Core Insights - The domestic beauty market in China is experiencing diverse and robust growth, with a focus on niche segments driven by consumer demand for personalization and refinement [1][2] - The facial cleansing segment is projected to exceed 150 billion yuan by 2026, with specific market sizes for facial cleansing, hair care, and body cleansing expected to reach 52.5 billion yuan, 70.3 billion yuan, and 33.3 billion yuan respectively [1] - Despite the large market potential, foreign brands dominate the top-selling products on major e-commerce platforms, indicating significant growth opportunities for domestic brands [1] Market Dynamics - The historical development of the facial cleansing segment was limited by low average transaction values and thin profit margins, but recent consumer upgrades and market changes are bringing this category to the forefront [2] - The demand for makeup removal products has evolved from basic cleansing to a comprehensive consideration of efficacy, experience, and brand, with a focus on "deep cleansing" and "gentle on the skin" [5] Product Development - The brand "Hongzhi" launched its first cleansing product, "Xiao Qin Jing" cleansing milk, in 2020, featuring 30% amino acid surfactants, which has become a best-seller across major e-commerce platforms [5][6] - Hongzhi has built a comprehensive product matrix covering makeup removal, facial cleansing, and hair care, with its olive enzyme makeup remover achieving cumulative sales of over 27 million units [5] Brand Strategy - Successful brands in the beauty industry, both international and domestic, rely on classic products as a core engine for sustained growth, as evidenced by long-standing bestsellers from brands like Estée Lauder and Perfect Diary [6] - Hongzhi's focus on classic products, such as "Xiao Qin Jing" cleansing milk and "Bu Jiu Jie" 2.0 makeup remover oil, has supported revenue growth and established a brand identity centered on "scientific cleansing" [6] Emerging Trends - Beyond the cleansing segment, other areas such as anti-aging, whitening, and repair in functional skincare, as well as various categories in color cosmetics, are witnessing the emergence of new brands and products [7] - Domestic brands are innovating by addressing unmet consumer needs with new product concepts and technologies, particularly in the anti-aging and color cosmetics sectors [7] - The value of classic products extends beyond immediate sales, serving as a key communication tool between brands and consumers, helping to build trust and create differentiation in a competitive market [7]

Core Viewpoint - The skin cleansing sector is experiencing rapid growth and market reshuffling due to the evolving consumer demand for essential products, emphasizing a shift towards refined, effective, and personalized solutions rather than mere price upgrades [3][4][7]. Group 1: Market Growth and Consumer Demand - The skin cleansing market in China has surpassed 1300 billion, with a projected continuous growth [7]. - In the first half of this year, the total transaction value for hair, facial, and body cleansing products on major e-commerce platforms reached 392.94 billion, marking a year-on-year growth of 13.34% [7]. - Consumers are increasingly seeking advanced needs beyond basic cleansing, focusing on deep care aspects like acne control and pore management [7][8]. Group 2: Brand Development and Innovation - Hongzhi, a rapidly growing domestic brand, has achieved significant market recognition, including being the leading brand in gentle makeup removal products and amino acid facial cleansers [4]. - The brand's success is attributed to its commitment to scientific innovation in the skin cleansing field, as highlighted during its five-year anniversary celebration [4][10]. - Hongzhi has established a comprehensive research and development system, addressing the long-standing lack of focus on cleansing product innovation within the industry [8][18]. Group 3: Scientific Approach and Product Development - Hongzhi's "scientific cleansing" concept encompasses four dimensions: raw material science, formula science, efficacy science, and sensory science, creating a robust scientific cleansing system [10][11][14]. - The brand emphasizes the balance between cleansing power and gentleness, utilizing top-tier raw materials and innovative formulations to enhance product efficacy [10][11]. - Hongzhi conducts efficacy testing for all products, adhering to high safety and quality standards, which sets it apart in the industry [13][14]. Group 4: Communication and Education - Hongzhi has initiated a dual-track communication mechanism to address the scientific dissemination challenges in the cleansing market, targeting both consumers and industry professionals [20][21]. - The brand collaborates with knowledge platforms to provide clear, science-based answers to consumer queries, enhancing brand recognition and trust [21][22]. - A book authored by Hongzhi's founder aims to establish authority in the cleansing field, providing valuable insights for industry practitioners [23]. Group 5: Market Position and Future Outlook - Hongzhi has successfully transitioned from a new brand to a mature one, demonstrating strong market performance and consumer trust [27][31]. - The brand's comprehensive product range and innovative approach have positioned it as a leader in the skin cleansing sector, with a focus on meeting diverse consumer needs [27][29]. - Hongzhi's commitment to long-term consumer-centric strategies and scientific standards is paving the way for future growth and industry leadership [35][36].