Group 1 - The new mandatory national standard for electric bicycles (GB 17761—2024) will be implemented in phases, with production starting on September 1, 2025, and sales on December 1, 2025, leading to a significant market demand for compliant vehicles [1][2] - The current electric bicycle ownership in China is approximately 380 million, indicating a strong market presence and consumer reliance on these vehicles for short-distance travel [1] - The new standard emphasizes higher safety requirements, including fire resistance and material specifications, prompting manufacturers to upgrade their products and production lines [2][3] Group 2 - Major companies like Yadea and Luyuan are actively preparing for the new standard, with Yadea already obtaining CCC certification for six models and planning to transition to new standard production by mid-August [3][4] - The transition period from September 1 to December 1, 2025, allows manufacturers to clear existing inventory of old standard vehicles, with many companies implementing promotional strategies to facilitate sales [4][5] - The new standard is expected to lead to a consolidation in the industry, as smaller brands may struggle to meet the new requirements, potentially increasing market share for leading companies [5][6] Group 3 - Companies are focusing on quality control and cost management to meet the new standards, with Luyuan optimizing production processes and investing in advanced inspection equipment [6][7] - The implementation of the new standard is seen as an opportunity for industry leaders to enhance their brand influence and market position through differentiation and innovation [5][6] - The overall market demand remains stable despite some consumer hesitation to purchase old standard models, as companies continue to promote their products and respond to consumer safety concerns [4][5]

Investment Rating - The report maintains a "Positive" investment rating, highlighting the favorable momentum in new consumption sectors, particularly in beauty care, gold, trendy toys, and freshly brewed tea drinks [4]. Core Insights - The new consumption landscape reflects the evolving consumer preferences of the younger generation, emphasizing the importance of understanding these narratives for capturing growth opportunities in new consumption companies [80]. Beauty Care Sector - The high-end beauty segment is expected to grow faster than the mass market, with projected CAGR for high-end skincare and makeup at 9.6% and 10.8% respectively from 2023 to 2028, compared to 8.2% and 6.7% for mass-market products [5][9]. - Domestic brands are gaining market share, with the national beauty market share reaching 50.4% in 2023, surpassing foreign brands [15][18]. Gold Jewelry Sector - The gold jewelry market in China is projected to grow from 820 billion yuan in 2023 to 1,140 billion yuan by 2028, with a CAGR of 6.8% [19]. - The ancient gold segment shows strong growth potential, with a CAGR of 21.8% expected from 2023 to 2028, despite a slowdown in growth rates [24][25]. Trendy Toys Sector - The trendy toy market in China reached 626 billion yuan in 2023, with a CAGR of 31.24% from 2019 to 2023, indicating rapid growth [40]. - The market concentration is increasing, with the top five companies' market share rising from 22.8% in 2019 to 26.4% in 2021 [46]. Freshly Brewed Tea Drinks Sector - The freshly brewed tea drink market in China was valued at 517.5 billion yuan in 2023, accounting for 36.3% of the beverage market, with expectations to reach 1,163.4 billion yuan by 2028 [67]. - The market for freshly brewed tea drinks is anticipated to maintain its position as the largest segment within the freshly brewed beverage category, with a projected CAGR of 17.3% from 2023 to 2028 [71][75].

Core Insights - The beauty industry is experiencing a resurgence in the fragrance sector, with major brands and local companies expanding their offerings [2][3] - Interparfums has signed a fragrance licensing agreement with Longchamp, with the first fragrance expected to launch in 2027 [2] - The market is witnessing a trend of cross-industry brands entering the fragrance space, indicating a shift in consumer preferences towards emotional and everyday use of fragrances [8][10] Industry Developments - Interparfums is set to fully manage the Longchamp fragrance line, which will include the creation, development, production, and sales of the brand's perfumes [2] - Coty has launched a new mass-market fragrance brand, Origen, targeting the U.S. market with a focus on storytelling through scents [5] - TSG Consumer has acquired the independent fragrance brand Phlur, which emphasizes emotional resonance and affordability [7] Market Trends - The global fragrance market is projected to grow steadily, with estimates suggesting it will exceed $79.3 billion by 2027, driven by the demand for self-care and emotional healing [8][9] - The fragrance market is expanding at a compound annual growth rate of over 3%, with the Chinese market showing significant growth potential despite low penetration rates [9] - Fragrances are increasingly seen as everyday emotional consumption items rather than luxury goods, with younger consumers seeking emotional connections through scent [9][10] Financial Performance - Puig's latest half-year report indicates that its fragrance and fashion division generated €1.685 billion in revenue, accounting for over 70% of total revenue, with an 8.6% year-on-year growth [8] - The fragrance industry boasts a gross margin of approximately 70%, with low raw material costs and high product turnover rates contributing to its profitability [9]

Investment Rating - The industry investment rating is "Positive" (maintained) [1] Core Viewpoints - The report highlights a moderate recovery in the beauty and cosmetics sector, with a notable performance in hair care and color cosmetics, indicating a stable growth trajectory [7][35] - The medical aesthetics sector is expected to gain momentum from the introduction of innovative products, particularly in the field of collagen and hair loss treatments [30][46] Summary by Sections Market Review - In June, the beauty and personal care index fell by 3.61%, ranking 31st among all primary industries, underperforming the market [14] - The medical aesthetics sector saw significant stock price increases for companies like Meili Tianyuan Medical Health (+64.4%), Yonghe Medical (+50.0%), and Sihuan Pharmaceutical (+13.3%) [20][26] - For the first half of 2025, the medical aesthetics sector recorded substantial gains, with Jinbo Biological (+124.6%), Yonghe Medical (+83.3%), and Meili Tianyuan Medical Health (+69.9%) leading the way [20][26] Medical Aesthetics - Jinbo Biological launched the world's first recombinant type III humanized collagen gel, HiveCOL, which is expected to revolutionize tissue regeneration [30] - Sihuan Pharmaceutical introduced new products targeting skin quality improvement and contour shaping, while Kedi's external finasteride spray received approval, marking a significant advancement in hair loss treatment [31][32] Cosmetics - The retail sales of cosmetics in the first half of 2025 reached 229.1 billion yuan, reflecting a year-on-year growth of 2.9% [35] - Online sales of cosmetics amounted to 267.83 billion yuan, growing by 11.1%, while offline sales decreased by 4.1% to 228.44 billion yuan [36] - The report emphasizes the strong performance of domestic brands in the online market, particularly on platforms like Douyin and Tmall [40][43] Investment Recommendations - The report recommends focusing on leading domestic beauty brands that are expected to gain market share, particularly in high-growth segments [46][47] - Key recommendations include companies like Shangmei Co., Ltd., Maogeping, and Pulaia, which are well-positioned to benefit from the ongoing trends in the beauty market [50]

Core Viewpoint - The hair care market is experiencing significant growth, with online transaction value reaching 340.37 billion yuan in the first half of 2025, marking a year-on-year increase of 20.67% [4][5]. Market Performance - The hair care segment outperformed other beauty categories, driven by a 131.5% surge in men's hair care and steady performances from international brands like Kérastase, L'Oréal, and Pantene [2][4]. - The overall beauty market saw a total online transaction value of 3,060.39 billion yuan, with hair care being one of the fastest-growing segments [5]. Segment Breakdown - The hair care subcategories showed robust growth: - Hair cleansing: 179.72 billion yuan, up 21.56% - Hair care: 74.00 billion yuan, up 19.59% - Hair dyeing and perming: 57.44 billion yuan, up 17.20% - Hair styling: 20.76 billion yuan, up 16.64% - Men's hair care: 5.12 billion yuan, up 131.50% [7]. Brand Landscape - The market share of the top five brands (CR5) decreased from 19% in 2024 to 16%, indicating increased competition from emerging domestic brands and private labels [8]. - New domestic brands like Off&Relax and others are gaining traction, with several entering the top 20 rankings [11]. Consumer Trends - There is a shift towards efficacy-driven products, with consumers seeking solutions for specific scalp issues and multi-functional products [14][19]. - The introduction of "face-care level" ingredients in hair care products is becoming a trend, enhancing the overall consumer experience [19][21]. Innovation and New Products - Over 25 brands launched new products in the first half of 2025, with a focus on scalp care and multi-functional benefits [13]. - Brands are emphasizing rapid effectiveness, with products claiming visible results in as little as one to three minutes [17]. Future Outlook - The competition in the hair care market is expected to intensify, particularly in the areas of anti-hair loss and scalp care, with a focus on patented technologies and quick results [26][29]. - The potential for growth in differentiated segments like scalp oils is significant, as brands explore new opportunities [23][26].

Core Points - The founder of Han Shu, Lü Yixiong, publicly opposed overtime work, leading to employee skepticism about whether actual workloads would decrease [2][4] - The parent company, Shangmei Co., has set a target of 10 billion yuan by 2025, requiring Han Shu to maintain a growth rate of 50%, but its Douyin repurchase rate has dropped from 24% to 18% [1][3] - Shangmei Co. faces a "growth curse" with a marketing expense of 3.9 billion yuan, raising concerns about the sustainability of its reliance on the "racehorse mechanism" and marketing strategies as traffic dividends fade [1][20] Group 1: Internal Challenges - Lü Yixiong's anti-overtime stance has sparked controversy, with employees reporting that workloads remain high despite the ban on overtime [4][6] - Employees describe a "racehorse mechanism" that pressures teams to produce similar content, leading to a high-stress environment [4][8] - The cancellation of meal allowances and transportation reimbursements has further exacerbated employee dissatisfaction, as they now bear additional costs without a reduction in workload [6][7] Group 2: Marketing and Financial Performance - Han Shu's marketing strategy has historically been aggressive, with significant investments leading to high visibility but also high costs [20][21] - In 2024, Shangmei Co. reported revenue of 6.793 billion yuan, a year-on-year increase of 62.1%, but profit growth is slowing [16][21] - The marketing expenses for Shangmei Co. reached 3.9 billion yuan, accounting for 60% of total revenue, while R&D investment remains low at 2.6% [21][23] Group 3: Future Outlook - The company aims for a revenue target of 10 billion yuan by 2025, but achieving this will require Han Shu to sustain a 50% growth rate amidst rising marketing costs and channel imbalances [23][24] - The competitive landscape in the beauty market is intensifying, and the effectiveness of Lü Yixiong's anti-involution initiative remains to be seen [24]

Core Viewpoint - The competition in the cosmetics industry is shifting from "traffic competition" to "technology competition" [3] Group 1: Industry Changes - In the first half of 2025, there will be at least 30 significant personnel changes among leading domestic and international cosmetics companies [4] - International giants are re-employing technical talents and introducing cross-industry talents to strengthen industry barriers, while local companies are restructuring organizational efficiency by leveraging foreign technical experts amidst talent loss [5][6] Group 2: Personnel Restructuring - The phenomenon of management turnover among domestic leading beauty companies is intensifying, with several core positions currently vacant or temporarily filled [8] - Companies like Proya and Shanghai Jahwa have vacant positions for vice presidents [9] Group 3: Talent Acquisition - Proya is actively bringing in foreign technical talents, with its new Chief Scientific Officer having 27 years of experience at Procter & Gamble [13] - Some companies are promoting internal talents to strengthen organizational resilience, such as Huaxi Biological promoting its global supply chain platform executive director and financial director to vice president [15] Group 4: Leadership and Innovation - International beauty giants are promoting technical talents to integrate deeply into brand operations, while also introducing cross-industry talents to stimulate innovation [17] - L'Oréal's recent appointments of executives with R&D backgrounds signify a shift towards "technology defining brands" [18][19] Group 5: Market Dynamics - The demand for cosmetics is shifting from emotional premium to functional essence, compelling companies to build core competitiveness through R&D breakthroughs and technological barriers [22] - The emphasis on technical talents is reshaping the competitive rules of the industry, moving away from reliance on traffic dividends and marketing concepts [22][23] Group 6: Future Outlook - Companies that master core technologies and technical talents will continue to lead, while brands lacking a technical foundation may struggle to survive [23]

Group 1 - The new consumption concept stocks in the Hong Kong market experienced a decline, with companies such as Shangmei Holdings (02145.HK) and Pop Mart (09992.HK) both dropping nearly 3.5% [1] - Other companies like Mixue Group (02097.HK) and Guming (01364.HK) saw declines exceeding 3%, while Nayuki's Tea (02150.HK) fell by 2.5% [1] - Additional declines were noted for Cha Baidao (02555.HK), NIO (09866.HK), Laopu Gold (06181.HK), and Xiaomi Group (01810.HK), all of which dropped over 1.5% [1]

Core Viewpoint - The short drama format is rapidly becoming a significant trend in the entertainment industry, with its market size projected to exceed 50.4 billion by 2024, surpassing traditional film box office revenues. Predictions suggest it could reach a trillion-dollar market by 2027 [2][3]. Group 1: Market Dynamics - The number of short dramas has surged from 336 in 2022 to over 36,400 by 2024, indicating a massive increase in content supply [2]. - Brand-customized short dramas are becoming a popular marketing tool, with 153 new brand short dramas launched in just the first four months of 2025 [2]. - Brands are increasingly investing in short dramas across various sectors, including beauty, food, e-commerce, and finance, with nearly half of the brands entering the market for the first time [2][3]. Group 2: Case Study - Han Shu - Han Shu's turnaround story highlights the effectiveness of short dramas, with sales skyrocketing from 10 million to over 400 million after the release of a single short drama [4][7]. - The brand's total transaction amount reached 3.34 billion in 2023, making it the top beauty brand on Douyin, a significant leap from its previous ranking [7]. - The success of Han Shu's short dramas is attributed to their ability to reshape brand image and create emotional connections with viewers, leading to increased sales [8][9]. Group 3: Industry Trends and Challenges - The influx of brands into the short drama space has led to increased competition and rising production costs, with some reports indicating costs have risen from 700,000 to over 2 million by 2025 [21][22]. - The effectiveness of short dramas is declining due to content homogenization and poor storytelling, with many brands struggling to differentiate themselves [26][30]. - Brands are facing dual pressures of rising costs and decreasing conversion rates, leading to concerns about the sustainability of this marketing strategy [21][24]. Group 4: Future Directions - Industry experts suggest that the key to successful brand short dramas lies in high-quality content and natural product integration, rather than merely relying on star power [29][30]. - Brands should focus on storytelling to create a unique brand identity, as seen in successful cases like Starbucks and Jiuzhou Sanitary Ware, which effectively used short dramas to enhance brand perception [31][32]. - Not all brands are suited for short drama marketing; those without e-commerce attributes may struggle to see conversion benefits [33].

Group 1 - MISTINE collaborates with the popular game "Light and Night of Love" to launch new products including sunscreen and cushion foundation, featuring game-themed designs to attract young consumers [2] - Face Gym, a UK skincare brand, receives investment from Reliance Industries, led by Mukesh Ambani, indicating interest in the international beauty market and providing strong financial support for global expansion [3] - Upm's brand Han Shu wins the Rongge Technology Innovation Award for its "X Peptide Cream" and has filed a patent for a hair loss prevention composition, showcasing innovation in the personal care sector [5] Group 2 - Henkel appoints Rajat Agarwal as North America President, effective July 1, 2025, to drive growth in the personal care business, strengthening the connection between packaging strategy and product portfolio [6] - Changzhou Baijiji Biopharmaceutical Co., Ltd. responds to IPO review and forecasts its functional skincare business to achieve breakeven by Q4 2027, with projected revenues of 73.14 million, 88.58 million, and 108.96 million over the next three years [7] - HBN collaborates with Pantone to define "Oriental Native White," creating four color cards and scientifically analyzing its texture, enhancing brand visibility in the color trend space [8]