Investment Rating - The report does not explicitly provide an investment rating for the retail industry in China [1]. Core Insights - Offline retail performance in South China was under pressure during Q3 2025 and the first three days of Golden Week, with significant year-on-year declines in sales for many brands [10][11]. - International cosmetics brands experienced weak sales, while domestic brand MAOGEPING showed strong performance during the same period [12]. - Sports brands Li-Ning and Anta outperformed NIKE and ADIDAS, achieving double-digit growth, while the latter two saw declines [13]. - Outdoor brands maintained resilient sales, with higher discount levels compared to sports brands, although overall discount levels remained stable year-on-year [14]. Summary by Sections Offline Retail Performance - In Q3 2025, offline retail sales in Guangzhou showed a double-digit decline both month-on-month and year-on-year, with a slight recovery in sales during the first three days of Golden Week [10]. - The average retail transaction value declined year-on-year, particularly for high-value products and cosmetics, while mid-to-low priced products remained stable [10]. Dining Performance - Dining performance during Golden Week showed divergence, with traditional Cantonese cuisine performing strongly, while Western and Japanese cuisines faced declines [11]. Cosmetics Sales - 70% of international cosmetics brands reported year-on-year sales declines, with DIOR experiencing a double-digit drop, while domestic brand MAOGEPING performed exceptionally well due to strong promotions [12]. Sports Brand Performance - In Q3 2025, NIKE and ADIDAS saw modest growth, while Li-Ning and Anta achieved double-digit growth, attributed to their participation in promotional activities during Golden Week [13]. Outdoor Brand Performance - Sales growth for outdoor brands was led by The North Face and Jack Wolfskin, both achieving double-digit growth, while other brands like Columbia saw mid-to-high single-digit growth [14].

Core Insights - Overall consumer trends during the holiday period show divergence, with strong travel demand and a 6.9% year-on-year increase in total inter-regional travel volume [1] - The luxury goods sector is experiencing continued improvement, benefiting from easier comparative bases, targeted customer development, and increased mall promotions [1] - However, the film box office and sports apparel sectors are underperforming [1] - Sales in the gold and jewelry segment are supported by rising gold prices, but overall sales volume remains weak [1] - Preferred stocks include luxury groups LVMH, Richemont, Yintong Holdings, and Anta Sports [1]