Core Insights - The skincare industry is experiencing intense competition in technology, with numerous suppliers showcasing unique ingredients and certifications at a recent cosmetics trade show [1][2][3] - The trend of emphasizing active ingredients and technical claims on product packaging is prevalent, as brands seek to carve out market positions by replicating successful commercial models [4][5] - The lack of authoritative industry standards and clarity on ingredient efficacy is causing confusion and skepticism among consumers [6][7][8] Group 1: Active Ingredients and Technology Trends - Active proteins and plant extracts remain core competitive areas in the skincare industry, with leading brands continuing to invest heavily in research and development [10][11] - The popularity of active proteins is driven by their previous applications in medical and aesthetic fields, which lend credibility to their use in consumer products [15][20] - New technologies in plant extraction are emerging, aiming to address traditional challenges such as stability and absorption rates [18][19] Group 2: Marketing and Industry Challenges - The rapid iteration of core ingredients in domestic beauty brands has outpaced normal industry evolution, leading to communication gaps between technology, products, and consumers [22][23] - The absence of unified national standards for new ingredients has resulted in market confusion and potential harm to consumers [24][26] - Overemphasis on marketing claims has led to exaggerated efficacy narratives, causing consumer dissatisfaction and adverse reactions [30][31][33] Group 3: Future Directions and Brand Strategies - The skincare industry is entering a period of deep adjustment, with competition shifting from ingredient-based to ecosystem-building capabilities [37][39] - Brands must find new competitive advantages beyond ingredient efficacy, such as emotional value and consumer experience [41][42] - The rise of niche markets, including male skincare and elderly care, presents new opportunities for growth and diversification [48][49]

Core Viewpoint - The article discusses the recent surge in stock prices of new consumption companies in Hong Kong, particularly highlighting the IPO of Lin Qingxuan and the challenges it may face in achieving stable profitability and brand reliance [1][2]. Financial Performance - Lin Qingxuan's revenue has shown growth from 6.91 billion RMB in 2022 to 12.10 billion RMB in 2024, with year-on-year growth rates of 16.5% in 2023 and 50.3% in 2024 [3]. - The company reported a net loss of 5.93 million RMB in 2022, but turned a profit of 84.52 million RMB in 2023 and 187 million RMB in 2024 [3]. Profitability Metrics - The gross profit margin for Lin Qingxuan was high, with figures of 78%, 81.2%, and 82.5% from 2022 to 2024, while the net profit margin improved from -0.9% in 2022 to 15.4% in 2024 [5]. - The company heavily promotes its "high-end" branding, which is a central theme in its IPO prospectus, mentioned 157 times [5]. Marketing and R&D Expenditure - Lin Qingxuan's marketing expenses are significant, with sales and distribution costs amounting to 5.09 billion RMB, 4.86 billion RMB, and 6.88 billion RMB from 2022 to 2024, representing 73.7%, 60.2%, and 56.9% of total revenue respectively [12][13]. - In contrast, R&D spending was low, totaling less than 100 million RMB over three years, with only 80 patents held, of which 42 are related to core ingredients or technologies [13]. Brand and Product Dependency - The company relies heavily on its single brand "Lin Qingxuan," which accounted for 99% of total revenue from 2022 to 2024, raising concerns about its vulnerability to market changes [11]. - The core product, camellia oil, has increased its revenue contribution from 31.5% in 2022 to 37% in 2024, indicating a growing dependency on this single product line [12].