Core Viewpoint - The article discusses the competitive landscape of the Chinese beauty market, highlighting how domestic brands like Han Shu are transitioning from short-term strategies to long-term capabilities in response to changing consumer preferences and increasing competition from international brands [1][3]. Group 1: Company Development and Strategy - Han Shu has achieved a user base of over 100 million and emphasizes long-term development through self-research and production, contrasting with the common reliance on marketing and outsourcing among many domestic brands [1][3]. - The company established a large-scale R&D center overseas in 2016 to integrate global cutting-edge technologies into its product capabilities [5]. - Han Shu's annual R&D investment has exceeded 100 million yuan since 2021, projected to reach 180 million yuan in 2024, accounting for 2.7% of its revenue [5]. Group 2: Innovation and Production - Han Shu has developed an "open innovation R&D platform" and collaborates with various universities and hospitals to enhance its research capabilities [5][7]. - The company has invested over 1.2 billion yuan in its smart factory, which features AI-driven automation and a comprehensive quality control system [8][9]. - The integration of R&D and production processes ensures product consistency and quality, with multiple testing stages for each batch [9]. Group 3: Market Expansion and Product Strategy - Han Shu is expanding its product range from skincare to a full category of beauty products, aiming to balance quality and accessibility for a broader consumer base [10][11]. - The brand is innovating by introducing advanced anti-aging technologies and new product lines to meet the demands of an evolving market [10]. Group 4: Social Responsibility and Industry Influence - Han Shu is building a brand philanthropy system and plans to engage in scientific communication and industry standard development, transitioning from a market participant to a rule-maker [12][13]. - The company aims to enhance its brand value and consumer trust through long-term social contributions and industry leadership [14][17]. Group 5: Long-term Development Framework - The article outlines three stages of Han Shu's long-term development: foundational building, systemic efficiency and market coverage, and value leadership through industry influence and social responsibility [15][16]. - The company's approach emphasizes the importance of sustained investment and systematic capability building to ensure competitive advantage in the beauty industry [17].

Core Viewpoint - The article emphasizes the shift in consumer focus from "cost-performance ratio" to "quality-price ratio," highlighting the need for brands to adopt long-term strategies to navigate market challenges. It showcases how Han Shu, a domestic beauty brand, is redefining its image through significant investment in research and development, moving away from a marketing-heavy approach to a more research-driven model [3][4]. Group 1: Research and Development - Han Shu has maintained an annual R&D investment of over 100 million yuan since 2021, with projections to reach 180 million yuan in 2024, marking a 43% year-on-year increase [9]. - The brand has established a "1+N open innovation R&D platform" to foster deep collaboration between industry, academia, and medicine, with partnerships involving institutions like Shanghai Jiao Tong University and China Pharmaceutical University [9]. - Han Shu's R&D team includes top experts from various fields, and the brand has achieved a significant breakthrough with the development of cyclic hexapeptide-9, recognized as the world's first self-researched cyclic peptide skincare brand [11][12]. Group 2: Manufacturing and Quality Control - Han Shu has invested over 1.2 billion yuan in its AI-driven smart factory, which is designed to meet higher safety standards than typical cosmetics production, ensuring quality and traceability [14]. - The brand employs a closed-loop model for production and research, ensuring strict quality control at every stage, which eliminates the possibility of using substandard formulations [16]. - Han Shu's commitment to quality is reflected in its transparent production processes, which are designed to build consumer trust and ensure product safety [17]. Group 3: Brand Strategy and Market Positioning - Han Shu aims to evolve from a skincare-focused brand to a comprehensive beauty brand covering skincare, makeup, men's grooming, and hair care, with a vision to become a "five-good brand" [18]. - The brand balances its strategy by maintaining its classic products while innovating in high-end markets, introducing advanced anti-aging technologies and making premium ingredients accessible to a broader audience [20]. - Han Shu is actively working to build a sustainable brand identity that transcends mere commercial success, focusing on social value and consumer trust over the long term [22][24]. Group 4: Long-term Vision and Social Responsibility - Han Shu is establishing a charitable foundation to address social issues and promote a long-term public welfare mechanism, reflecting its commitment to evolving into a brand with social responsibility [24]. - The brand's long-term strategy is divided into three phases: foundational stability, systemic efficiency, and value leadership, aiming to redefine industry standards and contribute to societal values [25]. - Han Shu is transitioning from being a market participant to a rule-maker, engaging in scientific communication and industry standard-setting to enhance consumer trust and brand reputation [25].

Core Viewpoint - The competition in the Chinese beauty market is shifting from a focus on marketing and traffic to a deeper emphasis on product quality, technological innovation, and cultural confidence, necessitating a long-term commitment from domestic brands like Han Shu [1][3]. Group 1: Long-term Commitment and R&D - Han Shu has adopted a long-term approach, emphasizing self-research and production over light asset operations, which is a more challenging path but essential for sustainable growth [3][4]. - Since its establishment in 2003, Han Shu has prioritized self-research as the only viable path for long-term development, establishing its R&D center early on [4]. - In 2016, Han Shu became the first domestic beauty brand to establish a large-scale overseas R&D center, aiming to integrate global cutting-edge technology into its product offerings [6]. - The company has maintained an annual R&D investment of over 100 million yuan since 2021, projected to reach 180 million yuan in 2024, accounting for 2.7% of its revenue [6]. Group 2: Production and Quality Control - Han Shu has invested over 1.2 billion yuan in its smart factory, which is the first AI-driven cosmetics factory in the domestic beauty industry, showcasing its commitment to heavy asset investment in manufacturing [8][9]. - The factory employs advanced technologies such as AGV vehicles and industrial robots to enhance efficiency and ensure product quality through rigorous testing and monitoring [9][11]. - The integrated "production and research" model creates a robust quality assurance system, ensuring that every product batch undergoes multiple quality checks [11]. Group 3: Brand Expansion and Market Strategy - Han Shu is expanding its product range from skincare to a full category of beauty products, aiming to become a comprehensive beauty brand that emphasizes quality and affordability [12][13]. - The company balances its strategy by maintaining classic products while innovating in high-end markets, introducing advanced anti-aging technologies and new product lines [13]. - Han Shu is committed to building a sustainable brand through a charitable foundation and social responsibility initiatives, aiming to evolve from a commercial entity to a socially responsible brand [13][14]. Group 4: Industry Insights and Future Directions - Han Shu's media open day serves as a model for other domestic beauty brands, illustrating that long-term commitment is a dynamic and systematic process rather than a mere slogan [15]. - The brand's long-term strategy can be divided into three phases: establishing a solid foundation, maximizing efficiency and ecological growth, and leading industry standards while contributing to social values [15][16]. - The ultimate goal is to become a trusted and aspirational brand in consumers' minds, breaking through the brand value bottleneck faced by domestic products [16].

Core Insights - The article emphasizes the competitive landscape of the Chinese beauty market, where domestic brands like Han Shu are striving to establish their identity against international giants through long-term commitment to product quality and innovation [4][6][21] - Han Shu's approach to long-termism is highlighted as a model for domestic beauty brands, focusing on self-research, production capabilities, and a commitment to quality over short-term marketing strategies [6][21][23] Group 1: Long-term Commitment - Han Shu has achieved a user base of over 100 million, showcasing its long-term strategy and commitment to quality [6] - The brand has invested over 1 billion yuan annually in research and development since 2021, with projections to reach 1.8 billion yuan by 2024, representing 2.7% of its revenue [8] - The establishment of overseas R&D centers in 2016 marked a strategic move to integrate global technological advancements into its product offerings [8] Group 2: Innovation and Production - Han Shu has developed an "open innovation R&D platform" to foster collaboration across various fields, enhancing its product innovation capabilities [8][11] - The company has invested over 1.2 billion yuan in its AI-driven smart factory, which is the first of its kind in the domestic beauty industry, emphasizing its commitment to quality and efficiency [12][15] - The integration of advanced technologies in production processes ensures product safety and quality control, establishing a robust operational framework [15] Group 3: Brand Expansion and Social Responsibility - Han Shu aims to expand from skincare to a full range of beauty products, including makeup and personal care, with a focus on delivering high-quality products to a broader audience [16][18] - The brand is committed to building a sustainable public welfare system, addressing social issues, and evolving into a value-driven brand [18][20] - Han Shu's future plans include actively participating in industry standards and scientific communication, positioning itself as a leader in the beauty sector [20][21] Group 4: Lessons for Domestic Brands - Han Shu's journey illustrates that long-termism is a dynamic process requiring continuous evolution and adaptation [21][23] - The brand's development can be categorized into three phases: establishing a solid foundation, maximizing efficiency through systemic growth, and leading in value creation and social recognition [22] - The article concludes that true long-termism is rooted in substantial investment, systematic intelligence, and resonating values, serving as a valuable lesson for all domestic brands [23]