Trends of cosmetic chain stores and imported high-end supermarkets

On March 18, Watsons parent company CK Hutchison Industrial Co., Ltd. (hereinafter referred to as CK Hutchison) disclosed the results of the previous year as of December 31, 2020.

1. The financial report shows that during the period, Yangtze River Hutchison achieved income of 403.846 billion Hong Kong dollars (approximately RMB 338.257 billion), a year-on-year decrease of 8%; EBITDA (profit before tax, interest, depreciation and amortization) totaled HK$122.348 billion (approximately RMB 1024.77 Billion), a year-on-year decrease of 10%.

2. The financial report shows that Watson's global sales were 159.619 billion Hong Kong dollars (approximately RMB 133.639 billion), a year-on-year decrease of 6%; total EBITDA was 14.397 billion Hong Kong dollars (approximately RMB 12.055 billion), a year-on-year decrease of 15%.

Recently, the Sephora China Member Club has been renewed and upgraded to the "Sephora Melia Pie", facing the majority of members with a brand-new image.

1. Sephora has launched the “member points mall” in this upgrade. Members earn 1 point for every RMB 1 spent, and they can redeem a variety of gifts starting from 500 points.

2. Sephora simultaneously launched the "Points for Charity Donation" project, where members can choose to donate points to help charity.

3. The brand-new "Sephora Beauty Party" opens a fast channel for membership level advancement, supplemented by a wealth of membership privileges, and aims to help more consumers to join the world's leading “Beauty Community” and jointly explore their own beauty.

 International Group News

  Recently, L’Oréal launched the first virtual idol with Chinese descent, "Ou Ye" as its brand spokesperson. His age is set to be 24years old, Chinese and French mixed, with identity labels such as a beauty makeup brother, a favorite fan, a philanthropist, and acharity expert. The vision is dedicated to making all people beautiful.

Recently, Unilever announced that all its beauty and personal care brands will not show "Normal" related expressions in packaging and advertisements. This is one of the initiatives of Unilever to launch its new vision and strategy of "Positive Beauty".

According to "Cosmetics Finance Online" report, WASO, as a product line under the Shiseido brand of SHISEIDO, has ceased its sales in the Japanese market at the end of 2020. At the same time, online sales in Japan will cease at the end of 2021. Shiseido said, "Markets outside of Japan are not affected. In the future, WASO will further strengthen its marketing and strategic layout in China."

 Brand and related industry trends

On March 11th, local time in the United States, Yixian e-commerce, the “first share of US stocks in Chinese beauty”, released its fourth quarter 2020 financial report.

1. According to the financial report, Yixian E-commerce achieved operating income of RMB 1.96 billion in the fourth quarter, a year-on-year increase of 71.7%; during the same period, gross profit reached RMB 1.30 billion, a year-on-year increase of 81.6%.

2. In the fourth quarter, the scale of DTC consumers of Yixian e-commerce reached 14.4 million, a year-on-year increase of 30.9%.

On March 15, the National Bureau of Statistics released data showing that from January to February 2021, our total retail sales of consumer goods reached 6973.7 billion yuan, a year-on-year increase of 33.8% and an increase of 6.4% from January to February 2019.

Among them, the retail sales of cosmetics above designated size reached 55.8 billion yuan, a year-on-year increase of 40.7%, outperforming the overall growth in the total retail sales of consumer goods. From January to February 2019, the retail sales data was 45.1 billion yuan, compared with an increase of 23.7% in the same period this year.

On March 12, the application of Megvii Technology Co., Ltd. (hereinafter referred to as "Megvii Technology") for the initial public offering of depositary receipts and listing on the Science and Technology Innovation Board of the Shanghai Stock Exchange has been accepted.

The company intends to issue no more than approximately 253 million Class B common stocks as the basic stock for the issuance of CDR, and raise capital of 6.018 billion yuan. The prospectus shows that relying on the Face++ platform, Megvii Technology provides a one-click virtual makeup trial solution for beauty e-commerce companies. This means that if the listing is successful, Megvii Technology will become the first stock of AI beauty.

At the "3·15" party, the "Measures for the Supervision and

Administration of Online Transactions" (hereinafter referred to as the "Measures") formulated and promulgated by the State Administration for Market Regulation was officially released. The "Measures" has 5 chapters and 56 articles, including general provisions, online transaction operators, supervision and management, legal responsibilities, and supplementary provisions. They will come into effect on May 1, 2021. At the same time, the original "Internet Transaction Management Measures" will be repealed. This means that live broadcast e-commerce, which grows wildly like "wild grass", will be further restricted and enter the era of strict control.

South Korean luxury skin care brand Sulwhasoo opened the "Sulwhasoo Ziyingsheng Pop-up Store" in Sanya International Duty Free City, the world's largest single duty free store. As this pop-up store that can only be experienced in Sanya International Duty Free City, Sulwhasoo has launched various experience activities, digital content, and exclusive package products.

On March 17, Shiseido e-commerce submitted another listing application to the main board of the Hong Kong Stock Exchange on behalf of the operator Youquhui Holdings Co., Ltd. After submitting the application for the first board on June 30 last year, it ended in "failure" because of no progress for more than 6 months.

Latest policy

On March 15th, the European Commission submitted to the World Trade Organization WTO Circular G/TBT/N/EU/785, planning to amend Annex III of EU Cosmetics Regulation (EC) No 1223/2009, adding methyl aminobenzoic acid Ester restriction clause.

hot topic

Pinduoduo released its financial report on the 17th. In the fourth quarter of 2020, revenue was 26.55 billion yuan, and the market was expected to be 19.216 billion yuan, compared with 10.793 billion yuan in the same period last year.

1. Pinduoduo has 788 million active buyers in 2020, compared with 585.2 million in the same period last year, surpassing Alibaba. In the whole year, the consumption of each active user was 2115.2 yuan, a year-on-year increase of 23%.

2. Huang Zheng announced his resignation as chairman. Competition with scale and efficiency as the main direction has its inevitable problems. To be a true scientist, march into the field of basic science and technology, and pave the way for the future development of Pinduoduo.

On the evening of March 17, SF Holdings released its Y2020 annual report.

1. The data shows that in Y2020, SF Holdings achieved operating income of 153.987 billion yuan, a year-on-year increase of 37.25%;

2. Net profit attributable to shareholders of listed companies was 7.326 billion yuan, a year-on-year increase of 26.39%; net profit after deduction was 6.132 billion yuan, a year-on-year increase of 45.74%; earnings per share were 1.64 yuan, a year-on-year increase of 24.24%.