Summary of the Beauty Industry Conference Call Industry Overview - The conference call focused on the beauty industry, particularly the performance and strategies of Tmall during the 2025 618 shopping festival [1][3]. Key Points and Arguments - **Changes in Sales Strategy**: Tmall has canceled the cross-store discount mechanism for the 2025 618 event, replacing it with direct discounts and smart coupons to stabilize daily sales growth. This shift aims to enhance user growth and public traffic while merchants rely more on technological discounts [1][4]. - **Sales Targets**: Tmall's overall sales target for the 2025 618 event is set at 862 billion yuan, with a projected growth rate of 13.5%. The beauty category aims for a sales target of approximately 13.2 billion yuan, expecting an 18% growth [3][4]. - **Investment in Marketing**: Tmall is investing heavily in marketing, including 20 billion yuan in cash subsidies for Taobao Live and 30 billion yuan in smart coupon subsidies from Alibaba. The total shelf subsidy has increased to 58 billion yuan [1][8][9]. - **Collaboration with Xiaohongshu**: Tmall has partnered with Xiaohongshu, investing 6.2 billion yuan to enhance advertising and direct traffic from Xiaohongshu to Tmall, aiming to increase store visit rates [1][10]. - **Performance of Key Brands**: Foreign brands like L'Oréal and Estée Lauder are seeing higher average order values and growth rates compared to domestic brands. Foreign brands are expected to grow at about 7-8%, while domestic brands are projected to grow at around 35% [2][12][13]. - **Consumer Behavior**: The post-00s demographic shows a willingness to accept price increases of 30-50% and an increase in purchase frequency and category diversity [4][13]. Additional Important Insights - **Focus on Quality and Brand**: The platform's algorithms and policies are increasingly favoring quality products and established brands, with a notable increase in average order values for leading brands [12][13]. - **Performance of Domestic Brands**: Domestic brands like Perlay and Kefu are aggressively marketing, with their advertising revenue growth outpacing GMV growth by 20-30 percentage points [22]. - **Price Strategy**: The overall merchant gross profit is expected to improve, with less aggressive price competition compared to the previous year [12][14]. - **Growth Targets for Specific Brands**: Various domestic brands have set ambitious growth targets for the 618 event, with some brands like Kefu aiming for a 50% growth rate [15][16][17][18][19]. Conclusion The 2025 618 shopping festival is characterized by strategic shifts in sales mechanisms, significant investments in marketing, and a focus on quality and brand reputation. The beauty industry is poised for growth, driven by both domestic and foreign brands adapting to changing consumer behaviors and market dynamics.