Guangzhou Xinrui heavily fined 600,000 yuan for copying Perfect Diary's popular packaging design

Express News: Reporter Lu Yansi reports. Imitating the packaging of well-known beauty products as a “free ride” is not a shortcut; it could also lead to hefty fines. Recently, Guangzhou Xinrui Cosmetics Co., Ltd. (referred to as “Guangzhou Xinrui”) was fined by the Haizhu District Market Supervision Administration of Guangzhou for unauthorized use of packaging highly similar to popular products under Yixian E-commerce’s Perfect Diary and Xiao Aoting brands. The company was ordered to confiscate over 42,000 units of products and pay a fine of 600,000 yuan.

According to the decision document No. 63 issued by the Haizhu District Market Supervision Administration, Guangzhou Xinrui has been selling “PIPL Small Lambskin Fine Tube Lipstick” on its Tmall “PIPL Cosmetics Flagship Store” since June 2021. Its packaging and design are similar to “Perfect Diary’s Bold and Outstanding Velvet Fine Tube Lipstick” (a well-known “Small Heel Lipstick”). The “PIPL David Art Contour Palette” and “PIPL Black Vinyl Eyeshadow Palette” are also highly similar to “Xiao Aoting Sculptor Highlighter Contour Palette” and “Xiao Aoting Vinyl Record Eyeshadow Palette,” respectively. Due to the packaging and design resembling well-known products under Yixian E-commerce, these were deemed to be confusing behaviors and illegal.

As of the case’s discovery, the total sales of these three suspected infringing products reached 1.608 million yuan. The regulatory authorities believe that, since the involved party actively corrected the illegal behavior and cooperated with the investigation, a lighter administrative penalty was applied: confiscation of over 42,000 units of stock and a fine of 600,000 yuan. The involved products have now been removed from the Tmall platform, and related product filings have been canceled.

This is not the first confrontation between Guangzhou Xinrui and Yixian E-commerce. In 2023, Yixian E-commerce accused Guangzhou Xinrui of copying the packaging of its “Pink Bear Lip Glaze” and claimed 1 million yuan in compensation. However, they lost the case because they could not prove that the product had “a certain influence” at the time of the alleged infringement.

“Things are quite different this time,” industry insiders point out. “Perfect Diary’s Small Heel Lipstick” and “Xiao Aoting Sculptor Highlighter Contour Palette” are market blockbusters, and their ‘certain influence’ is undeniable. Guangzhou Xinrui’s shift from ‘winner’ to ‘punished’ clearly reflects a change in regulatory logic: with the strict enforcement of the Anti-Unfair Competition Law, authorities are increasingly precise in judging ‘confusing behaviors.’ It is no longer necessary to copy 1:1; as long as the overall visual impression ‘looks similar,’ it may be considered illegal.

The issue of imitation in the beauty industry has troubled many leading brands. According to Qichacha, 78.5% of judicial cases filed by Yixian E-commerce involve unfair competition disputes, among which many are unjust competition cases. This recent punishment is undoubtedly a strong support for their rights protection.

While successfully defending their rights, Yixian E-commerce’s transformation progress has also attracted attention. The company’s latest 2025 financial report shows that Yixian E-commerce achieved a revenue of 4.3 billion yuan in 2025, a year-on-year increase of 26.7%. Among them, the skincare business’s net income increased by 63.5% year-on-year, accounting for 53% of total revenue, surpassing makeup for the first time. According to non-GAAP calculations, the company achieved its first annual profit since listing, with a net profit of 8.4 million yuan.