Summary of Conference Call on Douyin's Women's Day Promotion and Beauty Industry Industry Overview - The conference focused on the beauty industry within the context of Douyin's Women's Day promotion, which took place from March 4 to March 8, 2026, lasting only 5 days, shorter than the previous year's 9 days [1][2]. Key Insights and Arguments - **Promotion Strategy**: Douyin implemented a strategy with higher subsidies to stimulate consumer purchasing behavior. The first batch of consumer vouchers offered a discount of 15%, fully funded by the platform, with no cost to merchants [2]. - **Sales Performance**: The overall sales target for the Women's Day promotion was set at 71.5 billion CNY, with actual sales reaching 72.1 billion CNY. The beauty sector had a target of 7 billion CNY, achieving 7.2 billion CNY, both exceeding expectations [3]. - **Market Goals for 2026**: The overall market goal for 2026 is projected at 5.2 trillion CNY, with the beauty sector aiming for 390 billion CNY. The expert expressed confidence in achieving these targets through planned operational actions [5]. - **Sales Channels**: During the promotion, the distribution of sales channels was as follows: 37% from Douyin Mall, 8% from search e-commerce, 4% from short video e-commerce, and 51% from live e-commerce. The short promotion period led to a decrease in the share of shelf e-commerce [6][7]. - **Return Rates**: The estimated return rate for the Women's Day promotion is projected to be between 37.5% and 38%, higher than the typical return rate of around 35% during regular sales periods. This increase is attributed to the short promotional period and the focus on female consumers [8][9]. Competitive Landscape - **Increased Competition**: The competition with third-party platforms, particularly Taobao, is expected to intensify in 2026. Douyin plans to shift resources towards nurturing new and second-tier brands, as growth opportunities in mature brand markets are limited [10][11]. - **Brand Strategy**: Douyin aims to replicate successful marketing strategies from previous years to rapidly develop new brands and enhance their visibility through high consumer subsidies [12][13]. - **Market Dynamics**: The competition for high-value consumer segments is expected to be fierce, especially during major promotional events like the 618 and Double Eleven sales [13][14]. Brand Performance Insights - **Brand Growth**: The growth of top-tier brands like Han Shu and Pechoin is expected to slow, with projected growth rates around 7-8%. In contrast, second-tier brands like Lin Qingxuan and Mao Ge Ping are experiencing significant growth, with some brands achieving growth rates of 30-50% [22][29]. - **International Brands**: International brands such as L'Oréal and Estée Lauder are anticipated to have lower growth rates in 2026, with many relying on major promotional events for sales spikes [26][27]. - **Emerging Brands**: Newer brands with strong marketing strategies and product offerings are expected to thrive, leveraging Douyin's platform for rapid growth [30][31]. Additional Considerations - **Impact of Tax Policies**: New tax regulations, particularly the advertising tax, may pose challenges for smaller brands, making it harder for them to scale quickly on Douyin [39][40]. - **Marketing Strategies for Smaller Brands**: Douyin is encouraging smaller brands to focus on creating standout products that can generate buzz before investing heavily in brand advertising [40]. This summary encapsulates the key points discussed during the conference call, highlighting the performance of the beauty industry on Douyin, competitive dynamics, and brand strategies moving forward.