Core Insights - The establishment of the Hainai Global R&D Center in Guangzhou marks a significant shift in the skincare industry from marketing-driven competition to research-driven competition [1][4] - Over the past three years, leading companies in China's skincare industry have increased their R&D investment from 3%-4% to 6%-10% of revenue, indicating a trend towards enhancing research capabilities [1] - The center aims to create a comprehensive R&D system that links local research with international resources, featuring nine functional laboratories [1][3] Industry Trends - The competition in the skincare sector is now focused on "research direction," "research depth," and "research conversion capability," which are essential for brands to succeed [2] - The growth of Chinese skincare brands will be driven by research, and their brand strength will increasingly depend on their research capabilities [4] - The opening of the Hainai Global R&D Center symbolizes a critical step for domestic brands to compete on a global stage, narrowing the gap with international brands that have historically relied on established R&D systems and patent matrices [4] Research Strategy - Hainai's R&D strategy includes a dual hub system that integrates global and local research efforts, establishing a sustainable innovation engine [3] - The research depth is enhanced by a team led by Nobel laureate Konstantin Novoselov and a group of nearly 40 PhD-level researchers focusing on innovative ingredient research [3] - Hainai plans to leverage its various brands to implement the latest effective skincare research outcomes, creating practical and evidence-based products [3]

Core Insights - The "clean beauty" trend has not gained significant traction in China, with major brands facing challenges and even retreating from the market [1][7][9] - International brands are struggling to effectively communicate the clean beauty narrative, leading to a reduction or elimination of their clean beauty lines [3][5][8] - The focus on efficacy in skincare is becoming more prominent, overshadowing the clean beauty concept, which lacks a unified standard in China [9][10][11] Group 1: Market Performance - TATCHA, a high-end skincare brand under Unilever, has seen a 19% decline in GMV on Tmall in 2024, indicating weak performance in the Chinese market [3] - The Body Shop, a pioneer in clean beauty, has faced bankruptcy in its UK and North American operations, leading to significant layoffs [1][2] - Unilever's overall sales in 2024 reached €13.2 billion, a 5.5% increase, but its operating profit fell by 3.7% and net profit dropped by 10.8% [3] Group 2: Brand Strategies - Unilever is streamlining its brand portfolio, focusing on core brands while planning to introduce five new anti-aging products priced over 800 yuan within two years [4] - REN, another clean beauty brand, has been cut from Unilever's offerings due to unclear core selling points and negative consumer feedback regarding product effectiveness [5][6] - Aesop, a brand under L'Oréal, has also faced challenges in the Chinese market, closing its first store in Shanghai despite aggressive expansion [8] Group 3: Consumer Preferences - The clean beauty concept is perceived as an additional feature rather than a primary selling point in China, where consumers prioritize safety, efficacy, and cost-effectiveness [7][9] - The demand for efficacy-driven skincare is rising, with keywords like "moisturizing," "repair," and "anti-aging" becoming central to consumer interests [10] - Domestic brands are beginning to adopt clean beauty principles, but often as supplementary marketing rather than core offerings, indicating a shift towards technology-driven solutions [11]