Driven by consumer trends and artificial intelligence, the beauty and health industry is undergoing rapid transformation. On April 29th, Sun Yuanyuan, Head of the Executive Education Department at East China Normal University's CTO College, led a visit to Fengxian for an in-depth discussion with Liu Bin, Deputy General Manager of Beijing Chongzhen Science and Trade Co. Ltd. ("Chongzhen KMT"), a participant in the third phase of the beauty and health trainees program. Liu Bin shared practical experience and forward-looking insights on enterprise management, industry trends, opportunities, and challenges, benefiting beauty and health practitioners.
Ten years of industry hardening from spice engineer to brand founder
Liu Bin, a chemical engineering graduate from Taiyuan University of Technology, entered the flavor and fragrance industry in 2013, marking the start of his connection to the beauty business. In 2016, he co-founded the “Chongzhen” brand, aiming to attract consumers through a unique brand culture centered on the concepts of "revere" and "cherish" (Note: There seems to be a repetition in the original text, it has been removed in the revised version). Despite sparking some debate, the brand name unexpectedly became memorable. This entrepreneurial journey exemplifies the evolution of China's beauty and health industry from traditional manufacturing to brand building.
Management Thinking Enlightenment Expansion of a team from
three to over thirty people
Liu Bin and his team faced numerous challenges in building their company, from product development to marketing. As the company grew from a team of three to over thirty people, new difficulties emerged, including management complexities, increased communication costs, and the challenge of maintaining teamwork efficiency and employee motivation. To address these issues, Liu Bin actively sought learning opportunities, participating in the Beauty and Health Industry CTO Innovation Leadership Advanced Workshop to enhance his management knowledge and experience.
Embracing Industry Changes Opportunities and Challenges
From the early days of rapid growth in micro-business direct sales to today's e-commerce live streaming boom, the beauty and health industry has experienced an astonishing pace of marketing model innovation. However, this prosperity hides underlying challenges, including industry competition, domestic market barriers, and tariff policy adjustments, placing significant pressure on trade agents. Liu Bin frankly stated, "Profits from importing foreign active ingredients, once substantial, have now been compressed to 30%." To overcome these obstacles, companies have explored alternative procurement strategies, export modularization, and other innovative approaches, but face rising labor costs and other new challenges. The desire to break through these limitations, seek new development opportunities, and tap into new markets was a key factor in Liu Bin's decision to participate in the Beauty and Health Industry CTO Innovation Leadership Advanced Training Program.
Future Strategic Layout Resource Integration and Idea Symbiosis
Chongzhen Science and Trade recognizes that talent is essential to competitive advantage. To attract and retain key employees, the company implemented an equity-sharing policy, allowing employees to participate in equity allocation, fostering both staff development and company growth, and boosting employee enthusiasm and creativity. Furthermore, the company has established a robust performance-based reward system, ensuring that employees feel valued and recognized for their contributions, thereby strengthening their sense of belonging and loyalty. Strategically, the company plans to relocate its headquarters from Beijing to Guangzhou, the economic hub of Southern China and a center for the beauty and health industry. Guangzhou offers abundant industry resources, a complete industrial chain, and a convenient transportation and logistics network. By relocating, the company aims to better integrate resources, strengthen cooperation with upstream and downstream partners, and enhance its market competitiveness. Guangzhou's geographical advantage is also expected to facilitate market expansion, drive rapid sales growth, and propel the company to a new level of development. In an interview, Liu Bin emphasized, "Resource integration is important, but the spirit of collaboration is even more critical." This aligns with the government's emphasis on high-quality development and industry chain synergy. When serving customers, the company adheres to the principle of “customer first,” allowing Chongzhen Science and Trade to thrive in the highly competitive market.
Learning is rewarding knowledge, networking and collaboration
As a participant in the third phase of the CTO Innovation Leadership Advanced Workshop for the Beauty and Health Industry, Liu Bin highly valued the workshop's teaching and especially appreciated the practical private board meeting session. He acquired practical team management methods and skills, including AI tools from the "AI-Enabled Product Innovation and Management Practical Combat" course, which helped improve his team's collaborative efficiency and execution. The workshop also provided networking opportunities with industry veterans and upstream/downstream partners, fostering ongoing collaboration even after the course's completion. "This course truly enables resource sharing and profit synergy," Liu Bin stated. The support and collaborative market exploration have generated new development opportunities for both companies. Looking ahead, he is eager to participate in the study tour of the fourth phase of the Beauty Health CTO Innovation Leadership Workshop. He anticipates gaining insights into advanced management approaches and corporate cultures through site visits to outstanding enterprises, further enhancing his learning impact.
This dialogue reveals the real dynamics of the beauty and health industry and highlights the entrepreneurial spirit of practitioners facing challenges. From industry follower to brand founder to team manager, Liu Bin’s personal growth has always been in alignment with his company and the prevailing trends. Amidst the rapid changes in the beauty and health industry, a leader's vision determines the enterprise's direction. As an innovative college that nurtures science and technology businesses and industrial technology leaders, Shanghai International College of Chief Technology Officers is committed to serving national strategic needs, actively promoting the translation of high-quality innovations in the beauty and health industry, and bridging the gap between industry, academia, and research to support businesses in navigating the current business landscape. We empower companies to "sail through the sea!"