(Yicai) July 18 -- The China Association for Bar Code Technology and Application and the country arm of French cosmetics giant L'Oreal plan to strengthen their ties in QR code tech research and development, talent training, standard formulation, digital upgrading, and global promotion.

The alliance between CABC and L'Oreal China drives the digital transformation of the cosmetics industry, Liang Dong, secretary-general of the organization, said in an interview with Yicai at a signing ceremony for upgrading the pair's cooperation during the China International Supply Chain Expo yesterday.

CABC and L'Oreal China jointly released [China’s first industry standard for cosmetics product 2D code applications, titled “Representation of Numbering and Two-dimensional Code for Retail Unit of Cosmetics (T/CABC 5-2023)]in 2023, Liang noted. The decision to link arms with the Clichy-based firm is based on its global market influence, industry discourse power, and mature digital practices, he pointed out.

As one of the world's largest cosmetics companies, L'Oreal can integrate global supply chain resources, tech suppliers, and relevant association resources, attract more industry participants to support the standard, accelerate international promotion, and provide a Chinese solution for barcode standardization in the global industry, Liang said.

L'Oreal's Suzhou Intelligent Fulfillment Center has used 2D code technology to record the circulation process of products from factories to distributors and retailers in real time, enhancing the transparency of internal channels and effectively maintaining market order, Liang noted.

Standardizing cosmetic barcodes provides a practical solution for the digital upgrade of China's cosmetics industry, Liang said. For example, after a big domestic cosmetics firm applied the standard, it achieved full-link digital traceability from raw material bases to terminal sales, with its production capacity doubling since 2021 and its supply chain inventory turnover days shortening to 31 days from 45, accelerating capital return and reducing backlog risks, he pointed out.

However, Liang said that industry promotion still faces difficulties. Some firms lack standardization awareness, while small and medium-sized enterprises have limited digital capabilities, resulting in insufficient willingness and ability to connect data, making it difficult for upstream supply chain data to be transmitted in real-time and accurately, he added.

Established in 1991, the CABC focuses on the research, design, production, application, and management of barcode tech.

Editor: Martin Kadiev