Core Viewpoint - Leading cosmetic brands are transitioning from "strategic exploration" to "systematic attack" in the skincare sector, indicating a significant shift in their business strategies [2][4]. Group 1: Brand Strategies - Major brands like Mao Geping, Huaxizi, and Perfect Diary are leveraging their brand DNA and market insights to develop systematic strategies for entering the skincare market, focusing on high-end positioning, technological innovation, and concept extension [4]. - Mao Geping has established a comprehensive skincare line, achieving a revenue of 3.885 billion yuan in 2024, with skincare contributing 1.429 billion yuan, a year-on-year growth of 23.19%, accounting for 36.8% of total revenue [4]. - Perfect Diary is centered on "technological iteration," having launched its first generation of biomimetic membrane technology in 2023 and planning to upgrade to the third generation by 2025 [5][7]. Group 2: Product Development - Perfect Diary has expanded its product range to include a "biomimetic membrane" skincare series, integrating makeup and skincare, thus establishing a unique technical barrier [7]. - Huaxizi has developed a database of over 100 floral formulas, successfully extracting and preparing 50 types of floral ingredients, which supports its "flower-based skincare" concept [8][9]. - The "气色双生莲萃" series from Huaxizi includes various products such as creams and serums, combining Eastern plant extracts with modern skincare technology [8]. Group 3: Market Trends - The skincare market in China is significantly larger than the color cosmetics market, with skincare accounting for approximately 70% of the total cosmetics market, valued at over 700 billion yuan, compared to the color cosmetics market at around 88 billion yuan [16]. - Consumer demand is evolving, with over 60% of consumers expecting makeup products to also provide skincare benefits, indicating a trend towards "makeup and skincare integration" [16][17]. Group 4: Challenges and Competition - The transition of color cosmetic brands into skincare faces challenges, including establishing consumer trust and overcoming the perception of expertise in skincare [21][22]. - The skincare market is highly competitive, with international giants dominating the high-end segment, while domestic brands are rapidly emerging with a focus on quality-price ratio and efficacy [22][24]. - The complexity of skincare product formulation requires significant R&D investment and a robust quality control system, posing a challenge for brands traditionally focused on color cosmetics [22][24].

Core Insights - 毛戈平 is expanding its presence in high-end shopping malls, positioning itself alongside international luxury brands [1][2] - The brand has maintained a balanced sales structure between online and offline channels, with a focus on mid-to-high-end pricing [1][6] - 毛戈平's skincare segment is emerging as a significant growth driver, contributing 30-40% of total revenue, while color cosmetics still dominate sales [6][9] Expansion Strategy - 毛戈平 plans to open permanent stores in high-end locations like Beijing SKP and has already tested temporary stores in various cities [1][2] - The brand is upgrading existing retail spaces, such as expanding its counter in 武林银泰 from a few square meters to 40 square meters [1] - 毛戈平 currently operates 378 self-operated counters and 31 distributor counters across 120 cities in China [1] Market Positioning - 毛戈平 is recognized as one of the few Chinese brands entering the high-end beauty market traditionally dominated by international players [1][4] - The brand's self-operated stores enhance profit margins and allow for better market feedback and customer data collection [5] - 毛戈平's sales staff have a starting salary of 3,000 yuan, with a performance-based incentive structure that differs from many international brands [5] Product Development - The brand has launched over 100 new products in 2024 and plans to enter the high-end perfume market with the "闻道东方" series in April 2025 [8][9] - 毛戈平's skincare products have a gross margin of 87.2%, which is higher than that of its color cosmetics [6] - The brand aims to build its own production base, with a factory in Hangzhou expected to be operational by mid-2026 [11] Financial Performance - 毛戈平's stock price has shown significant growth since its IPO, reaching a peak of 130.6 HKD per share in June 2025, although it has recently adjusted to 98.3 HKD [11]

Core Viewpoint - The focus of the Chinese beauty market is shifting from brand marketing to research and development, indicating a revolution centered on scientific research and manufacturing [1][2]. Group 1: R&D Strategy and Investment - Yatsen E-commerce initiated a "second entrepreneurship" strategy in 2022, emphasizing long-term investment in R&D to build a global R&D system and become a "world-class beauty innovation pioneer" [2]. - Since 2020, Yatsen has invested over 580 million yuan in R&D, maintaining a R&D expense ratio above 3% for three consecutive years, positioning it among the leaders in the global beauty industry [3][6]. - The company has established a comprehensive R&D framework, referred to as the "1-3-4-6-20" global R&D strategy, which includes one world-class beauty factory, three self-built R&D centers, four research directions, six co-built laboratories, and over 20 research cooperation projects [5]. Group 2: R&D Achievements and Innovations - The Yatsen Global Innovation R&D Center, opened in May 2024, features over 300 high-end research instruments and has achieved national certification, marking it as one of the few accredited beauty R&D labs in China [6]. - Yatsen has made significant progress in developing new functional ingredients, such as the "Renewal Essence" component, which utilizes multi-strain fermentation technology for multiple benefits, and the "Lactobacillus infantis" extract, which shows superior skin barrier repair capabilities [6][8]. - The company has successfully commercialized products like the "Bionic Film" essence lipstick, which has sold over 4.5 million units and generated over 600 million yuan in GMV, becoming the top-selling lipstick globally for Chinese brands [10][13]. Group 3: Talent and Collaboration - Yatsen's R&D strategy is supported by a global talent matrix, with 48% of its R&D team holding advanced degrees, enhancing the company's ability to convert cutting-edge technology into market-ready products [16][17]. - The collaboration between Yatsen and international experts has led to significant recognition, including multiple papers presented at prestigious conferences, establishing the company as a leader in the beauty industry [17][19]. Group 4: Sustainability and Future Outlook - Yatsen is committed to sustainable practices, achieving an ESG A rating from MSCI for two consecutive years, and is the only Chinese beauty company to do so [20]. - The company integrates AI technology into its R&D processes, enhancing efficiency and reducing experimental iterations, exemplified by its development of an anti-aging serum using advanced predictive modeling [20][21]. - Yatsen aims to create a complete R&D ecosystem that encompasses basic research, application development, commercial transformation, and sustainable future initiatives, establishing a "Chinese paradigm" for R&D value realization [22][23].

Core Insights - Perfect Diary's new product, the "Bionic Film" essence foundation, utilizes the third-generation Biotec™ technology, which has garnered significant industry attention and aims to redefine the standards of foundation technology [1][3] - The brand has focused on "makeup-nourishing technology" for three years, leading to substantial technological advancements and a comprehensive innovation layout from raw material research to clinical validation [1][3] Industry Trends - The global color cosmetics market is undergoing a structural transformation towards "skincare integration," with Perfect Diary at the forefront of this trend through its continuous exploration and technological achievements in the "makeup-nourishing" field [2] - Three major trends have been identified in the market: traditional color cosmetics claiming better skincare benefits, multi-functional claims, and the emergence of new cross-category products [2] Product Innovation - The third-generation Biotec™ technology enables the new foundation to achieve 24-hour wear and oil control while enhancing barrier protection and wrinkle reduction [3] - Clinical tests conducted by authoritative institutions, such as Ruijin Hospital, showed significant improvements in skin barrier function (31.90%), skin hydration (26.02%), and a reduction in under-eye wrinkles (43.34%) after 14 days of use [3] Manufacturing Excellence - Perfect Diary's factory has achieved international certification for smart manufacturing, establishing itself as a benchmark in the global beauty manufacturing sector [4] - The factory, built in collaboration with a leading ODM company, features a high-standard cleanroom environment, with a purification standard of 100,000-level cleanliness, significantly higher than the industry average [6] Operational Efficiency - The factory employs intelligent and refined management practices to enhance efficiency and reduce costs, including automated filling and packaging systems [7] - A comprehensive quality control system ensures rigorous testing and monitoring throughout the production process, contributing to high-quality product output [7] Sustainability Practices - The factory incorporates sustainable practices, such as advanced water treatment systems that recycle wastewater for landscaping, aligning with global environmental trends [8] - The facility's location near a natural water source allows it to maintain high-quality production water standards, exceeding both Chinese and European pharmacopoeia requirements [8][9] Future Outlook - The collaboration between international experts and the brand's technological advancements signals a continued rise of domestic beauty brands, with Perfect Diary positioned as a leader in the global beauty market [10] - The innovative ecosystem established by the company, combining foundational research, clinical validation, and smart manufacturing, is expected to drive sustainable growth and attract further industry talent [10]