Looking at the global skincare market, the power of dermatological science is being emphasized like never before. Several international beauty giants have specifically established dermatological science departments, and the involvement of Chinese dermatologists in skincare brand creation has become a trend.
According to incomplete statistics from CHAILEEDO, in recent years, at least 15 Chinese skincare brands have ventured into medical research and collaboration, reflecting the shift of medical research collaboration from being niche to becoming mainstream. Dermatological science is increasingly becoming an important aspect of brand development. However, there is a low-profile pioneer who quietly initiated the first collision between domestic skincare and translational medicine 35 years ago.
On May 22nd, the “XIEHE Vitamin E Cream, a Different Formula” and the 2024 XIEHE Pharmaceutical Industry Strategy Launch Conference were held in Shanghai. As one of the earliest companies in China to jointly develop cosmetics with the dermatological community, Suzhou XIEHE Pharmaceutical Industry stands at a new historical starting point. They use formulas developed by dermatology professors to provide solutions for skin problems faced by Chinese individuals. During the conference, Zheng Hui, the President of Suzhou XIEHE Pharmaceutical Industry, gave an exclusive interview to CHAILEEDO, sharing the company’s 35 years of dedication and in-depth cultivation in the field of effective skincare, as well as how they expanded the Vitamin E Cream market from a narrow niche to a broader audience through best-selling products.
35 years of focusing on problematic skin: the first practitioner of translational medicine in China
“The earliest Chinese cosmetics company to engage in translational medicine.” “XIEHE Vitamin E Cream is, in my impression, the first truly doctor-branded product.” During the conference, renowned dermatology and cosmetic dermatological science expert Lai Wei used several terms like “earliest” and “first” when discussing the position of Suzhou XIEHE Pharmaceutical Industry in the industry.
And it all started in 1984. At that time, during the era of reform and opening up, Zheng Zhenghua, a former physics teacher, discovered a significant gap in the skincare needs of Chinese individuals through communication with dermatologists. With the idea of “whether it is possible to transform hospital topical formulations into effective skincare products,” he made the resolute decision to start a business.
In 1989, Zheng Zhenghua led the establishment of the “Chinese Academy of Medical Sciences Suzhou Wuxian Health Care Daily Chemical Joint Factory” (referred to as the “Joint Factory”) in collaboration with the Beijing XIEHE Medical College Dermatological Hospital (Research Institute) (referred to as the “Dermatological Research Institute”) and the Suzhou Wuxian Institute of Daily Chemical Research. Zheng Zhenghua served as the factory director. The Joint Factory (the predecessor of Suzhou XIEHE Pharmaceutical Industry) started with the clinical skincare needs of ordinary people and transformed selected topical formulations from the Dermatological Research Institute into effective skincare products that catered to the needs of Chinese individuals.
In fact, Zheng Zhenghua’s idea coincided with the national advocacy of translational medicine, which aims to break down barriers between basic medical research, drug development, clinical practice, and public health. This also meant that Suzhou XIEHE Pharmaceutical Industry took the lead in initiating translational medicine in the field of Chinese skincare.
It’s worth noting that it wasn’t until around 1993 that foreign skincare brands with backgrounds in dermatology, such as Clinique and VICHY, entered China, and concepts such as “medicated cosmetics” and medical skincare started to emerge.
“I remember that at that time, in major pharmacies in Shanghai, our products were surrounded by foreign brands,” recalls Zheng Hui, the President of Suzhou XIEHE Pharmaceutical Industry, reflecting on the early days of the company.
In 1990, the Joint Factory applied for and obtained the XIEHE trademark, and the reason for choosing the name XIEHE can be traced back to its connection with the Beijing XIEHE Medical College. Official records show that the Chinese Academy of Medical Sciences and the Beijing XIEHE Medical College are two brands under the same institution, and the Dermatological Research Institute, as a directly affiliated research institute of the Chinese Academy of Medical Sciences, is also a subordinate unit of the Beijing XIEHE Medical College.
Regarding this, Zhou Zhanchao, the founder of the Laser Department at the Dermatological Research Institute (Hospital) of the Chinese Academy of Medical Sciences, stated during the conference, “In the cosmetics field, XIEHE originates from the Dermatological Research Institute, that is the true XIEHE.”
In 1998, the Joint Factory officially transformed into Suzhou XIEHE Pharmaceutical Industry. It is worth mentioning that through deep collaboration with the Dermatological Research Institute, the product development approach of Suzhou XIEHE Pharmaceutical Industry is based on insights into problematic skin and the necessity for specific effectiveness in their products. In this sense, Suzhou XIEHE Pharmaceutical Industry is also one of the earliest effective skincare companies in China.
“For the past 35 years, we have consistently adhered to translational medicine, never changing, always making professionalism the core of our products, while maintaining a good balance of safety and effectiveness,” said Zheng Hui to CHAILEEDO.
Practicing the professor’s formula in dermatology: The “Secret” behind the 50 million bottles sold of XIEHE Vitamin E Cream
When mentioning Suzhou XIEHE Pharmaceutical Industry, it is impossible not to mention its flagship product, XIEHE Vitamin E Cream.
CHAILEEDO noticed that XIEHE Vitamin E Cream has topped multiple charts on the Tmall platform, including repurchase rankings, positive reviews, and add-to-cart rankings. Priced at less than twenty yuan per bottle, what is the secret behind its dominance on these platform lists?
It is understood that vitamin E, discovered by researchers a hundred years ago, has since been widely applied. In China, many hospitals used it as a topical formulation for treating skin problems. In the 1990s, the Dermatological Research Institute compiled over 140 hospital formulations with significant clinical effects, including Vitamin E Cream, which gained high praise from dermatologists due to its safety and effectiveness.
At that time, Suzhou XIEHE Pharmaceutical Industry decided to collaborate with several dermatology professors to transform the medical formulations from the Dermatological Research Institute into skincare products for the general public. XIEHE Vitamin E Cream gradually entered thousands of households and became the representative product in the Vitamin E Cream category after years of continuous iteration and updates.
Lai Wei stated, “Topical formulations with vitamin E played a significant role in the treatment of various skin diseases early on. It is one of the few ingredients and formulations that can be simultaneously applied in the cosmetics field, effectively addressing the moisturizing needs of dry skin.”
Regarding the success of XIEHE Vitamin E Cream, Liu Wei, a consultant dermatologist at the Chinese Medical Doctor Association, said, “When people hear about vitamin E, they may think it’s an outdated concept. However, the current XIEHE Vitamin E Cream not only contains vitamin E but also incorporates new ingredients and materials with new functions, which gives the brand a fresh vitality.”
In fact, the enduring success of XIEHE Vitamin E Cream is attributed to Suzhou XIEHE Pharmaceutical Industry’s adherence to the concept of dermatology professor-formulated products.
It is reported that from the early collaboration with dermatology experts from the Dermatological Research Institute to the establishment of the “Scientific and Technological Expert Committee” in 2021, featuring five renowned domestic dermatology experts such as Professor Liu Wei, Professor Lai Wei, Professor Zhou Zhanchao, Researcher Ma Pengcheng from the Beijing XIEHE Medical College Dermatological Hospital (Research Institute), and Chief Physician Zhang Huailiang from the Beijing XIEHE Medical College Dermatological Hospital (Research Institute), Suzhou XIEHE Pharmaceutical Industry has always entrusted dermatology professors with the responsibility of formulating safe and effective products.
CHAILEEDO understands that this committee aims to conduct in-depth research on “dry skin,” “oily skin,” “combination skin,” as well as common skin issues and the development of effective skincare products. On one hand, they delve into research and optimization of vitamin E as the core ingredient, further enhancing its application and efficacy in functional cosmetics. On the other hand, relying on skin physiology and with the goal of promoting skin health, they develop safe, professional, and effective formulation recipes, which are ultimately applied to XIEHE’s related functional products.
According to Suzhou XIEHE Pharmaceutical Industry, as of December 2023, XIEHE Vitamin E Cream has sold over 50 million bottles. Zheng Hui proudly stated, “With higher-quality products and affordable prices, many consumers have come to associate Vitamin E Cream with XIEHE, and the outstanding market performance confirms the reputation of XIEHE Vitamin E Cream.”
“I am particularly proud that with the efforts of Suzhou XIEHE Pharmaceutical Industry, the Vitamin E Cream category has achieved significant growth and has gradually become a competitive track within the category,” said Zheng Hui.
Participating in the drafting of multiple industry standards, Suzhou XIEHE Pharmaceutical Industry prescribes solutions for Chinese people’s skin problems.
As a brand that spans almost the entire history of skincare development in China, Suzhou XIEHE Pharmaceutical Industry has experienced its fair share of challenges over the past 35 years.
According to Zheng Hui, in 2012, due to adjustments in the medical insurance policy, “non-drug” products were required to be removed from pharmacies participating in the insurance program. At that time, pharmacies were the main offline sales channel for XIEHE products. Therefore, it was necessary to quickly open up new channels. It took them more than three years to gradually enter major supermarkets.
Currently, Suzhou XIEHE Pharmaceutical Industry has accumulated a wealth of offline channel resources. In 2020, they began actively promoting an O2O transformation brand strategy and increased their presence in online channel marketing. It is reported that Suzhou XIEHE Pharmaceutical Industry has established partnerships with over 35,000 offline points of sale, covering more than 30 provinces nationwide. Their channel layout covers key accounts (KA), convenience stores (CS), over-the-counter (OTC) channels, 24-hour convenience systems, new consumer beauty stores, as well as online channels such as Kuaishou, Douyin, Xiaohongshu, and Taobao.
At the same time, Suzhou XIEHE Pharmaceutical Industry is actively promoting the standardized development of the industry. They have participated in the formulation of multiple industry standards, including “Evaluation Methods for Tightening Efficacy Claims of Cosmetics” and “Evaluation Methods for Nourishing Efficacy Claims of Cosmetics,” in collaboration with the Jiangsu Health Food and Cosmetics Safety Association and the Jiangsu Product Quality Supervision, Inspection, and Research Institute (National Cosmetics Quality Inspection and Testing Center).
After years of development, Suzhou XIEHE Pharmaceutical Industry has significantly improved its research and development capabilities, product strength, and channel power. In terms of research and production, they have established a complete chain of research and development systems and significantly enhanced their flexible supply chain and manufacturing capabilities. In addition to XIEHE Vitamin E Cream, they have also developed a comprehensive range of 25 functional product lines, providing solutions for various skin problems and achieving full coverage in both online and offline channels through self-operated and distribution systems.
Although Zheng Hui has been with Suzhou XIEHE Pharmaceutical Industry for nearly twenty years, the initial intention of “developing skin health and improving people’s health” since the establishment of the joint venture factory has always remained deeply ingrained in his mind.
“Although the company has gone through various changes, our original intention of transforming medicine in 1989, developing effective skincare products, and solving skin problems for the Chinese people has never changed.” Zheng Hui speaks passionately about their original mission.
Just as 35 years ago, Suzhou XIEHE Pharmaceutical Industry keenly recognized the market opportunity of dermatologists’ formulations, and now, standing at a new starting point, Suzhou XIEHE Pharmaceutical Industry sets off once again, taking big strides towards the goal of creating skincare products that are suitable for the Chinese people and have professional efficacy.
