnover, and new brands of domestic products such as Huazhi and primary have also entered the "100 million yuan club".

Domestic beauty products have become one of the most popular categories in the pre-sale of Tmall 11.11. Within an hour, more than 500,000 pieces of Proya Ruby Cream 3.0 were sold, more than 400,000 pieces of cleansing oil were sold, more than 300,000 pieces of Flower Swan Ballet Lip Stain and Proya "Morning C and Night A" Combination Double Antibody Essence were sold, and the growth rate of Jimeng increased by more than 8,000% year-on-year, Kefumei increased by more than 4,900% year-on-year, and the initial year-on-year growth rate exceeded 2,500%, leading the industry.

On October 23, it was reported that Jingdong's "Double Eleven" entered the starting period at 8 p.m. on the 23rd, and spot sales were implemented. According to JD.com's official data, the number of users who placed orders within 10 minutes of sales and the number of transaction orders increased by more than 4 times year-on-year. The turnover of beauty products increased by 11 times year-on-year, of which the turnover of lotion and cream increased by more than 20 times year-on-year, facial essence increased by more than 23 times, toner/lotion increased by more than 10 times, cleansing increased by more than 11 times, and mask increased by 13 times. SK-II, Olay, Cetaphil, La Roche-Posay and other brands increased by more than 17 times year-on-year.

International Group

L'Oréal sold its organic beauty brand Sanaflore to Ekkio Capital, a French investment fund focused on small and medium-sized enterprises in the health and beauty sector, and entrepreneur Sergio Calandri, on undisclosed terms. Upon completion of the transaction, Sergio Calandri will become CEO of Sanaflore.

On October 17, SK chemicals announced that it had signed a letter of intent with The Estée Lauder Companies to provide recycling solutions. SK chemicals has strengthened its sustainability approach in the cosmetics container market by partnering with The Estée Lauder Companies, an international cosmetics brand.

In the early morning of October 20 (Beijing time), L'Oréal Group released its performance data for the first three quarters of 2023 as scheduled. According to the announcement, from January to September this year, L'Oreal Group's sales were 30.577 billion euros (about 237.157 billion yuan), a year-on-year increase of 12.6%, and sales in the third quarter were 10.003 billion euros (about 77.584 billion yuan), a year-on-year increase of 11.1%.

It is worth mentioning that, according to the Qingyan Outer Combing, this is also the first time that L'Oréal Group has recorded sales of more than 30 billion euros in the first three quarters, but the North Asian market has "lagged behind" and has become the slowest growth region of the group.

On the evening of October 18, Procter & Gamble announced its results for the first quarter of fiscal year 2024 as of September 30. According to the financial report, in the first quarter, the group's net sales were 21.871 billion US dollars (about 159.997 billion yuan), a year-on-year increase of 6%, excluding the impact of foreign exchange, acquisitions and asset divestitures, organic sales increased by 7% year-on-year, and net profit was 4.556 billion US dollars (about 33.332 billion yuan).

According to the report, P&G continued last year's price increase strategy in the quarter, with product pricing across all divisions rising 6%-9%. Looking at the reported data, net sales increased in all segments, but sales declined in SK-II.

Following the closure of the Little Beauty Box business, L'Oréal has decided to cease production and operation of its spa brand, Decléor.

In the three months to the end of September, P&G's sales rose 6% year-on-year to $21.9 billion, with a gross margin of 52% and net profit surged 15% year-on-year to $4.59 billion, all exceeding analysts' expectations. The group said the growth was mainly driven by 11% growth in the healthcare business, with SK-II's beauty division achieving a 3% increase in sales and a 5% increase in organic revenue.

L'Oréal reported third-quarter results, with sales up 11.1% year-on-year and 4.5% reported to €10 billion. The Dermatology & Beauty Division continued to grow at the highest rate of 28.1%, while the Consumer Products Division, the Professional Hair Products Division, and the Premium Cosmetics Division increased by 13.4%, 8.7%, and 3.2%, respectively.

Recently, there were media reports that Procter & Gamble is considering selling Sassoon's China business at a valuation of $1 billion and has begun to evaluate investors' initial interest in the business, considering options including selling all or part of Sassoon's China business.

On October 23, the relevant person in charge of Procter & Gamble responded that it would not respond to such speculative information. On the same day, a reporter from Nandu Bay Finance Society called the Sassoon brand, and the other party responded that he had not heard of the incident.

In the six months to the end of September, L'Occitane sales surged 18.5 percent year-on-year to 1.07 billion euros, or 24.9 percent at constant exchange rates. The group said the increase was mainly driven by the strong sales of Sol de Janeiro in the US market and the strong sales of the L'Occitane brand in the Chinese market. As of Tuesday's close, L'Occitane shares rose 3.67% to HK$21.2, with a market capitalization of about HK$31.3 billion.

On October 26, Unilever released its third quarter report for 2023, with a turnover of 15.2 billion euros (about 117.349 billion yuan) in the third quarter, a year-on-year decrease of 3.8%, and an overall turnover of 45.8 billion euros (about 353.590 billion yuan) in the first three quarters, a slight increase of 0.4%.

In terms of business, the turnover of the beauty and health department in the third quarter was 3.1 billion euros (about 23.933 billion yuan), down 4.9% year-on-year, and the total turnover of the department in the first three quarters was 9.4 billion euros (about 72.571 billion yuan), up 3.7% year-on-year. The personal care division's turnover in the third quarter was 3.6 billion euros (about 27.793 billion yuan), down 2.2% year-on-year, compared with 10.5 billion euros (about 81.063 billion yuan) in the first three quarters, up 3.7% year-on-year. The home care division's turnover in the third quarter was 3.1 billion euros (about 23.933 billion yuan), down 4.1% year-on-year, and in the first three quarters, the department's turnover was 9.3 billion euros (about 71.799 billion yuan), a slight increase of 0.5%.

On October 25, Beiersdorf announced its results for the third quarter of 2023. In the first three quarters of this year, its sales were about 7.3 billion euros (about 56.565 billion yuan), an organic increase of 11.2%. In terms of segments, the sales of the consumer segment were about 6 billion euros (about 46.491 billion yuan), an organic increase of 13.6%.

Among them, core brands including Labello and Nivea achieved growth of 17.5% and double-digit growth in all regions. The strong performance of Nivea's Luminous series in the first three quarters strongly drove sales in the third quarter. The Eucerin and Aquaphor brands under Derma performed well again, with organic sales growth of 24.8 percent in the first three quarters.

On October 27, LG Household and Healthcare released its financial report for the third quarter of 2023, with sales and operating profit both declining. Among them, LG Household Healthcare's sales in the third quarter were 1,746 billion won (about 9.446 billion yuan), down 6.6%, operating profit was 128 billion won (about 692 million yuan), down 32.4% year-on-year, and net profit was 91 billion won (about 492 million yuan), down 28.3% year-on-year.

In the first three quarters, LG Household Healthcare's sales reached 5,238 billion won (about 28.338 billion yuan), down 2.6% year-on-year, operating profit was 432 billion won (about 2.337 billion yuan), down 25.8% year-on-year, and net profit was 284 billion won (about 1.536 billion yuan), down 22.7% year-on-year.

On the evening of October 27, Kenvue, a consumer health brand company under Johnson & Johnson Group, announced its financial results for the third quarter ended October 1, 2023. In the third quarter of this year, Kenvue's net sales increased by 3.3% over the same period last year, and increased organically by 3.6% to US$3.915 billion (about 28.646 billion yuan).

In 2022, the rational approach of the portfolio and the weakness in the Chinese market affected the volume growth by about two percentage points.

In the first three quarters, Kenvue's net sales reached US$11.778 billion (about 86.178 billion yuan) and net profit was US$1.337 billion (about 9.783 billion yuan).

Duty-free News

On October 16, at the press conference on Hainan's foreign trade in the first three quarters of this year, a spokesman for Haikou Customs introduced that in the first three quarters of this year, Haikou Customs supervised a total of 34.94 billion yuan of duty-free shopping on the outlying islands, an increase of nearly three percent over the same period last year.

In the first three quarters of this year, Haikou Customs supervised a total of 34.94 billion yuan of duty-free shopping on the outlying islands, an increase of 28.6 percent over the same period last year, 41.5 million shopping items, a year-on-year increase of 6.7 percent, and 5.25 million shopping trips, a year-on-year increase of 56.3 percent.

In the first three quarters, cosmetics, jewelry, watches and other duty-free hot-selling goods on Hainan Island were the top three, with shopping amounts of 14.09 billion yuan, 5.01 billion yuan and 3.66 billion yuan respectively, an increase of 4.8%, 71.4% and 50% respectively. In the same period, the amount of luggage, clothing and mobile phone shopping increased by 74.3%, 92.7% and 15.8% respectively.

On October 26, China Tourism Group China Duty Free Co., Ltd. (hereinafter referred to as "China Duty Free") released its third quarter financial report.

In the first three quarters of 2023, China Duty Free achieved operating income of 50.837 billion yuan, a year-on-year increase of 29.14%, and net profit attributable to shareholders of listed companies of 5.206 billion yuan, a year-on-year increase of 12.49%.

Among them, the operating income in the third quarter was 14.979 billion yuan, a year-on-year increase of 27.87%, the net profit attributable to shareholders of listed companies was 1.341 billion yuan, a year-on-year increase of 94.22%, and the net profit attributable to shareholders of listed companies after deducting non-recurring gains and losses was 1.337 billion yuan, an increase of 103.90% year-on-year.