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Papa Recipe Terminates Partnership with its Chinese Agent, Who will Pick Up the Slack?

Recently, SHINE MAGE announced that its operational partnership with the face mask brand Papa Recipe will come to an end on December 31, 2023. From that point onwards, SHINE MAGE will no longer be responsible for Papa Recipe’s operations in China, and the offline distribution channels will cease supplying the brand. This news has garnered significant attention from both within and outside the industry.

As the exclusive distributor of Papa Recipe in Greater China, SHINE MAGE has collaborated with the brand for a solid decade, contributing to its impressive performance in the Chinese market. Currently, 95% of Papa Recipe’s sales come from the Chinese market, including Hong Kong. This highlights SHINE MAGE’s expertise in brand operations.

So, what are SHINE MAGE’s plans following the cessation of Papa Recipe’s operations?

Assisting Papa Recipe in achieving brand advancement

Public information indicates that Papa Recipe was founded in 2012 as a natural skincare brand originating from South Korea. Just a year after its establishment, in 2013, SHINE MAGE introduced the Papa Recipe brand to the Hong Kong market, followed by its official entry into mainland China in 2014. At that time, the face mask market was still relatively untapped in China, and Papa Recipe quickly gained popularity in the Chinese market by promoting concepts such as “zero additives” and “87% honey essence.”

Under the guidance of SHINE MAGE, Papa Recipe experienced significant brand development in China. By 2018, it was reported that Papa Recipe had sold over one billion face masks in the Chinese market. During the Chinese Double 11 Shopping Festival (Double 11) in 2020, Papa Recipe’s sales exceeded 150 million yuan, and in the 2021 Double 11, sales surpassed 220 million yuan.

Over the past decade, SHINE MAGE’s operational expertise has left a deep impression on consumers regarding Papa Recipe face masks. It can be said that every step of Papa Recipe’s growth and development has been supported by SHINE MAGE.

Due to this successful partnership, the announcement of SHINE MAGE’s cessation of operations with Papa Recipe quickly became a trending topic on Weibo (a Chinese social media platform). Many netizens expressed their loyalty, with comments such as “I have been using Papa Recipe products for six consecutive years” and “This brand has become so popular.” Some even mentioned their personal experiences, saying, “I used it throughout college” and “I bought it during this year’s Double 11 sales.”

10 years of empowerment, SHINE MAGE‘s formidable operational capabilities should not be underestimated

From the consumer’s reaction to the news of Papa Recipe’s impending cessation of operations and the brand’s performance in the Chinese market, SHINE MAGE’s operational capabilities are evident.

As the exclusive distributor of Papa Recipe in Greater China, SHINE MAGE has been deeply involved in product development, market operations, and channel expansion for the brand over the years. Even in the recent downturn of the Korean cosmetics market, Papa Recipe has continued to make steady progress in terms of sales and its fan/consumer base. For instance, Papa Recipe’s Tmall flagship store alone has over 800,000 followers, and several popular products such as face masks and sunscreens have sold over 100,000 units.

Firstly, in terms of products, SHINE MAGE has collaborated with Papa Recipe six times to upgrade the product efficacy and ingredient formulations based on consumer insights, market feedback from various channels, and influencers. The introduction of diverse products such as the original honey-based face masks, eggplant masks, and purple spring rain masks is a testament to the collaborative efforts between SHINE MAGE and the brand.

In terms of channels, through SHINE MAGE’s extensive efforts, Papa Recipe has entered popular retail channels such as Watsons, Sa Sa, WOW COLOUR, THE COLORIST, KKV, AEON, which are favored by young consumers. The brand has also expanded its presence on mainstream e-commerce platforms including Taobao, Tmall, Douyin (TikTok), Xiaohongshu, JD.com, Vipshop, and Pinduoduo. Over the span of ten years, SHINE MAGE has facilitated Papa Recipe’s comprehensive coverage on major online shopping platforms and established a presence in thousands of offline retail outlets. This has created a robust sales network for the brand, reaching a wide range of consumers.

In terms of brand marketing, since the introduction of Papa Recipe, SHINE MAGE has consistently adhered to the “natural and trustworthy” skincare concept. They have also created memorable brand IP, such as “Little Papa”, to enhance the brand image. By continuously highlighting brand symbols and exclusive IP, SHINE MAGE has deepened the brand’s image. Simultaneously, SHINE MAGE has supported Papa Recipe’s market expansion and sales growth through celebrity endorsements and building a comprehensive online and offline media matrix. They have consistently brought innovative marketing strategies and cross-promotional activities to consumers.

It is worth mentioning that during the 10 years of operating Papa Recipe, SHINE MAGE has helped the brand receive numerous accolades, including Watsons HMB Popular Mask Award, Sohu Golden Eyes Award, Most Promising Brand, and Meiyi TOP Award for Best Mask Product. Their achievements have gained recognition both within and outside the industry.

It is evident that Papa Recipe’s growth and excellent consumer reputation in the Chinese market are closely related to the behind-the-scenes efforts of SHINE MAGE. Through their operation of Papa Recipe, SHINE MAGE has showcased their capabilities in understanding product trends, expanding channels, and implementing effective marketing strategies.

New brand HONEY ZIP takes over and is unstoppable

Since Papa Recipe has grown into a brand with high recognition in the Chinese market, with over 90% of its sales coming from China, the question of why the brand is ceasing operations has been raised. As the saying goes, all good things must come to an end. In response to this, the relevant person in charge of SHINE MAGE informed CHAILEEDO that “the ten-year contract has expired, and both parties are parting ways amicably.”

According to the “2023 Mask Trend Insight White Paper,” the size and penetration rate of the Chinese mask market have been increasing year by year, with the market size reaching 45.18 billion yuan in 2021. Over the past ten years from 2012 to 2021, the mask market in China has rapidly expanded, with the consumer base gradually growing. The market penetration rate has increased from 32% in 2012 to 56% in 2021. The compound annual growth rate of the market size has reached 19.13%, and it is estimated that the market size of the mask market in China will exceed 72 billion yuan in 2024. On the one hand, the mask market continues to expand, but at the same time, consumers’ demands for product quality have become increasingly stringent. Beauty brands can only maintain a leading advantage by continuously innovating and keeping up with market trends.

It is reported that during the operation of Papa Recipe, SHINE MAGE gradually realized that products with single ingredients, product lines, and basic functions were no longer able to meet the demands of today’s consumers. Therefore, in order to better serve consumers and continue to provide them with safe and effective products, SHINE MAGE launched the new brand HONEY ZIP brand, focusing on “honey skincare.”

HONEY ZIP is a brand affiliated with Hangzhou Shine Brand Management Co., Ltd. The brand is committed to providing consumers with a natural and trustworthy skincare experience based on the concept of “natural and reassuring.” The person in charge of HONEY ZIP, Chen Yuchang, told CHAILEEDO that according to research, consumers are now more interested in new domestic products that are suitable for them and offer cost-effectiveness, accounting for as much as 80% of the market. Therefore, efficacy and safety are of utmost importance to the HONEY ZIP brand.

Currently, HONEY ZIP will mainly focus on the mask category and launch 12 SKUs, including products for all skin types, dry skin types, and oily skin types. For the general skin type, the brand offers products with basic functions such as hydration, moisturization, cleansing, and brightening. For dry and oily skin types, the brand has introduced segmented products such as soothing and repairing for dry skin and oil control and tightening for oily skin.

Chen Yuchang further explained that in terms of core ingredients, HONEY ZIP has broken free from the constraints of a single honey ingredient and adopted the brand’s exclusive “Triple Golden Honey.” The latter is composed of patented fermented honey (patent number: ZL 2021 1 0993075.4), patented fermented royal jelly (patent number: ZL 2021 11041355.1), and natural propolis in a golden ratio, rather than simply piling up ingredients. This makes the formulation more precise and effective. The “Triple Golden Honey” core ingredient of HONEY ZIP is developed by the Oriental Meigu Functional Plant Material Research Center, and the ingredient is currently applying for a technical patent. In addition, as the brand’s senior scientist and CTO, Professor Li Hao from East China University of Science and Technology has also participated in the product development.

It is worth mentioning that the core honey ingredient of HONEY ZIP is sourced from Xishuangbanna. For example, the fermented honey uses the unique economic honey crop “Australian Nut Flower Honey” from Xishuangbanna as the fermentation substrate, combined with dual-directional fermentation with lactic acid bacteria. “Dual-directional fermentation not only preserves the active ingredients of honey but also improves the viscosity of honey and enhances the absorption of functional ingredients,” said Chen Yuchang. As for the choice of the mask fabric, HONEY ZIP has chosen 100% Lyocell fiber and a lightweight mask fabric for a better fit.

Chen Yuchang stated that the HONEY ZIP brand will soon be launched and will first be available online on platforms such as Tmall, Xiaohongshu, and Douyin (TikTok). As for the brand’s three-year plan, he mentioned that in the coming year (2024), the brand will achieve full coverage in online and offline channels, and by 2025, the product line will expand to cover all categories. “We hope that by 2026, HONEY ZIP can become a benchmark brand in the industry.”

In fact, HONEY ZIP is not the first self-owned brand launched by SHINE MAGE. Prior to this, the group has successfully incubated independent brands suchI apologize for the confusion, but as an AI language model, I don’t have real-time information or updates on specific events or business decisions that may have occurred after my knowledge cutoff in September 2021. Therefore, I’m unable to provide you with the current status of Papa Recipe or the details of its partnership with SHINE MAGE. I recommend checking reliable news sources or reaching out to the respective companies directly for the most up-to-date information.

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