1. 3-Minute Beauty Trends The Expanding Non- Sheet Mask Category in China iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii

2. 3-Minute Beauty Trends The Expanding Non-Sheet Mask Category in China Campbell Lin in Seoul, MeasureCommerce March 9, 2021 The face mask market in China's Tmall and Taobao platforms reached more than 26 billion CNY in 2020, which grew more than 40% compared to 2019. As the Covid-19 outbreak put more people indoors longer since early 2020, demands for skincare products, in general, grew faster than those for makeup products. Sheet masks, defined as face-shaped sheet fabrics soaked in nutrition- packed solutions, continue to count for close to 70% of China's face mask consumption. On the other hand, data suggest that Chinese online consumers began to look for face masks outside the sheet mask category. Compared to the sheet masks sales figures, the market share of non-sheet masks depicts a rising trend. In this context, non-sheet masks include various mask types and shapes such as mud, cream, gel, sleeping masks, peel-off masks and etc. Based on 59% of the sales from face masks whose mask types are officially registered on Tmall or Taobao , the predicted market share of sheet masks decreased from about 74% in 2019 to 66% in 1 2020, while that of non-sheet masks is estimated to increase 8% between these two years. If we look at the face mask market as a whole, including those without registered mask types, a keyword search for sheet masks also suggests that the market share of sheet masks contracted by 2 4% between 2019 and 2020 and the non-sheet mask market share reached 37% in 2020. While this percentage shift may not seem significant, one particular non-sheet face mask category gained substantial market attention in 2020. Whereas only accounting for about 4% of the face mask market in Q4 2019, the mud mask category quickly penetrated the e-commerce market and more 3 than doubled its market share to over 10% in the same quarter in 2020. "Mud masks" in this context is a broader umbrella term that includes wash-off clay and mud masks with thicker-than-cream Not all Tmall and Taobao shops officially register the mask types of their face masks items in the product description section (商品详情 )of the listing. We estimate that only about 59% of face mask sales have their corresponding mask types registered. 1 Based on the following keyword search conditions within the face mask category on MeasureCommerce’s data dashboard: [“片” (sheets) OR “贴⽚” (sheets) in the product description (商品详情)] OR [“片” (sheets) OR “贴⽚” (sheets) OR “面膜贴” (sheet masks) in the listing name]. 2 Based on the following keyword search conditions within the face mask category on MeasureCommerce’s data dashboard: “白泥” (white clay) OR “泥膜” (clay masks) OR “岩泥” (rock clay) OR “火山泥” (volcanic clay) OR “海 泥” (marine clay) OR “泥浆” (lit. clay slush) OR “粘土” (clay) OR “黏⼟” (clay) OR “绿⾖泥” (mung bean clay) OR “清洁泥” (cleansing clay) OR “冰川泥” (ice ground clay), which cover the majority of mud masks in the market. 3 3-Minute Beauty Trends The Expanding Non-Sheet Mask Category in China

3. texture. The annual revenue brought by mud masks on Tmall and Taobao reached 2.3 billion CNY in 2020, increasing more than twice as 2019. More than 60% of the sold mud masks in 2020 has the benefit tag "purification", close to half is 4 "moisturising", and more than a third is claimed to be “oil-controlling". By sales revenue, the 2020 best selling mud mask product on Tmall and Taobao goes to "Amino Acid Mud Mask" (氨基酸泥浆 ⾯膜) developed by the Chinese brand, Unifon (御泥坊). Sold more than 2.5 million units at a price less than 100 CNY, this product is advertised to deep cleanse pores, control oil and remove blackheads. With 15 amino acids added, the mask is claimed to be calming and gentle for the skin. Unifon, https://www.yunifang.com Kiehl’s, https://www.kiehls.co.uk Only counting mud mask products (based on the same abovementioned keyword search conditions) whose benefit attributes are officially registered in the product description section (商品详情) on Tmall or Taobao. 4 3-Minute Beauty Trends The Expanding Non-Sheet Mask Category in China

4. The second best seller goes to Kiehl's "Rare Earth Deep Pore Cleansing Masque with Amazonian White Clay", which was sold at an average price of 290 CNY and generated over 160 million CNY for the brand in 2020. Similar to attributes of the previous product, Kiehl's mask contains Amazonian white clay, which is good for deep cleansing and oil reduction and Aloe Barbadensis, which is good for skin soothing. Contact us at contact@measurecommerce.ai Follow us on iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii Visit us at Homepage | Subscribe to Our Newsletter and Blog 3-Minute Beauty Trends The Expanding Non-Sheet Mask Category in China iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii