Retail channels

Sephora CEO Guillaume Motte revealed in an interview a few days ago that the company's ultimate goal is to exceed the 20 billion euro mark in annual sales, which is a milestone reached by Louis Vuitton, LVMH's core brand. Sephora now operates 700 stores in 35 countries around the world, employs 46,000 people, and generated revenues of 12 billion euros last year, making it LVMH's second-largest business.

On November 6, Meituan Flash Sale announced this year's "Double 11" battle report. Since the Meituan flash sale and more than 800,000 offline stores fully opened the "Double 11" on October 24, during the event, the order volume of beauty and personal care products increased by 196% year-on-year, and the order volume of high-end cosmetics increased by 426% year-on-year. Among them, the top 5 beauty and personal care sales merchants are Watsons, Sephore, THE COLORIST, Yum Group, and Mannings.

On November 21, MINISO released its financial report for the first quarter of fiscal year 2024 (July-September 2023). According to the financial report, MINISO's revenue in the first fiscal quarter reached 3.79 billion yuan, a year-on-year increase of 37%. Among them, domestic revenue exceeded 2.49 billion yuan, a year-on-year increase of 35%, and overseas revenue was 1.3 billion yuan, a year-on-year increase of 41%. Non-IFRS adjusted net profit was RMB640 million, up 54% year-on-year.

As of September 30, the number of MINISO stores worldwide exceeded 6,000 for the first time, reaching 6,115. Among them, there are 3,802 domestic stores and 2,313 overseas stores. In addition, MINISO said that in 2024, it will focus on the three major categories of beauty, big IP, and big toys.

Authoritative release

On November 22, the State Food and Drug Administration issued an announcement stating that in order to implement the "Measures for the Supervision and Administration of Toothpaste" and standardize the filing of toothpaste, the State Food and Drug Administration has formulated the "Regulations on the Management of Toothpaste Filing Materials" (hereinafter referred to as the "Regulations"), which is hereby issued and will come into force on December 1, 2023. In addition to clarifying the requirements for the filing of toothpaste, the "Provisions" also mention that when the toothpaste is recorded, the filing person shall submit a product inspection report, which generally includes microbial and physical and chemical test reports, toxicological test reports, efficacy evaluation reports, etc. Products that indicate words such as "suitable for the whole population" and "for the whole family", or use trademarks, patterns, homophonies, letters, Chinese pinyin, numbers, symbols, packaging forms, etc., to imply that the product users include children shall be managed in accordance with children's toothpaste.

Brands and industries

On October 29, Bethany released its third quarter report for 2023. From 1 to 3Q23, the operating income was 3.431 billion yuan, a year-on-year increase of +18.51%, the net profit attributable to the parent company was 579 million yuan, a year-on-year increase of +11.96%, and the net profit attributable to the parent company was 508 million yuan, a year-on-year increase of +12.53%.

Q3 revenue grew steadily, and the growth rate of net profit excluding non-attributable to the parent company performed well. From 1 to 3Q23, the operating income was 3.431 billion yuan, a year-on-year increase of +18.51%, the net profit attributable to the parent company was 579 million yuan, a year-on-year increase of +11.96%, and the net profit attributable to the parent company was 508 million yuan, a year-on-year increase of +12.53%. In 3Q23, the operating income was 1.064 billion yuan, +25.77% year-on-year, the net profit attributable to the parent company was 129 million yuan, +5.66% year-on-year, and the net profit not attributable to the parent company was 134 million yuan, +39.88% year-on-year. The growth rate of net profit deducted from non-attributable to the parent company is higher than that of the net profit attributable to the parent company, mainly due to the existence of non-recurring profit and loss of -5.17 million yuan in 3Q23 (while the non-recurring profit and loss in 3Q22 was 26.22 million yuan).

On October 30, Guangdong Marubeni Biotechnology Co., Ltd. released its third quarter financial report. In the first three quarters, Marubeni's operating income reached 1.536 billion yuan, an increase of 34.34% year-on-year, the net profit attributable to shareholders of listed companies reached 174 million yuan, an increase of 44.84%, and the non-net profit deducted reached 157 million yuan, an increase of 75.99%.

On October 31, 2023, the State Food and Drug Administration issued a notice pointing out that in the 2023 national cosmetics sampling inspection work, after inspection by the Guangdong Provincial Institute for Drug Control and other units, 30 batches of cosmetics (including toothpaste) such as Yimeizi hair dye cream (flax color) produced by Guangzhou Aolun Cosmetics Co., Ltd. did not meet the requirements.

On November 1, e.l.f. Beauty released its financial report for the second quarter of 2023, which showed that in the three months ended September 30, 2023, e.l.f. Beauty's sales surged by 76% compared with the same period last year, reaching US$215.5 million (about 1.577 billion yuan). According to e.l.f. Beauty, the growth was mainly driven by strong growth in retailers and e-commerce channels.

On October 31, Lafang Jiahua Co., Ltd. (hereinafter referred to as "Lafang Jiahua") released its performance report for the third quarter of 2023. During the reporting period, the total revenue of Lafang Jiahua fell by 1.46% to 616 million yuan, and the net profit attributable to the parent company was 75.9194 million yuan, an increase of 22.17% over the same period last year.

In the third quarter, Lafang Jiahua achieved operating income of 244 million yuan, a slight increase of 7.03% year-on-year, and net profit attributable to the parent company increased by 30.11% year-on-year to 21.535 million yuan. This time, Lafang Jiahua's performance ushered in a recovery.

In terms of expenses, in the first three quarters of this year, Lafang Jiahua's sales expenses were 134 million yuan, management expenses were 42.7163 million yuan, and R&D expenses were 25.138 million yuan.

On October 26, Jinbo Biotech released the third quarter report of 2023, with operating income of 517 million yuan in 1-3Q23, +105.64% year-on-year, net profit attributable to the parent company of 192 million yuan, +173.75% year-on-year, and net profit of 184 million yuan, +179.77% year-on-year.

On October 25, 2023, according to the filing information of new cosmetic raw materials of the State Food and Drug Administration, the new cosmetic raw material of Nanjing Shengde Baitai Biotechnology Co., Ltd., vitamin K2 (Menaquinone-7, MK-7), successfully passed the filing of new raw materials.

On October 30, the State Food and Drug Administration's new cosmetic raw material filing information platform showed that the "hydroxy-α-sanshocin" of Sichuan Shengjia Technology Co., Ltd. completed the filing and entered the monitoring period.

On October 31, BASF (BASF) released its performance report for the third quarter of 2023, with sales of about 15.735 billion euros (about 121.573 billion yuan) in the third quarter, down 28.31% year-on-year, and a net loss of 249 million euros (about 1.925 billion yuan), down 127.39% year-on-year. From January to September, BASF's sales were 53.031 billion euros (about 409.733 billion yuan), down 22% year-on-year. Net profit was 1.812 billion euros (about 14 billion yuan), down 57.1% year-on-year. BASF said the decline in revenue was mainly due to a sharp decline in product prices in the company's Materials, Chemicals and Surface Technologies business areas. In addition, a significant decline in volumes in all business areas weighed down sales.

On October 31, spice giant DSM-Firmenich released its third-quarter financial results. According to the financial report, DSM-Firmenich's sales in the first three quarters of 2023 will be 9.198 billion euros (about 71.704 billion yuan), a year-on-year decrease of 7%; EBITDA (earnings before interest, taxes, depreciation and amortization) was 1.338 billion euros (about 10.431 billion yuan), down 25% year-on-year. Among them, sales in the third quarter were 3.046 billion euros (about 23.745 billion yuan), a year-on-year decrease of 12%; EBITDA was 409 million euros (about 3.188 billion yuan), down 32% year-on-year. In terms of departments, the sales of the perfume and beauty division in the first three quarters were 2.795 billion euros (about 21.789 billion yuan), down 7% year-on-year, EBITDA was 591 million euros (about 4.607 billion yuan), up 2% year-on-year, and the sales in the third quarter were 920 million euros (about 7.172 billion yuan), down 7% year-on-year.

On october 30, pola orbis holdings (pola group) announced its financial results for the third quarter of 2023. POLA Group's consolidated net sales in the first three quarters of fiscal 2023 reached 126.739 billion yen (about 6.206 billion yuan), a year-on-year increase of 5.9%. Gross profit increased by 6.2% year-on-year to 103.939 billion yen (about 5.089 billion yuan). Among them, the consolidated net sales of the beauty care business in the first three quarters reached 123.260 billion yen (about 6.018 billion yuan), a year-on-year increase of 6%, mainly due to the increase in operating income of POLA and ORBIS. In addition, POLA also mentioned in the financial report that Japan's nuclear sewage discharge into the sea has also affected the sales of products in Chinese mainland to a certain extent.

On October 30, Langzi released its third quarter financial report. According to the financial report, the company's revenue in the first three quarters was 3.694 billion yuan, an increase of 22.06%; the net profit attributable to shareholders of the listed company was RMB194 million, an increase of 585.75% year-on-year; The net profit after deduction reached RMB175 million, an increase of 459.78% year-on-year. In the third quarter, the revenue of Langzi reached 1.216 billion yuan, an increase of 23.94%; The net profit attributable to shareholders of listed companies was 46.7969 million yuan, an increase of 339.57% year-on-year.

On October 30, Mingchen Health Products Co., Ltd. (hereinafter referred to as "Mingchen Health"), the parent company of Tiehua Show, released its financial report for the third quarter of 2023. According to the financial report, in the third quarter, the company's revenue increased by 109.97% year-on-year to 459 million yuan, and the net profit attributable to shareholders of listed companies was 66.2295 million yuan, up 245.47% year-on-year. In the same period last year, Mingchen Health lost money due to the game business, and its net profit fell by 305.80%.

On November 1, the Hong Kong Census and Statistics Department released data showing that the provisional estimate of the total value of retail sales in September 2023 was $31.8 billion, up 13% year-on-year. The revised estimate of the value of total sales in August 2023 increased by 13.7% from the same period last year, and the provisional estimate of the value of total sales of the retail trade in the first nine months of 2023 increased by 18.6% compared to 2022.

In terms of provisional estimates of the value of retail sales, the value of sales of medicines and cosmetics increased by 50.6 per cent in September this year compared with September last year, the value of sales of jewellery, watches and clocks and luxury gifts increased by 27.3 per cent, the value of goods sold in department stores increased by 12.2 per cent, and the value of sales of other unclassified consumer goods increased by 34.1 per cent.

Recently, Fuerjia (301371. SZ) has completed the filing of new raw materials for β-nicotinamide mononucleotide (INCI name: Nicotinamide mononucleotide), and the record number is the original preparation of national cosmetics 20230044 and is currently in the monitoring period. The raw material is used as an anti-wrinkle agent, skin protector, moisturizer, and antioxidant, and can be used in various skin care cosmetics, except for spray products.

At the beginning of November, Japanese skincare brand Freshel announced on its official website that it would stop production in December 2023, and said that the product would stop being available when the inventory in offline and online stores was sold out. According to public information, Freshel is one of the subordinate brands of Kanebo cosmetics under the Japanese Kao Group.

In the three months ended Sept. 30, Inter Parfums' sales surged 29% year-on-year to $368 million, and net income jumped 28% to $53 million, driven by strong growth in Europe and the Asian markets where China is located. For the full year 2023, the group expects sales to swell 20% to $1.3 billion from the previous year's high base.

In the fiscal first quarter ended Sept. 30, Coty's sales surged 18% year-on-year to $1.64 billion, beating analysts' expectations, but turned into a loss due to rising costs, with a net loss of $1.7 million, compared with a net profit of $125 million in the year-ago quarter. For fiscal 2024, the group expects core sales to grow 9% to 11% year-on-year, up from 8% to 10% previously. Coty Group's shares rose 2% in after-hours trading after the earnings release, with a latest market capitalization of about $8.8 billion.

On November 7, hair care brand Olaplex announced its results for the third quarter ended September 30, 2023. The company's net sales in the third quarter were US$123.6 million (about 899 million yuan), down 30.0% year-on-year, and the net profit was US$20.4 million (about 148 million yuan). Among them, the brand's professional retail channel sales were US$43.2 million (about 314 million yuan), down 42% year-on-year, and the sales of the ;D TC channel were US$32.1 million (about 234 million yuan), down 18.2% year-on-year. According to public information, Olaplex is a well-known professional salon line hair care brand in the United States, mainly for people with damaged hair.

Recently, global spice giant DSM-Firmenich released its third-quarter financial report. According to the financial report, DSM-Firmenich's sales in the first three quarters of 2023 were 9.198 billion euros, down 7% year-on-year; EBITDA (earnings before interest, taxes, depreciation and amortization) was 1,338 million euros, down 25 percent year-on-year. Sales in the third quarter were 3,046 million euros, down 12 percent year-on-year; EBITDA was 409 million euros, down 32 percent year-on-year.

According to the report, in terms of segment performance, sales in all divisions showed a downward trend. In the first three quarters, sales in the Perfumery & Beauty division fell 7% year-on-year to 2,795 million euros, EBITDA increased by 2% to 591 million euros, sales in the third quarter were 920 million euros, down 7% year-on-year, and adjusted EBITDA was 212 million euros, down 2% year-on-year.

BASF will cut its investment budget by EUR 4 billion over five years. The world's largest chemical company is struggling with slowing demand and falling product prices. The German group said "pressures" in the chemical sector – driven by falling manufacturing output and slowing consumer spending – prompted it to slash investment in new and existing plants. The company will invest up to €24.8 billion over the five years to 2027, down from the €28.8 billion previously expected.

On November 7, the General Administration of Customs released the main data of the country's import and export in October: from January to October 2023, the total value of China's import and export was 34.32 trillion yuan, a year-on-year increase of 0.03%. Among them, the import volume of beauty cosmetics and toiletries in October was 31,900 tons, with an amount of 11.61 billion yuan, and the cumulative import volume from January to October was 305,400 tons, with an amount of 107.93 billion yuan, compared with 354,200 tons from January to October 2022, with an import value of 125.35 billion yuan, a year-on-year decrease of 13.9%.

On November 6, the European Union's Scientific Committee on Consumer Safety (SCCS) issued a final safety opinion (SCCS/1651/23) on butylparaben (CAS No. 94-26-8, EC No. 202-318-7). Based on the data provided and taking into account the potential endocrine disrupting properties of butylparaben, the SCCS considers the use of butylparaben as a preservative in cosmetics at concentrations up to 0.14% (as acids) as safe. At the same time, SCCS has not yet determined the maximum safe concentration of hydroxyphenylbutyl ester as a preservative in cosmetics.

On November 7, it was reported that the Italian luxury men's clothing brand Zegna (Zegna) signed a new beauty licensing agreement with Give Back Beauty, and Give Back Beauty will be responsible for the production, marketing and distribution of Zegna perfumes and cosmetics. Zegna's beauty license, previously held by Estée Lauder, ended in 2021. Give Back Beauty has sales locations in more than 130 countries around the world and annual sales of approximately $300 million.

On November 6, INTERCOS Group, a world-renowned cosmetics foundry, announced its financial results for the first nine months of 2023. As of September 30, Intercos' net sales in the first three quarters were 735 million euros (about 5.725 billion yuan), an increase of 24.6% year-on-year, and adjusted net profit was 102 million euros (about 795 million yuan), an increase of 21.2% year-on-year.

Among them, the sales of the cosmetics department in the third quarter were 150 million euros (about 1.168 billion yuan), down 3.0% year-on-year, and the sales of 454 million euros (about 3.536 billion yuan) in the first nine months, an increase of 16.1% year-on-year.

The sales of the hair and body care business unit segment in the third quarter were about 59.3 million euros (about 460 million yuan), an increase of 36.7% year-on-year, and in the first nine months, they increased by 56.6% year-on-year to 171 million euros (about 1.332 billion yuan).

The sales of the skin care division in the third quarter increased by 19.9% year-on-year to about 37.6 million euros (about 293 million yuan), and the sales of the department in the first nine months were 109.6 million euros (about 854 million yuan), an increase of 13.4% year-on-year.

On November 6, the China Consumers Association released an analysis of the complaints received by the National Consumers Association in the third quarter of 2023. In the third quarter of 2023, the All-China Consumer Association accepted a total of 328,900 consumer complaints and resolved 278,700 cases, with a complaint resolution rate of 84.73%, recovering 353 million yuan of economic losses for consumers. Among them, 4,664 complaints were doubled for fraudulent acts of operators, with a double compensation amount of 1.17 million yuan. Among the specific commodity complaints, the number of cosmetics complaints ranked sixth in the commodity category, with 7,663 complaints, an increase of 48.8% year-on-year, and the second highest increase in the number of complaints.

On November 9, Henkel Group released its financial results for the third quarter of 2023. According to the report, the group's revenue in the third quarter was 5.44 billion euros (about 42.326 billion yuan), down 9% year-on-year, and the total revenue in the first three quarters was 16.366 billion euros (about 127.337 billion yuan), down 3.1% year-on-year.

According to Henkel, the year-over-year decline in sales was mainly due to the exit of the Russian business in the second quarter and the negative impact of foreign exchange. On an adjusted basis for foreign exchange and acquisitions/divestments, sales increased organically by 2.8 percent in the third quarter, mainly due to higher pricing and a boost in Europe, North America, Latin America and the IMEA region. In contrast, organic sales growth was negative in the Asia-Pacific region, mainly due to the generally tight market environment in China.

According to the report, the sales of Henkel's consumer brand business unit in the third quarter were 2.695 billion euros (about 20.969 billion yuan), a year-on-year decrease of 7.6%. Sales in the first three quarters reached 8.06 billion euros (about 62.712 billion yuan), down 2.3% year-on-year, and organic sales increased by 5.9%, driven by higher pricing.

On November 9, China Youzan, a Hong Kong-listed SaaS service provider, announced its results for the first three quarters of 2023, with revenue of about RMB 1.08 billion in the first three quarters, down 1.5% year-on-year, of which subscription solution revenue was about RMB 630 million and merchant solution revenue was about RMB 450 million. In addition, Youzan's operating loss in the first three quarters was RMB31.735 million, a year-on-year decrease of 93.8%, gross profit amounted to approximately RMB750 million, a year-on-year increase of approximately 8%, and adjusted earnings before interest, taxes, depreciation and amortization amounted to approximately RMB7.2 million.

According to the financial report, in the first three quarters, the GMV of Youzan merchants was about 74.9 billion yuan, a year-on-year increase of about 1%, of which in the third quarter, the GMV of Youzan merchants was about 26.2 billion yuan, an increase of about 4% from the previous quarter. In the first three quarters, the GMV of Youzan's SaaS products was about 37.2 billion yuan, a year-on-year increase of about 19%, of which in the third quarter, the GMV of Youzan's SaaS products was about 13.8 billion yuan, accounting for about 53% of the overall GMV.

Recently, Japan's KOSE Group released its third quarter financial report (as of September 30, 2023), and the key information is as follows:

Net sales: 218.9 billion yen (about 10.52 billion yuan), a year-on-year increase of 9%, operating profit: 16 billion yen (about 770 million yuan), a year-on-year increase of 3.5%, gross profit: 155.1 billion yen (about 7.46 billion yuan), a year-on-year increase of 14%.

In the three months ended Sept. 30, Italian beauty maker Intercos sales rose 8% year-on-year to 247 million euros, up 11% at constant exchange rates, and adjusted EBITDA was 34.9 million euros, essentially unchanged from the same period last year. As a world-renowned OEM company, Intercos cooperates with customers including Estee Lauder, Lancôme, Dior, Shiseido, etc., and is also the foundry of Perfect Diary, a domestic beauty brand.

On November 15, the National Bureau of Statistics released the retail sales data of consumer goods for October 2023. In October, the total retail sales of consumer goods reached 4,333.3 billion yuan, a year-on-year increase of 7.6%. From January to October, the total retail sales of consumer goods reached 38,544 billion yuan, a year-on-year increase of 6.9 percent. The total retail sales of cosmetics in October were 31.7 billion yuan, up 1.1% year-on-year. From January to October, the total retail sales of cosmetics were 329.1 billion yuan, a year-on-year increase of 6.2%.

On November 14, Avon's parent company, Natura&Co, released its financial results for the third quarter of 2023. According to the financial report, Natura&Co's consolidated net income in the first three quarters was 22.611 billion reais (about 33.604 billion yuan), down 6.3% year-on-year, and gross profit was 14.8174 billion reais (about 22.022 billion yuan), down 0.6% year-on-year. In terms of a single quarter, Natura&Co's net income in the third quarter was 7,517.3 million reais (about 11.172 billion yuan), down 10.5% year-on-year, and gross profit was 4,906.3 million reais (about 7.292 billion yuan), down 6.1% year-on-year. Among them, The Body Shop's net income in the third quarter was 829.4 million reais (about 1.233 billion yuan), a year-on-year decrease of 15%. Avon's net income in the third quarter was 1,455.8 million reais (about 2.164 billion yuan), down 11.6% year-on-year. The net income of the Natura brand in the third quarter was 5.232 billion reais (about 7.776 billion yuan), a year-on-year decrease of 9.4%.

Recently, according to the filing information platform of cosmetic raw materials of the State Food and Drug Administration, Applechem, Inc.'s "sorbitol-230 tetraoleate" has completed the filing and entered the monitoring period.

According to users, the list of functional ingredients from August to October co-created by United Digital Storytelling: (August to October 2023) Users pay the most attention to the top 98 functional raw material ingredients.

In the August-October rankings, amino acids, niacinamide and hyaluronic acid are still firmly in the top four. Remarkably, botanical ingredients showed impressive growth, with gardenia taking third place with strong year-on-year and month-on-month gains. In addition, ginger, camellia, rose and arborvitae leaves also managed to make it into the top 10 of the list, demonstrating their outstanding performance in the market.

On November 21, Cetaphil's parent company, Galderma, released its financial report for the third quarter of fiscal year 2023. In the first three quarters, Galderma achieved net sales of US$3.009 billion (about 21.484 billion yuan), a year-on-year increase of 8.9% at constant exchange rates. In the first three quarters, the company achieved strong growth across all product categories, with a balanced sales contribution from volume, pricing and brand mix, Galderma said. In the skin care business, Galderma's net sales in the first three quarters of 2023 increased by double digits year-on-year at the same exchange rate. This was mainly due to higher sales under its main brands Cetaphil and Alastin Skincare.

On November 21, Yatsen E-commerce released its third quarter 2023 performance report. According to the announcement, the company achieved revenue of 718 million yuan in the third quarter, in line with the previously issued revenue guidance. Among them, the three major skin care brands such as Galénic, EVE LOM and DR.WU (Chinese mainland business) continued to grow steadily, with total revenue increasing by 7.4% year-on-year. The skincare segment has achieved steady development, with revenue accounting for more than 30% of total revenue for six consecutive quarters. Huang Jinfeng, Founder, Chairman and CEO of Yatsen E-commerce, said: "In the third quarter, the company's three major skincare brands ushered in steady growth, while Perfect Diary, the main brand of Yatsen E-commerce, continued to improve its brand power through the release of a new visual identity and blockbuster new products. We are confident in the future and expect total revenue to grow year-over-year in line with the company's Q4 guidance. ”

On November 16, the official Weibo of Australian beauty retail brand MECCA and its Tmall overseas flagship store issued a change notice a few days ago, announcing that its Tmall overseas flagship store will cease to operate, and the flagship store will stop taking orders at 24 o'clock on November 30.

On November 21, the State Food and Drug Administration issued a notice on the detection of prohibited raw materials in 9 batches of cosmetics (No. 60 of 2023), in the 2023 national cosmetics sampling inspection work, after the inspection of Jiangxi Provincial Institute for Drug Inspection and Testing and other units, the product label indicated that the entrusting party was Shenzhen Fadao Biotechnology Co., Ltd., and the entrusted party was Guangzhou Jiaozi Daily Chemical Co., Ltd. Fadao silicone-free oil oil control and repair shampoo and other 9 batches of cosmetics did not meet the requirements. Prohibited raw materials specified in the Safety and Technical Standards for Cosmetics (2015 Edition). In accordance with the relevant laws and regulations, the State Food and Drug Administration requires the relevant departments to file a case and investigate the registrants, record holders, and entrusted manufacturers involved in the above-mentioned non-compliant cosmetics in accordance with the law, and order the relevant enterprises to immediately take risk control measures in accordance with the law and conduct self-inspection and rectification.

On November 21, according to the official website of the State Food and Drug Administration,"bis-polycitronellol succinate", "bis-polycitronellan azelaate" and "polysiloxane quaternary ammonium-16/epoxypropoxy dimethicone crosspolymer" completed the filing and entered the monitoring period. All three raw materials are chemical raw materials. Among them, the filing of the first two raw materials is P2 Technology Co., Ltd., and the filing of the latter is Dow (Zhangjiagang) Investment Co., Ltd. Among them, "bis-polycitronell succinate" and "bis-polycitronell azelaate" are used as hair conditioners and moisturizers, and are suitable for all kinds of hair and skin cosmetics except spray products. The maximum safe usage is 50%."Polysiloxane quaternary ammonium-16/epoxypropoxy dimethicone crosspolymer" is used as a hair styling agent and hair conditioning agent, and is suitable for styling, shampoo, conditioner, hair mask, and hair coloring products. The maximum allowable concentration for cosmetics is in the range of 0.1-2%. The ingredient will not cause damage under normal use, but should be avoided from contact with eyes.

On November 20, New Oxygen Technology, a service platform for the medical cosmetology industry, released its financial report. In the third quarter of 2023, Xinyang's revenue was 385 million yuan, a year-on-year increase of 19.2%. Specifically, Xinyang's information service revenue in the third quarter of 2023 was 286 million yuan, a year-on-year increase of 24.1%, appointment revenue was 24.1 million yuan, a year-on-year decrease of 18.8%, and medical product sales and maintenance service revenue was 75.2 million yuan, a year-on-year increase of 19.2%. As of the third quarter of 2023, Xinyang has become one of the largest and most popular vertical Internet platforms for medical aesthetics and consumer healthcare in China. In the third quarter, the number of paying users of the platform reached 146,000, and the total transaction volume of medical aesthetic services facilitated by the platform was 530 million yuan.

On November 22, perfume manufacturer Inter parfums issued its full-year performance guidance for fiscal year 2024, expecting net sales of US$1.45 billion (about RMB 10.373 billion) in fiscal year 2024. It said that it expects net sales of US$150 million (about 1.073 billion yuan) year-on-year compared with US$1.3 billion (about 9.300 billion yuan) in fiscal 2023, with a year-on-year growth rate of 12%. Jean Madar, Chairman and CEO of Inter Parfums, said: "2024 is also a year with record potential for us, as the fragrance market continues to evolve and innovate at scale, as well as the expansion and enrichment of our product lines, including sales of our newest brands, Lacoste and Roberto Cavalli. "Inter parfums' revenue in the third quarter of this year was US$368 million (about 2.687 billion yuan), and the revenue in the first three quarters was US$989 million (about 7.222 billion yuan), a year-on-year increase of 27%, setting a new performance record.

On November 6, the European Union's Scientific Committee on Consumer Safety (SCCS) issued a final safety opinion (SCCS/1656/23) on the fragrance ingredient "benzyl salicylate" (CAS number: 118-58-1, EC number: 204-262-9). The final conclusion is as follows: Based on an evaluation of the data presented, and taking into account concerns related to the potential endocrine disruptors of benzyl salicylate, the SCCS considers benzyl salicylate to be safe at the maximum concentrations provided in Table 1 of this opinion. The available data on benzyl salicylate provide some indication of possible endocrine effects, but there is no evidence that it causes potential endocrine effects. The mandate of the SCCS does not have an environmental aspect. Therefore, this assessment does not include the safety of benzyl salicylate in the environment.

Recently, the General Administration of Customs released the main data of the country's import and export in October: from January to October 2023, the total value of China's imports and exports was 34.32 trillion yuan, a year-on-year increase of 0.03%.

Among them, the import volume of beauty cosmetics and toiletries in October was 31,900 tons, with an amount of 11.61 billion yuan, and the cumulative import volume from January to October was 305,400 tons, with an amount of 107.93 billion yuan, compared with 354,200 tons from January to October 2022, with an import value of 125.35 billion yuan, a year-on-year decrease of 13.9%.

Last year, Revlon, which filed for bankruptcy due to high levels of debt, was rumored to be being bought by India's richest company. Now, Revlon has good news in the Indian market, according to foreign media, Revlon plans to double its Indian business to 4 billion rupees (about 343 million yuan) in fiscal year 2023, and plans to add more stores.

Revlon is currently operating in India through local partner Modi-Mundipharma Beauty Products, and plans to increase the number of stores from 300 to 600 and quadruple the number of department stores from 1,000 to 4,000. Meanwhile, as part of its expansion portfolio in the Indian market, the company is also considering launching Revlon-branded fragrances.

According to user data monitoring, from January to October 2023, the filing of lip care products increased by 38.73%, and the number of filings reached 4,467, of which there was a sudden increase in June ~ August.

E-commerce platforms

On November 14, Vipshop released its financial report for the third quarter of 2023. According to the financial report, Vipshop's revenue in the third quarter of 2023 was 22.766 billion yuan, a year-on-year increase of 5.3%, a decrease of 18% from the previous quarter, an operating profit of 1.533 billion yuan, a year-on-year increase of 34.8%, and a non-GAAP net profit of 1.8 billion yuan, a year-on-year increase of 15.5%. GMV in the third quarter was RMB42.5 billion, up 13.1% year-on-year, with 42.5 million active users, up 3.5% year-on-year, and orders up 6.9% year-on-year to RMB179.9 million. According to the data previously released by Vipshop on "Double 11", beauty and skin care, makeup and perfume are one of the categories with the highest consumer enthusiasm for buying in "Double 11", data shows that the sales of setting spray increased by 76% year-on-year, the sales of foundation and facial essential oils increased by more than 50% year-on-year, and the sales of makeup cream and sunscreen increased by 40% year-on-year.

Tmall officially announced the "Double 11" battle report, as of 0:00 on November 11, 402 brands have a turnover of more than 100 million, and more than 38,600 brands have a year-on-year growth rate of more than 100%. 243 domestic brands entered the "100 million yuan club". According to the ranking of Tmall beauty industry's "Double 11" full-week brand report card, Proya is first, L'Oreal is second, Lancôme is third, Estee Lauder is fourth, and the top ten brands also include Olay, Winona, LA MER (La Mer), SkinCeuticals, Helena and Guerlain. The ranking of the full-cycle cosmetics brands shows that YSL Yves Saint Laurent is the first, Caitang is the second, and NARS is the third, and the top ten brands also include: CPB Skinkey, 3CE, Estee Lauder, MAC, Lancôme, Huaxizi, and MAKE UP FOR OVER.

On November 12, it was reported that the order volume of Kuaishou e-commerce's "Double Eleven" full cycle (October 18 to November 11, 2023) increased by nearly 50%, the number of large-scale and global dynamic sales increased by more than 50%, the GMV of small and medium-sized merchants increased by 75% year-on-year, and the brand GMV increased by 155% year-on-year, of which the number of brands with a year-on-year increase of 100% was nearly 2,500. In the Kuaishou e-commerce beauty industry, the GMV of more than 55 brands increased by more than 200% year-on-year, the GMV of more than 70 brands increased by more than 100% year-on-year, and the GMV of 15 beauty brands exceeded 10 million. Among them, Sulwhasoo, Osman, Gu Yu, Proya, and Winona became the top five GMV brands in the beauty industry of Kuaishou's "Double Eleven".

From October 20 to November 11, 2023, the cumulative live broadcast time in the live broadcast room of Douyin e-commerce reached 58.27 million hours, the short video of hanging the shopping cart was played 169.7 billion times, the GMV of Douyin Mall increased by 119% year-on-year, the overall number of dynamic merchants on the platform increased by 91% year-on-year, and the number of consumers in the Douyin mall scene increased by 111% year-on-year. In the list of domestic brand growth, it is mentioned that in the early stage of Yumeijing's "Double Eleven", 187,000 pieces of classic bagged children's cream were sold on the platform, and 31,000 pieces of shea butter body lotion were sold. Han Shu promoted the "Red Waist" series of skin care products in his official flagship store on Douyin, and sold more than 260,000 sets in 12 days during the promotion period, a year-on-year increase of 550%.

With the end of the pre-sale period of the major e-commerce platforms of "Double 11", Bilibili (hereinafter referred to as "Bilibili") has become one of the largest traffic growth points of e-commerce this year. Based on the promotion of the "open-loop" strategy, the GMV of Station B during the pre-sale period of Double 11 increased by 229% year-on-year. According to the "Spark Plan", during the Double 11 pre-sale period, the sales brought by the drainage of the grass planting video of Station B to the e-commerce platform stores have increased by 83% compared with the entire promotion period of "618".

Among them, the GMV of live streaming on station B increased by 259% year-on-year, and the GMV of video delivery increased by 190% year-on-year. At the same time, the number of UP owners who have harvested merchant cooperation through the Huahuo platform has increased by 40% year-on-year. As an important e-commerce promotion node, Double 11 has entered its 15th year this year. However, more and more brands and merchants are reaping new customer conversions in the blue ocean of traffic at Station B. In addition, as the IP derivatives consumer brand of station B, the single-day sales of member buying's big promotion on October 31 also increased by 70% year-on-year.

According to Meituan's 11.11 report, the annual revenue of beauty and personal care orders increased by 196% this year, and the annual revenue of high-end cosmetics orders increased by 426%.

According to the "Instant Retail Industry Research Report (2023)" released by the Ministry of Commerce, instant retail has maintained an average annual growth rate of more than 50% in the past few years, and the market size will exceed 500 billion yuan in 2022. Another report pointed out that personal care products will grow by 47% in the next five years in the instant retail channel and 2% in other traditional channels.

International conglomerate

On October 31, Amorepacific Group released its third-quarter financial report, which showed that the group's sales in the third quarter were 963.3 billion won (about 5.221 billion yuan), down 5.7% year-on-year, and the operating profit was 28.8 billion won (about 156 million yuan), down 12.7% year-on-year. The total sales of its cosmetics company in the third quarter were 888.8 billion won (about 4.817 billion yuan), down 5.1% year-on-year, and operating profit fell 8.2% year-on-year to 17.3 billion won (about 93.77 million yuan). Amorepacific revealed that it will restructure its global business geography to focus on regions with high growth potential.

On November 1, The Estee Lauder Companies released its financial results for the first quarter of fiscal year 2024. In the first quarter ended September 30, the group achieved net sales of US$3.518 billion (about 25.748 billion yuan), a year-on-year decrease of 10%, and the net profit attributable to the company was US$31 million (about 269 million yuan).

Estée Lauder reports results for the first quarter of fiscal 2024. During the period, the company's revenue was $3.52 billion, down 10% year-on-year. Estée Lauder lowered its financial outlook for the fourth time in light of a plunge in net profit to $31 million from $490 million last year, after the company slashed its profit forecast due to the slow recovery in the Asian market.

Estee Lauder shares plunged 19% to their lowest point in six years after the earnings report, the biggest one-day drop on record. Estée Lauder's share price has fallen 60% so far this year. According to Estee Lauder, supply chain disruptions caused by the Israeli-Hamas conflict will result in nearly $80 million in losses.

By category, the biggest decline was in skincare. Skincare sales fell by about 21% year-on-year, with the group again attributing it mainly to the weakness of the travel retail sector.

On November 8, Kao Group released its financial results for the first three quarters of 2023. In the first three quarters, Kao's total sales were 1,125.9 billion yen (about 54.363 billion yuan), down 0.2% year-on-year, and the core operating profit was 70.8 billion yen (about 3.419 billion yuan), down 8%. In the third quarter, Kao's sales were 387.4 billion yen (about 18.705 billion yuan), down 1.6% year-on-year, and the core operating profit was 36.3 billion yen (about 1.753 billion yuan), up 56.2% year-on-year. Among them, the sales volume of Kao cosmetics business was 175.1 billion yen (about 8.455 billion yuan), a year-on-year decrease of 1.7%, and the core profit loss was 1.6 billion yen (about 77.25 million yuan). In the first three quarters, the sales of health and beauty care business were 288.5 billion yen (about 13.930 billion yuan), up 3.1% year-on-year, and the operating profit was 30.6 billion yen (about 1.477 billion yuan), up 33% year-on-year.

Coty Group announced its results for the last quarter (July-September 2023), during which Coty's net income was US$1.641 billion (about RMB 11.939 billion), up 18% year-on-year, and its operating income was US$197.5 million (about RMB 1.437 billion), up 15% year-on-year. EBITDA reached US$360.3 million (approximately RMB 2.621 billion), up 17% year-on-year. Among them, the net income of the high-end beauty division from July to September 2023 was US$1,064.7 million (about RMB 7.746 billion), up 23% year-on-year, and the adjusted operating profit was US$287.6 million (about RMB 2.092 billion). From July to September 2023, the net income of the public beauty division was US$576.7 million (about 4.196 billion yuan), a year-on-year increase of 10%, and the adjusted operating profit was 72.7 million US dollars (about 529 million yuan).

Unilever has partnered with True Beauty Ventures, a U.S. investment firm, through its venture capital arm, to invest in the fragrance brand The 7 Virtues, the group's first investment in the fragrance sector, for an undisclosed amount. Founded in 2010 by writer Barb Stegemann, The 7 Virtues specialises in the production of pure and sustainable perfume products.

According to Shiseido's latest financial report, sales in China fell 9% in the third quarter. Overall, Shiseido Group's sales in the first three quarters of this year were 35.895 billion yuan, down 5.3% year-on-year, down 8.9% year-on-year at constant exchange rates, and up 5% year-on-year excluding the impact of exchange rates and business transfers, while operating profit was 1.775 billion yuan, up 1.6% year-on-year.

Recently, Kao Group released its financial results for the first three quarters of 2023. In the first three quarters, Kao's total sales were 1,125.9 billion yen (about 54.363 billion yuan), down 0.2% year-on-year, and the core operating profit was 70.8 billion yen (about 3.419 billion yuan), down 8%. In the third quarter, Kao's sales were 387.4 billion yen (about 18.705 billion yuan), down 1.6% year-on-year, and the core operating profit was 36.3 billion yen (about 1.753 billion yuan), up 56.2% year-on-year.

Among them, the sales volume of the cosmetics business was 175.1 billion yen (about 8.455 billion yuan), a year-on-year decrease of 1.7%, and the core profit loss was 1.6 billion yen (about 77.25 million yuan). Kao said that this was mainly due to the sharp decline in sales in the Chinese market, which was slightly higher than the same period last year. Among them, Kerun was greatly affected by the suspension of promotional activities, and its sales fell by three percent.

Shiseido recently reported its financial results for the first three quarters, with sales down 5.3% to 722.4 billion yen and operating profit down 27.6% to 25.8 billion yen. In the third quarter, the company's sales in China and travel retail fell by 9% and 25%, respectively, but the recovery in its home market continued and its overseas markets recorded double-digit growth. Shiseido also lowered its 2023 forecast, expecting net profit to fall 47.4% to 18 billion yen, compared to 28 billion yen in February, and sales are expected to reach 980 billion yen, down 8.2% from its previous forecast of 1 trillion yen.