Investment Rating - The industry investment rating is maintained at "Overweight" [2][22] Core Insights - The retail sector saw a 4.06% increase last week, outperforming the CSI 300 index by 5.14 percentage points [2][7] - The total sales during the 2025 "Double Eleven" shopping festival reached 16,950 billion, a year-on-year increase of 14.2% [4][20] - The current PE ratio for the retail sector is 51.03X, with a PB ratio of 2.06X [3][15][18] Industry Performance - The retail sector's performance over the past month shows a relative return of 4.6%, a 3-month return of -2.7%, and a 12-month return of 2.3% [2] - The retail sector's absolute returns were 4.4% over the past month, 8.1% over the past 3 months, and 18.9% over the past year [2] Industry Dynamics - The "Double Eleven" shopping festival highlighted a shift in consumer behavior towards rational spending, with a focus on quality and brand value [4][20] - The home appliance sector is expected to maintain strong growth due to ongoing subsidy policies, while competition is evolving towards AI empowerment and green solutions [4][20] - The beauty industry is experiencing significant structural upgrades, with a focus on high-end products and effective performance [4][20] Investment Recommendations - The report suggests focusing on sectors that emphasize experience, content, and community engagement, particularly in smart home appliances and beauty care [4][21][22] - Attention is recommended for high-end domestic beauty brands and the instant retail supply chain during the "Double Eleven" period [5][22]