Core Insights - Major beauty companies are aggressively recruiting OTC channel professionals, indicating a strategic shift towards OTC as a growth area in the beauty industry [2][4] - The OTC channel is expected to become a key growth engine for the industry in the next 3-5 years, driven by policy changes, market demand, and channel transformation [4][5] - The beauty sector is experiencing a talent and capital influx into OTC, with salaries for OTC positions significantly higher than traditional channels [4][6] Industry Trends - The number of drugstores in China exceeds 700,000, presenting a substantial market opportunity for beauty products, especially given the low current penetration rate of beauty products in drugstores [5] - The success of brands like Winona, which saw OTC sales grow from 500,000 yuan in 2016 to over 1 billion yuan in 2024, highlights the potential of the OTC market [6] - The beauty industry's gross margin exceeds 60%, making it an attractive category for drugstores facing declining profits in traditional pharmaceutical sales [6] Recruitment and Talent Dynamics - Beauty companies are restructuring their recruitment strategies for OTC channels, seeking candidates with a deep understanding of healthcare policies and market management [7][11] - The market is currently facing a shortage of professionals who possess both beauty and OTC distribution expertise, leading to high salary offers for qualified candidates [11][12] - Companies are establishing dedicated OTC divisions, indicating the channel's importance as a core strategic unit requiring independent investment and specialized strategies [11] Challenges and Market Dynamics - The entry into the OTC market is not straightforward, as beauty companies must navigate high channel costs and the need for significant product discounts to retailers [13] - Drugstores face challenges in selling beauty products due to customer behavior and the need for specialized product selection and marketing strategies [14] - The competition in the OTC space is characterized by a complex interplay of resources, brand identity, and operational capabilities, necessitating a comprehensive restructuring for beauty brands [15]