Core Insights - L'Oréal Group has made a minority equity investment in the Chinese skincare brand "LAN" through its subsidiary Shanghai Meici Fang, marking the first investment in a local skincare brand by Meici Fang [1][3] - "LAN," founded in 2019 in Hangzhou, is recognized for its pure skincare products that combine effective and enjoyable experiences, targeting consumer demands for efficacy and healing [1][3] - The brand has achieved significant success, being the top seller of facial oil in China for two consecutive years (2023-2024), transitioning from an innovator to a leader in the "oil skincare" segment [1] Investment Details - The investment is supported by BOLD (Business Opportunities for L'Oréal Development), L'Oréal's strategic innovation venture capital fund [1] - This partnership aims to leverage L'Oréal's extensive experience in global beauty research and market expansion to accelerate product innovation and global outreach for "LAN" [3] Brand Philosophy - The founder of "LAN," Ding Xiaolan, emphasizes the brand's commitment to inner exploration and quiet growth, inspired by the cultural significance of orchids in Eastern culture [3] - The collaboration with L'Oréal is seen as a step towards achieving a shared vision of beauty and science, with aspirations to make Eastern botanical energy accessible worldwide [3]

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]