Investment Rating - The report maintains a "Positive" outlook on international cosmetics and medical beauty companies for Q1 2025 [2]. Core Insights - The global beauty market is projected to grow at a rate of 4.5% in 2024, a decline from the 8% growth seen in 2023, with significant regional disparities [3][12]. - The North Asia market, particularly China, has shown signs of improvement, but overall performance remains subdued, with North America exhibiting signs of fatigue [3][12]. - International beauty groups are still grappling with performance declines or slower growth, which may become the new normal due to various factors including the pandemic and macroeconomic conditions [3][15]. - Companies are adopting localization strategies and investing in local brands to maintain market share amid fierce competition from domestic brands [3][19]. Summary by Sections 1. Global Beauty Market Trends - The beauty market continues a stable trend from 2024, with Europe outperforming other regions at a 7.5% growth, while North Asia has seen a 2% decline [3][12]. - The international beauty groups are facing a challenging environment with performance fluctuations and strategic adjustments [15]. 2. L'Oréal Performance - L'Oréal's Q1 2025 revenue growth slowed to 4.4%, with the Chinese market remaining flat and tourism retail channels under pressure [3][27]. - The company is actively investing in local brands and expanding its product matrix to compete with domestic brands [3][27]. 3. Estée Lauder Performance - Estée Lauder reported a 9.9% decline in revenue for Q1 2025, continuing a trend of three consecutive quarters of revenue decline [3][51]. - The company is undergoing strategic reforms to address issues related to brand and product positioning [47][51]. 4. Shiseido Performance - Shiseido's revenue decreased by 8.5% in Q1 2025, with its main brand struggling while the ELIXIR brand showed growth [3][18]. - The company is focusing on strategic product launches and price adjustments to enhance profitability [3][27]. 5. Investment Recommendations - Recommended companies include Up Beauty and Proya for their strong brand matrices and growth potential, as well as Marubi for leveraging Douyin traffic [4]. - In the medical beauty sector, companies with strong R&D capabilities and broad product pipelines, such as Aimeike, are highlighted as key investment opportunities [4].

Core Insights - The company Pianzaihuang has been recognized as the "No. 1 in national sales of pearl cream" and "No. 1 brand of pearl cream" by iiMedia Research, a leading third-party data mining and analysis agency [1][2] - The Chinese cosmetics industry is projected to reach a market size of 545.8 billion yuan in 2024, with a year-on-year growth of 5.6%, and is expected to grow to 579.1 billion yuan in 2025 [1] - The rise of domestic beauty brands, rooted in traditional culture and combined with modern technology, has become a significant highlight in the Chinese cosmetics market [1] Company Overview - Pianzaihuang has a rich cultural heritage and product quality, making it a representative of Chinese skincare aesthetics [2] - The brand has sold nearly 30 million bottles of its flagship product, the Pianzaihuang Pearl Cream, in 2024, with cumulative sales exceeding 100 million bottles [2] - The company has established a comprehensive research and development system, including five research centers and three ingredient co-construction bases, focusing on traditional Chinese herbal culture and modern skincare technology [4] Market Position and Strategy - Pianzaihuang has implemented the "Oriental New National Makeup" strategy, enhancing its marketing layout and focusing on core products [7] - The brand is addressing industry challenges such as insufficient technological innovation and severe homogenization by building differentiated competitive barriers through innovative research on Chinese ingredients [7] - The company aims to promote the wisdom of Eastern skincare and create a healthy quality of life, continuously deepening its presence in the domestic beauty sector [7]