Core Viewpoint - The controversy surrounding the product "可复美胶原棒" from 巨子生物 has raised significant concerns about the credibility of its ingredient claims, leading to a sharp decline in its stock price and market value [1][2]. Group 1: Company Response and Market Impact - 巨子生物's stock price dropped significantly after allegations of ingredient falsification were made, resulting in a market value loss equivalent to that of 贝泰妮 [1]. - The company issued multiple statements attempting to clarify the situation, but these efforts have not alleviated public skepticism regarding the reliability of its ingredient claims [1][21]. - Following the controversy, the management expressed confidence in maintaining their revenue guidance for 2025, despite acknowledging the need for brand repair and additional investments [21][25]. Group 2: Industry Trends and Consumer Behavior - The cosmetic industry has entered a "成分红利期," where companies leveraging key ingredient research can gain market advantages [4]. - There is a growing consumer interest in the origins and efficacy of cosmetic ingredients, leading to the emergence of a "成分党" group that prioritizes ingredient transparency over traditional marketing [5][8]. - The effectiveness of ingredient marketing is now under scrutiny, as consumers become more knowledgeable and critical of ingredient claims, potentially undermining the previous success of such marketing strategies [7][8]. Group 3: Historical Context and Crisis Management - Historical examples of brand crises illustrate the importance of timely and transparent responses to consumer concerns, with successful cases demonstrating effective damage control strategies [29][30]. - The response from 巨子生物 has been criticized for being vague, which has further damaged its reputation among consumers who expect more concrete actions regarding ingredient integrity and industry standards [30].

Core Insights - The article highlights the launch of the "High-Quality Consumption Observation" series by Southern Metropolis Daily, focusing on nine popular consumption sectors including beauty economy, sports and outdoor, food and health, smart consumer electronics, pet economy, experience economy, interest consumption, cross-border e-commerce, and consumption technology [1] - The report indicates a significant growth trend in the beauty and personal care market, particularly in the skincare segment, with a year-on-year retail sales increase of 4.4% in May and 4.1% from January to May [1] - The article emphasizes the shift towards efficacy-driven skincare products, with consumers increasingly demanding solutions for specific skin issues, leading to a notable rise in sales for products like sunscreen and hair care [1][12] Industry Trends - The beauty industry is witnessing a rise in "ingredient-focused" marketing, with brands emphasizing core ingredients to meet consumer demands for efficacy [11][25] - The competition in the high-end cosmetics market is intensifying, with international brands re-entering the Chinese market and dominating sales rankings during major promotional events like the 618 shopping festival [30][31] - Online sales channels have surpassed 50% of the market share in the cosmetics industry, with brands increasingly relying on e-commerce platforms for revenue growth [22][24] Brand Performance - Notable brands such as Proya and Han Shu have reported significant revenue growth, with Proya achieving over 10.7 billion yuan in 2024, while Han Shu's sales on Douyin reached 6.7 billion yuan [35][36] - The article mentions that brands like Huaxi Biological and Juzhibio have seen substantial revenue increases, with Juzhibio's revenue growing by 57.2% to 5.54 billion yuan in 2024 [7][33] - The performance of brands is increasingly tied to their ability to innovate and effectively market their products, particularly in the context of ingredient transparency and efficacy claims [11][25] Consumer Behavior - Consumers are becoming more rational in their purchasing decisions, focusing on product efficacy, ingredient transparency, and value for money, which is pushing brands to invest more in research and development [25][26] - The demand for specific skincare solutions, such as anti-aging and repair products, is driving growth in niche markets within the beauty sector [12][25] - The rise of content-driven e-commerce, including live streaming and social media sales, is reshaping how beauty brands engage with consumers and drive sales [24][30]

Core Viewpoint - The controversy surrounding the product "Kefumei" from Juzhi Biotechnology has escalated into a significant public debate over the authenticity of its key ingredient, recombinant collagen, leading to a broader discussion about ingredient marketing in the domestic beauty industry [1][3][4]. Group 1: Incident Overview - The dispute began on May 24 when beauty blogger "Dr. Big Mouth" Hao Yu accused Juzhi Biotechnology of falsely advertising the collagen content in its "Kefumei" product, claiming the actual amount was only 0.0177%, while it should be above 0.1% to comply with regulations [3][4]. - Juzhi Biotechnology responded with its own testing results, asserting compliance, but the blogger continued to question the validity of these results, leading to a back-and-forth that has lasted 12 days [3][4]. - The incident has resulted in a significant market impact, with Juzhi Biotechnology's market value dropping by over 20%, amounting to nearly 20 billion HKD [4]. Group 2: Industry Context - The beauty industry in China has increasingly relied on ingredient marketing, with companies like Huaxi Biotechnology leveraging popular ingredients like hyaluronic acid to drive sales [5][6]. - Juzhi Biotechnology's revenue for 2024 is projected to reach 5.54 billion RMB, a 57.2% increase year-on-year, with the "Kefumei" brand contributing over 80% of this revenue [4][6]. - The reliance on e-commerce channels is evident, with direct-to-consumer (DTC) sales accounting for 71.6% of Juzhi's total revenue, up from 65.2% the previous year [6]. Group 3: Market Dynamics - The ongoing debate highlights a "arms race" in ingredient marketing within the domestic beauty sector, where companies must continuously innovate and promote new ingredients to attract consumer interest and investment [1][5]. - The lack of industry standards for new ingredients like recombinant collagen complicates the situation, as companies can interpret and market these ingredients in ways that may not align with consumer expectations [10][11]. - The competitive landscape is further complicated by the contrasting fortunes of companies like Juzhi Biotechnology, which has seen its valuation rise, versus Huaxi Biotechnology, which has experienced declining revenues and profits [8][9].