After investing in the Chinese aromatherapy-based emotional skincare brand AromeManpo, a L’Oréal-affiliated fund has now set its sights on a newly established Chinese emerging functional makeup base brand.
According to CHAILEEDO, there has been a recent equity change in the parent company of the new brand FIRST COVER, founded by Wang Yuying, the former head of PASSIONAL LOVER. A new shareholder, Cathay Consumer Co-Creation (Xiamen) Private Equity Partnership (Limited Partnership) (referred to as Cathay Capital), has been added. It is understood that Cathay Capital was jointly established by Cathay Capital, Kering Group, L’Oréal Group, and Pernod Ricard Group.
This marks the first time a L’Oréal-affiliated fund has invested in a Chinese makeup base brand. Incomplete statistics from CHAILEEDO show that FIRST COVER’s “Shapewear” foundation has sold over 100,000 units on Tmall and Douyin combined in less than four months since its launch.
L’Oréal-Affiliated Fund Invests in Chinese makeup base Brand That Previously Secured 100 Million Yuan in Angel Funding
Recently, CHAILEEDO learned that the parent company of the brand FIRST COVER, Wujiexing (Shanghai) Cosmetics Co., Ltd., has received new angel round financing, with the investor being Cathay Capital. However, the specific investment amount has not been disclosed.
According to information from the National Enterprise Credit Information Publicity System and Qichacha, Cathay Capital subscribed to a capital contribution of 157,000 RMB and now holds a 10.8% stake in Wujiexing, making it the company’s third-largest shareholder. The registered capital of Wujiexing has also increased from 1.176 million RMB to 1.451 million RMB.
In response to the equity investment, CHAILEEDO reached out to the FIRST COVER brand, L’Oréal China, and Cathay Capital for comment. As of the time of publication, the FIRST COVER brand had not responded.
L’Oréal China stated that it is one of the limited partners (LPs) investing in Cathay Capital. The fund is not under L’Oréal’s control, and the investment in FIRST COVER was a market-based decision made independently by the external fund.
Meanwhile, a representative from Cathay Capital told CHAILEEDO: “The investment in FIRST COVER was an internal decision by the fund. A dedicated colleague is handling the deal, but we cannot disclose further details.”
Cathay Capital was jointly established by Cathay Capital, Kering Group, L’Oréal Group, and Pernod Ricard Group. L’Oréal China participates through its wholly owned subsidiary, Guangzhou L’Oréal Baiku Network Technology Co., Ltd., which holds a 28.2051% stake in the fund.
It’s worth noting that in 2023, Cathay Capital also invested in the Chinese aromatherapy-based emotional skincare brand AromeManpo, marking its first skincare investment. The stake in Wujiexing now represents the fund’s first investment in a Chinese color cosmetics brand.
According to the National Enterprise Credit Information Publicity System, Wujiexing was founded in 2024. Its legal representative is Wang Yuying, and it serves as the parent company of the functional makeup base brand FIRST COVER. Public reports indicate that Wang previously worked at leading beauty companies such as L’Oréal, Estée Lauder, and Marubi, and has been involved with brands like MAC, Shu Uemura, and PASSIONAL LOVER.
In fact, this is not the brand’s first encounter with capital investment. In January, leading VC firm Matrix Partners China published a post stating that it had completed a 100-million-yuan angel investment in FIRST COVER in September 2024. Matrix also noted that this was their first investment in the beauty sector.
Li Chaochen, Vice President of Investment at Matrix Partners China, commented that the Chinese cosmetics market is still in the early stages of competition, leaving room for innovative companies to rise. Among all cosmetic categories, makeup base and skincare represent strong consumer mindshare, with higher demands for efficacy and safety. Compared to color cosmetics, fragrances, or haircare, the makeup base category offers greater user stickiness, higher repurchase rates, lower trend-related risks, and stronger brand value.
Li also praised founder Tracy (Wang Yuying), calling her “a rare product-driven talent in the beauty industry—young, highly self-demanding, and passionate about beauty, with meticulous thinking in team building, management, and organizational culture.”
Targeting Functional makeup base: Over 100,000 Units Sold in Just Four Months
According to public information, FIRST COVER, founded in 2024, claims to be China’s first functional makeup base brand. The brand seeks to break the boundaries between traditional makeup and skincare by offering products that combine both functionalities. It also integrates the performance benefits of firming and lifting with the emotional value of healing energy.
Speaking about the brand’s vision, founder Wang Yuying once stated publicly: “In an era of consumer sovereignty, beauty products must perfectly unite efficacy and experience. Only brands that satisfy both product value and emotional resonance can achieve long-term success in the fiercely competitive beauty market. FIRST COVER is dedicated to upgrading makeup base into a ‘weapon’ for every woman—not only to enhance her external beauty but also to empower her from within.”
To date, FIRST COVER has established official flagship stores across several major Chinese e-commerce platforms including Tmall, Xiaohongshu, and Douyin. Among them, the brand’s Tmall store has the highest follower count, with over 20,000 followers. According to the store’s listings, product prices range from ¥9.8 to ¥289. The best-selling product, the “Cozy Lifting Foundation,” has sold over 9,000 units.
On Douyin, FIRST COVER’s flagship store has more than 4,000 followers, with a total product sales volume of 89,000 units. The “Cozy Lifting Foundation” alone accounts for 33,000 of those.
The brand currently offers four products: a foundation, concealer, hydrating serum, and a Cozy Lifting Foundation. The First Cover Cozy Lifting Foundation, launched alongside the brand’s official debut in January, is available in two shades—Ivory and Natural—and in two sizes: 9g and 20g.
As of now, the Cozy Lifting Foundation remains the top-selling product across the brand’s e-commerce stores. Based on incomplete statistics from CHAILEEDO, the foundation has sold over 100,000 units on Tmall and Douyin combined in less than four months.
Last month, FIRST COVER launched its first primer-hydrating serum priced at ¥89 for 15ml. CHAILEEDO also discovered that the Cozy Lifting Foundation is registered under Intercos Cosmetics (Suzhou) Co., Ltd., while the concealer and hydrating serum are registered under Cosmax (China) Co., Ltd.
According to CHAILEEDO, in Q1 2025, FIRST COVER’s GMV (gross merchandise value) on Douyin alone ranged between ¥10 million and ¥25 million.
So why is FIRST COVER continuing to attract capital in an increasingly cautious beauty investment environment?
On one hand, it may be due to founder Wang Yuying’s extensive experience in brand management. As one industry investor told CHAILEEDO: “When investment institutions consider funding a company, the first thing they look at is the core team—especially key decision-makers.”
On the other hand, the brand’s traction reflects growing investor interest in the makeup base category itself.
“Makeup base is absolutely one of the hottest trends right now. Whether it’s skincare brands, color cosmetics brands, leading Chinese players, or even white-label producers—everyone is ‘all in’ on makeup base this year,” said Nod, founder of beauty brand Jiubian, to CHAILEEDO.
Intensified Competition in the makeup base Market: From Brands to Factories, the Entire Industry Is “Fully Activated”
According to CHAILEEDO, China’s makeup base market share increased from 48.8% in 2022 to 53.4% in the first half of 2024, marking a 4.6 percentage point rise over three years. This demonstrates that amid sluggish skincare growth and an oversaturated color cosmetics sector, makeup base has undoubtedly become a new breakthrough point.
In fact, since the beginning of this year, many Chinese Chinese brands have been accelerating the expansion of their makeup base product lines.
A typical example: around International Women’s Day (“3.8 Festival”), two major leading Chinese beauty brands launched makeup base products one after another. Top Chinese beauty brands Proya and Kans both introduced cushion foundations. Meanwhile, many color cosmetics brands have continued to release upgraded makeup base items. For instance, in February, Carslan launched a sun-protective makeup base line claiming SPF50+ protection; in March, FunnyElves released a new sunscreen foundation; and in April, Perfect Diary introduced a new foundation that claims to combine makeup and skincare.
“Both skincare and color cosmetics companies are seeking new growth points. Makeup base, a category long dominated by international brands, is now becoming a focus for Chinese brands as well—this is a significant market trend,” said Nod in an analysis. He noted that makeup base is, to some extent, a “product-driven” category, where the core competitiveness lies in the quality and user experience of the product itself. Therefore, in this niche segment, new brands or market entrants still have a chance to break through.
CHAILEEDO also found that beyond brands, factories are feeling the heat from the rising demand in the makeup base sector.
Li Shaoying, Deputy General Manager of Yangrun Technology, which specializes in makeup base powder research and innovative physical sunscreen encapsulation, told CHAILEEDO: “Our research shows that not only are professional color cosmetics brands diving in, but even companies that previously had no involvement in makeup base—even skincare factories—are now entering the space.”
Lin Lijun, Head of Color Cosmetics R&D at Guangdong Shangpinhui Cosmetics Co., Ltd., also pointed out that since the second half of last year, many brand owners, OEM factories, and even upstream raw material suppliers have been doubling down on the makeup base sector. “Our boss even repurposed the expensive nano-microjet equipment originally used for functional skincare development for makeup base production now.”
Additionally, the market’s heat is reflected in growing demand for talent. “In the past, cosmetics factories usually hired three types of engineers: for skincare, color cosmetics, and personal care. makeup base development was typically handled by skincare or color cosmetics engineers as a side task,” Lin Lijun said.
“Now, not only are R&D projects for makeup base being established independently, but companies are also specifically hiring makeup base engineers. It’s become a standalone role.”
Li Shaoying also observed that in earlier years, professional makeup base R&D talent was quite scarce. Today, more and more companies are forming dedicated teams to focus on this field. “Some brands are even starting to recruit technical personnel themselves to build specialized R&D teams.”
It’s also worth noting that price competition in the makeup base market is becoming increasingly intense. Several industry insiders told CHAILEEDO that brand owners are now placing even greater emphasis on cost control. “Everyone is chasing extreme cost-effectiveness. The budgets brand owners are offering now are basically half of what they used to be, but they still expect product performance on par with top-tier international brands,” a factory manager, speaking on condition of anonymity, revealed.
In short, the makeup base market has now become fully “activated” from brands to factories. However, this also signals the beginning of a more intense industry elimination game. This competition will not only test brands’ capabilities in product innovation and technical strength but also raise the bar for market strategy and consumer insight.
