1. 3-Minute Beauty Trends Cleansing Oil Grows Rapidly on China e-Commerce Campbell Lin in Seoul, MeasureCommerce March 25, 2021 iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii Data Source: MeasureChina Dashboard by MeasureCommerce China's e-commerce cleansing market in 2020 tops over 11 billion CNY. More than half of the 1 market revenues continues to be driven by sales of cleansing foam, up 8% from 52% in 2019. Although cleansing water, the second-largest market leader, takes up 24% of the market in 2019, it quickly lost 7% of the pie in 2020. Cleansing soaps saw the largest revenue contraction, decreasing by more than three quarters. However, though only 9% of the market, cleansing oil almost doubled its revenue, and revenues from tissues and foams also grew two-thirds and one-third, respectively. The “China’s e-commerce cleansing market” encompasses cleanser and makeup remover products sold on Tmall and Taobao. 1

2. Our MeasureCommerce’s social media data dashboard also shows the same trend. According to the bubble chart, “emulsification” (乳化) and “cleansing oil” (卸妆油) were the two fastest-growing keywords, respectively rising 18 and 29 places in a list of Xiaohongshu keywords related to “cleansing” (洁⾯) and “makeup removing” (卸妆). Data Source: MeasureInfluence Dashboard by MeasureCommerce “Emulsification”, in this context, refers to the process of mixing water and oil into a semi-stable mixture, enabling the ability of an oil-based cleanser to remove makeups. Another interesting finding is that compared to other skin types, “sensitive skin” appeared most frequently in Xiaohongshu (小 红书) posts. To put together the puzzles, Chinese consumers are increasingly looking for cleansing oil good for removing makeup and mild and non-irritating on the skin. So what cleansing oil products were popular among Chinese online consumers in 2020? Interestingly, according to our MeasureCommerce dashboard, the top 10 best-selling cleansing oil brands are dominantly Chinese and Japanese brands. The best-seller goes to Hydrating Watery Cleansing Oil (水感植物卸妆油) by the Chinese brand, Lan (兰), which emphasises four selling points: • Water-like texture, • 98% of ingredients naturally sourced, • Complete makeup dissolving, and • Skin-nourishing (养肤), a Chinese concept of maintaining the overall and long-term health of the skin. 3-Minute Beauty Trends Cleansing Oil Grows Rapidly on China e-Commerce

3. Ingredient-wise, the product contains various fruit and seed oils with different skin benefits: • Coconut oil for its outstanding makeup dissolving capacity • Rosehip oil for anti-oxidation • Jojoba oil for pore for pore decongestion and blackhead, and • Limnanthes alba seed oil for deep hydration. Hydrating Watery Cleansing Oil by Lan Source: Lan’s Tmall Flagship Store Ultime8∞ Sublime Beauty Cleansing Oil by Shu Uemura Source: Shu Uemura’s Tmall Flagship Store The best-selling Japanese cleansing oil is Shu Uemura's Ultime8∞ Sublime Beauty Cleansing Oil, with oils naturally sourced from ginseng and bamboo (龙头⽵) , which claims to have ultimate makeup removing ability and leave the skin smooth and soft. 2 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 specifically Fargesia Dracocephala, a bamboo variety mainly grown in the Southwest of China and a major food source for pandas. 2 3-Minute Beauty Trends Cleansing Oil Grows Rapidly on China e-Commerce