Core Insights - L'Oréal, the French cosmetics giant, announced the establishment of a technology center in Hyderabad, India, with an initial investment exceeding 35 billion rupees (approximately 383.41 million USD) [1] Group 1 - L'Oréal is making a significant investment in India by setting up a technology center [1] - The investment amount is over 35 billion rupees, which translates to around 383.41 million USD [1]

Core Viewpoint - French cosmetics giant L'Oreal is establishing a tech hub in Hyderabad, India, with an initial investment exceeding 35 billion rupees, equivalent to approximately $383.41 million [1] Group 1 - L'Oreal's investment in the tech hub signifies its commitment to expanding its technological capabilities in the Indian market [1] - The establishment of the tech hub is part of L'Oreal's broader strategy to enhance innovation and digital transformation within the company [1] - The investment amount reflects L'Oreal's confidence in the growth potential of the Indian market and its tech ecosystem [1]

Core Viewpoint - Valentino Beauty is set to exit the South Korean market as L'Oréal Korea decides to terminate its offline store operations, with department store counters already closed and the online store expected to cease operations in the first half of 2026 [2] Group 1: Company Operations - Valentino Beauty opened a pop-up store in Seoul's Hannam-dong in March 2022, marking its entry into the South Korean market [2] - Initial products like "Go Cushion" powder and "Rosso Valentino Lipstick" garnered significant attention upon launch, leading to the establishment of a formal store in Lotte Department Store [2] - The decision to exit is seen as L'Oréal's strategy to cut inefficient brands in the South Korean market and focus on its core product offerings [2] Group 2: Market Context - The South Korean beauty market is competitive, featuring not only international luxury brands like Chanel, Dior, and Yves Saint Laurent but also numerous local brands [2] - Valentino Beauty's market position is considered less distinctive compared to other international brands, particularly as it only has a physical presence in Lotte Department Store, which limits its offline channel reach [2]

Core Insights - The article discusses the competitive landscape of the beauty market on Douyin, highlighting that L'Oréal has fallen out of the top ten rankings, while lesser-known brands are rapidly gaining market share [1][3] - The rise of brands targeting the 30+ demographic, particularly middle-aged women, is identified as a significant growth driver in the cosmetics industry [3][7] Market Trends - The 30+ age group accounts for nearly 90% of skincare consumption on Douyin, with the 31-40 age bracket being the largest segment at 35.05% [7] - The skincare needs of this demographic focus on anti-aging, spot removal, and medical beauty recovery, indicating a mature consumer decision-making ability and willingness to pay [9][47] Brand Performance - New brands like MEICHIC and Aiposa have entered the market and achieved significant sales, with MEICHIC's flagship product, a 99 yuan luxury cream, becoming a bestseller [10][12] - Pharmaceutical brands such as Mayinglong and Sanjing Pharmaceutical are also performing well in the eye cream category, with Mayinglong ranking third in the top five eye creams [13][39] Emerging Brands and Strategies - A variety of new brands are emerging, focusing on the 30+ demographic and achieving monthly GMV of over 10 million yuan, with some surpassing 100 million yuan [20][22] - These brands employ different strategies, including leveraging founder IPs, offering affordable luxury products, and utilizing targeted marketing to address specific consumer pain points [23][24] Competitive Landscape - Three main strategies are identified among brands targeting the 30+ demographic: 1. Brands using founder IPs and affordable luxury products to attract middle-aged consumers [24][29] 2. Korean brands positioning themselves as high-end skincare options, often utilizing celebrity endorsements [32][34] 3. Pharmaceutical and white-label brands focusing on eye care products, leveraging scientific credibility and targeted marketing [37][39] Consumer Insights - The demand for anti-aging products is becoming a necessity rather than an option, driven by the economic empowerment and health consciousness of the 30+ demographic [47][54] - The anti-aging market in China is projected to reach 178.6 billion yuan by 2030, indicating substantial growth potential [47] Challenges and Considerations - Despite the rapid rise of these brands, their growth heavily relies on high-frequency live streaming and significant advertising investments, raising concerns about sustainability [55] - Transitioning from a focus on explosive sales to long-term brand value will require improvements in research and development, user engagement, and quality control [55]

Core Insights - L'Oréal launched two beauty tech products, the multi-effect light energy hair styling tool and LED light energy mask, at the 2026 CES International Consumer Electronics Show, with plans for a global release in 2027, though pricing details are yet to be announced [1] Group 1: Product Launch - The multi-effect light energy hair styling tool and LED light energy mask are part of L'Oréal's recent focus on anti-aging technology in beauty products [1] - These products represent L'Oréal's commitment to integrating beauty and health, emphasizing the importance of skin science and longevity science in their research and application [1] Group 2: Strategic Direction - L'Oréal aims to shift from passive skincare to proactive preventive care by understanding biological mechanisms such as protein composition, genetic predisposition, and cell regeneration that influence aging [1] - The company is prioritizing foundational research and application in the fields of skin science and longevity science [1]

Core Insights - Despite challenges faced by global beauty giants, Galderma has achieved significant growth and is on track to enter the top ten global beauty companies, with a projected net sales of approximately 32 billion RMB in 2024 [1][3]. Group 1: Company Performance - Galderma ranked 11th among global beauty companies in 2024, with net sales of approximately 32 billion RMB, just behind Puig Group [3]. - In the first three quarters of 2025, Galderma reported net sales of 3.737 billion USD (approximately 26.615 billion RMB), reflecting a year-on-year growth of 15% [3][11]. - The skin treatment segment showed the fastest growth, with net sales reaching 804 million USD in the first three quarters of 2025, a 40.4% increase year-on-year [11][31]. Group 2: Investment and Valuation - Galderma's valuation surged from over 50 billion RMB to over 340 billion RMB, marking an increase of over 500% since its sale by L'Oréal in 2014 [4][9]. - L'Oréal increased its stake in Galderma to 20% after acquiring an additional 10% in December 2025, following an earlier purchase in August 2024 [3][13]. Group 3: Business Structure and Strategy - Galderma operates a three-pronged business model encompassing pharmaceutical, aesthetic, and cosmetic sectors, creating a unique vertical integration in skin science [26]. - The company has established a strong presence in the aesthetic injection market, contributing over 50% of its revenue, with key products including hyaluronic acid fillers and botulinum toxin [14][27]. Group 4: Market Challenges - Despite its leading position in skin science, Galderma faces challenges in growth structure, with its aesthetic injection business showing signs of slowing growth [27][28]. - The company’s revenue heavily relies on the aesthetic segment, which accounted for approximately 51% of total revenue in the first half of 2025, but growth rates have declined compared to previous years [27][29]. Group 5: Future Outlook - Galderma aims to enhance its direct consumer engagement to convert its professional authority into brand loyalty among end consumers, which is crucial for its ambition to enter the top ten global beauty companies [37].

Investment Rating - The report indicates a positive investment outlook for the facial skincare industry, particularly in the e-commerce segment, with a projected growth rate of 19.4% year-on-year [9]. Core Insights - The facial skincare category is leading the beauty and skincare market, with significant sales growth on e-commerce platforms, especially on Douyin, which is expected to surpass 1340.39 billion in sales by 2024 [9][10]. - Tmall's market share is declining, projected to drop to 30.5% by 2024, while Douyin is rapidly gaining market share [9][10]. - The report highlights various product categories within facial skincare, noting that while some categories are experiencing growth, others are facing declines [12][14][16]. E-commerce Market Trends - The overall e-commerce market for facial skincare is expected to grow by 19.4% year-on-year, with Douyin becoming the leading platform [9]. - Tmall's sales are projected to decline, while Douyin's sales are expected to grow significantly, reaching 1340.39 billion by 2024 [9][10]. - The report provides detailed sales figures for major platforms, indicating a shift in consumer preferences towards Douyin [10]. Product Category Performance - The report categorizes facial skincare products into several key segments, including serums, creams, masks, and cleansers, with varying growth rates across these categories [8][12][14][16]. - Specific product categories such as lotions and toners are showing positive growth, while others like facial scrubs and certain masks are declining [12][14][16]. - Douyin shows remarkable growth in categories like facial care sets and liquid serums, with growth rates of 48.6% and 54.0% respectively [16][17]. Brand Performance - The report lists top-performing brands in the facial skincare market, highlighting significant sales figures and growth rates for brands like Proya, L'Oreal, and Estee Lauder [19][20][21]. - Proya is noted for its strong growth, with a sales increase of 103.9%, while other brands like Sk-II and Olay are experiencing declines [19][20][21]. - The competitive landscape is shifting, with emerging brands gaining traction alongside established players [19][20][21].

Core Insights - The article discusses how leading brands like L'Oréal Paris and Midea have successfully doubled their user assets during the 2025 JD 11.11 shopping festival by utilizing the JD VALUE methodology, which addresses the challenges of rising traffic costs and fragmented marketing environments [1][23]. Group 1: JD VALUE Methodology - The JD VALUE methodology consists of three core modules: Vector (strategy and insights), Acquire & Lead (reach and stimulate), and Upsell (conversion), forming a comprehensive value growth system [1][9]. - The V module serves as a "steering wheel" for marketing, enabling brands to diagnose user assets and benchmark against industry standards, thus identifying growth directions [3][8]. - The methodology emphasizes a shift from traditional marketing approaches to a data-driven strategy, allowing brands to focus on user asset health rather than just immediate ROI [18][21]. Group 2: Implementation by Midea and L'Oréal - Midea identified two key issues using the VALUE methodology: a significant gap in the A1 awareness group and a lack of smooth conversion from A2 to A3 and A4 [3][6]. - Midea's strategy involved targeting key platforms like Xiaohongshu, Douyin, and Bilibili for user acquisition, moving away from blind marketing to more precise investments [6][9]. - L'Oréal's approach included a three-step strategy of "expand-attack-defend," focusing on untapped potential users, brand switchers, and reinforcing loyalty among existing customers [8][15]. Group 3: Performance Metrics - Midea's marketing efforts during the JD 11.11 event resulted in a 48% growth in 4A user assets, the highest in the industry, and a 55% increase in potential customer engagement [15][16]. - L'Oréal achieved industry-leading conversion rates across various user stages, demonstrating the effectiveness of the VALUE methodology in enhancing user engagement and loyalty [15][16]. - The evaluation metrics used in both brands' strategies included long-term user asset growth rates and customer lifetime value (CLV), moving beyond short-term sales figures [15][18]. Group 4: Ecosystem Integration - JD has established deep collaborations with major platforms like Tencent, Xiaohongshu, and Douyin, creating a seamless "outbound grass-planting to inbound conversion" marketing chain [13][19]. - The VALUE methodology promotes an integrated marketing approach, allowing brands to track user behavior across multiple platforms and optimize their strategies accordingly [20][21]. - This integration helps brands avoid fragmented marketing efforts and enhances the overall effectiveness of their campaigns, leading to better user retention and long-term growth [20][21].

Group 1 - UBS has upgraded L'Oréal's rating from Neutral to Buy [1] - The target price for L'Oréal has been raised from €367 to €430 [1]

Core Insights - The sunscreen market for 2026 has already begun, with brands launching new products and marketing campaigns earlier than usual due to the late Lunar New Year holiday and the upcoming beauty consumption wave around International Women's Day [1][3] - Concerns arise over a potential price war in the sunscreen market, as many products are priced below 30 yuan, leading to questions about the sustainability of innovation trends such as multifunctional products and seasonal marketing strategies [1][3] Market Trends - Major brands like L'Oréal and Sekkisei have already iterated their core sunscreen products, initiating a "winter offensive" marketing strategy to extend the sales cycle throughout the year [3] - The total number of sunscreen product registrations has reached 4,835 since 2021, with 704 new registrations in 2025, indicating a rich product variety in the market [5] Sales Performance - From January to November 2025, sunscreen products sold 155 million units, generating sales of 14.153 billion yuan, surpassing the total sales of 12.045 billion yuan for the entire year of 2024 [7] - Sales growth in different price segments shows that products priced below 100 yuan generated 5.588 billion yuan, while those priced between 100-200 yuan and above 200 yuan saw growth rates of 20.44%, 15.27%, and 16.02% respectively [7][8] Brand Dynamics - The sales ranking for sunscreen brands remains stable, with Mistine, L'Oréal, and Anessa leading the market. L'Oréal experienced a significant growth of 47.94% during this period [8] - New product launches are increasingly focused on mainstream sunscreen creams, with outdoor-focused products performing well [12] Consumer Behavior - The rise of ultra-low-priced sunscreen products reflects a cautious consumer spending trend, allowing for more choices and lower trial costs for consumers [18] - The market is witnessing a shift towards smaller, lower-priced products that cater to specific consumer needs and preferences [18] Innovation and Technology - The sunscreen industry is seeing advancements in research and development, with a focus on anti-aging and light damage protection becoming central themes [19][23] - Brands are increasingly integrating skincare benefits into sunscreen products, with many new launches featuring dual certifications for whitening and sun protection [20][23] Industry Standards and Certification - Brands are actively participating in the establishment of industry standards, with initiatives like the "first" and "only" certifications becoming competitive advantages [30][31] - The introduction of AI-driven models for product development, such as Mistine's SCOPE-DTI model, marks a significant shift in the research landscape, enhancing the efficiency of product development in the sunscreen category [34][32]