A Survey on Public Skincare Needs and Awareness and Acceptance of Terpene-based Skincare Products”

Introduction

Our team distributed an online questionnaire with the topic of “skincare needs and awareness and acceptance of terpene-based skincare products” among the public. We aim to understand the current situation of skincare needs and awareness and acceptance of terpene-based skincare products.

By the seventh day after the release of the questionnaire, we had received 237 responses. The majority of questionnaire participants are concentrated in Northern China, with Beijing having the highest response rate, accounting for 149 of the total responses. The participants come from all ages that spreading evenly from under 18, 19 to 30, 31 to 55, and to over 56, with 75.95% of female and 24.05% of male participants.

Individual problem analysis

Fig 1. Pain points people most concerned about.

Figure 1 displays the pie chart analysis for Question 3 of the multiple-choice survey, showing the common skincare concerns among participants. The results reveal that over half of the respondents are worried about excessive oil secretion and the presence of blackheads and whiteheads. Approximately 40% of the participants are troubled by issues such as dry and dehydrated skin, acne and pimples, enlarged pores, uneven skin tone, and signs of aging like fine lines and wrinkles. These concerns represent nearly all common skincare problems experienced by a large portion of people. It is evident that most individuals face some level of skin issues and have a strong, urgent demand for solutions to improve their skin conditions, indicating a significant market opportunity. There is a pressing need for an effective skincare product to address these skin problems, highlighting the importance of our product development efforts.

Fig 2. Amount of money people willing to spend on skin care in a quarter. (Unit: Yuan)

As shown in Figure 2, the majority of respondents are willing to spend between 100 yuan and 1000 yuan on skincare within a quarter, representing 57.39% of the survey participants. In addition, 32.07% of respondents are prepared to spend between 100 yuan and 500 yuan on skincare products. This data highlights a significant market segment with moderate to high spending capacity. To efficiently penetrate the market using a price-leading strategy, we have decided to set our price range between 100 and 500 yuan, with 258 yuan for a set of quarterly products. (For more details, please refer to our pricing strategy in the business plan.) This approach ensures that our product remains accessible to a wider audience while catering to the needs of consumers in tier-1 to tier-3 cities and beyond, who tend to be more price-sensitive.

Fig 3. Channels people use to get skincare information.

Figure 3 illustrates the channels through which people obtain skincare information. The results reveal that the majority of individuals, 75.53%, rely on recommendations from friends and family to gather information about skincare products, highlighting the importance of personal referrals. Additionally, 45.15% of respondents also turn to physical retail counters for skincare information, indicating that in-store experiences remain influential. This data suggests that offline retail locations, influencer live streams, and celebrity endorsements are highly effective and widely accepted methods for promoting skincare products. Understanding these preferences provides crucial insights for refining our marketing strategies and promotional approaches. It helps us identify the most impacting channels for reaching potential customers and engaging them effectively, ensuring that our promotional efforts are aligned with consumer behaviors and preferences.

Fig 4. Understanding of terpene-based skincare products

Figure 4 illustrates the results for Question 6 of the survey, displaying the public's level of awareness regarding terpene-based skincare products. The data shows that 90.72% of respondents are unfamiliar with terpene-based skincare products, indicating a significant lack of awareness. Only 22 individuals, which constitutes 9.28% of the surveyed participants, have some knowledge about these products. This stark contrast highlights that the vast majority of people have little to no familiarity with terpene-based skincare products. The results underscore the critical need for educational initiatives to raise awareness and disseminate information about the benefits and properties of terpene-based skincare products. Effective outreach and educational efforts are essential to bridge this knowledge gap and inform consumers about the potential advantages of incorporating terpene-based products into their skincare routines.

Fig 5.In what form would you like the terpene skin care products we have developed to be produced?

Figure 5 provides a comparative study of question 7. This comparison indicates a preference for the types of products produced by the cosmetics brands we analyzed. Our statistical table shows that 68.35 percent of people choose toner. It shows that toner is what people need to use most in their daily life. So we will introduce toner as our main product. If the product we have created has good results, we will continue to launch lotions and serums, which have been selected by 53.32 percent and 50.21 percent of people respectively.

Fig 6. What do you expect the main role of deep-sea source terpenes in skin care products?

We identified the most anticipated role of deep-sea source terpenes in skincare products. From the table, we can see that 67.09 percent and 63.29 percent of people feel highly effective antioxidants and deep moisturizing. Therefore, we will strengthen research efforts in these two aspects of products. 56.54 percent and 45.57 percent of people think that antibacterial, anti-inflammatory and strong repair are also important, close to 50 percent or more, so we will pay attention to it.

Fig 7. Would you like to try skin care products containing deep-sea bioterpenes?

We measured how many people were willing to try our skincare products that contain substances called terpene compounds. It can be seen from the table that 37.13 percent of people are very willing to try, and 40.08 percent are more willing. A total of 77.21 percent said yes. It shows that most people still trust the safety of our products. So we must strictly check the safety of our products, ensuring no potential harm to anyone's skin.

Fig 8. What do you dislike about the skin care products on the market now?

Based on the analysis of the received data, we have summarized the following key points from customer service feedback. The top issues with current products on the market include high prices, misleading marketing, allergy risks, and low efficacy. We are committed to avoiding these problems in the future. We will make improvements based on the valuable feedback gathered from the questionnaire in our product design.

Fig 9. Do you have any suggestions or comments you would like to share about our project products?

The above potential customers’ comments are valuable for our project implemenation. For example, we need more economical and convenient packaging. Our ingredients need to be mild, quick to repair etc. We will filter these suggestions and use them in our future design, research and development, production, and finally sales. It is because of these suggestions that we can have the highest efficiency to build the best products.

Cross-over Analysis

Fig 10.cross-analyzing Question 1 and Question 5

By cross-analyzing Question 1 and Question 5, we found that the most common way for the public to acquire skincare knowledge is through recommendations from friends and family. By analyzing the percentage of each option, we found that for men, one channel we can focus on is influencer livestreams. We have already launched our own accounts on platforms such as Bilibili and Xiaohongshu, and we will also collaborate with influencers. For women, the second most common channel is offline stores, so we also plan to open our own offline store and find some star endorsers for co-branding promotion.

Fig 11.cross-analyzing Question 2 and Question 3

Through a cross-analysis of age and their biggest skin concerns (questions two and three), we found that each age group focuses on different issues. For those under 18, the most prominent issue is excessive oil secretion. People aged 19-30 also face excessive oil secretion as the main concern, but they additionally struggle with uneven skin tone. For those aged 31-55 and above, the primary focus is on anti-aging and hydration. Our terpene-based skincare product in theory offers antibacterial, anti-inflammatory, and antioxidant properties, which can greatly benefit younger people under 18 dealing with excessive oil secretion, as it helps prevent bacteria that can worsen skin conditions. The antioxidant properties can help people delay aging. Therefore, we believe that our product has a broad market potential.

Fig 12. cross-analyzing Question 1 and Question 8

No matter if they are male or female, the feature they most hope for in our product is antioxidant properties. Fortunately, this is exactly what our product offers, proving that our target audience is quite broad

Through this investigation, there are a few conclusions that can be drawn from the above public survey:

1.The most common way for men and women to gain skincare knowledge is through recommendations from friends and family. By analyzing the percentage of each option, we found that for men, one channel we can focus on is influencer live streaming. The second most common channel for women is offline stores, so we plan to open our own offline stores as well as our major product distribution channel.

2.Each age group has different concerns. For people under the age of 18, the most prominent problem is excessive oil production. People aged 19-30 are also dealing with excess oil production, but they are also struggling with uneven skin tone. For those aged 31-55 and older, the main concern is anti-aging and hydration.

3.Regardless of gender, the most desired feature in our product is its antioxidant properties.

4.We should intensify our research and development efforts to focus on the product features that matter most to our customers.

5.Our aim is to lower the price to provide customers with a good value-for-money experience, without putting too much financial strain on them.

6.In the product packaging, we want to be simple and environmentally friendly, low cost and look clean and tidy. A refreshing feeling is believed to enhance consumers’ desire to buy products.

7.We need to ensure the ingredients are gentle and widely suitable for all skin types, removing any components that could potentially cause harm. Our goal is to minimize customer anxiety and provide the best possible user experience.

1.Introduction

Deep-sea terpene compounds has the benefits of regulating the metabolism of carbohydrates, prevention of diabetes, vascular neuropathy, disease resistance and sterilization and so on. Our team intended use terpene to develop a natural skin care product. Dr. Fan Zhen was about the safety, sustainable development and market research of terpenes-based skin care products. Dr. Zhen Fan holds a Ph.D. in Synthetic Biology from CAS Center for Excellence in in Molecular Plant Sciences and completed his postdoctoral research in CAS Center for Excellence in Molecular Plant Sciences. Currently he is a senior scientist in Shanghai Synlotic Co., Ltd, which is a company possessing comprehensive technical development capabilities in enzyme engineering, strain construction, cell factory modification, and fermentation optimization.

Fig 13. We're interviewing experts

2.Interview Takeaways

We asked about the specific operational steps and evaluation criteria for safety assessment and how to continuously monitor and develop corresponding risk control measures. Dr Fan offers a series of answers to these questions. The first is the specific operation steps of safety assessment, which generally involves skin care products in vitro enzyme activity testing. In practice, we may use methods such as protein and cell to detect allergens. The second is about the evaluation criteria. In order to ensure the effectiveness and safety of natural products, it is necessary to perform gradient testing, design experimental protocols to determine the optimal concentration range. Therefore, the effectiveness of the product can be guaranteed to ensure the safety of consumer use. Third, in the risk assessment of skin care products, we will learn from the experience of the pharmaceutical field, and pay close attention to possible side effects during use, also be ready to take alternative solutions or adjust the ratio of raw materials at any time. Through strict pharmaceutical grade testing means, we eliminate potential risks and ensure the safety of products. Finally, we also need to pay close attention to market feedback and adjust strategies in time to deal with possible risks.

Regarding the social value of natural products in the development of skin care products, Dr. Fan said that, first of all microbial fermentation instead of chemical synthesis, showing the advantages of environmental protection and efficiency. Secondly, biological fermentation technology shorters the raw material acquisition cycle, can improve the efficiency of resource utilization, and solve the problem of inefficient plant growth. Finally, in the raw materials of skin care products, we choose renewable resources, which can reduce the carbon footprint and promote the green and sustainable development of the industry. Choosing environmentally friendly materials and respond to recycling policies, committed to skin care packaging environmental norms, to protect the earth's environment contribution.

On the question of how to predict the market potential of terpene-based skin care products and increase consumer awareness and acceptance of the products, Dr. Fan replied that, firstly, we need to analyze the unique advantages of the products by pinpointing their positioning through market research to understand the needs of the target consumers. Secondly, we also need to evaluate the cost to maintain price competitiveness, and to forecast the market potential of terpene-based skin care products to develop effective promotion strategies. Finally, increasing public awareness of terpene skincare products requires us to educate the public about terpene skincare products, conduct marketing campaigns and share success stories. Through multi-channel publicity, we can achieve the purpose of accurate marketing and dissemination of real results, thus enhancing consumer interest and trust.

Dr. Fan concluded that from laboratory to market, from idea to actual landing, we need to ensure the large-scale production of raw materials to meet the market demand. At the same time, we also need to focus on environmental protection and the close integration of scientific research with the market, aim at the industry dynamics, and continue to explore new technologies to promote the product commercialization process.

3.Summary

(1) Regarding skincare safety, we learned how to continuously monitor and evaluate product safety, how to conduct risk assessment and develop relevant control measures for terpene-based skincare products.

(2) We learned about the use of bioactivities in skincare products and their value to society

(3) We understood the sources of skin care ingredients, production cycles, packaging materials, and market research.

(4) We learned how to increase consumer awareness and acceptance of terpene-based skin care products.

4. Post-event inspiration and suggestions：

Following the interview, we have identified several key strategies for future action. First, we plan to actively participate in industry exhibitions to showcase our new products and raw materials, using larger platforms to attract the attention of industry professionals. Additionally, we aim to increase product output, ensuring efficient, safe and high-quality production to meet market demands.

To enhance public awareness of terpene-based skincare products, we will focus on educational marketing campaigns, sharing success stories, and leveraging multiple channels to communicate the benefits of our products. By doing so, we can boost consumer interest, build trust, and increase overall acceptance of terpene skincare in the market.

Fig 14. A picture of us with Dr. Fan

1.Introduction

In order to understand how to optimize the operation of our products from the three aspects of investment criteria, business operation and marketing, we interviewed Mr. J Zhang. He is an expert in fund investment, the skincare industry chain, and skincare product selection. He currently works in the investment department of a leading securities company in China and has overseen a series of deals in both the cosmetics and high-tech industries. (At the interviewee's request, we have anonymized his name in our documentation.)

Fig15: We are communicating with Mr. Zhang

2.Interview Takeaways

（1）Investment criteria

We have questions about the criteria for investing in a new company, what aspects to look at, and what characteristics of the industry to focus on. Mr. Zhang highlighted the following points:

For how to develop the advantage of being invested, Mr. Zhang put forward the following points.

Regarding the ways in which we can target and attract investment, Mr. Zhang made the following suggestions.

（2）Enterprise operation

We asked Mr. Zhang how to reduce unnecessary expenditure and how to carry out industrial planning, and Mr. Zhang put forward the following valuable suggestions.

（3）Marketing

On how to choose products and marketing channels and how to attract high-end consumers, Mr. Zhang put forward some suggestions.

Fig16:Group photo

3.Summary

(1) In terms of investment standards, we learned what it means to achieve a standard of excellence, how to meet the investment criteria, and corresponding measures to fulfill the investment requirements.

(2) In terms of business operation, we understand the importance of cost. And to develop our own product features.

(3) From a marketing perspective, we learned how to select the right products and attract consumers, with a focus on appealing to high-end consumers.

4.Post-event inspiration and suggestions:

This interview helped us understand the success factors of investment, production and sales operations as well as ways products can be chosen at best in order to attract customers. We need to develop a strong company background and optimize the cutting-edge core technology for deep-sea sourced terpene-based skincare products. We also need to keep monitoring and analyzing real-time data to improve our offerings.

We need to know the true cost of making our products and we check that they have a distinct value proposition in relation to other products on the market. Our innovation had to be in line with emerging trends, the best possible marketing such as beginning online and aiming at 'niche' consumer segments.

So, in our future research and development, we will upgrade terpene-based skincare products with the help of Mr. Zhang to expedite those insights from brand angle and R&D side. This will enable us to remain competitive in a changing market and meet the demands of consumers

1.Introduction

In order to understand how to promote the commercialization of our products from three aspects: product development, attracting investment, and marketing, we had a business roadshow with Dr. Shiyuan Li, who is the Director of Synthetic Biology Investment Business of Hongshang Capital, and a PhD in Synthetic Biology from the Key Laboratory of Synthetic Biology of the Chinese Academy of Sciences, Dr. Li has profound experience in both synthetic biology research and investment.

Fig17: Business plan PPT

2.Roadshow Feedback

（1）Product Development

We began by presenting the results of our product development efforts, which included our business plan in terms of background research, team presentation, ethics and morals. In terms of background research, we thoroughly investigated the expertise of terpenes and skincare, firstly in terms of the deep-sea environment, secondly in terms of the characteristics of terpenes that can have a positive effect on skincare, and thirdly in terms of the strengths and weaknesses of current terpene skincare products for commercial use. In terms of our team, we meticulously described the specific part of the project that each team member is responsible for. In terms of our ethical standards, we clearly define the team's moral red lines in the advancement of the project, which include the rejection of animal testing and the promotion of natural ecology.

Regarding our product development, Dr. Li raised two major concerns, firstly, it is not clear what we are really going to do when we introduce our products, such as lotions, toners or creams, which will make investors feel that the positioning of our products is very unclear. Secondly, we should clarify our research process in our presentation, for example, where in the deep sea we are going to collect genes for terpenes synthesis and how we are going to synthesize them, all these need to let our customers know in order to trust the products we make.

（2）Attracting investment

In terms of attracting investment, we first talk about the advantages of our products, firstly, our products are added with deep-sea originated compounds that give our skin moisturizing, repairing, anti-aging, whitening and moisturizing effects. Secondly, it causes fewer side effects because we use natural products compared with chemicals. Thirdly, the product is suitable for all people and skin types because of its natural and gentle nature, so the audience is also very wide. Secondly, we specifically show and explain the future financial projection table in terms of the advancement of this product, which includes the projected cost expenditures in terms of factory construction, acquisition of raw materials, and so on.

In terms of attracting investment, Dr. Li suggested several key strategies:

（3）Marketing

With regard to marketing, we firstly made it clear that the regulation of the market on a political level will not have any impact on our skincare products and that we will develop our products in strict compliance with the law and regulations. Secondly, we emphasize the advantages of our products, such as the fact that there are no proven terpene-based skincare products on the market at this time, so our technology will be unique, which will play a crucial role in our marketing.

Regarding the market, Dr. Li provided several useful suggestions:

Fig18: We took a photo with the experts

3.Summary

(1)Regarding product development, we understand that the current team still needs to clarify the positioning and refine the process, and that product development should clarify the product categories and elaborate on the research process to enhance investor confidence.

(2)Regarding attracting investment, we understood that the current team still needs precise strategies and detailed data, and that success in attracting investment requires focusing on specific investors, exchanging experiences, addressing regulatory issues, and relying on detailed market research data.

(3)Regarding marketing, we understood that the current team still needs to emphasize on unique selling points and overall strategy, and that marketing needs to design the product story, highlight unique features, and develop an overall promotional strategy to maximize benefits.

Based on roadshow feedback; we identified some areas of refinement and strategy to move the terpene-based skincare project forward, including:

Define Product Categories: We need to specify what sort of products we are making (it could be lotions, toners, creams) Uncertainty around where a product fits in the handoff process can be confusing to investors as well as potential customers.

More Detailed Research Process- First Our product-development presentations must reveal more about how and where we are going to source deep-sea terpenes, and exactly what is the synthesis methods are involved. This will establish trust and prove the scientific validity of our products.

Target cosmetics investors: Engage investors who specialize in the cosmetics sectors and more to help us with funding;

Collaboration with Leading Players-Look for alliances and teaching practices from big cosmetic corporations as a way of solidifying our strategy while also creating more connections.

Address Regulatory Issues: Ensure all necessary regulatory requirements are met, as this is crucial for investor confidence.

Offer a Comprehensive set of Market Data: Show investors the actual depth demand, take this information from our market research. Avoid overly broad data; instead, include targeted information that demonstrates market potential and consumer demand for terpene-based skincare lines.

Crafting Product Narratives: Tell a story about our sea-mined terpenes just as high-end natural cosmetics brands detail their one-of-a-kind natural elements. It will identify our products and resonate better with the consumer.

Strategic Promotion Planning: Crafting an all-inclusive approach for your promotions-maximizing outreach, and consumer reach. Having a concise and well-sequenced marketing plan will naturally reinforce our brand in the marketplace as well allow us to leverage more users.

1. Impact of the Project

Our unique project will create terrestrial proof of concept and bring deep-sea derived terpene-based beauty products to market for First pass benefits, antioxidant, moisturizing, and anti-aging. It also offers a stepping stone to the future of ethical beauty, in addition to giving the category a new edge that is missing from traditional market offerings. We are focusing and researching on how to reduce side effects using with natural compounds, hence our products become more gentle and safe for apply in diversity of skin types.

Key Impacts:

To The Market: A new product solution to this satiated demand for options that address foundational skin care issues such as oil and moisture imbalance, aging, contamination, etc., offering safer and more organic choice to the consumer.

Impact on the environment: The use of deep-sea bioterpines and sustainable sourcing will reduce the demand for chemical synthesis, thereby reducing GHG emissions related to skincare production.

Potential Negative Impact:

Lack of Awareness and Education: A fairly new trend, terpene-based skincare might lack consumer awareness. It will take a lot of educational outreach to get people to trust and understand what we provide.

Regulatory and Sourcing Challenges There may be significant timelines and costs to get regulatory approvals for bringing deep-sea compounds to market sustainably, at scale. Any delays in this process only elongate the length of time until we can get to market, and increase our development costs

In order to comply with regulation in a specific country, we need to source ingredients locally or from organic certified producers which add up the production cost and may hike the pricing compared to conventional skincare products. We may be affected in that certain market segments do not reach us.

2. Proposed End Users

People With Sensitive Skin Or Worried About Side Effects: People who put a lot of emphasis on the gentle, natural aspects of skincare and are looking for products accordingly.

Eco-Conscious: They are conscious consumers who want to buy products that are good for the planet, Ideally they opt for products which have environmentally friendly list of materials and possess sustainable and ethical sourcing attributes.

3. What Role Might This Project Play in the Work of Others?

We envision that:

Consumers will use our products daily for skincare routines, benefiting from terpenes’ unique properties, such as deep hydration, repair, and antioxidant protection.

Influencers and Dermatologists may recommend the products, especially in markets that prioritize natural ingredients and skin safety.

Cosmetic Industry Partners might adopt our terpene synthesis methods or collaborate with us to explore further applications of deep-sea compounds in skincare.