Core Insights - L'Oréal Group announced a minority stake investment in Chinese skincare brand LAN, marking its first investment in a local skincare brand since the establishment of its Chinese investment company, Meici Fang [1][2] - Meanwhile, Japanese brand Muji announced the closure of its Tmall flagship store, expected to officially close by December 11, 2025, highlighting a significant reshuffle in the Chinese beauty market [1][8] Investment Dynamics - The investment in LAN was supported by L'Oréal's strategic innovation risk investment fund, BOLD, and is seen as a key step in L'Oréal's deepening presence in China's beauty tech sector [2] - Meici Fang's investment history shows a focus on fragrance and raw material innovation, with LAN aligning perfectly with its investment criteria of digitalization, research, aesthetics, and originality [4] Brand Performance - Founded in 2019, LAN has achieved remarkable growth, reaching over 1 billion in annual sales within six years, driven by its "pure skincare" philosophy and innovative product concepts [5] - The brand has established a strong research foundation, with over 40 patents and plans to create China's first plant oil molecular database by 2025 [5] Market Challenges - Muji's exit from the Chinese market reflects the challenges faced by Japanese brands, which have struggled to adapt to the rapid shift in consumer preferences towards ingredient-focused and efficacy-driven skincare [8][11] - Since 2025, nine Japanese beauty brands, including Decorte and Sekkisei, have closed or exited the Chinese market, indicating a broader trend of international brands facing difficulties in the evolving landscape [12] Industry Trends - The simultaneous events of LAN's investment and Muji's exit illustrate a significant transformation in the Chinese beauty market, where local brands emphasizing technological innovation are rapidly rising [12] - The need for international brands to rethink their product development and marketing strategies is critical in order to regain consumer favor in an increasingly rational market [12]

Core Insights - Bathfeel, a domestic body care brand, opened its first offline store in Shanghai, marking a significant move for its parent company, Betaini, to seek new growth avenues amid slowing main business growth [1][9] - The brand philosophy of Bathfeel is rooted in the idea that "the body is self, the body is freedom," which reflects a shift in consumer sentiment towards emotional value in body care products [2][4] Brand Development - Bathfeel started with a nearly 200 yuan pig bristle bath brush, successfully capturing the market and selling over 400,000 units by June this year [3][7] - The brand's focus shifted from functional products to emotional value, with user research indicating that emotional healing needs account for 53% of consumer demand in bathing scenarios [4][7] - Bathfeel has expanded its product line to include various body oils and creams, transitioning from a tool-focused brand to a comprehensive body care brand [4][7] Market Positioning - Bathfeel's main products are priced around 200 yuan, positioning itself in the high-end market segment and achieving consecutive sales growth over the past three years [7][12] - The brand has successfully captured a consumer base of 70% from new first-tier cities, with a significant portion being women aged 25-34, indicating a strong appeal to affluent urban consumers [7][12] Retail Strategy - The offline store design emphasizes brand experience over traditional retail logic, creating a comfortable environment for customers to engage with the brand [8][15] - Bathfeel's store features narrative sections that enhance emotional connections, moving away from conventional product displays [8][15] Investment and Growth Strategy - Betaini's investment in Bathfeel, acquiring a 20% stake, aims to explore product innovation and channel collaboration, addressing growth pressures faced by its main brand, Winona [9][12] - Betaini has made multiple investments across various sectors, indicating a strategic shift to diversify its brand portfolio and reduce reliance on a single brand [12][13] - The ultimate goal for Betaini is to build a comprehensive "skin health ecosystem" that covers different skin types, age groups, and price ranges, maximizing consumer reach [12][15]

Group 1: Buckingham Palace Exhibition - Buckingham Palace will host a major exhibition titled "Queen Elizabeth II: Her Fashion Life" from April 10 to October 18 next year, celebrating the Queen's influence on British fashion [1][3] - This exhibition will be the largest ever dedicated to Queen Elizabeth II's fashion, featuring approximately 200 items, with about half being displayed for the first time [3] - The exhibition will showcase a range of garments from haute couture evening dresses to fitted non-official outfits, allowing visitors to explore the Queen's wardrobe [3] Group 2: Richemont Group's Performance - Richemont Group reported a sales figure of €10.62 billion for the first half of the 2026 fiscal year, reflecting a 10% increase at constant exchange rates and a 5% increase at actual exchange rates [6] - The Asia-Pacific region, particularly China, showed a strong recovery with a 5% revenue increase to €3.44 billion, while North America, the Middle East, and Africa experienced even higher growth rates of 18% and 19% [6] - The jewelry segment, including Cartier and Van Cleef & Arpels, exceeded expectations with a 9% revenue increase to €7.75 billion, contributing over 70% of the group's total revenue [6] Group 3: L'Oréal's Investment in Local Brand - L'Oréal announced a minority stake investment in the Chinese skincare brand LAN, marking its first investment in a local skincare brand through its Chinese investment arm [7][9] - LAN, founded in 2019, specializes in oil-based skincare and has been the top-selling facial oil brand in China for two consecutive years, with over 100,000 units sold of its best-selling product [9] - The investment aims to leverage L'Oréal's global expertise in beauty research and market expansion to accelerate LAN's product innovation and global outreach [9] Group 4: Cartier's New High Jewelry Collection - Cartier launched its new EN ÉQUILIBRE high jewelry collection in Beijing, featuring over 480 pieces of high jewelry, high watchmaking, and antique collections [10][12] - The collection emphasizes balance through pure lines, three-dimensional shapes, and color harmony, showcasing pieces like the BYZAS necklace with a pear-shaped blue sapphire and the NEMOROSA necklace featuring a "Tutti Frutti" design [12]

Core Viewpoint - The article highlights the rise of domestic beauty brands in China, particularly focusing on the investment by L'Oréal in the local skincare brand LAN, which reflects the growing importance of the Chinese market in L'Oréal's global strategy [2][5]. Investment and Brand Development - L'Oréal Group has invested in the Chinese clean skincare brand "LAN," marking its first investment in a local skincare brand through its Shanghai Meici Fang Investment Co., supported by the BOLD fund [2][3]. - LAN was founded by a young female entrepreneur, Ding Xiaolan, in Hangzhou around 2018, capitalizing on the clean beauty trend and has gained recognition for its "oil-based skincare" philosophy [2][6]. - The brand has achieved significant sales success, with its products ranking among the top in facial oil sales in China for two consecutive years [2]. L'Oréal's Strategic Focus - L'Oréal has established a strong presence in the Chinese market, launching the BOLD fund in 2018 and setting up Shanghai Meici Fang Investment Co. in 2022, which is its first investment company in China after 25 years [3][5]. - The investment in LAN aligns with L'Oréal's mission to create beauty and reflects its commitment to long-term investment in the Chinese market [5]. Market Trends and Consumer Behavior - The clean beauty trend emphasizes ingredient safety, environmental sustainability, and effective skincare, which LAN has successfully integrated into its product offerings [6][9]. - LAN's core product, the "Time Essence Oil," quickly gained popularity, achieving over 20 million yuan in sales within four months of launch and becoming a top seller on platforms like Tmall [9]. Regional Market Dynamics - The article notes the booming beauty market in the Jiangsu-Zhejiang-Shanghai region, with brands like LAN and others achieving significant sales during events like Double Eleven [10][12]. - The region has become a hub for beauty brands due to favorable geographic and policy conditions, attracting international cosmetic groups and fostering a vibrant local industry [12][13].

Group 1 - L'Oréal China announced a minority stake investment in the Chinese skincare brand LAN, marking its second investment in the skincare sector this year after investing in Chando [2] - The investment is made through L'Oréal China's first investment company, Shanghai Meici Fang Investment Co., Ltd., which is also its first investment in a local skincare brand [2] - LAN was established in 2019 in Hangzhou and focuses on simplified skincare and molecular oil extraction concepts, having completed over 200 million yuan in financing between 2020 and 2021 for product development and brand building [2][3] Group 2 - LAN's Tmall flagship store achieved 200 million yuan in annual revenue within its first year, with core products generating over 20 million yuan in sales within four months of launch [2] - The brand differentiates itself by focusing on concept output and research investment rather than marketing, emphasizing a "mindset battle" in the domestic skincare market [3] - L'Oréal's investment strategy includes establishing Meici Fang to focus on beauty startups and breakthrough technologies, with LAN being the first local skincare brand in its investment portfolio [3][4]

Core Insights - L'Oréal has announced an investment in the Chinese skincare brand "LAN" through its subsidiary Shanghai Meici Fang Investment Co., supported by the BOLD strategic innovation fund, marking its first investment in a local skincare brand [1][11] - LAN, founded in 2019, focuses on "oil-based skincare" and "biotechnology plant extracts," with a product lineup that includes series like Time Orchid and Phoenix Whitening [1][5] - The brand has maintained a conservative approach in product launches, with nearly 20 SKUs over six years, emphasizing research and user experience rather than rapid expansion [3][5] Investment Details - The investment is significant as it represents L'Oréal's shift towards local brands with strong technical barriers and user loyalty, rather than just large-scale potential brands [11] - Prior to this, L'Oréal's investments in China were primarily in fragrance and supply chain projects, indicating a strategic pivot towards the skincare sector [11] Market Position - LAN has been ranked first in sales within the domestic facial oil category for two consecutive years, according to a report by Sullivan [1][5] - The brand's pricing strategy positions its products in the 200 to 300 RMB range, slightly lower than competitors like Lin Qingxuan, which has seen significant promotional activity affecting price overlap [6][10] Consumer Feedback and Challenges - Consumer feedback on LAN's products shows a divide, with some users finding the texture slightly sticky while others appreciate the absorption after proper application [8][10] - The brand faces challenges in market education and expanding its consumer base, particularly in a market where oil-based skincare is still met with skepticism [10] Future Strategy - LAN plans to invest further in functional oil research and plant extract technology, enhance offline retail experiences, and optimize supply chains and production capacity [1][5] - The brand must navigate the growth ceiling in the facial oil market while maintaining its competitive edge and exploring stable product extension strategies [10][11]

Core Viewpoint - The event "Perfect Harmony, Great Unity" marks the launch of a cultural dialogue and showcases the integration of traditional herbal wisdom with modern technology by Perfect (China) Co., Ltd. in Datong, Shanxi [1] Group 1: Event Highlights - Perfect Company unveiled its latest technological achievement, the Memory Flower Essence Oil, promoting a new paradigm of skin care through oil [4] - The company announced a collaboration with the Dunhuang Academy to create a series of cultural products that blend traditional aesthetics with modern life [4][10] Group 2: Leadership Insights - Chairman Gu Runjin emphasized the company's growth in China since the reform and opening-up, highlighting the importance of cultural heritage and social responsibility [7] - CEO Peng Zhihong noted the shift in consumer preferences towards a "heart-price" model, indicating a dual upgrade in cultural confidence and health needs [8] Group 3: Product Innovation - The Memory Flower Essence Oil focuses on skin barrier repair and aligns with the concept of "nurturing body and mind" through its innovative formulation [15] - The product features a "4+4 Youth Dual Protection System" that combines high-affinity plant lipids with rare flower extracts, aiming to meet both skin barrier repair and rejuvenation needs [15] Group 4: Market Strategy - Perfect Company is implementing a dual-driven strategy of "Community Growth" and "Perfect Life" to lead healthy lifestyles and create low-threshold entrepreneurial platforms [8] - The company has invested 1.4 billion in research and innovation, establishing a comprehensive product and service system to provide holistic health and beauty solutions [8] Group 5: Cultural Integration - The collaboration with the Dunhuang Academy aims to bring ancient art into daily life through various products, ensuring the continuity of cultural heritage [12] - The event highlighted the importance of integrating traditional aesthetics with modern consumer needs, showcasing the potential of cultural products in the beauty industry [12][18]

Investment Rating - The report maintains a "Positive" investment rating for the cosmetics industry [5]. Core Insights - The cosmetics industry is currently experiencing a stable growth phase, with a shift from double-digit growth in 2020 to single-digit growth, showing a slight year-on-year increase of 3% in the first half of 2025 [13][20]. - The competitive landscape has stabilized, with opportunities arising in niche segments, particularly for brands that can differentiate themselves through specific customer groups, ingredients, or product categories [17][20]. - Lin Qingxuan is highlighted as a typical case of achieving differentiated growth through unique product offerings and a focus on e-commerce [25][29]. Industry Overview - The cosmetics industry has seen a return to stable growth, with retail sales data indicating a shift from double-digit growth to a single-digit growth range, with a 3% year-on-year increase in the first half of 2025 [13]. - The competitive landscape has transitioned from frequent changes to relative stability, although there remains significant movement among mid-tier brands, with some successfully capitalizing on niche customer segments and ingredient trends [17]. - Niche segments are more likely to generate structural opportunities, as brands with differentiated customer targeting or ingredient focus can achieve growth that outpaces the overall market [20]. Company Analysis: Lin Qingxuan - Lin Qingxuan has successfully established itself in the cosmetics industry by focusing on differentiated products, particularly through the use of camellia oil, which has become a core component of its offerings [25][56]. - Since 2022, Lin Qingxuan has entered a growth phase, with projected revenues and net profits reaching 1.21 billion yuan and 190 million yuan respectively in 2024, representing year-on-year growth rates of 50% and 120% [29]. - The company has maintained a stable executive team, with key personnel having long tenures and deep familiarity with the business [35][37]. Product Differentiation - Lin Qingxuan has carved out a niche in the high-end skincare market, particularly in the anti-aging and camellia oil segments, achieving a market share of 12.4% in the facial oil category by 2024 [51]. - The brand's flagship product, the camellia oil, has undergone multiple iterations, with the latest version set to launch in July 2025, reflecting a commitment to innovation and quality [62]. - The company has developed a "1+4" product matrix strategy, expanding its offerings to include creams, serums, masks, and sunscreens, which has helped broaden its customer base [67]. Customer Segmentation - Initially targeting mature consumers through offline channels, Lin Qingxuan has gradually shifted towards younger demographics through online platforms, with online revenue reaching 710 million yuan in 2024, accounting for 59% of total revenue [87]. - The brand has successfully attracted younger consumers, with 31% of its customer base aged 18-30 as of September 2025, indicating a successful transition in its marketing strategy [87].

Core Insights - The beauty industry is experiencing a shift from short-term gains to a focus on "slow value," emphasizing stability, efficiency, supply chain advantages, and shopping experience [5][6][25] - JD Beauty has reported significant growth, achieving double-digit growth in the first half of 2025 and maintaining accelerated growth over four consecutive quarters [4][22] - High-end brands like SK-II have established JD Beauty as a primary online sales channel, contributing approximately 60% of their sales in China [6][9] Market Dynamics - Consumers are becoming more rational and discerning, focusing on ingredients, sourcing, and long-term usage experiences rather than marketing narratives [3][5] - The beauty market is characterized by fluctuating trends, with brands recognizing that certainty, rather than mere traffic, is crucial for success [5][12] - The high return rates in live commerce have led brands to seek more stable sales channels, with JD Beauty offering lower return rates compared to competitors [7][9] Brand Strategies - SK-II's early partnership with JD Beauty has allowed it to dominate the online sales channel in China, with a stable return rate of around 9% [6][7] - JD Beauty's focus on quality customer engagement through its JD PLUS membership has resulted in a loyal customer base that is less likely to return products [9][10] - The platform's commitment to genuine products and customer trust has become a significant factor for brands investing in JD Beauty [23][24] Innovation and Growth - JD Beauty's "Tenfold Growth Plan" has seen over 230 brands participate, with many achieving substantial sales increases, including high-end brands like La Mer and Armani [22][25] - The platform is innovating the shopping experience by integrating instant delivery services, allowing customers to receive products within minutes [24] - Collaborative marketing strategies, such as the "Super Star Fan Day," have created emotional connections between brands and consumers, enhancing customer loyalty [24][25] Consumer Behavior - Recent studies indicate that over 50% of consumers prioritize hydration and anti-aging benefits when purchasing skincare products, reflecting a more informed consumer base [23] - The demand for genuine products has heightened, with consumers increasingly concerned about authenticity, especially for high-priced skincare items [23][24] - Brands are adapting to these changes by focusing on product efficacy and customer experience, moving away from reliance on single explosive products [18][20]

Core Viewpoint - The article emphasizes the importance of managing three key aspects of life in middle age: family, health, and personal image, suggesting that these are more valuable than material possessions [2][4][6]. Group 1: Family Management - The article highlights that the greatest success in life is to manage one's family well, which includes having a supportive partner, grateful children, and healthy parents [2]. Group 2: Health Management - It stresses the need for maintaining physical health, especially after the age of 40, advocating for regular exercise, proper diet, and sufficient sleep to prevent health issues [4]. Group 3: Personal Image Management - The article discusses the significance of maintaining a good personal image, which reflects self-discipline and the pursuit of a fulfilling life, recommending regular exercise and skincare [6]. Group 4: Skincare Product Promotion - The article promotes a skincare event featuring Lin Qingxuan products, highlighting the variety of skincare options available and the benefits of specific products, such as the new "Little Gold Pearl Essence Water" and "Black Gold Cream" [8][9][15][20][30]. - It mentions that Lin Qingxuan is a well-established brand in China, known for its innovative essence oils and extensive retail presence [9][11]. - The article outlines several featured products, including their unique ingredients and benefits, such as the "Camellia Essence Oil" and "Salmon Freeze-Dried Essence," which are designed to combat aging and improve skin texture [30][45].