Core Insights - The report from Dongfang Securities highlights the transition in the beauty industry from "functional consumption" to "composite efficacy + emotional consumption," indicating increased consumer resilience [1] - The beauty sector is diversifying its sales channels, moving away from reliance on a single traffic window, which is enhancing channel efficiency [1] - Leading brands are demonstrating stronger resilience, with a focus on companies with robust brand assets that can capitalize on channel and product cycles [1] Group 1: Sales Performance - During the Double 11 shopping festival (October 7 - November 11), total e-commerce sales reached 16,950 billion yuan, reflecting a year-on-year growth of 14.2% [1] - The top five categories in e-commerce sales were home appliances, mobile digital products, clothing, beauty and personal care, and shoes/bags, with respective market shares of 16.5%, 14.6%, 14%, 8.2%, and 6.5% [1] - Beauty subcategories saw significant sales, with skincare products generating 991 billion yuan (+11.65%), hair care and cleaning products at 444 billion yuan (+13.54%), and perfumes and cosmetics at 334 billion yuan (+13.52%) [1] - Instant retail sales reached 670 billion yuan, showcasing a remarkable growth of 138.4% [1] Group 2: Brand Performance - Tmall's beauty rankings show Proya leading for three consecutive years, followed by Estee Lauder, Lancôme, L'Oréal, and SkinCeuticals, indicating a stable top five [2] - Douyin's beauty rankings are led by Han Shu, with Proya, L'Oréal, Helena Rubinstein, and Gu Yu following, highlighting Douyin as a key platform for domestic beauty brands seeking growth [2] - The sales of composite efficacy skincare products accounted for 47.1% of the top 50 best-selling skincare items on Tmall, with anti-aging products being the most popular [2] - Brands like Han Shu and New Page reported significant sales growth across multiple channels, with New Page achieving a 145% increase in total sales [3] - The overall performance of leading brands like Proya and Weinuo demonstrated strong growth, reinforcing the notion of enhanced brand momentum in a stable market environment [3]

Investment Rating - The industry investment rating is "Positive (Maintain)" [6] Core Insights - The beauty and personal care sector is transitioning from "single functional consumption" to "composite efficacy + emotional consumption," indicating enhanced consumer resilience [4] - The beauty industry is no longer reliant on a single traffic window, with narratives around channel efficiency strengthening [4] - Leading brands exhibit stronger resilience, with a positive outlook on companies with robust brand assets that can capitalize on channel and product cycles [4] Summary by Sections Industry Overview - The Double 11 shopping festival saw a total e-commerce sales of 16,950 billion yuan, reflecting a year-on-year growth of 14.2% [8] - Beauty and personal care sales reached 991 billion yuan, growing by 11.65% [8] - Instant retail sales surged to 670 billion yuan, marking a remarkable growth of 138.4% [8] Market Dynamics - Tmall leads in high-end beauty sales, while Douyin is becoming a significant platform for domestic brands [8] - The top five beauty brands on Tmall include Proya, Estée Lauder, Lancôme, L'Oréal, and SkinCeuticals, with Proya maintaining the top position for three consecutive years [8] - Douyin's beauty sales rankings show Han Shu at the top, followed by Proya and L'Oréal [8] Company Performance - Leading brands like Up Beauty, Ruo Yu Chen, and Mao Ge Ping have shown impressive performance during the Double 11 event [8] - Up Beauty's sales increased by 145% year-on-year, with significant growth on both Tmall and Douyin [8] - Ruo Yu Chen's sales saw a staggering 35-fold increase year-on-year, with Douyin sales growing by over 100% [8]