Industry Environment - The beauty industry in China is expected to draw lessons from the success of collectible toys, focusing on emotional marketing and cultural influence to enhance user connection and differentiation [1] - The "healing economy" is emerging as a new trend, with the aromatherapy market growing rapidly, driven by increasing consumer demand for wellness services [2] - A potential IPO wave is anticipated in the domestic beauty sector, with several companies like Lin Qingxuan and Gu Yu moving towards public offerings, supported by favorable policies [3][4] Market Trends - The Chinese cosmetics market is undergoing a transformation, with a noticeable "K-shaped" differentiation where high-end international brands are expanding while mid-range and local brands are contracting [5] - The sports beauty segment is projected to reach $31.4 billion by 2028, with brands launching high-performance products to cater to women's needs in fitness scenarios [6] - Recent product launches from luxury brands like Louis Vuitton and Chanel reflect a trend towards innovative and sustainable beauty products [7] Celebrity Influence - The acquisition of Hailey Bieber's brand Rhode by E.l.f. Beauty highlights the importance of product strength and user engagement over mere celebrity endorsement in the beauty market [8][9] Sales Performance - Despite a general decline in consumer spending during the 618 shopping festival, the beauty sector saw a significant increase in sales, with a year-on-year growth of 63.35%, driven by domestic brands [10] Brand Dynamics - The beauty market is entering a "technology equity" era, where brand identity and consumer trust are becoming more critical than product differentiation [11] - During the 618 shopping festival, brands like Pechoin and Natural Hall achieved top rankings, showcasing the effectiveness of technological innovation and cross-industry collaboration [12] Corporate Developments - Estée Lauder's strategic appointment aims to revitalize its makeup brands in response to declining sales [13] - The unique business model of Mao Geping's cosmetics company, with a high repurchase rate, demonstrates the potential for non-standardized services to enhance brand loyalty [14] - L'Oréal's acquisition of Medik8 for approximately €1 billion underscores the growing importance of scientific skincare in the beauty industry [15] Market Entry - The successful IPO of Ying Tong Holdings marks a significant milestone for the Chinese fragrance market, with plans for further brand expansion and channel development [17] Industry Challenges - Major cosmetic companies like Coty and Procter & Gamble are restructuring and downsizing to cope with declining sales and market pressures [18] Strategic Moves - Anta's acquisition of the outdoor brand Jack Wolfskin aims to position it in the mid-range market, leveraging the brand's existing recognition in Europe [19] - The acquisition of the sensitive skin brand Bai Zhi Cui by Juyi Group reflects a trend towards integrating scientific research with skincare, enhancing the brand portfolio [20][21]

Core Insights - The global toy market has seen a shift with Labubu from Pop Mart creating a buying frenzy, indicating a new breakthrough for the Chinese trendy toy industry [2][3] - Labubu's unique design and market positioning have resonated with contemporary youth, moving away from traditional "sweet" styles to a more quirky and rebellious aesthetic [3] - The success of Labubu is significantly driven by celebrity endorsements, which have exponentially increased its visibility and popularity among global fans [2][3] Market Dynamics - Labubu's blind box strategy enhances consumer engagement through surprise elements, leading to repeat purchases and a cycle of addiction [3] - According to a report, 46.78% of consumers cite the element of surprise as the main reason for purchasing trendy toys, highlighting the focus on social interaction and personal enjoyment rather than investment [4] - The secondary market for Labubu has seen significant price inflation, with original blind boxes priced at 99 yuan being resold for 200 to 600 yuan, and limited editions fetching prices as high as 820,000 yuan [6] Industry Outlook - The Chinese trendy toy industry is still in its growth phase, with rapid expansion observed in recent years, and the market size is projected to exceed 130 billion yuan by 2028 [9] - Pop Mart, as a leading player in the industry, has established a comprehensive supply chain and achieved significant revenue from its proprietary IPs, with over 50% of its annual revenue coming from self-owned IP products [6]