Core Viewpoint - Oriental Selection (01797.HK) saw a closing increase of 12.78% on July 18, reaching a new high since January, driven by the upcoming launch of its second self-operated sanitary napkin product on July 19 [1]. Product Launch and Market Response - The company will launch its second self-operated sanitary napkin, "Lightweight Quick Absorb Sanitary Napkin," on its app [1]. - The first self-operated sanitary napkin, "Cotton Surface Sanitary Napkin," sold out quickly in June and received widespread consumer praise [1]. - The Zhejiang Merchants Consumer Team noted that sanitary napkin products address strong consumer pain points, and Oriental Selection's product, made from 100% pure Xinjiang cotton and exceeding national standards, has the potential to stand out in the market [1]. Consumer-Centric Approach - Oriental Selection's product development strategy is similar to that of other companies like Pang Donglai and Sam's Club, focusing on high-quality, cost-effective products that meet health needs and drive stable repurchase rates [1]. Safety and Transparency Initiatives - The company announced its commitment to safety by ensuring that its sanitary napkins are produced with "zero additives" and using traceable raw materials [4][6]. - In March, Oriental Selection revealed plans for sanitary napkin products and a transparent factory initiative to control sales channels and prevent illegal distribution of second-hand sanitary napkins [3]. Industry Context - The entry of Oriental Selection into the sanitary napkin market coincides with increased consumer awareness regarding product safety, particularly following the exposure of refurbished sanitary napkins during the "3.15" gala [6]. - Other brands, including Free Point and All Cotton Era, have also entered the market, indicating a growing competition in the sanitary napkin sector [6].

Core Insights - Oriental Selection launched its self-operated sanitary napkin product, achieving sales of over 300,000 packages within 14 hours of its release on June 16 [1][4]. Product Features - The sanitary napkin is marketed as "pure cotton" and emphasizes safety as the top priority, with strict testing standards [4][7]. - The product promises seven "zero additions," including no alcohol, dyes, preservatives, and formaldehyde, adhering to national safety standards [9][11]. Market Context - The decision to launch the sanitary napkin was influenced by consumer demand, with many users requesting the product since early 2024 [11]. - The market has seen quality issues with other brands, including reports of substandard pH levels and heavy metal contamination, which may have created an opportunity for Oriental Selection [11]. Sales and Distribution - The sanitary napkins are shipped directly from exclusive warehouses via logistics partners like SF Express and JD, ensuring controlled sales channels [11]. - As of March 20, the company reported over 400 self-operated products available for sale, with total sales exceeding 210 million units and a customer base of 30.86 million [13].