Retail channels

According to Statista, citing the latest data from the ECDB website, SHEIN ranks third largest online fashion retailer in the United States, behind Amazon and Walmart, and ahead of traditional retail giants Macy's and Nike. Amazon and Walmart will have net fashion sales of US$12.3 billion and US$8.9 billion respectively in 2023, while SHEIN's net fashion sales will be US$8.1 billion (about 58.5 billion yuan). At the same time, SHEIN is also the only Chinese company among the top five online fashion retailers in the United States.

On May 14, MINISO released its unaudited financial performance report for the year ended March 31, 2024. According to the report, MINISO's total revenue in the first three months of this year was 3.724 billion yuan, a year-on-year increase of 26%. Adjusted net profit was RMB617 million, up 27.7% year-on-year, with an adjusted net profit margin of 16.6%, compared to 16.4% for the same period in 2023. MINISO said that the group's revenue growth was mainly due to the year-on-year increase in the average number of stores, which increased by 19.3% year-on-year, and same-store sales increased by about 9%. In terms of markets, MINISO's domestic revenue in the first three months of this year was 2.502 billion yuan, a year-on-year increase of 16.2%; Revenue in overseas markets increased by 52.6% year-on-year to RMB1.222 billion. MINISO said that the sharp increase in revenue in overseas markets was mainly due to a 19.7% year-on-year increase in the average number of stores, and a strong growth of about 21% in same-store sales. In terms of the number of stores, as of March 31, 2024, the number of MINISO stores worldwide reached 6,630, an increase of 1,116 year-on-year and 217 month-on-month.

Brands and industries

On May 7, Intercos, a world-renowned cosmetics foundry, released its financial report for the first quarter of 2024. Intercos' net sales in the first quarter were 221 million euros (about 1.716 billion yuan), a year-on-year decrease of 5.8%; The adjusted net profit was 20.8 million euros (about 161 million yuan). In terms of business segments, in the first quarter of this year, the net sales of Intercos cosmetics business were 128 million euros (about 994 million yuan), a year-on-year decrease of 13.5%; The sales volume of the hair and body care business was 53.7 million euros (about 417 million yuan), basically flat compared with the same period last year. The net sales of skin care business were 39.5 million euros (about 307 million yuan), a year-on-year increase of 22.8%. In terms of regions, net sales in Asia reached 43.4 million euros (about 337 million yuan) in the first quarter of this year, a year-on-year increase of 23.7%. According to the financial report, China and South Korea contributed particularly to the region's performance, with local brands performing well in the makeup and skincare sectors.

It is reported that Henkel has announced the completion of the acquisition of Sassoon's Greater China business. Previously, Henkel signed an agreement with Procter & Gamble to acquire the Sassoon brand and related hair care businesses in Greater China. According to Henkel, the addition of Sassoon will complement the local business portfolio of Henkel consumer brands in China and fill a gap in the high-end retail market.

Kenvue Group, which was spun off from Johnson & Johnson, announced results for the first quarter ended March 31, 2024, with sales up 1.1% to US$3.894 billion, or about 28.1 billion yuan, higher than expectations of US$3.79 billion, and profit up 7.6% to US$296 million.

By segment, Personal Care increased by 3.5% to US$1,698 million, Basic Health increased by 3.7% to US$1,142 million, and Skin Health & Beauty decreased by 5.1% to US$1,054 million.

By market, the Asia-Pacific market decreased by 0.26% to US$766 million, the North American market decreased by 3.5% to US$1,873 million, the South American market increased by 14.75% to US$350 million, and the EMEA market increased by 8% to US$905 million.

Shiseido's skincare brand Drunk Elephant has officially entered the Chinese mainland market and exclusively entered 250 Sephora stores in mainland China, including Beijing, Shanghai and Guangzhou, and is expected to cover 300 Sephora stores in the second half of 2024.

Boscia, a skincare brand under the Japanese Fancl Group, announced on its official website and overseas official account that it will officially close its North American official website on May 31, and all products will be sold at a 45% discount, and the reason for the closure has not been announced. Relevant sources said that the brand's Chinese mainland market and the North American market are operated by different companies, and the closure will not affect the Chinese market.

On April 28, Ruo Yuchen, a brand e-commerce service provider, announced its 2023 annual report and performance data for the first quarter of 2024. Last year, the company achieved revenue of 1.366 billion yuan, an increase of 12.25% over the same period last year; The net profit attributable to shareholders of listed companies was 54.2905 million yuan, an increase of 60.93% over the same period last year.

On May 9, Evonik released its financial data for the first quarter of 2024: adjusted EBITDA increased by 28% to 522 million euros (about 4.046 billion yuan) in the first quarter, strong free cash flow reached 127 million euros (about 984 million yuan), and sales increased by 4%. Selling prices decreased by 5 percent due to lower prices for some raw materials. As a result, sales fell by 5% to 3.8 billion euros (about 29.454 billion yuan). In terms of segments, the sales of the specialty additives business unit in the first quarter were 908 million euros (about 7.039 billion yuan), slightly lower than the previous year, the sales of the nutrition and consumer chemicals business unit increased by 2% in the first quarter to 900 million euros (about 6.977 billion yuan), the sales of the smart materials business unit in the first quarter decreased by 8% to 1.09 billion euros (about 8.450 billion yuan), and the sales of the functional materials business unit decreased by 9% in the first quarter. and 646 million euros (about 5.007 billion yuan).

On may 9, Pola Orbis holdings (hereinafter referred to as "pola group"), a japanese cosmetics company, announced its financial report for the first quarter of 2024.

According to the report, POLA Group's consolidated net sales in the first quarter were 40.886 billion yen (about 1.897 billion yuan), a year-on-year decrease of 3%. From the perspective of business, the consolidated net sales of the beauty care business reached 39.552 billion yen (about 1.835 billion yuan), a year-on-year decrease of 3.4%, which was mainly due to the decrease in revenue of its POLA brand.

From the perspective of brands, the net sales of the POLA brand in the first quarter were 22.161 billion yen (about 1.028 billion yuan), a year-on-year decrease of 8.4%. The net sales of the ORBIS brand in the first quarter reached 11.446 billion yen (about 531 million yuan), a year-on-year increase of 14.7%.

The net sales of the Jurlique brand in the first quarter reached 2.27 billion yen (about 105 million yuan), a year-on-year increase of 19%. In addition, POLA Group said that in the first three months of this year, the company's products as a whole showed a weak consumption trend in the Chinese mainland cosmetics market.

On May 9, it was reported that Oddity, a beauty technology company, released its results for the first quarter of 2024: net income increased by 27.7% to US$212 million (about 1.532 billion yuan), and net profit was US$33 million (about 238 million yuan), up from US$20 million (about 145 million yuan) in the same period last year.

On May 6, Coty announced its results for the third quarter of fiscal 2024 ended March 31, 2024. In the third quarter of fiscal year 2024, Coty's net income was US$1.386 billion (about 10 billion yuan), an increase of 8% year-on-year; operating income was 77.8 million US dollars (about 561 million yuan), a year-on-year increase of 79%; EBITDA was about 200 million US dollars (about 1.443 billion yuan), a year-on-year increase of 10%. In the nine months ended March 31, 2024, Coty's net income was US$4.755 billion (about RMB 34.332 billion), a year-on-year increase of 13%; Adjusted EBITDA was US$927 million (about 6.693 billion yuan), a year-on-year increase of 15%. In terms of sub-sectors, the net income of the high-end beauty division in the third quarter was 867.2 million US dollars (about 6.261 billion yuan), an increase of 8% year-on-year; The net income of the Volkswagen Beauty division in the third quarter was 518 million US dollars (about 3.740 billion yuan), a year-on-year increase of 6%.

On May 13, COSMAX released its results for the first quarter of 2024 ended March 31. In the first quarter of this year, COSMAX achieved sales of 526.8 billion won (about 2.782 billion yuan), a year-on-year increase of 31%; operating profit was 45.5 billion won (about 240 million yuan), up 229% year-on-year; The net profit was 19.6 billion won (about 103 million yuan), a year-on-year increase of 2654%. According to the financial report, the eastern market, which is dominated by the Chinese market, is the second largest market for COSMAX, with sales of 157.4 billion won (about 831 million yuan) in the first quarter, a year-on-year increase of 29%. Among them, the sales in Shanghai were 107.6 billion won (about 569 million yuan), a year-on-year increase of 17.5%; Sales in Guangzhou were 46.8 billion won (about 248 million yuan), a year-on-year increase of 57.7%. COSMAX noted that the growth in China was mainly reflected in make-up products and independent brands.

On may 9, 2024, according to the cosmetic raw materials filing information platform of the national drug administration, the golden clematis (anoectochilus roxburghii) extract developed by fujian pien tze huang cosmetics co., ltd. has completed the filing of new raw materials, and the record number is "national cosmetics original word 20240031", which is the first new raw material successfully filed for pien tze huang cosmetics.

It is reported that Olaplex, a DTC hair care brand, announced its financial results for the first quarter of 2024. For the quarter ended March 31, 2024, Olaplex's first-quarter sales were $98.9 million, down 13.1% year-over-year.

Chinese beauty brand Huaxizi is partnering with DFS, a travel retailer owned by LVMH, to open its first European store at Samaritaine in Paris. The store is located in the middle of the cosmetics floor and will open on September 1 this year. In addition, Huaxizi will also debut the "Mongolian Impression" makeup series in Europe. Amael Blain, senior vice president of DFS Beauty, said that DFS will continue to focus on Chinese beauty in the future, and plans to introduce Huaxizi in more DFS stores around the world.

Japanese beauty giant KOSE Group announced its results for the first quarter of 2024, with sales up 13.8% to 77.58 billion yen, or about 3.6 billion yuan, and net profit attributable to the parent company surging 78.1% to 6.943 billion yen, or about 322 million yuan.

By sector, sales in the cosmetics division increased by 11.2% to 62.164 billion yen, or about 2.887 billion yuan, and the beauty division surged 25.9% to 14.808 billion yen, or about 688 million yuan.

By market, sales in Japan rose 18.2% to JPY 48.8 billion, North America surged 30.5% to JPY 16.86 billion, and Asia plunged 23.7% to JPY 9.653 billion.

On May 15, the Central Institute for Inspection and Inspection issued an announcement to publicly solicit "Test Methods for Phenacetin in Cosmetics (Draft for Comments)", "Test Methods for 14 Raw Materials such as Glucuronic Acid in Cosmetics (Draft for Comments)", "Test Methods for 3 Raw Materials such as Glucuronic Acid in Cosmetics (Draft for Comments)", "Test Methods for Hydroxydecanoic Acid in Cosmetics (Draft for Comments)", "Test Methods for Asbestos in Cosmetics (Draft for Comments)", "Test Methods for Soluble Fluorine and Free Fluorine in Toothpaste (Draft for Comments)" In vitro skin allergy ARE-Nrf2 luciferase LuSens test method" 7 documents, feedback collected until June 10, 2024.

On May 15, it was reported that South Korean beauty group CLIO released its financial report for the first quarter of 2024 as of March 31. In the first quarter of this year, Keleo achieved sales of 92.976 billion won (about 494 million yuan), a year-on-year increase of 24%; The operating profit was 8.509 billion won (about 45.1828 million yuan), a year-on-year increase of 63%. Due to the popularity of eyeshadow palettes, Coleo's sales in the Chinese market increased by 50%. In addition, in April this year, Koleo announced that it had acquired two Japanese cosmetics distributors, including Japanese cosmetics seller Doowon and cosmetics import agency Kiwami.

On May 13, Avon's parent company, Brazilian beauty giant Natura &Co, released its financial report for the first quarter of 2024. According to the financial report, Natura&Co's consolidated net income in the first quarter was 6.105 billion reais (about 8.581 billion yuan), and sales decreased by 5.7% year-on-year in Brazilian real terms; Gross profit fell 4.3% to 3.978 billion reais (about 5.591 billion yuan). Avon International and Natura &Co Latam, both of which are owned by Natura&Co, both declined to varying degrees in the first quarter of this year. Avon International's net income fell 4.7% to R$1.397 billion (about 1.964 billion yuan). Excluding revenue related to The Body Shop, Avon International's sales decreased by 7.2% year-over-year. Natura&Co's net income in Latin America was R$4.705 billion (about RMB 6.613 billion), down 3.3% year-on-year in Brazilian reals. According to the financial report, the Nature brand achieved double-digit growth of 11.3% in the first quarter, but this growth was offset by revenue from the home and fashion category and the Avon brand.

On May 22, Yatsen E-commerce, the parent company of Perfect Diary, released its performance report for the first quarter of 2024 as of March 31. In the first quarter of this year, Yatsen's total net revenue was 773 million yuan, a year-on-year increase of 1.0%; gross profit was RMB0.6 billion, up 5.7% year-on-year; Gross profit margin reached 77.7%, an increase of 3.4 percentage points year-on-year. Among them, the net revenue of skin care brands was 245 million yuan, a year-on-year increase of 0.1%, accounting for 31.7% of the total net revenue. Yatsen E-commerce said that the increase in total net income in the first quarter of this year was mainly due to a 3.2% year-on-year increase in net income of makeup brands and a 0.1% year-on-year increase in net income of skin care brands. The increase in gross margin was mainly due to the increase in sales of products with higher gross margins. During the reporting period, Yatsen's e-commerce R&D investment was RMB27.9 million, accounting for 3.6% of R&D expenses.

On May 14, 2024, the new raw material of Huaxiang Biotech, a subsidiary of Baihong Group, Vicofutai ®RGD Amidated Hyaluronic Acid (INCI: RGD Amidated Hyaluronic Acid), successfully passed the record of new cosmetic raw materials of the State Drug Administration, with the record number of "National Cosmetics Original Preparation 20240033".

On May 20, the National Medical Products Administration released the "Annual Data of Drug Supervision and Administration Statistics" for 2023 (January 1 to December 31, 2023), announcing the relevant approvals, supervision and reviews of cosmetics in 2023. By the end of 2023, the total number of cosmetics manufacturers reached 5,722, a year-on-year increase of 3.81%; There are 254 toothpaste production enterprises. Judging from the approval and filing of cosmetics, there are 18,870 domestic cosmetics on the register; There are 4,424 imported cosmetics on the register, totaling 23,294 pieces. Judging from the supervision of cosmetics manufacturers Nissan, the number of inspections of cosmetics manufacturers in 2023 will be 10,584. Judging from the investigation and handling of cosmetics cases nationwide, a total of 34,422 cosmetics cases were investigated and dealt with nationwide.

On May 22, American makeup brand e.l.f Beauty released its results for the fourth quarter of fiscal 2024 and the full year of fiscal 2024 ended March 31. According to the financial report, in the fourth quarter of 2024, e.l.f Beauty's net sales increased by 71% to US$321 million (about RMB 2.325 billion), net income reached US$14.5 million (about RMB 105 million), and adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) were US$40.9 million (about RMB 296 million), accounting for 13% of net sales, a year-on-year increase of 93%. For the full year of fiscal year 2024, e.l.f Beauty achieved net sales of US$1.024 billion (about RMB 7.418 billion), a year-on-year increase of 77%; Net income was US$128 million (about 927 million yuan), and adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) were 235 million US dollars (about 1.702 billion yuan), accounting for 23% of net sales, a year-on-year increase of 101%. In October last year, e.l.f Beauty acquired TikTok influencer skincare brand Naturium for US$333 million (about 2.412 billion yuan), and announced that the brand's skincare line will enter the beauty retail giant Ulta Beauty this summer.

Recently, LG Household & Health released its financial results for the first quarter of 2024. According to the report, LG Household Healthcare's Q1 sales in 2024 will be 1,729 billion won (about 9.2 billion yuan, calculated at the current exchange rate, the same below), a year-on-year increase of 2.7%. Operating profit was 151 billion won (about 800 million yuan), a year-on-year increase of 3.5%. From a regional perspective, South Korea accounted for 70%, overseas business accounted for 30%, and the Chinese market contributed 12% of revenue.

E-commerce platforms

According to the global supernova brand list recently released by Tmall Global in the first quarter of 2024, the number of new brands increased by 92%, and the total turnover of new brands increased by 179%. Among them, pure beauty, health care, and trendy accessories have become fast-growing categories, with South Korea, the United States, Japan, Germany, and Australia being the five countries with the largest number of new brands.

According to the "2024 May Day Consumption Report" released by Ele.me, during this year's "May Day" holiday, the takeout volume of Ele.me's maternal and child products increased by 215%, and the takeaway volume of daily necessities, beauty and personal care, and clothing increased by more than 100%. The search volume of takeaway such as "wearing nails" increased by more than 200% week-on-week.

On May 14, Alibaba Group released its results for the fourth quarter and full year of fiscal 2024 ended March 31, 2024. According to the financial report, Alibaba Group's revenue in the fourth quarter of fiscal year 2024 was 221.874 billion yuan, a year-on-year increase of 7%; operating profit was RMB14.765 billion, down 3% year-on-year; Adjusted EBITA decreased 5% year-on-year to RMB23,969 million. Alibaba Group's revenue for fiscal year 2024 was RMB941.168 billion, up 8% year-on-year; Operating profit was RMB113.35 billion, up 13% year-on-year. Among them, the revenue of Taotian Group's business in the fourth quarter of fiscal year 2024 was 93.216 billion yuan, a year-on-year increase of 4%. Full-year revenue for fiscal year 2024 was RMB434.893 billion, up 5% year-on-year.

On May 22, Vipshop announced its financial results for the first quarter of 2024 ended March 31. According to the financial report, Vipshop's total net revenue in the first quarter was 27.6 billion yuan, a year-on-year increase of 0.4%; Net profit attributable to shareholders was RMB2.3 billion, up 24.6% year-on-year. In the first quarter of 2024, Vipshop's gross merchandise value (GMV) increased by 8.0% year-on-year to RMB52.4 billion, compared to RMB48.5 billion in the same period last year. The number of Super VIP (SVIP) active users increased by 11% year-on-year. However, the number of active customers and the total number of orders of Vipshop have declined. In the first quarter of this year, the number of active customers on the platform was 43.1 million, compared to 43.7 million in the same period last year; Total orders for the first quarter of 2024 were 178.5 million, compared to 184.4 million in the same period last year.

On May 22, according to the first quarter 2024 performance report released by Kuaishou, in the first quarter of 2024, the GMV of Kuaishou's e-commerce business increased by 28.2% year-on-year to 288.1 billion yuan. On the user side, the number of monthly active e-commerce buyers increased by 22.4% year-on-year to 126 million, especially during the 2024 Chinese New Year Festival, the number of buyers increased by more than 60% compared to the previous year's New Year's Festival. On the supply side, the number of monthly dynamic sales merchants increased by about 70% year-on-year. Pan-shelf and short video e-commerce shopping scenarios continue to be enriched, with pan-shelf GMV accounting for about 25% in the first quarter, and short video e-commerce GMV growing by nearly 100% year-on-year.

International conglomerate

On May 1, the Estee Lauder Companies released its financial report for the first three months of 2024 (as of March 31, 2024), with net sales of US$3.94 billion (about RMB 28.53 billion) in the first three months of this year, a year-on-year increase of 5%, and organic net sales growth of 6%; The net profit attributable to the parent company was 330 million US dollars (about 2.390 billion yuan), a year-on-year increase of 116.13%.

In terms of product categories, the net sales of skin care were 2.060 billion US dollars (about 14.917 billion yuan), and the organic net sales increased by 9% year-on-year; The net sales of color cosmetics were 1.136 billion US dollars (about 8.226 billion yuan), and the organic net sales increased by 4% year-on-year; The net sales of fragrance products were 575 million US dollars (about 4.164 billion yuan), and the organic net sales increased by 1% year-on-year; net sales of hair care were US$143 million (about 1.035 billion yuan), with organic net sales down 4% year-on-year; Net sales of other products were 26 million US dollars (about 188 million yuan).

On May 8, Japan's KOSE Group (KOSE) released its first quarter 2024 earnings report. In the first quarter, KOSÉ Group's net sales were 77.583 billion yen (about 3.608 billion yuan), a year-on-year increase of 13.8%; operating profit was 7.902 billion yen (about 368 million yuan), a year-on-year increase of 35.5%; The net profit attributable to the parent company was 6.943 billion yen (about 323 million yuan), a year-on-year increase of 78.1%. Among them, the sales of the cosmetics division in the first quarter were 62.164 billion yen (about 2.891 billion yuan), a year-on-year increase of 11.2%, and the operating profit was 6.8 billion yen (about 316 million yuan), a year-on-year increase of 5.5%. In terms of regions, Japan is still its main market, with sales of 48.834 billion yen (about 2.271 billion yuan), a year-on-year increase of 18.2%. Sales in Asia were 9.653 billion yen (about 449 million yuan), down 23.7% year-on-year. Due to the continued challenging environment in the Chinese market, sales in the e-commerce division and stores declined.

On May 8, the Henkel Group released its financial results for the first quarter of 2024. Henkel's sales in the first quarter of this year were 5.317 billion euros (about 41.284 billion yuan), and organic sales increased by 3.0% year-on-year. According to Henkel, this increase was due to the aggressive pricing strategy of both business units. In addition, sales fell by 5.2 percent year-on-year, which Henkel said was mainly due to sales and foreign exchange headwinds from business activities in Russia. In terms of specific business units, in the first quarter of this year, the sales of the consumer brand business unit were 2.605 billion euros (about 20.221 billion yuan), an organic increase of 5.2%. Among them, the laundry and home care business achieved organic growth of 4.6%; The hairdressing business delivered a strong performance with organic growth of 6.9 percent, which Henkel said was driven by sales of styling products under the business. A few days ago, Henkel announced that it has successfully completed the acquisition of Procter & Gamble's Sassoon brand and its related hair care business in Greater China.

On May 10, Japanese beauty giant Shiseido Company, Limited announced its results for the first quarter of fiscal 2024 ended March 31, 2024: net sales increased by 3.9% year-on-year to 249.5 billion yen. Adjusted for currency effects and business transfers, including the acquisition of Dr Dennis Gross, a U.S.-based dermatology brand, increased by 3.2 percent year-on-year and decreased by 2.7 percent at constant exchange rates.

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