Harvest Capital has invested ¥300 million (over $40 million) in CHANDO Group, one of China’s leading homegrown beauty companies. Global beauty giant L’Oréal also participated in the round as an industrial partner. The partnership underscores a strategic collaboration between top-tier consumer investors and international leaders aimed at accelerating CHANDO’s next phase of sustainable and high-quality growth.
Founded in 2001, CHANDO Group has become synonymous with innovation and affordability in China’s beauty industry. Guided by its brand philosophy, “Beautiful, as you are,” the company has grown into one of the most significant domestic players in skincare and cosmetics. According to Frost & Sullivan, CHANDO ranks as the third-largest Chinese cosmetics group by retail sales as of 2024, with its flagship brand consistently among the top two Chinese beauty brands for more than a decade.
Over two decades, CHANDO Group has transformed into a vertically integrated enterprise encompassing raw material sourcing, R&D, manufacturing, and distribution. With an advanced digital operating ecosystem and strong direct-to-consumer (DTC) channels, the company manages a diverse portfolio of brands, including CHANDO, Perfection Research, Chunxia, Meisu, and Jichu. Its offerings now span multiple categories—skincare, makeup, personal care, men’s grooming, and baby care—positioning the company as a full-spectrum player in China’s beauty landscape.
CHANDO’s continued leadership in a fiercely competitive market is rooted in its emphasis on R&D-driven innovation. The company employs 154 researchers across disciplines such as life sciences, materials science, and applied chemistry. It also maintains strategic partnerships with leading medical institutions including Huashan Hospital and Fudan University Children’s Hospital.
Since 2013, CHANDO has been a pioneer in microbial fermentation research, establishing independent R&D centers in Shanghai and Nyingchi, Tibet. Its breakthroughs include proprietary ingredients such as Ximoin, Blue Copper Peptide, and Space Ginseng Yeast—the latter developed through collaboration with China’s aerospace program, making CHANDO the first Chinese cosmetics company to hold independent IP in yeast-based ingredients.
Beyond product innovation, CHANDO’s success has also been fueled by its digital transformation strategy, launched in 2019. By integrating tools such as Unified Inventory and Cloud Stores, the company has built a fully digitalized operation covering the entire value chain—from supply chain management and production to sales and data analytics. This transformation has dramatically improved operational efficiency and allowed CHANDO to establish a more agile, consumer-centric organization.
Harvest Capital’s involvement deepens this transformation. Since 2021, the private equity firm has provided strategic, financial, and organizational support, helping CHANDO optimize its ROE-centered budgeting system and strengthen its DTC performance. The result: online sales now account for nearly 69% of total revenue, driven by CHANDO’s success in content-driven e-commerce. Harvest Capital also helped shape CHANDO’s five-year strategic roadmap, which aims to expand the company’s market leadership while preparing for an eventual public listing.
KEY QUOTES:
“Consumption is the stabilizer and ballast of China’s economy. We remain confident in the long-term growth potential of beauty brands and are committed to supporting Chinese companies like CHANDO, which are driven by technology, digitalization, and long-term vision, to become world-class national brands.”
— Alan Song Xiangqian, Founding Partner and Chairman, Harvest Capital
