In a significant development within the cosmetics industry, Cathay Consumer Co-Creation Fund has made its first foray into color cosmetics by investing in First Cover, a pioneering brand known for creating China’s first functional foundation. This investment marks an exciting step for Cathay, which was co-established by renowned names like L’Oréal, Kerying, Cathay Capital, and Pernod Ricard. First Cover, founded by Wang Yuying in late 2024 in Shanghai, has quickly made a name for itself with innovative foundation products that merge beauty with functionality. The brand’s unique approach to makeup has garnered attention and enthusiasm, particularly among consumers looking for products that offer both aesthetic benefits and skincare properties.
At the heart of First Cover’s appeal is its signature product, the Cozy Lifting Foundation, priced at 199 renminbi (approximately $27.21). This best-selling product is marketed as a “shapewear” foundation, taking inspiration from body-sculpting garments to provide a lifting effect for the face. The foundation is available in two shades, catering to a broad audience while focusing on delivering a flattering finish. This innovative concept is not just about providing coverage but also about enhancing the natural features of users, a trend that resonates well in today’s beauty market, where functionality and attractiveness are increasingly intertwined.
Key to the formulation of the Cozy Lifting Foundation is collaboration with Vitalab, an Italian supplier of active ingredients. This partnership allows First Cover to infuse the foundation with plant-based extracts commonly found in skincare products, such as acemella oleracea, known for its wrinkle-smoothing properties and avena sativa, recognized for its soothing effects. By integrating these ingredients, First Cover has positioned its product not only as a cosmetic but also as a skincare treatment, appealing to consumers wanting more than just coverage from their makeup. This innovative approach holds the promise of creating a more profound consumer connection, as it addresses both beauty and skincare in a single product.
Within just four months of its launch, First Cover’s Cozy Lifting Foundation has reportedly sold over 100,000 bottles, showcasing the brand’s rapid acceptance in a competitive market. Founder Wang Yuying, a seasoned beauty entrepreneur with a rich history at major companies including L’Oréal and Estée Lauder, has successfully utilized her expertise to carve out a niche for the brand in the burgeoning Chinese cosmetics industry. Despite L’Oréal’s association as a limited partner in the Cathay Co-Creation Fund, they have refrained from commenting further on this investment, which reflects a growing trend of established giants supporting emerging talents in the beauty space.
The Cathay Consumer Co-Creation Fund has demonstrated its commitment to nurturing early-stage companies within the consumer goods and retail sectors, viewing them as vital to the industry’s future. The fund currently holds a 10.8 percent stake in First Cover’s parent company, Wujiexing, reinforcing its belief in the potential of innovative brands to thrive. Additionally, investment from MPCi, the China unit of American venture capital firm Matrix Partners, underscores the rising interest in beauty startups, with MPCi’s earlier angel investment of 100 million renminbi (or $13.7 million) last September marking First Cover as a noteworthy prospect for investors seeking to capitalize on the booming Chinese beauty market.
Frankie Li, MPCi’s investment vice president, emphasizes that the landscape for homegrown public beauty companies in China is still evolving, presenting ample opportunities for brands that introduce innovation. He notes that the base makeup and skincare sectors are areas ripe for growth, as they offer higher customer loyalty and repurchase rates compared to other segments like color cosmetics and personal care. As the industry continues to shift, brands like First Cover are poised to leverage this dynamic environment to build lasting consumer relationships and drive brand value in the marketplace. With the backing of significant funds and a focus on innovative product offerings, First Cover and others in its cohort are well-positioned to succeed in an industry marked by constant change and competition.
Since its inception in 2021, the Cathay Consumer Co-Creation Fund has set its sights on cultivating promising early-stage Chinese companies, seeking potential in sectors with high growth prospects. Beyond First Cover, the fund has also engaged with niche brands such as the fragrance company Documents and the skincare brand AromeManpo, further diversifying its portfolio. As the beauty landscape continues to transform, the commitment of initiatives like the Cathay Consumer Co-Creation Fund will be vital in fostering innovation and supporting new brands that are reshaping consumer experiences within the beauty sector.