Retail Channels

★Ulta Beauty, a beauty retailer, plans to open 200 new stores within the next three years to accelerate the achievement of its goal of opening more than 1,800 stores. This move is one of the group's strategies for long - term growth. The group also plans to expand the number of members to 50 million by 2028 and continue to enhance in - store and digital experiences. In addition, Ulta Beauty has also approved a $3 - billion stock repurchase program.

According to data from The Business of Fashion, Ulta Beauty's revenue in the second quarter increased by 0.8% to $2.55 billion, compared with $2.53 billion in the same period last year, falling short of the $2.61 billion expected by analysts. The net profit was $253 million, compared with $300 million in the same period last year. The company expects full - year sales to be between $11 billion and $11.2 billion, down from its previous forecast of $11.5 billion to $11.6 billion.

★On October 19, the Shijingshan Xilongduo store of Yonghui Supermarket in Beijing, which was the first store in Beijing to make independent adjustments by learning from胖东来, resumed business after being closed for 29 days for adjustment. Data released by Yonghui shows that on the first day of reopening, the store had nearly 50,000 customers, and the total sales reached 1.7 million yuan, more than six times the average daily sales before the adjustment.

According to Yonghui's official announcement, during this adjustment process, 11,430 single items were removed from the store shelves, with a removal ratio of more than 79%. 12,765 single items were re - planned, and the proportion of newly added single items was 76.2%. It is reported that a new beauty area has been newly divided in the Yonghui Xilongduo store, including brands such as Flower Knows, 3CE, and Gulugugu. Promoters enthusiastically invited passing customers to try the products and provided makeup services.

Authoritative Release

★On September 27, the General Office of the National Medical Products Administration issued the "Notice on Printing and Issuing the 2024 Cosmetic Standard Project Establishment Plan" (hereinafter referred to as the "Notice"). The 2024 cosmetic standard project establishment plan shows that a total of 54 cosmetic standards will be formulated and revised.

According to the 2024 cosmetic standard project establishment plan, 31 cosmetic standards will be revised, including the limit values of total bacterial count (for eye cosmetics, lip cosmetics, and children's cosmetics), salicylic acid (maximum allowable concentration), the determination method of sun protection factor (SPF value) of sunscreen cosmetics, the test method for freckle - whitening efficacy of cosmetics, the test method for anti - hair loss efficacy of cosmetics, etc.; 23 cosmetic standards will be formulated, including perfluorooctane sulfonic acid and its salts, collagen, hyaluronic acid, single - use cosmetics, the inspection method for anti - infection components in toothpaste, etc.

Brands and Industries

★According to the disclosure of the Hong Kong Stock Exchange on October 9, Maogeping Cosmetics Co., Ltd. (hereinafter referred to as "Maogeping") once again submitted a listing application to the main board of the Hong Kong Stock Exchange, with China International Capital Corporation Limited as the sole sponsor. It is reported that the company previously submitted a listing application to the main board of the Hong Kong Stock Exchange on April 8 this year. According to the information of Frost & Sullivan, Maogeping is the only Chinese company among the top ten high - end beauty groups in the Chinese market, ranking seventh in terms of retail sales in 2023, with a market share of 1.8%. The company's revenue in the first half of 2024 was 1.97 billion yuan, an increase of 40.7% compared with 1.4 billion yuan in the same period of the previous year; the gross profit was 1.674 billion yuan, and the gross profit in the same period of the previous year was 1.182 billion yuan; the profit was 493 million yuan, an increase of 41% compared with 349 million yuan in the same period of the previous year.

★On September 25, 2024, L - homoserine of Nanjing Shengde Baitai Biotechnology Co., Ltd. completed the record of new raw materials, with the record number of "Guozhuangyuanbei Zi 20240069". It is reported that this is the 69th new raw material publicized in 2024, which is on a par with the number of new raw material records in the whole year of 2023.

★On September 26, 2024, the publicity platform of the National Medical Products Administration showed that maltoic acid completed the record of new cosmetic raw materials and entered the publicity stage. Maltoic acid (record number: Guozhuangyuanbei Zi 20240070) was recorded by Shanghai Keqin Technology Co., Ltd.

★According to the latest retail sales figures released by the Census and Statistics Department of the Hong Kong Government on October 3, the provisional estimate of the total retail sales value in Hong Kong in August 2024 was HK $29.2 billion, a decrease of 10.1% compared with the same month in 2023. Compared with the same period in 2023, the provisional estimate of the total retail sales value for the first eight months of 2024 decreased by 7.7%. In August 2024 compared with the same month in 2023, the sales value of drugs and cosmetics rose by 4.5% to HK $2.747 billion.

★Recently, the European Commission has officially revised Appendix XVII of the REACH regulation, adding new use restrictions on PFHxA, its salts and related substances, involving industries such as cosmetics. The environmental and health risks associated with PFHxA include potential links to adverse health effects such as liver toxicity, thyroid dysfunction and developmental problems.

It is reported that long - term use of products containing this raw material may increase the risk of cancer. In the new provisions, in order to control the release of PFHxA and prevent its accumulation in the environment, the EU has proposed to restrict the use of PFHxA - related substances in products such as cosmetics. From October 10, 2026, the content of PFHxA - like substances in cosmetics will face strict concentration limits. Only when the following limits are met can they be placed on the EU market or used: (a) The total concentration of PFHxA and its salts is lower than 25 ppb; (b) The total concentration of PFHxA - related substances is lower than 1000 ppb. This revision will affect the marketing of cosmetics containing PFHxA - like substances in the EU. Enterprises should pay attention to the effective date of the regulation and reasonably adjust their production plans to avoid corresponding risks.

★On September 26, User Said learned from the National Equities Exchange and Quotations that Jiangsu Chuangjian Medical Technology Co., Ltd. has been approved and listed on the New Third Board. This means that following Giant Biogene and Jinbo Biology, another listed company has been added to the recombinant collagen track.

★On October 1, BIRKENSTOCK, a German shoe - making brand, announced the launch of a new foot care series, BIRKENSTOCK CARE ESSENTIALS, officially entering the foot care field.

★On September 30, SK - II's first global duty - free flagship store officially opened at cdf Sanya International Duty - Free Shopping Complex in Haitang Bay, Hainan. On the eve of the National Day Golden Week holiday, the appearance of this strategically significant new store shows the top - level attention of the SK - II brand to the Chinese market and also kicks off a new round of beauty marketing war with disruptive retail innovation.

★On the afternoon of October 18, Pien Tze Huang announced its performance report for the first three quarters. The report shows that in the first three quarters of 2024, the company achieved an operating income of 8.45 billion yuan, a year - on - year increase of 11.19%; the net profit attributable to the mother company in the first three quarters was 2.687 billion yuan, a year - on - year increase of 11.73%. Among them, the cosmetics sector has the smallest revenue scale but has the highest growth rate. As one of the new businesses that Pien Tze Huang has focused on developing in recent years, the cosmetics industry's revenue reached 525 million yuan, a year - on - year increase of 21.92%, showing strong growth potential; the gross profit margin was 63.07%, although it has declined, the decline is small, only 0.08 percentage points.

★It has been learned that Interparfums, a French perfume producer, recently released its third - quarter performance, showing that sales increased by 15% year - on - year to $425 million, and the single - quarter revenue reached a record high. Jean Madar, chairman and CEO of the group, said that the performance growth is mainly due to the continued strength of the global perfume market and the stable performance of Jimmy Choo and Lacoste perfumes. Given that the global perfume market remains active, the group reaffirmed its previously announced expectation of a net sales of $1450 million in 2024.

★On October 21, the information of the main board of the Shenzhen Stock Exchange showed that since Jiangsu Zhiyuan Pharmaceutical Co., Ltd. and the sponsor withdrew the application for issuance and listing, according to the regulations, the Shenzhen Stock Exchange terminated its issuance and listing review.

★Recently, the Ministry of Food and Drug Safety of South Korea reported that in the first nine months of this year, South Korea's cosmetics exports reached a record high of $7.4 billion. The export value increased by 8.8% compared with the data in 2021 ($6.8 billion). The export value increased by 19.3% compared with the same period last year ($6.2 billion).

From the perspective of destination countries, China remains the largest market for South Korean beauty products, with an export value of $2 billion, followed by the United States ($1.4 billion) and Japan ($700 million).

★Coty (Coty Group), an American perfume and beauty giant (NYSE, Paris Stock Exchange code: COTY), announced the preliminary performance of the first fiscal quarter of fiscal year 2025 ending September 30, and reiterated its full - year profit target.

Coty said that the global beauty market continues to maintain steady but slightly lower global growth. Overall, although there was a large increase compared with the same period last year, Coty's sales in the first fiscal quarter still increased by about 4 - 5% compared with the same period last year, slightly lower than the previously expected 6% growth.

★3LAB, a brand known as the Hermès of creams, is about to withdraw from the Chinese market. The brand's official statement said that the 3LAB Tmall overseas flagship store will close on December 31, 2024, and some products will be sold at a 50% discount.

★According to the statistical data of the General Administration of Customs, in September this year, the national total import volume of cosmetics decreased by 11.3% to 29,474.1 tons, and the total import value decreased by 9.7% to 10.03 billion yuan, which has declined for five consecutive months.

It is worth noting that the national cosmetics export volume has continued to record growth. In August this year, the national total export volume of cosmetics increased by 16.9% to 131,528 tons, and the export value increased by 4.6% to 5.059 billion yuan.

★Recently, Charles Denton, the new CEO of The Body Shop, a British vegan beauty brand, announced that the brand will be revitalized globally and gradually rebuild its international influence.

The plan will start in Spain and Portugal first. Two senior executives have now taken over the local franchises to ensure the brand's continuous operation in this market.

★On October 21, Shanxi Jinbo Biomedical Co., Ltd. disclosed its third - quarter report for 2024. The report shows that the company achieved an operating income of 988 million yuan in the first three quarters of 2024, a year - on - year increase of 91.16%; and achieved a net profit attributable to the mother company of 520 million yuan, a year - on - year increase of 170.42%.

★Recently, a bio - fermentation technology company in Yili, "Chuanning Biology", which focuses on synthetic biotechnology and the production and research of cosmetic raw materials, released its third - quarter report for 2024. In the first three quarters of this year, the company achieved a revenue of 4.456 billion yuan, a year - on - year increase of 24.43%; and a net profit attributable to the mother company of 1.076 billion yuan, a year - on - year increase of 68.07%. In this regard, Chuanning Biology said that this performance not only exceeded market expectations but also demonstrated the company's deep technical accumulation and market competitiveness in the field of antibiotic intermediates.

★On October 23, Kosi Co., Ltd. released its third - quarter report for 2024. The report shows that the company's main business revenue in the first three quarters was 1.858 billion yuan, a year - on - year increase of 4.69%; the net profit attributable to the mother company was 514 million yuan, a year - on - year decrease of 4.11%; the non - recurring net profit was 479 million yuan, a year - on - year decrease of 9.0%; among them, the company's main business revenue in the third quarter was 453 million yuan, a year - on - year decrease of 22.46%; the single - quarter net profit attributable to the mother company was 92.6833 million yuan, a year - on - year decrease of 50.09%.

★On October 16, according to the publicity platform of the National Medical Products Administration, the extract of Tremella aurantialba fruiting body completed the record of new cosmetic raw materials and entered the publicity stage. The extract of Tremella aurantialba fruiting body (record number: Guozhuangyuanbei Zi 20240073) was recorded by Shanghai Jahwa United Co., Ltd.

★On October 13, 2024, Huaxi Bio's medical beauty sector made another effort and grandly launched two new medical beauty injection products - the "RUNZHIZI·GEGE" (sodium hyaluronate compound solution for injection) series and the "RUNZHIZI·FEIRAN" (cross - linked sodium hyaluronate gel for injection). The advent of these two products marks a solid step for Huaxi Bio in the field of neck and perioral anti - aging and opens a new chapter.

★Recently, Givaudan, a Swiss flavor and fragrance giant, released its third - quarter financial report for 2024. The financial report shows that the sales volume in the first three quarters of fiscal year 2024 ending September 30 was 5.644 billion Swiss francs (about 46.608 billion yuan), a year - on - year increase of 13.0%, and an increase of 7.2% in Swiss francs.

According to the two major business divisions, the perfume and beauty business performed particularly outstandingly in the first three quarters, with sales reaching 2.782 billion Swiss francs (about 22.964 billion yuan), a year - on - year increase of 15.6%. Among them, the sales of fine fragrances increased by 17.8% year - on - year, the consumer goods sector increased by 15.9% year - on - year, and the sales of fragrance ingredients and active beauty products also increased by 10.8% year - on - year.

★On October 12, the National Medical Products Administration released the delivery information of medical device approval certificates and approved the class - III medical device registration application of the handheld radio - frequency skin treatment instrument of Shenzhen Zongjiang Technology Co., Ltd. (hereinafter referred to as Zongjiang Technology). AMIRO has become one of the first home beauty instrument brands to obtain certificates.

E - commerce Platforms

★On September 21, Kuaishou E - commerce expanded the "0 - yuan store opening" categories, including nearly 800 commodity categories such as beauty products. The so - called "0 - yuan store opening" refers to the "deposit - free" store - opening rights and interests launched for specific store types and specific categories. Merchants obtain profits through zero - cost "pre - trial operation" and then make up the deposit. It is understood that Kuaishou E - commerce has continuously implemented the "0 - yuan store opening" policy since 2023. At present, more than 100,000 merchants have enjoyed this policy and obtained stable operating income on the platform.

★Recently, Taobao launched a business section named "Tao Jingxuan". It is built into the Taobao App in the form of self - operated stores. It is reported that "Tao Jingxuan" is an official operation brand of Taobao, which is officially operated by Taobao to provide consumers with cost - effective products through official selection and services.

It is worth noting that the "Tao Jingxuan" launched by Taobao this time has the same operator as "Tao Factory", and both are operated by Hangzhou Jinri Maichang Supply Chain Management Co., Ltd. Users can find the entrance by searching "Tao Jingxuan" in the Taobao App. At present, "Tao Jingxuan" has only a few types of products online, only covering pet snacks, pet products, books and education, and fragrances. In the future, with the further development of the business, it is not excluded that the range of product types will be expanded.

★Xiaohongshu E - commerce announced the first - stage war report of Double 11. As of October 20, the number of merchants with transactions exceeding 10 million yuan during this year's Double 11 on Xiaohongshu has increased by more than 3.3 times year - on - year, the number of merchants with transactions exceeding 5 million yuan has increased by 4.5 times year - on - year, and the number of merchants with transactions exceeding 1 million yuan has increased by 3.1 times.

On the buyer's side, data shows that during this year's Double 11, the number of buyers with transaction volume exceeding 5 million yuan on Xiaohongshu has increased by more than 6 times year - on - year, and the number of million - level buyers has increased by more than 3 times. Zhang Xiaohui and Dong Jie's live broadcast rooms have achieved a single - session transaction volume exceeding 100 million yuan during this stage.

★Data released by Douyin E - commerce shows that as of October 15, the overall transaction volume of the beauty industry in the "Douyin Mall Double 11 Goodies Festival" of Douyin E - commerce has increased by 75% year - on - year. Among them, the transaction volume of skin care products has increased by 102% year - on - year, the transaction volume of makeup and perfumes has increased by 48% year - on - year, and the transaction volume of beauty instruments has increased by 30% year - on - year. The sales volume in shelf scenarios such as search, commodity cards, and flagship stores has increased by more than 78%, and the number of paying users has increased by more than 218%.

★The Information, a foreign media, reported, citing two people familiar with the matter, that the revenue growth of Shein, an online retailer, has slowed from 40% last year to 23% in the first half of this year. In addition, Shein is preparing for a sprint for its listing in London this year.

According to the report, part of the reason for the slowdown in Shein's revenue growth comes from the increasingly fierce competition with Temu, a cheap Chinese shopping website. Temu has become more and more popular in the United States in recent years.

International Conglomerates

★L'Oréal, the French beauty giant, announced the latest performance data. The group's revenue in the first three quarters of this year increased by 6% to €32.4 billion, and grew by 8.1% at constant exchange rates. In the third quarter, revenue increased by 3.4% to €10.3 billion, with the growth rate lower than the 6% expected by Jefferies.

Divided by department, in the third quarter, the professional products department's revenue increased by 6.1% to €1.16 billion, the consumer products department's revenue increased by 1.4% to €3.75 billion, the luxury department's revenue increased by 5.8% to €3.77 billion, and the dermatological beauty department's revenue increased by 0.8% to €1.6 billion.

Divided by region, in the third quarter, the Asian market's revenue fell by 6.5% to €1.96 billion, being the only declining market and the decline was worse than the 2.4% in the second quarter. The European market's revenue increased by 5.6% to €3.42 billion, the US market's revenue increased by 5.2% to €3.11 billion, the SAPMENA - SAA market's revenue increased by 8% to €960 million, and the Latin American market's revenue increased by 8.6% to €850 million.

★Procter & Gamble announced the performance of the first fiscal quarter of fiscal year 2025. The group's revenue fell by 0.7% to $21.74 billion, lower than the market - expected $21.96 billion. Organic revenue grew by 2%, while analysts previously expected a growth of nearly 2.1%. P&G's prices rose by an average of 1% during the period, far lower than the increase in the same period last year.

Divided by department, during the period, the organic revenue of the beauty products department fell by 2%, mainly affected by the poor performance of the high - end beauty brand SK - II in the Chinese market. Among them, the organic revenue of hair care products had a low - single - digit growth, partially offsetting the impact of the slowdown in revenue in the Chinese market. The organic revenue of the beauty care department grew by 3%, the organic revenue of the healthcare department grew by 4%, and the organic revenue of the fabric and home care department grew by 3%.

Procter & Gamble maintained its overall sales forecast for fiscal year 2025, expecting a growth of 2% - 4%, and expecting organic revenue to maintain a growth of 3% - 5%.

★Unilever, the fast - moving consumer goods giant, recently announced that it will sell its Russian business to the local manufacturing group Arnest Group, but did not disclose specific transaction data. Hein Schumacher, CEO of Unilever, said that this deal marks the complete end of Unilever's Russian business.

★On October 15, LVMH Group, the global luxury goods giant, announced the data of the third fiscal quarter. Financial report data shows that LVMH's revenue in the third quarter was €19.08 billion, a year - on - year decrease of 3%, lower than the market - expected €20.05 billion. It is reported that its third - quarter performance failed to meet expectations, mainly due to the weak consumer demand in the Asia - Pacific market. In particular, the weak consumption in the Chinese and Japanese markets has brought significant pressure on the group's performance.

In addition, the perfume and cosmetics business achieved an organic revenue growth of 5% in the first nine months of 2024, reaching €6.148 billion (about 475.4 billion yuan). This is due to its strong innovation strategy and highly selective distribution policy.

★On October 24, Beiersdorf announced the financial report data of the first three quarters of 2024. The financial report shows that Beiersdorf achieved sales of €7.5 billion (about 575.6 billion yuan) in the first nine months of this year, with an organic growth of 6.5%.

Duty - free Updates

★According to Haikou Customs, from October 1 to 7, Haikou Customs supervised a total of 785 million yuan in Hainan offshore duty - free shopping and 110,200 duty - free shopping passengers, with an average consumption of 7,124 yuan per person.

★Since October 1, an announcement jointly issued by the General Administration of Customs, the Ministry of Finance, the Ministry of Commerce, the Ministry of Culture and Tourism, and the State Taxation Administration has regulated the management of in - city duty - free shops. The business varieties of in - city duty - free shops are clearly defined as follows: 1. Food and beverages; 2. Alcohol; 3. Textiles and their products; 4. Leather clothing and accessories; 5. Bags, suitcases, shoes and boots; 6. Watches, clocks and their parts and accessories; 7. Glasses (including sunglasses); 8. Jewelry and precious stones; 9. Cosmetics, toiletries; 10. Mother - and - baby products; 11. Kitchen and bathroom utensils and small household appliances (excluding mobile phones); 12. Household medical, health - care, beauty, and hairdressing equipment; 13. Photographic (video) equipment and its parts and accessories; 14. Computers and their peripheral equipment; 15. Wearable and other electronic consumer products (wireless earphones; other devices for receiving, converting, transmitting or reproducing audio - visual or other data; parts and accessories of video game controllers and equipment); 16. Stationery, toys, games, festival or other entertainment products; 17. Handicrafts; 18. Musical instruments; 19. Sports goods.

★On October 15, China Tourism Group Duty Free Corporation Limited (hereinafter referred to as "CTG Duty Free") released the performance express report for the first three quarters of 2024. The financial report shows that during the reporting period, CTG Duty Free's total operating revenue was 43.021 billion yuan, a year - on - year decrease of 15.38%; the net profit attributable to shareholders of the listed company was 3.92 billion yuan, a year - on - year decrease of 24.7%. In addition, CTG Duty Free's operating profit was 5.459 billion yuan, a year - on - year decrease of 16.92%; the total profit was 5.448 billion yuan, a year - on - year decrease of 17.11%, and the net profit attributable to the mother company has reached the worst level in four years. In addition, its market value has shrunk by more than 80%. In 2021, the company's market value reached a historical peak of 741.745 billion yuan. As of October 15, its closing market value has shrunk to 142.813 billion yuan. Behind this, on the one hand, the performance of the offshore duty - free sector is under pressure, and on the other hand, benefiting from the recovery of inbound and outbound tourism, the performance of the airport duty - free sector is good. Facing the "double - decline" performance, CTG Duty Free needs to quickly adjust its business and expand the share of in - city duty - free business.

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