Authoritative Release

On March 26, the China Food and Drug Control Institute issued a "Notice on Public Consultation on Revising Prohibited Components of Cosmetics" on its official website. The notice said:

"According to the relevant national drug control policy requirements, it is proposed to list raw materials such as cannabis (CANNABIS SATIVA) kernels, cannabis (CANNABIS SATIVA) seed oil, cannabis (CANNABIS SATIVA) leaf extract and cannabidiol as prohibited components of cosmetics. Now soliciting opinions from the public.

Trends of cosmetic chain stores and imported high-end supermar

On March 25, the global high-end beauty retailer Sephora held  “2021 spring and summer exclusive new product and global beauty trend conference”.

 In this conference, they grandly release 6 major Spring & Summer fashion beauty trends, they are : "Ballet Macarons", "New Modern Focus", "Heaven's Choice", "Pride in the Sun", "Light Diadem" and "Fancy Trivia".

2.  In this conference, they made a big debut with more than 180 new products of the season and more than 50 settled in brands.

On March 29, Wumart Technology, a subsidiary of Wumart, submitted a prospectus to the Hong Kong Stock Exchange and officially launched the IPO. According to the prospectus, Wumart Technology plans to merge the two supermarket businesses of Wumart and Metro to go public, and Wumart founder Zhang Wenzhong will become the chairman of the listed company.

On March 30, the "2021 China Catering Industry Summit and the First China Catering Industry Red Bull Award Ceremony" was grandly held at the Shanghai National Convention and Exhibition Center. Hema CEO Hou Yi said at the ceremony: Prefabricated semi-finished products are entering the eve of the outbreak, and a new era of catering is coming.

Yonghui Supermarket (Stock code: 601933) announced on the evening of March 31 that as of March 31, the company had repurchased a total of 270 million shares through a centralized bidding transaction, accounting for 2.84% of the company’s total share capital. The lowest transaction price was 6.79 yuan per share. The highest price was 8.14 yuan per share, and the total amount paid was 2.009 billion yuan.

Brand and industry related dynamics

On March 26, Chaoyun Group Co., Ltd. (hereinafter referred to as "Chaoyun Group"), which successfully landed on the Hong Kong stock market for only half a month, disclosed its first financial report after listing. The financial report shows:

1. In 2020, the company's revenue was 1.702 billion yuan, a year-on-year increase of 23%;

2. The profit (net profit) for the year was 233 million yuan, a year-on-year increase of 26.33%;

3. Gross profit was 743 million yuan, a year-on-year increase of 23.8%.

On March 24, PCHi (China International Cosmetics Personal and Home Care Products Raw Materials Exhibition) was grandly held. More than 600 companies from more than 20 countries and regions participated in the exhibition. More than 30,000 industry visitors visited the exhibition area. The exhibition area exceeded 45,000 square meters. There are more than 100 conference reports.

In order to adapt to the competitive environment of the new era, Jialan will use the partner model in the supermarket counters, and open part of the operating authority of the supermarket counters originally managed by the brand and agents to BA or external entrepreneurs.

According to data from Oteou International Consulting Company, from March 2020 to February 2021, the total retail sales of toothpaste on the entire network was 8.1 billion yuan, and the retail sales increased by 31.6% year-on-year. The average transaction price was 27 yuan, and a total of 300 million pieces were sold.

Data from Oteou International Consulting Co., Ltd. show:

1. In February 2021, MAT (MAT is a rolling year, with the data period: March 2020-February 2021). The total retail sales of facial makeup on the entire network was 25.526 billion yuan, and the retail sales increased by 15.1% year-on-year. The average transaction price is 88.9 yuan, a total of 287 million pieces were sold.

Domestic makeup brand Florasis (Huaxizi) ranked first in the MAT facial makeup TOP20 brand transaction scale list in February 2021 with an increase of 132.92%. Based on the proportion of retail sales, its sales exceeded 1.78 billion yuan in the past year.

From March 29th to 30th, 2021, China Cosmetics Innovation Exhibition (CCIE2021) was successfully held at Hangzhou International Expo Center. Three pavilions were set in this innovation exhibition. There’re more than 100+ exhibitors in 3B Supply Chain Pavilion, and more than 200 brands and institutions in the 3C Imports Pavilion and the 3D Xin Guochao Pavilion.

International Group News

On March 29th, L’Oréal China held the 2020/2021 development strategy annual communication meeting in Shanghai. At the meeting, the following topic were proposed:  “New corporate evolution model for 2021”, “the official announcement of Shanghai’s upgrade to L’Oréal Group North Asia Headquarters”, and “Announced 27% contrarian growth performance in 2020" and " New brand Ecome IT COSMETICS introduction plan in April" and other content.

L'Oréal announced on March 30 that they will participate in the first China International Consumer Goods Expo (CICPE) to be held at the Haikou International Convention and Exhibition Center in Hainan from May 7 to 10, 2021.

On March 30th, Amorepacific’s “Female Administrator” female empowerment charity project was launched again in Guizhou and Heilongjiang provinces simultaneously. This year, it is expected to provide training and employment support for more than 600 women.

Hainan Duty Free Shop News

Hainan Baisha will open a duty-free shop for daily consumer goods, built by Haiken Group and Wangfujing Group.