Eliza Wong
The Collagen Confession
Giant Biogene’s unexpected admission of limitations in product testing methodology marks a dramatic turn in China’s skincare industry. Founder Fan Daidi (范代娣), once celebrated as Shanxi’s wealthiest woman, watched helplessly as her company shed over $30 billion in market value following intense scrutiny of their collagen products. This controversy underscores an urgent industry-wide demand for transparency and scientific rigor.
When the company acknowledged that their “quality standards and testing methods gradually show limitations” on June 23rd, it represented more than corporate damage control. Following weeks of fierce denials against influencer Dr. Big Mouth’s claims about their Kefumei collagen products, the reversal triggered consumer distrust and investor panic.
The Unraveling Controversy
From Denial to Damage Control
The conflict began with Dr. Big Mouth’s explosive claim questioning collagen levels in Giant Biogene’s flagship “Collagen Bar.” What started as a debate about “if” collagen existed rapidly escalated into deeper concerns about “how” to measure it and “who” could verify claims.
Investors responded decisively:
– Stock plunged from HK$87.1 to HK$53.9 within weeks
– Market valuation evaporated by HK$33 billion
– Fan Daidi’s personal stake lost approximately $1.7 billion
Consumer Confidence Collapses
Sales trajectory reflected sinking credibility:
– Kefumei dropped out of top 10 in 618 festival rankings
– Fell to 16th position vs. 12th in previous Double 11 event
Despite Giant Biogene’s conciliatory statement, critical questions remain unanswered about actual collagen concentrations.
Collagen vs Hyaluronic Acid: The Scientific Standoff
The Ingredients Arms Race
At its core, this dispute represents a clash between China’s two skincare titans:
Bloomage BioTechnology:
– Global hyaluronic acid leader with 44% market share
– Invests 6% revenue in R&D across skincare/nutraceuticals
Giant Biogene:
– Self-branded “recombinant collagen pioneer”
– Spends just 1.8% on R&D vs 20 billion yuan on marketing
– Relies heavily on Kefumei and Corligent brands
Manufactured Rivalry Exposed
Industry confusion arose when promotional narratives positioned collagen as:
– Superior alternative to “outdated” hyaluronic acid
– Solution to safety concerns like hyaluronic-induced “puffy face”
Bloomage countered such claims as scientifically unfounded in their article “Concepts Repeat, Science Moves Forward.” Independent dermatologists confirm the ingredients typically complement rather than compete:
– Both support skin repair and anti-aging
– Frequently combined clinically
Systemic Industry Flaws
The Testing Vacuum
Three major gaps plague China’s recombinant collagen sector:
– No standardized measurement protocols
– Inconsistent analytical methodologies
– Undeveloped quality certification framework
Lacking these guardrails, companies exploit regulatory gray areas through:
– Scientifically unsupported “novel ingredient” narratives
– Trademark-driven subterfuge like Giant Biogene’s “Human-like Collagen” branding
Marketing Over Molecules
Financial priorities reveal structural issues:
Company | R&D Investment | R&D/Revenue Ratio
Giant Biogene | ¥107 million | <2%
Bloomage | Substantially higher | ~6%
Jinbo Biotech | Industry benchmark | 10.89%
When controversy struck, Giant Biogene lacked scientific infrastructure to convincingly rebut claims—highlighting consequences of prioritizing promotion over basic research.
The $30 Billion Wake-up Call
Investors Demand Accountability
During internal briefings, Giant Biogene executives insisted their 618 losses could be recovered by year-end. Yet shareholder questions grew increasingly pointed:
“How was Kefumei’s reputation built if products contained little collagen?” challenged one investor—a query left unaddressed.
Consumers similarly voiced disillusionment:
“‘Human-like’ is just a trademark? This feels like deception” remarked a comment trending on Xiaohongshu.
Competitive Responses Emerge
While Giant Biogene vaguely promised to “assist in establishing national standards,” Bloomage BioTechnology took decisive action:
On June 30, they published “Toward Evidence-Based Claims”, demonstrating:
– Comprehensive collagen concentration testing
– Methodological validation protocols
– Collaboration with government testing bodies
“Bloomage shows how established players should respond,” commented consumer rights advocate Chen Xing (陈星).
Regulatory Ripples Beyond Collagen
This scandal exposes recurring patterns in China’s beauty sector:
Recent ingredient-hyped stocks:
– LiRenLiZhuang shares surged 103% amid “ergothioneine” antioxidant buzz
– Weak scientific basis despite marketing claims
Such incidents demonstrate:
– Capital markets exploiting consumer anxiety about aging
– Inadequate regulatory oversight of “miracle ingredient” narratives
Consumers increasingly move past marketing to examine:
– Actual concentration percentages
– Molecular weights (e.g., “217 Dalton” claims)
– Clinical validation methods
Commented Shanghai beauty buyer Zhang Ting (张婷): “We’re entering the post-hype era where facts replace fantasy.”
The Path Forward
This watershed moment demands transformative actions:
Industry leaders must:
– Pioneer standardized verification frameworks
– Publicly validate ingredient efficacy claims
– Invest substantially in core research
Regulators should accelerate:
– Unified collagen testing guidelines
– Truth-in-labeling enforcement
– Scientific literacy initiatives
Giant Biogene presents a cautionary tale about corner-cutting amid vulnerable oversight systems. Companies embracing transparency and scientific rigor will determine whether this becomes a reform milestone or merely another forgotten scandal.
Verify ingredient claims through third-party labs before purchasing premium skin products—your trust deserves factual foundations.
