Summary of Key Points from the Conference Call Industry Overview - The report focuses on the **China Consumer Market**, particularly in the **cosmetics**, **sportswear**, and **infant milk formula (IMF)** sectors, analyzing performance across major e-commerce platforms like Tmall, Taobao, and JD. Key Highlights 1. Category Performance - **White Goods**: Grew by **15% year-over-year (yoy)** in July, outperforming other categories. - **RVC/Small Kitchen Appliances**: Recorded growth of **14%** and **10% yoy**, respectively. - **Sports Shoes/Sportswear**: Achieved **11%** and **7% yoy** growth. - **Declines**: Categories such as **IMF, Beer, Pet Products, and Beauty** saw declines, with **Women's Clothing, Condiments, and Dairy** lagging at **15%**, **17%**, and **24% yoy** declines, respectively [1][13][12]. 2. Domestic vs. MNC Brands in Cosmetics - **Local Brands**: Mass/local brands regained market share from premium/MNC brands, reversing trends from the previous period. - **Shanghai Jahwa, Marubi, and KANs** led with growth rates of **58%**, **51%**, and **48% yoy**. - **Giant, Perfect Diary, and Botanee** grew by **24%**, **7%**, and **2%** respectively. - **MNC Brands**: - **LGHH** was the only MNC to show positive growth at **9% yoy**. - **L'Oreal** declined by **2%**, while **Estee Lauder** and **Shiseido** faced declines of **MSD to HSD% yoy**. - **Kose** and **Amore** underperformed with declines of **19%** and **49% yoy** [2][23]. 3. Sportswear Market Insights - Both MNCs and local brands experienced positive online growth in July, attributed to a favorable base. - **Anta** reported improved performance in mid-July, expecting recovery in Q3. - **Xtep** noted retail sales acceleration, while **Li Ning** faced pressure with deeper discounts yoy. - The divergence in brand performance is attributed to product and fashion cycles, with brands executing omni-channel strategies [3]. 4. Infant Milk Formula (IMF) Performance - **Sales Growth**: On Tmall/Taobao, IMF sales grew by **11%** in July, an improvement from **-4%** in June. - **Top Brands**: Local brand **Yili** (including Pro-Kido) showed strong momentum with **33%** growth in July, while **Feihe** slowed to **6%** growth. - Among MNCs, **Biostime, Mead Johnson, and Wyeth** outperformed with growth rates of **48%**, **42%**, and **32%** respectively [17][18]. 5. Brand Performance Summary - **Outperforming Brands**: Included **Herborist, Collgene, Marubi, KANs, HR, Uniqlo, Gree, Ecovacs, Roborock, Fila, Lululemon, and Pop Mart**. - **Underperforming Brands**: Included **Timage, QuadHA, Yili, and Cha cha** [4]. Additional Insights - The report indicates a shift in consumer preferences towards local brands, particularly in the cosmetics sector, as they regain market share from MNCs. - The performance of various categories suggests a mixed recovery in consumer spending, with some sectors experiencing robust growth while others face significant declines. - The analysis highlights the importance of omni-channel strategies in capturing market share and responding to changing consumer behaviors [2][3][23].