Baiair Pharma Launches China's First Efficacy-Driven Cosmetics Commercialization Platform to Pioneer Offline Breakthrough Amid 90% Online Sales Dominance

(Shanghai, China, May 13, 2021) During the China Beauty Expo, Qingdao Baiyang Pharmaceutical Co., Ltd. (hereinafter referred to as “Baiyang Pharmaceutical”) announced the official launch of China’s first commercialization platform for cosmeceuticals, dedicated to empowering cosmeceutical brands in market entry through three dimensions: medical access standards, enhanced consumer experience, and precision marketing solutions.

Public data indicates that functional cosmetics account for no more than 20% of the overall cosmetics market in China, whereas this figure exceeds 60% in Japan and Europe, reflecting significant growth potential for China’s functional cosmetics sector. The advanced development of functional cosmetics abroad is attributed to their well-established and professional pharmacy-based distribution channels, which offer greater consumer confidence and a more specialized purchasing experience. In contrast, sales of functional cosmetics in China are currently dominated by online channels.

In response, Baiyang Pharmaceutical has proposed three strategies for the sustainable development of efficacy-based cosmetics: medicalization of brands, professionalization of marketing, and functionalization of channels. These initiatives aim to empower offline channel partners with specialized operational capabilities and help brands mitigate challenges such as the high costs of public-domain traffic. Consequently, the offline market has become Baiyang Pharmaceutical’s primary battleground for entering the cosmetics industry.

Live Speech by Li Zhenyu, General Manager of the New Retail Division at Baiyang Pharmaceutical

Li Zhenyu, General Manager of the New Retail Division at Baiyang Pharmaceutical, stated, “2021 will mark the inaugural year for the development of cosmeceuticals. With the promulgation of the ‘Specifications for Efficacy Claim Evaluation of Cosmetics,’ cosmetic efficacy claims can no longer be made arbitrarily; brands must provide corresponding test data to substantiate their claimed effects. The latest regulations effectively reshuffle the industry, allowing truly effective products to stand out. Meanwhile, China boasts a middle-class population of 400 million, with Generation Z being particularly prominent. This demographic not only values brand reputation but also prioritizes efficacy, ingredients, technology, and safety. These consumers will serve as the core driving force behind the growth of cosmeceuticals.”

Signing of Strategic Brands for Baiyang’s Efficacy-Based Cosmetics Commercialization Platform

At the press conference, globally renowned brands with core patented technologies—such as Tripollar, a leading brand in radiofrequency devices; Comfy, a pioneer in human-like collagen; and Ensigna, a leader in basement membrane repair—expressed high expectations for their collaboration with Baiyang. Chen Liang, the General Agent for Greater China of Tripollar, stated, “We have chosen Baiyang Pharmaceutical as our exclusive strategic partner for offline channels, valuing its professional team, abundant medical resources, and precise marketing strategies. Home-use beauty devices represent the convergence of technology and aesthetics; consumers can better appreciate the brand’s value through personal experience. We will jointly invest with Baiyang in offline channels to enable more consumers to experience the beauty brought by technology.”

Launch of the "100-City Experience Salon"

It is reported that Baiyang’s functional cosmetics commercialization platform has already partnered with over 10,000 professional cosmetics chain stores. Leveraging Baiyang Pharma’s solid pharmacy network established over the past decade, the company aims to collaborate with core pharmacy chains this year to create 500 hybrid stores offering both pharmaceuticals and functional cosmetics.

Another major challenge facing the development of functional cosmetics is traffic acquisition. As costs for public-domain traffic continue to rise and the dividend period of e-commerce platform growth gradually fades, the KOL marketing strategies that brands heavily relied on in the past have become increasingly ineffective in recent years. Whereas consumers previously focused on brand storytelling, they now prioritize ingredients and efficacy. This necessitates a reevaluation of brands’ traffic strategies. There is much to learn from international practices in leveraging specialized professional KOLs, such as board-certified dermatologists. Their professional endorsements, backed by robust clinical medical data, can help accelerate the growth of functional cosmetic brands.

Launch of the Expert Consensus Project on Evaluation Standards for Skin Microbiome Repair

Baiyang Pharmaceutical, in collaboration with a top-tier expert panel in dermatology—including Academician Liao Wanqing of the Chinese Academy of Engineering and Professor Liu Wei, Advisor to the Dermatology Branch of the Chinese Medical Doctor Association—has launched China’s first project on the “Expert Consensus on Evaluation Standards for Skin Microbiome Repair.” The initiative aims to help partner brands demonstrate product efficacy in accordance with rigorous evidence-based medicine standards and facilitate standardized, professional promotion to consumers through physicians.

On-site Lecture by Academician Liao Wanqing of the Chinese Academy of Engineering

Academician of the Chinese Academy of Engineering Liao Wanqing stated, “As consumers’ awareness of professional skincare continues to deepen, the cosmeceutical market holds enormous potential. To prevent disorderly development within the industry, the introduction of standardized regulations is of great significance.”

On-Site Speech by Professor Liu Wei, Advisor to the Dermatology Branch of the Chinese Medical Doctor Association

Professor Liu Wei shared several key regulatory trends in the cosmetics industry. These trends reflect the state’s attention to industrial development and indirectly confirm that the cosmetics industry has officially entered an era of regulation focused on efficacy-based cosmetics. Meanwhile, there is an urgent need to establish a public platform to consolidate industry consensus, jointly formulate standards, and standardize industry development.

Baiyang Pharmaceutical Group Chairman Fu Gang Presents Baiyang Pharmaceutical’s Commercialization Platform On-Site

Fu Gang, Chairman of Baiyang Pharmaceutical Group, stated that as a professional brand commercialization platform, Baiyang Pharmaceutical has accumulated core competencies in brand operation and industrial resources over years of development. In the pharmaceutical sector, the company has not only built leading brands in niche markets—such as D-Cal, Bite, and Fuzheng Huayu—but also helped upstream pharmaceutical companies broaden distribution channels for their branded products, thereby unlocking brand value. Looking ahead, Baiyang Pharmaceutical will apply a platform-oriented mindset to deeply cultivate the functional cosmetics industry. By continuously aggregating professional resources and collaborating with upstream brands and downstream channels with an open attitude, the company aims to provide professional services to consumers while unlocking vast opportunities for industry growth, thereby facilitating iterative upgrades and advancement across the sector.

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