Core Viewpoint - Estée Lauder Group's fiscal year 2025 report reveals significant strategic shifts, including the first disclosure of annual sales in mainland China and a major restructuring plan aimed at profit recovery and growth [3][6][9]. Financial Performance - The total net sales for fiscal year 2025 decreased by 8% to $14.33 billion, down from $15.61 billion in fiscal year 2024 [4][9]. - The Americas region reported a 4% decline in sales, while Europe, the Middle East, and Africa (EMEA) saw a 12% drop, and Asia/Pacific experienced a 7% decrease [20][22]. - Mainland China's sales were $2.74 billion, reflecting a 6% decline compared to the previous year [4][9]. Strategic Changes - The company is undergoing a large-scale restructuring, with plans to cut 5,800 to 7,000 jobs, having already reduced over 3,200 positions by August [6][9]. - Starting from fiscal year 2026, mainland China will be reported as an independent region alongside traditional markets like the Americas and Europe [3][6]. Profitability and Margins - Despite declining sales, the adjusted gross margin improved by 230 basis points to a record high of 74.0% [6][9]. - The company aims to achieve organic sales growth and rebuild operational profitability in the upcoming fiscal year [7][9]. Product Category Performance - Skincare and makeup categories faced challenges, with skincare sales down 12% to $6.96 billion, while makeup sales decreased by 5% to $4.21 billion [12][14]. - Fragrance remained stable, with sales of $2.49 billion, driven by brands like Le Labo and Jo Malone [16][18]. Market Dynamics - The Chinese market showed resilience, with all categories achieving market share growth in the second half of the fiscal year, particularly driven by La Mer and TOM FORD [24][26]. - The company is focusing on product innovation tailored to Chinese consumers, with new launches addressing specific skincare needs [26][28]. Organizational Restructuring - The company has made significant changes to its organizational structure, including the introduction of new key positions such as Chief Digital Marketing Officer and Chief Technology, Data, and Analytics Officer [33][34]. - The restructuring aims to enhance data-driven marketing and operational efficiency, aligning with the "Beauty Reimagined" strategy [32][34]. Future Outlook - The company anticipates organic net sales growth of 0% to 3% in fiscal year 2026, with continued strong gross margins and an increase in operating profit margins [34][35].

Core Viewpoint - The article investigates the challenges faced by Haipaike, a maternal and infant e-commerce platform preparing for an IPO, particularly focusing on allegations of counterfeit products and questionable supplier management practices [1][2][3]. Group 1: Company Overview - Haipaike, founded in 2015, is a B2B platform targeting the lower-tier market for maternal and infant products, connecting suppliers with retail stores and expanding into beauty and health products [2][3]. - The company claims to have a market share of 10.1% in the family care and nutrition product sector, with a projected transaction volume of 8.6 billion yuan in 2024 [2]. Group 2: Counterfeit Product Allegations - Haipaike has faced ongoing allegations of selling counterfeit products, with consumer complaints documented on third-party platforms [2][3]. - A test conducted by a journalist revealed that a purchased product, claimed to be genuine, failed authenticity checks, raising concerns about the company's product verification processes [3][5]. Group 3: Supplier Management Issues - The investigation highlighted significant issues in Haipaike's supplier management, including the presence of unauthorized products on the platform and a lack of rigorous supplier vetting [4][6]. - The company’s customer service has struggled to address counterfeit claims effectively, often leading to consumer dissatisfaction and difficulties in obtaining refunds [5][7]. Group 4: Operational Metrics and Claims - Haipaike claims to connect approximately 290,000 retail stores, but the authenticity of this figure is questioned, as the registration process for stores appears to be lax [10][11]. - The company’s revenue model has shifted from commission-based income to self-operated sales, with a notable decline in commission revenue from 354 million yuan in 2022 to 229 million yuan in 2024 [13][14]. Group 5: Financial Performance and Future Outlook - Haipaike's revenue showed signs of decline, with figures of 895 million yuan in 2022, 1.067 billion yuan in 2023, and 1.032 billion yuan in 2024, alongside a cumulative loss of 1.854 billion yuan by the end of 2024 [15][16]. - The company has undergone multiple rounds of financing, with significant shareholder withdrawals, indicating potential instability as it approaches its IPO [15][16].