1. 3-Minute Beauty Trends The Best-Selling U.S. Brand in the Oriental Herbal Skincare Market iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii

2. 3-Minute Beauty Trends The Best-Selling U.S. Brand in the Oriental Herbal Skincare Market Campbell Lin in Seoul, MeasureCommerce March 16, 2021 For many Chinese consumers, skincare products with rare and valuable traditional Chinese herbal extracts are nothing new. For instance, Ginseng could be found in Sulwhasoo's Ginseng series, known for improving early signs of skin aging. Other examples of oriental herbs used in skincare products include Chinese caterpillar fungi (冬⾍夏草), reishi mushrooms (灵芝; Lingzhi) and bird's nest (燕窝). The e-commerce market of beauty products with these oriental herbs amounts to more than 2 billion CNY in 2020. This market saw its fastest YoY monthly 460% growth in November 2019 and continued to expand in 2020 though at a lower rate. So, what are the leading brands in this market? Many people might think of Chinese, Korean or Japanese brands for their geographical and cultural proximity to oriental herbs. In fact, data show that in China's reishi skincare market, Chinese brands and U.S. brands are the major players, respectively accounting for 45.5% and 45.2% of this market in 2020. The best-selling brand goes to The Estée Lauders Companies owned Origins whose 340 million CNY sales of reishi product sales in 2020 accounted for close to half of the reishi skincare market. By sales volume, the American brand sold close to four times as much as that of the second best-selling brand, HKH (a Chinese brand established in 2016) and more than five times as much as the third best-selling brand, Yue-sai. One-third of Origins' oriental herb skincare sales came from one product: Mega-Mushroom Relief & Resilience Soothing Treatment Lotion, with reishi mushroom as one of the key ingredients along with fermented chaga & coprinus mushrooms. The lotion is claimed to reduce visible redness and boost hydration for redness and sensitive skins. Source: Origins’ Official Website The Best-Selling U.S. Brand in the Oriental Herbal Skincare Market 3-Minute Beauty Trends

3. While reishi mushroom is a traditional Chinese herb, why did an American brand's reishi products outperform their Chinese counterparts by so much? What is the secret sauce for its market dominance? On April 21, 2020, a day before Earth Day, Origins' then brand ambassador Wang Yibo (王一博) published a post on Weibo reaching more than 2.7 million users, which is ten times more than the second most popular Origins-related Weibo post. Yibo's post said many meaningful things could be achieved in ten years and Origins chose to develop natural plant-based skincare. He further explained that since the brand entered China ten years ago, its constant commitment to eco- friendliness had brought "green hopes" to Earth for several decades to come. Although the post did not explicitly mention Origins' key ingredient, reishi, the short clip in that post made an implicit connection between plant-based reishi products and the brand's contribution to eco-friendliness and sustainability. Source: Weibo Then you may ask: "how did Yibo successfully promote the Origins brand and boost its product sales?" Yibo is an extremely popular Chinese actor who in 2014 debuted as a member of Uniq, a Chinese-Korean boy band. As of February 2021, his Weibo account has more than 37 million followers. It is also worth mentioning that the two posts published by Origin's official Weibo account during the same period, though both featuring Wang Yibo, engaged only less than 2% of those by Yibo's post. In a nutshell, Wang Yibo's unparalleled popularity has significantly spread Origins' brand value and initiatives to a much larger social media user base and successfully promoted its reishi products without using hard-selling marketing tactics. Wang Yibo Origin’s Official Origin’s Official Source: MeasureCommerce’s Data Dashboard The Best-Selling U.S. Brand in the Oriental Herbal Skincare Market 3-Minute Beauty Trends

4. For more beauty market updates and trends in China • Visit MeasureCommerce’s website • Subscribe to MeasureCommerce’s newsletter • Contact us at contact@measurecommerce.ai • Follow MeasureCommerce on LinkedIn • Follow MeasureCommerce on WeChat The Best-Selling U.S. Brand in the Oriental Herbal Skincare Market 3-Minute Beauty Trends