Recently, the claim that Beijing Tuxian Technology Co., Ltd. (referred to as “Tuxian Technology”), a domestic beauty device distributor in China, has laid off a large number of employees, has been widely circulated on social media platforms. Several netizens who claim to be former employees of Tuxian Technology have posted on Xiaohongshu and Douyin, stating “The Vzusa beauty device parent company Tuxian Technology has laid off a large number of employees” and indicating that “90% of the employees will be laid off.”
In response to the authenticity of the layoff rumors, CHAILEEDO immediately contacted relevant personnel at Tuxian Technology for verification but had not received a response as of the time of publication. However, an insider at the company informed CHAILEEDO that “Tuxian Technology did indeed lay off employees due to poor management.” Additionally, the current HR manager, Li Liang, told CHAILEEDO, “Tuxian Technology recently went through a round of layoffs, but it is already in the past.”
It is worth noting that Tuxian Technology is not only one of the first companies to enter the beauty device industry but also the first beauty device distributor to be exposed for layoffs. What does this signify?
Tuxian Technology has previously acted as a distributor for multiple beauty device brands such as Tripollar and DR.ARRIVO.
“Tuxian Technology is one of the earliest companies in China to enter the beauty device industry.” Wang Chao, a former employee with over 5 years of experience at the company, mentioned to CHAILEEDO when discussing Tuxian Technology’s “position in the industry.”
According to the National Enterprise Credit Information Publicity System, Tuxian Technology was established in 2009 with Jiang as the legal representative and a registered capital of 5.5 million yuan ($756,100). Jiang serves as the general manager, financial officer, and executive director of the company.
“The success story of Tuxian Technology began with being the agent for Tripollar.” Wang Chao told CHAILEEDO. In 2012, Tripollar from Israel officially entered the Chinese market, becoming the first imported high-end radio frequency beauty device brand in China at that time, and Tuxian Technology became the agent for Tripollar as a result.
Based on past legal documents, Tuxian Technology once operated a store named “ARTISTIC & CO Tuxian Store” on JD.com, where they sold products such as the “Tripollar [officially authorized] Pose beauty device,” indicating a past working relationship between Tuxian Technology and Tripollar. “Around 2018, after the collaboration with Tripollar ended, Tuxian Technology became the agent for the DR.ARRIVO brand,” Wang Chao informed CHAILEEDO.
According to the introduction on Tuxian Technology’s official website, the company currently focuses on brands like DR.ARRIVO, DrScalp, The Vzusa, KASOLLY, URENEW, CITIZEN, Ruide, and self-developed products. The company’s introduction on the website states, “After years of careful management, we have established both online and offline sales channels, with annual sales exceeding one billion yuan. It is evident that over the years, the company’s business scope and revenue have been continuously expanding.”
Among these brands, DR.ARRIVO and The Vzusa are core businesses for Tuxian Technology. The significance of the DR.ARRIVO brand lies in its strong profitability. Wang Chao stated to CHAILEEDO, “When Tuxian Technology was the agent for DR.ARRIVO, they benefitted from the boom in the beauty device industry, with substantial sales in those years. With DR.ARRIVO, Tuxian Technology achieved revenue exceeding 100 million yuan ($13.75 million) in 2019 and between 300-400 million yuan ($41.23-$55 million) in both 2020 and 2021.”
In fact, the popularity of DR.ARRIVO beauty devices can be seen from previous platform rankings. According to data released by Tmall International, during the 2019 Double 11 period, DR.ARRIVO beauty devices had pre-sale orders worth 50 million yuan ($6.87 million). The highest-priced product, the “DR.ARRIVO Phantom 24K Gold-Plated Beauty Device,” sold out 6,000 units in 30 seconds.
According to the official WeChat account of DR.ARRIVO, during the 2019 Double 11 period, the total sales of DR.ARRIVO exceeded 150 million yuan ($20.62 million), a 430% year-on-year increase, with over 11,000 buyers and over 16,000 items sold.
Comparatively, The Vzusa brand represents more of Tuxian Technology’s efforts. Public records show that in April 2019, Beijing The Vzusa Economic and Trade Co., Ltd. (referred to as The Vzusa Company) was established, with the major shareholder being Jiang, the founder and CEO of Tuxian Technology, holding an 80% stake.
In October 2019, DR.ARRIVO’s parent company, ARTISTIC & CO Group, officially launched The Vzusa brand in Beijing, unveiling new beauty devices. Wang Chao mentioned, “The Vzusa beauty device was developed through a collaboration between Tuxian Technology and DR.ARRIVO, with the core components imported from Japan and the product appearance designed domestically; whereas most of The Vzusa skincare products are domestically produced, with only one essence product imported from Japan.”
CHAILEEDO’s investigation found that since 2018, The Vzusa Company has obtained dozens of design patents, many of which are related to beauty devices and accessories, such as “Beauty Device (The Vzusa 006),” “Beauty Device Accessory (The Vzusa-01),” and “Beauty Device (The Vzusa).” In terms of skincare products, CHAILEEDO discovered through a cosmetics supervision app that 19 cosmetic products under The Vzusa were registered by The Vzusa Company, with one facial cleanser registered by COSME DECORTE (China) Cosmetics Co., Ltd.
Moreover, as of now, Jiang remains the major shareholder, actual controller, and beneficiary owner of The Vzusa Company, holding 58.8% of the shares, while Tuxian Technology also holds a 20% stake in the company. It can be said that Tuxian Technology and Jiang have invested significant costs and time in developing The Vzusa brand.
“90% of the company’s employees will be laid off.”
“Layoffs started in May this year,” highlighted by another former employee of Tuxian Technology, Li Meng (pseudonym), told CHAILEEDO. It is understood that Li Meng joined the company at the beginning of this year. “When I first arrived, there were 110-120 people in the company. In May, about 20 people were laid off; by the end of August, another 30+ were laid off, and I was one of them.”
Li Meng told CHAILEEDO that at the end of August this year, she was summoned by a relevant person from Tuxian Technology, who stated that due to poor management, Tuxian Technology had decided to initiate bankruptcy liquidation proceedings, dismiss most of the employees, and retain only a few to clear inventory and handle follow-up matters. According to a recording provided by Li Meng, the person in charge stated, “90% of the company’s employees will be laid off, and currently, both Tuxian and The Vzusa have no money in their accounts. They can only provide employees with an IOU, and wages will be paid after three months.”
In response, CHAILEEDO immediately called the official registration number of Tuxian Technology for verification, but after a few rings, the call displayed “Server Error.” CHAILEEDO then called The Vzusa Company, an investment of Tuxian Technology, regarding the news of layoffs at The Vzusa Company and Tuxian Technology. They responded that it was “inconvenient to answer,” but mentioned that “The Vzusa store is operating normally.”
To further verify the authenticity of the layoffs, CHAILEEDO separately called relevant persons from Tuxian Technology, but the calls were immediately disconnected after connecting. A source familiar with Tuxian Technology informed CHAILEEDO, “Tuxian Technology is indeed preparing for layoffs due to financial difficulties and is on the verge of bankruptcy.” Additionally, CHAILEEDO contacted HR representative Li Liang from Tuxian Technology, who stated, “There were layoffs in the company some time ago, but it is already in the past.”
Furthermore, according to a ruling by the Labor and Personnel Dispute Arbitration Committee of Fengtai District, Beijing, issued based on Li Meng’s statement, it mentioned, “Tuxian Company claims that it is economically laying off employees due to poor management,” indicating that Tuxian Technology did indeed undergo a round of layoffs.
Accompanying the layoffs was a significant price drop for The Vzusa products. Li Meng informed CHAILEEDO, “The Vzusa recently discounted a lot of skincare products, selling many near-expiry products as gifts.”
CHAILEEDO noticed that in “The Vzusa Official Flagship Store,” a search for “near-expiry skincare products” displayed three product links, such as a skincare 4-piece trial set originally priced at 1030 yuan ($141.59), now selling for only 29.9 yuan ($4.1); and a bottle of beauty device essence originally priced at 1207 yuan ($165.92), now reduced to 399 yuan ($54.85). These products are set to expire between June and October 2025.
Not only near-expiry products saw significant price reductions. Also in “The Vzusa Official Flagship Store,” a facial cleanser originally priced at 1138 yuan ($156.4) was sold for 59.9 yuan ($8.23) during Double 12; and a jar of face cream originally priced at 4280 yuan ($588) was sold for 399 yuan ($54.8) during Double 12. Many netizens expressed dissatisfaction on social platforms. One netizen said, “The Vzusa face cream is reduced by 10 times, which is unacceptable.”
It is worth mentioning that The Vzusa had previously sparked discussions when beauty devices costing over ten thousand yuan were reduced to a few thousand yuan. In May of this year, several consumers posted on social media that the price of The Vzusa beauty device, purchased for over 15,000 yuan ($2062) in 2023, had dropped to 8,000 yuan ($1099.7) this year, almost halved. It is evident that consumers have also expressed concerns about potential quality issues and brand devaluation of The Vzusa products on various social platforms.
Beauty Device Consumption Becoming More Rational
As one of the earliest companies to enter the beauty device industry, what does the layoffs at Tuxian Technology imply behind the scenes?
First, it may lie in the increasingly fierce competition in the home beauty device sector. According to CHAILEEDO intelligence data, the beauty device sector grew by 220% in 2022, and it is expected that the market size of home beauty devices in China will exceed 40 billion yuan ($5.5 billion) by 2025. While this sector is rapidly expanding, more and more players are entering the market. Data shows that currently, there are over 100,000 domestic beauty device-related companies in China, with over 80% of them being established in the last five years.
Furthermore, various capital sources are also entering the arena. Data shows that from 2014 to the present, there have been at least 28 financing events in the beauty device market, with 15 financing events from 2021 to the present. Most brands have completed more than one round of financing. For example, AMIRO has raised funds in five rounds since its establishment in 2015, COSBEAUTY in four rounds, and brands like Comper, Femooi, InFace, JOVS, etc., in two to three rounds. Domestic brands like Huawei, Midea, Haier, etc., have also successively launched beauty device products.
It is evident that the domestic market for home beauty devices in China is thriving, with a large influx and expansion of companies and capital, continuously seizing market share in the beauty device sector. A practitioner from a beauty device company also told CHAILEEDO, “Many domestic beauty devices have risen in prominence, priced around 5000 yuan ($687.3), with quality and effectiveness comparable to imported products.”
Moreover, the aforementioned practitioner also stated, “The new regulations for radiofrequency beauty devices have led to a price plunge for a batch of beauty device brands.” It is understood that in March 2022, the National Medical Products Administration issued Announcement No. 30 of 2022, adjusting certain contents of the <Medical Device Classification Catalog>, stating that from April 1, 2024, products such as radiofrequency therapy devices and radiofrequency skin treatment devices must not be produced, imported, or sold without obtaining a medical device registration certificate. Although this regulation has been postponed to April 1, 2026, it remains a significant hurdle for home beauty devices to overcome.
In response, Huang Yanting, the operations director of Yushi Technology, the parent company of the beauty device brand Mary Fairy, once told the media, “Affected by the new regulations, since the beginning of this year, the beauty device industry has experienced a significant price drop phenomenon. Even though the transition period was extended in July this year, there has not been a clear rebound in sales across the market. After the industry turmoil, consumers are more inclined to wait and observe, maintaining a more rational mindset.” It is evident that consumers are shifting from impulsive buying to a more cautious and rational consumption decision-making process.
Facing intense competition and regulatory policy changes, the dilemma of Tuxian Technology actually reflects the challenges behind the rapid development of the home beauty device industry. Despite immense potential, market saturation, price drops, and policy uncertainties compel companies to reevaluate their strategic positioning and operational models to adapt to increasingly rational consumers and challenging market conditions. In this context, how to meet the new regulatory standards, regain the market through innovation and quality improvement, may be the key to future success for companies.
