Phrases like "This is what a woman who indulges excessively looks like" and "The secret to why a 40-year-old woman still attracts men" have ignited a firestorm of criticism, placing the beauty brand Chando squarely in the crosshairs of public outrage. Multiple short videos, published on a brand-authorized account, used AI-generated imagery of wilting flowers and slowly deforming mushrooms accompanied by voiceovers targeting women's appearance insecurities, all in an effort to promote an anti-aging toner.
The videos, which featured provocative cover text and illustrations, were swiftly condemned as vulgar and demeaning. In response, Chando stated that the content did not align with its brand standards, confirmed the removal of the offending material, and noted that the relevant accounts have been dealt with appropriately. This public relations crisis arrives at a highly sensitive juncture, as the company prepares for another attempt at a Hong Kong IPO in April following a recent refiling.
Just months prior, a company executive had touted AI as a "super engine" for research and a key tool for communicating complex skincare science to consumers more "vividly and sincerely." However, the backlash highlights a troubling application of the technology. Industry insiders suggest that such AI-generated, low-effort content has become a "cost-effective" marketing tactic for some businesses prioritizing high visibility and engagement over brand integrity, even if it invites short-lived criticism.
The misstep underscores Chando's deep-rooted dependence on aggressive marketing. According to the company's prospectus, online channels generated a staggering 69.5% of its 2025 revenue of RMB 5.318 billion. Live-streaming is a cornerstone of its strategy, with the company working alongside numerous external KOLs to drive sales and brand messaging. This reliance is reflected in its financials, with marketing costs representing over half of its total revenue in recent years.
This expenditure appears significantly higher than that of key competitors, such as Proya and Betaine. Conversely, its investment in research and development appears comparatively thin, coming in at roughly RMB 100 million to 200 million annually, a figure nearly 30 times smaller than its marketing budget. This "heavy marketing, light R&D" imbalance has not gone unnoticed by consumers. Numerous complaints have surfaced on platforms like Heimao, with users reporting skin irritation, breakouts, and even hair loss after using Chando products, leading some to express deep regret over their purchases.
Beyond consumer dissatisfaction, regulatory hurdles loom large. The company's first filing with the Hong Kong exchange drew attention from the China Securities Regulatory Commission, which requested supplementary materials regarding corporate governance and equity structure. Chando has since addressed these queries, citing clear ownership through a family trust structure and rationalizing pricing differences in its Pre-IPO funding rounds as stemming from differing commercial terms and valuation timings.
However, the central challenge for Chando's IPO may be its fundamental business model. While positioned as a top-three domestic beauty conglomerate, a significant structural risk remains its overwhelming reliance on a single brand, which contributes over 95% of its revenue year after year. Other brands in its portfolio make up less than 5% of sales, raising questions about its long-term growth potential and resilience. Industry analysts point out that mature companies leaning too heavily on one main brand can face skepticism from investors looking for diversified strength and robust future prospects.
These concerns are amplified by a cautious market environment. The stock prices of several consumer and beauty companies have plummeted significantly this year, reflecting a shift in market sentiment. The once-appealing narrative-driven premium is giving way to a stricter evaluation based on proven financial performance and demonstrated ability to expand internationally. As Chando navigates this critical period, its ultimate success will depend not just on passing compliance checks, but on convincing investors of its fundamental value and sustainable growth story in a challenging landscape.