Harvest Capital Invests $40 Million in CHANDO Group's Ambitious Growth Path

CHANDO Group Welcomes Major Investment from Harvest Capital

In a significant turning point for the cosmetics industry in China, CHANDO Group has successfully raised over US $40 million in funding. This investment comes from Harvest Capital, a venture capital firm, and is complemented by participation from global beauty leader L'Oréal. This partnership is set to propel CHANDO Group into a new phase of growth, targeting high-quality and sustainable development.

A Legacy of Leadership in Beauty

Established in 2001, CHANDO Group has continually upheld its guiding principle, "Beautiful, as you are." The brand aims to provide consumers with accessible and high-quality beauty solutions. According to data from Frost & Sullivan, CHANDO is now the third-largest cosmetics group in China by retail sales as of 2024, with its flagship brand consistently ranking among the top two Chinese beauty brands for a decade now. This remarkable performance speaks to the company's resilience through various market cycles.

What started as a small enterprise has evolved into a well-rounded organization that manages its own supply chain, research and development (R&D), and manufacturing processes, all while leveraging digital technologies to remain competitive. From skincare and cosmetics to personal care and men's grooming, CHANDO has diversified its brand portfolio to include offerings such as Perfection Research, Chunxia, Meisu, and Jichu.

Continuously Pioneering through R&D

In an increasingly competitive market, CHANDO Group has stayed ahead by focusing on innovation powered by technology. The brand takes consumer needs seriously, pushing out products that delicately balance effectiveness and beauty. The rise of numerous "internet celebrity" brands makes CHANDO's commitment to a long-term strategy particularly noteworthy. The company's substantial investment in R&D has equipped it with a skilled team of 154 researchers specializing in life sciences, chemistry, and material sciences.

Additionally, CHANDO has forged collaborations with prestigious medical institutions, including Huashan Hospital and the National Children's Medical Center, ensuring that their products are rooted in scientific research. Since beginning its work in microbial fermentation research in 2013, CHANDO has developed unique core ingredients, such as "Ximoin" and "Space Ginseng Yeast," setting the company apart in the skincare market by securing its intellectual property rights.

The Digital Forward Leap

Beyond research and product innovation, CHANDO has successfully implemented a digital transformation strategy since 2019. The brand is not merely focused on being a leader in traditional offline beauty retail; it has adopted a digital-driven decision-making process, emphasizing agility and consumer-centricity within its organization. CHANDO is at the forefront of the industry in utilizing advanced management tools, such as "Unified Inventory" and "Cloud Stores."

The digital strategy laid the groundwork for an end-to-end operating system that covers everything from supply chain management to consumer data analytics. This approach has vastly improved operational performance and decision-making.

Harvest Capital’s Role in Enhancing Efficiency and Quality

Harvest Capital resonates with CHANDO Group's focus on maximizing lifetime consumer value. The firm's investment and strategic involvement have been ongoing since 2021, with dedicated teams offering expertise in business, finance, and legal matters to better align CHANDO's operations with its goals. Central to this collaboration is improving operational efficiency, with Harvest Capital helping the brand establish a budgeting system centered around return on equity (ROE).

The venture has also helped optimize CHANDO's direct-to-consumer (DTC) sales channels. Recent data shows that online sales have soared, accounting for 68.8% of CHANDO's revenue. This remarkable achievement reflects a growing trend towards content-driven e-commerce, allowing CHANDO to maintain its expansion while improving marketing efficiency.

A Unified Vision for the Future

CBNData highlights that Chinese beauty brands captured about 55.2% of the market share in 2024, signaling a shift from mass growth to concentration among market leaders. In line with this, Harvest Capital is confident that as the beauty industry continues to mature, Chinese companies like CHANDO will rise to prominence on a global scale.

Despite facing macroeconomic challenges, consumer interest in beauty products remains strong. As brands concentrate on quality and affordability, those that truly understand and cater to consumer needs will undoubtedly prevail in any economic climate. CHANDO Group, with its 20 years of industry experience and robust digital capabilities, is well-positioned for future success.

Aligned by a common long-range vision, the partnership represents Harvest Capital's commitment to fostering national brands in China and reshaping the landscape of the beauty industry. "Consumption acts as a cornerstone of China's economy, and our commitment remains towards backing visionary brands like CHANDO," asserts Alan Song Xiangqian, founding partner and chairman of Harvest Capital.

In conclusion, this collaboration sets the stage for CHANDO Group to further establish itself as a world-class beauty brand while showcasing Harvest Capital's confidence in the long-term potential of China's evolving beauty market.