Retail Channels
On January 4, Ye Guofu, Chairman of MINISO, delivered his New Year Message. In the message, he stated that 2025 was a year of progress for MINISO, marking the company's transition from a strategy of "global store expansion" to one of "cultural integration." MINISO has established a robust global presence across 112 countries and regions, with a network of over 8,000 stores. Notably, its overseas Gross Merchandise Volume (GMV) now accounts for more than 46% of the total.
On January 14, foreign media reported that Saks Global, the world's largest multi-brand luxury retailer, filed for bankruptcy protection on the evening of Tuesday, January 13. This represents one of the largest retail collapses since the pandemic.
Recently, CK Hutchison Holdings confirmed that its subsidiary, A.S. Watson Group, is pursuing a dual primary listing in Hong Kong, China, and London, UK, aiming to raise no less than US$2 billion (approximately RMB 13.9 billion). Goldman Sachs and UBS have been appointed as joint sponsors, with a target listing as early as Q2 2026 and a valuation goal of around US$30 billion (approximately RMB 208.9 billion). According to CK Hutchison's official website, A.S. Watson Group operates over 17,000 stores across 31 global markets, including the UK's Superdrug and Germany's Rossmann pharmacies.
On January 26, signals emerged indicating that South Korean beauty retail giant Olive Young is planning to re-enter the Chinese market. The South Korean government is facilitating its entry under a "container platform" model. This model will centralize the overseas expansion of small and medium-sized South Korean beauty brands, enabling collaborative market development and reducing the entry costs for individual brands.
Olive Young first entered Shanghai in 2013 but closed all stores and exited the Chinese market in 2022. This potential return is expected to leverage government support and integrate South Korean beauty resources to build a competitive edge. The company has already formed a strategic partnership with Sephora and is expanding its own stores in Los Angeles. Specific details regarding the launch timeline, target cities, and store count in China remain undisclosed, with future developments highly dependent on channel strategies and market conditions.
Official Announcements
On January 12, the National Medical Products Administration (NMPA) issued an announcement announcing the inclusion of 18 standard formulation and revision projects, such as the Limits on Aerobic Colony Count in Eye Cosmetics, Lip Cosmetics and Cosmetics for Children, into the Safety and Technical Standards for Cosmetics (2015 Edition).Six of these standards, including the Limits on Aerobic Colony Count in Eye Cosmetics, Lip Cosmetics and Cosmetics for Children and the Limit for 1,4-Dioxane, will take effect on January 1, 2027. The remaining 12 standards, covering substances such as Butylphenyl Methylpropional and Cyclotetradimethylsiloxane, will be implemented on January 1, 2028.
On January 15, 2026, the National Institutes for Food and Drug Control (NIFDC) released three draft cosmetic testing standards for public consultation, including the Test Method for Trivalent Chromium and Hexavalent Chromium in Cosmetics.Public feedback is being accepted through the "Cosmetic Standard Formulation and Revision Management System" from the date of issuance until February 13.
The three standards focus respectively on:
1. Speciation analysis of trivalent and hexavalent chromium.
2. Quantification of 11 hair dye raw materials, including 1-Hydroxyethyl-4,5-diaminopyrazole sulfate.
3. Detection method for the preservative Ethyl Lauroyl Arginate HCl.
These standards aim to fill technical gaps in the monitoring of cosmetic safety risk substances, providing a basis for regulatory enforcement and enterprise quality control. The public, testing institutions, and enterprises may all submit feedback online to support standard improvement.
Recently, the NMPA officially approved and issued the supplementary testing method Determination of Sudan I and 3 Other Components in Cosmetics, expanding the testing scope to include skincare products such as liquids, creams, and lotions. This addresses the previous limitation where Sudan dye testing only targeted color cosmetics.
This new regulation follows the cosmetic Sudan dye incident in October 2025, during which Sudan dyes—banned for nearly 20 years—were detected in skincare products from several well-known brands. Enforcement was difficult due to the lack of applicable testing standards.The new method covers 4 Sudan dye components and sets a unified strict detection limit of 1 μg/g, which can be directly used as a basis for law enforcement.A total of 27 new and updated testing standards were released simultaneously, comprehensively strengthening the safety regulatory framework for cosmetics.
Brands and Industry
Recently, Shiseido Group officially launched a breakthrough mascara technology named WASHABLE LOCK TECHNOLOGY™. This innovation successfully combines long-lasting curl-setting performance with easy warm-water removal in an oil-based formula, eliminating the need for dedicated makeup removers.
Shiseido stated that WASHABLE LOCK TECHNOLOGY™ was developed in response to consumers’ deep-seated demand that “beauty should not come at the cost of complicated removal.” It represents not just ingredient stacking, but a fundamental innovation in film-forming mechanics, redefining what high-performance mascaras can achieve.
In January, Henkel, the German consumer goods giant, was reported to have submitted a takeover bid for Olaplex, the premium U.S. hair care brand. The parties are in advanced discussions, with a potential deal expected within weeks, though terms have not been finalized. Both Henkel and Olaplex declined to comment.
Since its IPO in 2021, Olaplex’s share price has plummeted by over 90%. Net sales in the first three quarters of 2025 fell 3.8% year-on-year, leaving the company under pressure and in urgent need of capital and operational support. Henkel, which owns hair care brands including Schwarzkopf, aims to strengthen its premium hair care portfolio and expand its presence in the professional salon segment through this acquisition.
Following the news, Olaplex’s stock surged 23% on the day, triggering a trading halt, though uncertainties remain such as potential negotiation breakdowns and valuation disagreements. If completed, the deal will stand as a major M&A event in the beauty and hair care sector in early 2026, reshaping the competitive landscape of the premium hair care market.
Recently, Guangzhou Trauer Biotechnology Co., Ltd. announced that it has signed an agreement with its sponsor, SDIC Securities, to terminate its Beijing Stock Exchange (BSE) IPO counseling registration. This decision follows the prolonged and unresolved judicial freeze on approximately 3.65 million shares held by Ding Yumei, the company’s second-largest shareholder and ex-wife of Evergrande’s Xu Jiayin.
Trauer Bio owns China’s first sterile Class III collagen dressing and has made multiple unsuccessful attempts to list on the A-share market and BSE. In the first half of 2025, its revenue reached RMB 214 million, yet net profit plunged 56% year-on-year. Such performance volatility has further complicated its listing efforts, grounding its more-than-decade-long IPO journey once again.
Recently, Bluemoon Group announced an expected net loss attributable to equity holders of no more than HK$375 million (approximately RMB 330 million) for 2025, representing a narrowing of more than 50% year-on-year. The improvement was mainly driven by sharp reductions in selling and administrative expenses, optimized channel strategies, and strong sales growth of new products including concentrated laundry detergent and foaming body wash.
Despite achieving a record high revenue of HK$8.556 billion (approximately RMB 7.6 billion) in 2024, the company remained stuck in the growing pains of “scale first, profit later.” In the first half of 2025, cost-cutting measures, increased focus on livestreaming e-commerce and offline distribution reduced its loss by 34% year-on-year. The company maintained a high gross margin of 58% and held ample cash flow of HK$4.36 billion (approximately RMB 3.89 billion), providing a buffer for continued investment in brand and category expansion.
Unilever, through its venture capital arm Unilever Ventures, has increased its investment in India’s beauty sector, recently completing minority equity investments in two emerging brands: Secret Alchemist and SkinInspired.
Recently, it was reported that South Korea’s cosmetics exports reached **US$11.4 billion (approximately RMB 79.5 billion)** in 2025, a year-on-year increase of 12.3%, hitting a record high and elevating the country to second place globally for the first time. The United States, China, and Japan were the top three export destinations, with exports to the U.S. leading at US$2.2 billion (approximately RMB 15.3 billion). Basic skin care products dominated, accounting for approximately 75% of total exports at US$8.54 billion (approximately RMB 59.5 billion). The South Korean government plans to implement a new cosmetic safety assessment system in phases starting in 2028 to strengthen export competitiveness.
Recently, Coty Group announced the sale of its remaining 25.8% stake in Wella to KKR for US$750 million (approximately RMB 5.2 billion) in cash plus 45% of future profits, officially exiting the professional hair care market. The transaction concludes a business divestment process initiated in 2020. Proceeds will be used to reduce debt and concentrate resources on core high-margin businesses such as fragrances, color cosmetics, and skin care, optimizing its asset structure and enhancing financial resilience.
Recently, NMPA’s cosmetic ingredient filing records showed that β-Nicotinamide Mononucleotide (NMN, National Cosmetic Ingredient Filing No. 20220002) and Hydrofarnesene (National Cosmetic Ingredient Filing No. 20230006) have been marked as “filing cancelled.”
The former was filed in January 2022 by Yuyao Lifescience Health Technology Co., Ltd., originally intended for skin protection, moisturizing, and antioxidant use in all categories except lip, oral, and spray products. The latter was filed in February 2023 by Aplee Co., Ltd. and cancelled on December 16, 2025, originally used as an emollient and solvent for rinse-off and leave-on products. Lifescience retains another NMN filing (No. 20220013), which remains under monitoring.
Recently, the NMPA successively publicized the approval of three new cosmetic ingredient filings:
· “Extract of Ganoderma leucocontextum Fruiting Body” (National Cosmetic Ingredient Filing No. 20260001) by Shanghai Guangsheng Synthetic Biotechnology Co., Ltd. took the lead. Discovered on the Qinghai-Tibet Plateau in 2015, this ingredient has yielded 95 isolated compounds with reported anti-tumor and immunoregulatory properties.
· On the following day, “Extract of Tremella aurantialba Fruiting Body” (No. 20260002) by Beijing Shangjie Youlan Technology Co., Ltd. and “Retinoic Acid Ceramide (S)” (No. 20260003) by Shenzhen Dikeman Biotechnology Co., Ltd. were simultaneously approved. The former is rich in polysaccharides and flavonoids, focusing on moisturizing, repairing, and anti-inflammation. The latter combines retinol and ceramide dual pathways, targeting anti-aging for sensitive skin.
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Recently, 2080, a well-known oral care brand under South Korea’s Aekyung Industrial Co., Ltd., was involved in a quality scandal. Six types of toothpaste manufactured in China were found to contain triclosan, an ingredient banned in South Korea for oral care products. A full recall has been initiated.
Triclosan, a preservative, has been prohibited in oral care products in South Korea since 2016. The detected concentration reached as high as 0.15%. The products were imported from Chinese manufacturer Domy and sold in South Korea starting in 2023. Upon discovering the issue during routine testing, Aekyung immediately suspended sales and reported the matter to the Korean Ministry of Food and Drug Safety (MFDS). Consumers can receive a full refund without proof of purchase. The MFDS has launched an investigation into the source of contamination. Aekyung admitted insufficient quality control and pledged to strengthen end-to-end testing.
Recently, Joinn Biotech Co., Ltd. officially initiated IPO counseling, with China International Capital Corporation (CICC) as the 辅导机构. This marks the domestic skin repair specialist’s formal push towards the capital market.
On January 6, Etude House, the sweet-style cosmetics brand under South Korea’s Amorepacific Group, announced a service upgrade, stating that its Tmall Global flagship store would be temporarily closed for operational entity transition and internal restructuring.
According to the announcement, the adjustment is scheduled from January 1, 2026, to February 1, 2026. The official reopening date will be announced in a future notice.
Notably, this is not Etude House’s first store closure. In November 2022, its official flagship store also announced a temporary suspension of operations before resuming business.
Recently, Derma Lab, the skincare brand under Mentholatum, reopened its official Tmall flagship store. Currently, only the Pore Refining Serum is available for purchase.
Previously, the store had announced plans to voluntarily cease operations on December 11, 2025.
On January 14, MANE GROUP, the French fragrance and flavor giant, announced the successful acquisition of Chemo Sensoryx Biosciences, a Belgian biotechnology company. Financial details were not disclosed.
On January 1, FILORGA, the French professional skincare brand, issued a store closure notice. Its official Tmall flagship store announced it would permanently cease operations on January 31, 2026, due to corporate strategic adjustments.
Recently, Suzhou Easy Tech Co., Ltd. disclosed its prospectus for a planned listing on the Main Board of the Hong Kong Stock Exchange. This is the company’s second submission.
On the evening of January 28, Shanghai Jahwa United Co., Ltd. (600315.SH) released a 2025 annual profit forecast, expecting a net profit attributable to parent company owners of RMB 240–290 million, returning to profitability year-on-year. The strong performance was driven by core business growth, improved gross margins, and increased non-recurring gains. Key brands including Herborist and Liushen effectively enhanced brand value through product upgrades and innovative marketing.
Recently, e.l.f. Beauty, the American mass-market beauty giant, announced that its e.l.f. cosmetics brand will partner with Swedish fast-fashion retailer H&M to launch a new fragrance line, “Make It Make Scents.” This marks e.l.f. Beauty’s first foray into fragrances and H&M’s first beauty collaboration. H&M’s in-house beauty line currently covers skincare, color cosmetics, and body care.
Recently, MTG Co., Ltd., the Japanese parent company of beauty device brand ReFa, announced a resolution from its board of directors to dissolve its consolidated subsidiary, MTG Trading Co., Ltd.
On January 26, 2026, Shenzhen HuJia Technology (Group) Co., Ltd., owner of the domestic efficacy skincare brand HBN, formally submitted an application to list on the Main Board of the Hong Kong Stock Exchange, aiming to become the “first listed stock of China’s true efficacy skincare concept” and enter a new phase of long-term development supported by international capital markets.
Recently, foreign media, citing insiders, reported that L’Occitane, the French skincare group, is considering a U.S. IPO in 2024. The group has collaborated with investment banks including JPMorgan Chase and Morgan Stanley to advance the potential listing. A successful U.S. listing would follow its 2022 delisting from the Hong Kong Stock Exchange as another major capital move.
Recently, Changzhou Bioridge Pharmaceuticals Co., Ltd. received approval for its Beijing Stock Exchange IPO, attracting significant attention in the beauty industry. Founded in 2008, the biomedical material company operates a dual-driven “medical devices + functional skincare” model, reshaping competition in the sensitive-skin skincare market.
Recently, DOCUMENTS officially launched its new incense brand, Guibao Xiangju, and opened its first pop-up store at West Bund Dream Center in Shanghai.
Aekyung Industrial, the South Korean beauty giant that once achieved GMV of RMB 2 billion with a single cushion product, is now mired in a debt crisis. Recently, the company was ordered by a court to pay KRW 175 million (approximately RMB 830,000) in compensation to Dongkook Pharmaceutical in a trademark infringement dispute.
Following a series of negatives, the company’s debt ratio has soared to triple digits, forcing it to consider selling equity. Financial data shows persistent pressure:
· January–September 2023: revenue fell 17.2% year-on-year to KRW 160 billion; operating profit plummeted 61.8% to KRW 10 billion.
· Q3 2024: revenue edged up 2.4% to KRW 169.3 billion, but operating profit dropped 23.6% to KRW 7.3 billion.
Both core beauty and home/personal care segments face sluggish growth, underscoring severe operational challenges.
Recently, Botanee Group (300957.SZ) made tangible progress in upstream medical aesthetics investment. According to NMPA public information, “Injectable Poly-L-Lactic Acid Filler,” independently developed by Chengdu Yizhen Biotechnology Co., Ltd.—a wholly-owned subsidiary of Yizheng (Suzhou) Biotechnology Co., Ltd., in which Botanee holds a 15.73% stake as the largest single shareholder—has been approved for a Class III medical device registration certificate (National Medical Device Registration No. 20263130095).
On January 27, the NMPA cosmetic ingredient filing platform showed that two new ingredients completed filings on the same day:
· Sodium α-Ketobutyrate (Filing No. 20260017), submitted by Yunnan Botanee Bio-Technology Group Co., Ltd. Technical requirements are pending release.
· β-Nicotinamide Mononucleotide (NMN) (Filing No. 20260018), filed by Nanjing Nuoyun Biotechnology Co., Ltd. NMN is a naturally occurring bioactive nucleotide and precursor to the key human coenzyme NAD+, closely linked to metabolism, aging, and immune regulation.
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Recently, WINONA, the core brand of Botanee Group, officially entered the Middle East market. Its first offline counter opened at Doha Mall, a prime commercial district in Qatar’s capital Doha, with a grand launch ceremony held at the iconic Fairmont Doha Hotel.
WINONA becomes the first Chinese efficacy skincare brand registered in Qatar. Backed by years of in-house R&D and clinical validation, the brand will provide tailored professional skincare solutions for Middle Eastern consumers. As a key initiative under the Belt and Road Initiative, Qatar—an important Middle Eastern financial and commercial hub—serves as the starting point for WINONA’s globalization strategy, demonstrating Chinese beauty brands’ determination to transform from “product export” to “brand export.”
Recently, the National Institutes for Food and Drug Control (NIFDC) issued a notice officially launching the first batch of 2026 Proficiency Testing (PT) programs. The initiative aims to continuously improve testing capabilities and quality assurance in pharmaceuticals, medical devices, cosmetics, and other fields, ensuring scientific and reliable results.
Administered uniformly by NIFDC, all programs comply with ISO/IEC 17043 (Conformity Assessment—General Requirements for Proficiency Testing). Lists of qualified laboratories will be released within an appropriate scope.
Recently, Fuzhou Beanti Biotechnology Co., Ltd. successfully obtained a new cosmetic ingredient filing. Its submitted N-Dihydrocoumaroyl Tyramine was publicized by the NMPA under Filing No. 20260015.
Public information shows the ingredient is a phenolamide compound with reported anti-inflammatory and antioxidant properties, showing potential in functional cosmetic development. This marks another milestone for the company in cosmetic ingredients.
Recently, the China Securities Regulatory Commission disclosed that Joinn Biotech Co., Ltd., specializing in skin health and efficacy skincare, completed BSE IPO counseling registration with the Sichuan Securities Regulatory Bureau, becoming the first domestic beauty company to pursue a capital market listing in 2026.
Joinn Bio has maintained steady growth: revenue rose 22.89% from RMB 486 million (2023) to RMB 597 million (2024), ranking among the top three in China’s medical skin barrier repair dressing market.
Its multi-channel “direct sales + distribution + agency” model includes:
· Over 50% of 2024 revenue from direct e-commerce.
· Offline coverage of 1,400+ clinics, 15,000+ professional pharmacies, and 5,100+ cosmetic chain stores.
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On January 26, Glycyrrhetinic Acid Glucuronide (Filing No. 20260016), independently developed by Zhejiang Huarui Biotechnology Co., Ltd., obtained NMPA cosmetic ingredient filing approval. Also known as Neo-Glycyrrhizin, it is 3-O-glucuronide of glycyrrhetinic acid. The company claims superior permeability, membrane absorption, and soothing effects compared to traditional star ingredient dipotassium glycyrrhizinate. Technical requirements will be released later.
Recently, Qingsong Co., Ltd., parent company of Nox Bellcow, released its 2025 annual performance forecast, expecting full-year net profit to grow over 50% year-on-year, with operating revenue of approximately RMB 2.218 billion.
The strong performance reflects:
· Recovery in the cosmetics sector driving significant customer order growth.
· Reduced asset depreciation expenses.
· Successful completion of land disposal.
As a wholly-owned subsidiary, Nox Bellcow is a leading domestic ODM cosmetics manufacturer, providing R&D and manufacturing services to renowned brands including Procter & Gamble, Shiseido, and Florasis.
On January 21, Liren Lizhuang released its 2025 annual performance forecast, expecting a net loss attributable to parents of RMB 63.2–79 million, a substantial widening from a RMB 24.4003 million loss in the previous year.
The company attributed the loss to ongoing investment in product innovation and marketing for in-house brands, which have not yet generated corresponding economic benefits, resulting in operating losses for owned-brand stores.
Recently, private equity firm Yellow Wood Partners announced the merger of two portfolio companies—Elida Beauty (owner of brands including Pond’s) and Suave Brands—into a new personal care group, Evermark.
The combined entity covers hair care, body care, and lip care, with estimated annual retail sales of US$1.9 billion (approximately RMB 13.2 billion). The former CEO of Suave Brands will serve as Evermark’s CEO.
The merger consolidates Yellow Wood Partners’ personal care presence, optimizing brand portfolios and resource sharing to enhance competitiveness and operational efficiency.
Recently, Valentino Beauty, the beauty line of Italian luxury brand Valentino, will exit the South Korean market following a strategic review by licensee L’Oréal, as reported by Cosmetics Business.
Launched in South Korea in 2022, the brand withdrew after just four years of operation. Operated under license by L’Oréal, the exit reflects intense competition and operational pressures for luxury beauty in South Korea, amid the rise of local brands and shifting consumer trends, prompting industry-wide attention to evolving high-end beauty market dynamics.
Recently, fashion beauty brand Pat McGrath Labs formally filed for Chapter 11 bankruptcy protection in the United States.
A company spokesperson stated that the brand will maintain normal operations during restructuring, focusing on balance sheet reorganization and exploring new development paths while continuing to serve communities, customers, and partners with consistent product quality, artistry, and innovation.
A planned auction of brand assets initiated by secured lenders has been indefinitely postponed.
Recently, the NMPA issued a supplementary testing method, Determination of Sudan I (CI 12055) and 3 Other Components in Cosmetics, expanding quantitative testing for Sudan I–IV to liquids (water/oil), creams, and lotions for the first time, addressing the previous limitation that only color cosmetics were covered.
The method provides detailed parameters for reagents, instruments, sample preparation, and HPLC conditions, with a detection limit as low as 0.05 mg/kg, offering direct enforcement support for market supervision and customs.
On January 19, the National Bureau of Statistics released data showing that 2025 retail sales of cosmetics reached RMB 465.3 billion, up 5.1% year-on-year, significantly outpacing the 3.7% overall growth in total retail sales of consumer goods.
December cosmetics sales alone hit RMB 38 billion, rising 8.8% year-on-year—the highest monthly growth rate in the second half of the year.
Full-year 2025 total retail sales of consumer goods: RMB 50.1202 trillion, up 3.7%.Retail sales excluding automobiles: RMB 45.1413 trillion, up 4.4%.
December total retail sales: RMB 4.5136 trillion, up 0.9%.Excluding automobiles: RMB 3.9654 trillion, up 1.7%.
On January 16, the Hong Kong Stock Exchange disclosed that Shandong Huawutang Cosmetics Co., Ltd. formally submitted a listing application, with CITIC Securities as the sole sponsor.
The company operates a single brand, Half Acre Flower Field (Banmu Huatian).
Financial highlights:
· 2024 revenue: RMB 1.4989 billion, up 25.0% from RMB 1.1987 billion in 2023.
· January–September 2025 revenue: RMB 1.8947 billion, surging 76.7% from RMB 1.0723 billion in the same period of 2024.
Recently, Shiseido officially announced its first-ever sunscreen spray, scheduled for launch in summer 2026. Developed using the brand’s in-house AI formulation platform VOYAGER, the new product represents a major human-AI collaborative innovation.
On January 28, Lavson Home & Personal Care issued its 2025 annual performance forecast, expecting a net loss attributable to parents of RMB 25–32 million and a net loss excluding non-recurring items of RMB 34–41 million, turning from profit to loss year-on-year.
On January 29, Givaudan, the global fragrance and flavor giant, released its 2025 financial results:
· Sales: CHF 7.472 billion (approximately RMB 67.73 billion), up 5.1% year-on-year.
· Net profit: CHF 1.071 billion (approximately RMB 9.71 billion).
· EBITDA: CHF 1.751 billion (approximately RMB 15.87 billion).
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Recently, South Korea’s Kolmar Industries won a lawsuit against Intercos Korea over the theft of core sunscreen technology and successfully recovered all statutory litigation costs.
Recently, multiple foreign media reported that Pat McGrath Labs has scrapped its planned sale and filed for bankruptcy reorganization.
Notably, the brand’s valuation has plummeted from a peak of US$1 billion (approximately RMB 7 billion) to approximately US$178 million (approximately RMB 1.241 billion), a decline of over 80%.
On January 26, Sanshenghua, the personal care brand under Pechoin Group, held a roundtable forum and new product launch themed “The Upgraded Revolution in Scalp Care” via exclusive Tmall livestream.
The company unveiled its innovative creation—Sanshenghua Hydrating Repair Essence Hair Washing Powder, developed over five years with hundreds of formula iterations.
Breaking away from traditional liquid shampoo, the product adopts an innovative solid powder format, delivering comprehensive upgrades in formulation and user experience. Beyond product format innovation, it signals the industry’s entry into a new era of waterless personal care, driving the scalp care segment toward greater precision, efficiency, and sustainability.
Recently, the United Kingdom proposed revisions to its cosmetic regulations, with a key measure being the removal of 4-methylbenzylidene camphor from the list of approved UV filters and its placement on the banned ingredient list.
Similarly, China’s NMPA issued a notice this month proposing to add 4-methylbenzylidene camphor to the List of Prohibited Cosmetic Ingredients. The EU will formally ban the ingredient in May this year, while the U.S. FDA has never approved its use in cosmetics.
E-commerce Platforms
On January 12, Tmall released the 2025 Annual New Brand Development Report. Over the past year, more than 150,000 high-quality new merchants launched brands on Tmall, reaching an all-time high. The number of brands achieving over RMB 100 million in gross merchandise volume (GMV) within their first year of operation increased by more than 40% year-on-year.
Among them, Tongpin, a disposable facial serum brand, secured over RMB 100 million in GMV on Tmall in 2025, just three years after entering the platform, ranking first in its niche segment and becoming a representative annual “Emerging Force” brand. Other notable new brands include Sanzitang, Yiling, NEXXUS, and Hendeshi.
Additionally, categories such as dermatological skincare, personalized makeup, premium baby care, and scalp & hair health saw continuous growth in user search and purchase activity, offering strong potential for brand expansion.
Recently, the State Administration for Market Regulation and the Cyberspace Administration of China jointly issued the Measures for the Supervision and Administration of Live-streaming E-commerce, aiming to strengthen oversight, protect the legitimate rights and interests of consumers and businesses, and foster the healthy development of the live-streaming e-commerce industry.
The Measures target four key entities:
· live-streaming e-commerce platform operators
· live-streaming room operators
· live-streaming marketers
· live-streaming marketing service agencies
The rules clarify responsibilities, set behavioral boundaries, and improve the regulatory framework.
Third-party data shows that beauty and personal care sales across major Chinese e-commerce platforms (including Taobao-Tmall, Douyin, and JD.com) reached RMB 543.9 billion in 2025, representing an 8% year-on-year increase.
· Skincare & Body Care & Essential Oils remained the largest category, accounting for 62% of total sales with a GMV of RMB 336.373 billion, up 7% year-on-year.
· Color Cosmetics & Fragrances & Beauty Tools ranked second, making up 23% with a GMV of RMB 122.794 billion, up 9% year-on-year.
· Hair Care & Wigs came third, representing 12% with a GMV of RMB 64.635 billion, up 16% year-on-year.
· Beauty & Personal Care Devices fell to less than 4% of the total market, with sales of only RMB 20.141 billion, registering a double-digit decline.
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On January 10, Florasis, the prominent Chinese beauty brand, opened its first-ever department store flagship at Intime Department Store's West Lake City branch in Hangzhou, located within the Zhejiang Provincial Smart Business District.
This marks not only Florasis’s first physical store within Intime’s department store network but also a milestone in the brand’s expansion into the offline department store retail channel.
At the start of 2026, Mao Geping Beauty Co., Ltd. (01318.HK), which listed on the Hong Kong Stock Exchange just one year ago, disclosed two major capital developments in quick succession.
On January 7, Mao Geping announced a strategic partnership with L Catterton, the global consumer investment firm backed by the LVMH Group.
One day earlier, on January 6, the company’s controlling shareholder and core directors issued a share reduction plan, proposing to sell no more than 17.2 million H-shares via block trades.
Major International Groups
On January 7, foreign media reported that Estée Lauder is actively seeking buyers for a portfolio of three of its brands: makeup brands Too Faced and Smashbox, along with skincare brand Dr. Jart+. The group plans to sell the three brands together in a single transaction valued at several hundred million U.S. dollars.
According to sources familiar with the matter, Estée Lauder has retained investment banks Evercore and JPMorgan Chase to manage the sale process, with discussions primarily focused on large private equity firms. Notably, the current valuation represents a significant decline from the group’s historical acquisition costs. For Too Faced alone, Estée Lauder paid US$1.45 billion (approximately RMB 10.123 billion) to acquire the brand in 2016.
On January 22, The Procter & Gamble Company (P&G) announced its fiscal 2026 second-quarter financial results (covering October–December 2025). The group reported net sales of US$22.208 billion (approximately RMB 154.956 billion), a slight year-on-year increase of 1%. Net profit amounted to US$4.331 billion (approximately RMB 30.22 billion), a year-on-year decrease of 7%.
Specifically, the Beauty segment (home to brands such as SK-II and OLAY) and the Health Care segment each recorded a 5% increase in net sales during the quarter, the highest growth rates among P&G’s five divisions. The Beauty segment alone generated net sales of US$4.039 billion (approximately RMB 27.394 billion).
On January 28, LVMH Moët Hennessy Louis Vuitton released its fourth-quarter and full-year 2025 financial results. The group reported consolidated revenue of €22.7 billion (approximately RMB 188.8 billion) in the fourth quarter, a slight year-on-year increase of 1% at constant exchange rates. For the full year 2025, revenue reached €80.8 billion (approximately RMB 673.3 billion), a year-on-year decrease of 5%.
On an organic growth basis, the Perfumes & Cosmetics division reported a 1% year-on-year revenue decline during the year-end holiday season, significantly underperforming the group’s Watches & Jewelry and Selective Retailing sectors. LVMH noted that while signs of recovery in beauty consumption emerged in the U.S. and Asia-Pacific, weak demand in mature markets such as Europe and Japan, coupled with a more rational approach to premium beauty spending, constrained overall growth.
Recently, Symrise, the German fragrance and flavor giant, announced its first-ever share repurchase program in the group’s history. From February 1 to October 31, 2026, an eight-month period, the company plans to repurchase up to €400 million (approximately RMB 3.2 billion) of its own shares on the secondary market, funded by internal cash reserves.
The company stated that the program reflects confidence in future cash flow and profit growth, aiming to optimize its capital structure, improve earnings per share, and provide flexibility for employee share ownership plans or potential mergers and acquisitions. The repurchase plan, approved by the Supervisory Board, will comply with the German Stock Corporation Act and relevant EU regulations. It will be executed in tranches via electronic trading platforms, with the exact pace dependent on market conditions and price levels.
Duty-free Updates
Recently, Haikou Customs released statistics showing that in the first week of the closed-off management operation, it supervised RMB 1.1 billion in offshore duty-free sales, involving 775,000 items purchased by 165,000 shoppers. These figures represent year-on-year increases of 54.9%, 11.8%, and 34.1% respectively compared with 2024.
Month-on-month compared with the week prior to closed-off management (December 11–17), the figures rose by 71.8%, 46.7%, and 71.8% respectively, fully demonstrating the strong boosting effect of closed-off management on the consumer market.
On the 4th, Haikou Customs disclosed that during the New Year holiday (January 1–3, 2026), it monitored sales of 442,000 duty-free items, a year-on-year increase of 52.4%. The number of shoppers reached 83,500, up 60.6%, with a total sales value of RMB 712 million, surging 128.9% year-on-year.
Recently, the fragrance and cosmetics store at Shanghai Pudong International Airport’s Sunrise Duty Free (Sunrise) has officially closed.
Sunrise Duty Free is a professional airport duty-free retailer approved by the Chinese government and was among the first foreign-invested brands licensed to operate airport duty-free stores in China. It opened its first outlet at Shanghai Pudong International Airport in 1999 and gradually expanded to become a major duty-free retail brand at the two core gateway airports of Beijing and Shanghai.
Recently, China Tourism Group Duty Free Corporation Limited (CTG Duty Free) announced a plan to acquire the Greater China travel retail business of DFS Group for up to US$395 million (approximately RMB 2.8 billion) in cash.
The target assets include 2 retail stores in Hong Kong, 8 retail stores in Macau, and 4 specialty “Beauty World” stores, together with exclusive usage rights for related brands.
DFS is jointly owned by LVMH Group. Upon completion of the transaction, LVMH will become a shareholder of CTG Duty Free, and the two parties will establish a strategic partnership, allowing CTG Duty Free to strengthen its high-end beauty retail presence in Hong Kong and Macau.
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