Core Insights - The article highlights the rise of Chinese brands in the global market, indicating a shift in consumer preferences from Western brands to local alternatives [1][8] - It emphasizes that Chinese consumers are increasingly favoring domestic luxury brands, high-end cosmetics, and local food and beverage options, marking a significant change in consumption patterns [1][4] Group 1: Rise of Chinese Brands - The popularity of the LABUBU toy exemplifies the success of Chinese brands, with its demand leading to a surge in the stock price of its manufacturer, Pop Mart [1][3] - Chinese brands like Kudi and Luckin Coffee are gaining traction by offering quality comparable to international brands like Starbucks at significantly lower prices [3][4] - The jewelry brand Laopu Gold has seen rapid growth, with its average store sales exceeding those of many foreign competitors by at least 50% [4][6] Group 2: Changing Consumer Behavior - Consumers are now willing to pay prices comparable to imported goods for local products, as seen with the high-end tea brand Bawang Chaji, which positions itself as a premium option [4][6] - There is a notable shift in consumer awareness, with younger demographics researching products more thoroughly and seeking local alternatives that offer similar quality at lower prices [6][7] - The success of brands like Mao Geping in the high-end cosmetics market illustrates the changing landscape, as it becomes the only domestic player among the top ten luxury beauty groups in China [6][7] Group 3: Strategic Market Positioning - Many Chinese brands are expanding their presence in lower-tier cities, where consumer activity is reportedly stronger than in major urban centers [7][8] - The strategy of targeting smaller cities has proven effective for brands like Bawang Chaji and Mxue Ice City, which began in less affluent areas before moving to larger markets [7][8] - The article notes that the increasing recognition of these brands internationally will likely enhance their appeal domestically, signaling a potential end to the era where retail trends predominantly flowed from the West to China [8]

Group 1: Transformation of Qingdao's Foreign Trade Enterprises - Qingdao's foreign trade enterprises are shifting from traditional OEM models to brand creation and independent R&D due to increasing uncertainties in the international trade environment [2][3] - Companies are adopting diverse strategies such as collaboration, customization, and flexible services to enhance competitiveness and resilience against external pressures [5][6] Group 2: Case Study of Qingdao Lvqinxin International Trade Co., Ltd. - Qingdao Lvqinxin International Trade Co., Ltd. transitioned from traditional foreign trade to a comprehensive cross-border enterprise, focusing on R&D, production, and sales [3][4] - The company has experienced a 40% annual growth in revenue despite tariff pressures, thanks to its focus on customized, high-value products [6][7] Group 3: Breakthroughs in High-End Materials - Qingdao Cixing New Materials Co., Ltd. has become the first domestic company to independently develop and export silicon nitride materials for the new energy vehicle industry, breaking foreign monopolies [8][9] - The company achieved significant cost advantages, selling products at one-third the price of Japanese competitors, leading to a 70% export ratio of its sales [10] Group 4: Eyelash Industry in Pingdu - Pingdu produces 70% of the world's false eyelashes, with over 5,000 market entities and 20,000 processing points, making it a global production hub [11][12] - The establishment of the Pingdu Eyelash Association has fostered collaboration among local businesses, enhancing production standards and market competitiveness [13] Group 5: Qingdao Wanqing Group's E-commerce Strategy - Qingdao Wanqing Group has successfully integrated cross-border e-commerce into its operations, significantly contributing to its revenue [14][15] - The company has developed a comprehensive business model that includes R&D, design, production, and logistics, positioning itself as a leader in the high-end textile market [15] Group 6: Advancements in Robotics - Qingdao Baojia Intelligent Equipment Co., Ltd. has developed advanced robotic solutions, exporting over 7,000 sets of equipment to more than 20 countries [16][17] - The company invests over 5% of its revenue in R&D, resulting in a robust pipeline of new products and numerous patents [18]

这些问题若长期得不到解决，将影响行业的创新活力和健康生态。行业亟需品牌方、平台方、行业组织 及消费者等多方协作，共同探索破局路径。 本报讯 （记者 王薛淄）线上渠道曾为中国美妆行业插上腾飞的翅膀。据中国香妆协会数据，2024年中 国化妆品品牌在国内市场的交易额占比达到55.2%，同比增长2.9个百分点。 然而，在繁荣的表象下，行业正面临品牌价值被系统性稀释的严峻挑战，主要表现为三大突出问题：一 是品牌白牌化，在电商平台依赖"爆款"和标签化关键词的流量机制下，品牌个性塑造困难。消费者接收 的信息趋于碎片化和功能化，导致品牌整体形象、文化内涵和情感联结被削弱，品牌差异度降低，甚至 被标签化为单一功能产品。二是价格内卷化，电商促销活动日益频繁和常态化，品牌陷入"不参加即掉 队"的竞争压力。频繁降价和"满一送一"等促销手段，增加了营销成本，压缩了利润空间，也培养了消 费者"非打折不买"的习惯，产品沦为流量博弈的筹码。三是价值空心化，迫于流量和价格压力，品牌资 源过度向营销端倾斜，对产品研发创新和深度消费者体验的投入相对不足。同时，线上渠道在提供品牌 体验方面存在短板，而消费者对超越产品本身的体验和价值认同需求却在提升 ...

Group 1: Luxury Goods Industry - Galeries Lafayette sold its BHV men's building in Paris for €50 million as part of an asset optimization strategy to enhance the competitiveness of its core store [2] - Bentley launched a high-end picnic series priced at $463, aiming to extend its luxury brand into lifestyle products [3] - Louis Vuitton introduced a luxury flagship store on a cruise ship in Shanghai, emphasizing unique experiences to attract young consumers [11] - Prada announced the departure of CEO Patrizio Bertelli after 18 months, reflecting concerns over performance amid increasing competition in the luxury market [12] Group 2: Retail and E-commerce - Sasa International reported a reduction in its mainland store count to 9, with online sales accounting for 80% of total sales, but still faced a loss of HK$15 million [7] - Nike's revenue in Greater China declined by 13% year-on-year, highlighting challenges in regaining consumer favor against local brands [10] - Pop Mart's sales in Southeast Asia increased fivefold after partnering with Lazada, indicating successful international expansion efforts [5] Group 3: Market Trends and Strategies - Unilever's acquisition of the American natural personal care brand Dr. Squatch for an estimated $1 billion is part of its strategy to expand in the high-end natural personal care market [4] - The luxury goods sector is experiencing a balance between maintaining high-end appeal and catering to younger consumers, as seen in various strategic moves by brands [2][11]

Group 1 - A recent survey by Nikkei Business Weekly revealed that 80% of Japanese consumers still have reservations about Chinese brands, particularly in the electronics sector due to concerns over privacy and product durability [1] - Among Japanese consumers who have purchased Chinese products, 61% indicated they would consider buying Chinese brands again, and 66% expressed no concerns about the performance and durability of these products, highlighting a significant difference in acceptance based on actual experience [1] - Chinese brands have made notable progress in the Japanese market, especially in home appliances and electronics, with Chinese brands capturing over 50% of the television market share in Japan, led by Hisense [2] Group 2 - In the white goods sector, Chinese brands like Haier and Midea have established a presence in Japan, with acquisitions of local brands contributing to their market share [2] - The smartphone market remains a challenge for Chinese brands, as they have not achieved significant breakthroughs compared to their performance in home appliances, with Apple holding over 50% market share [2] - Chinese brands are gradually entering various sectors in Japan, including automotive, beauty, and apparel, although their achievements in these areas are not as pronounced as in home appliances [3] Group 3 - The entry of Chinese brands into the Japanese market is influenced by three main market segments: low-income countries, emerging markets, and developed countries, with varying strategies for each segment [3] - The Japanese market is seen as a potential entry point for Chinese companies aiming to establish a global brand presence due to cultural and geographical proximity [3] - Among consumers under 30, the market share of Hisense and TCL televisions exceeds 50%, attributed to the younger generation's shift in consumption preferences and the price advantage of Chinese products [4]

Core Viewpoint - Ying Tong Holdings has successfully listed on the Hong Kong Stock Exchange, becoming China's "first fragrance stock" within a year of submitting its prospectus [1]. Financial Performance - Ying Tong Holdings reported revenues of 1.699 billion yuan, 1.864 billion yuan, and 2.083 billion yuan for the fiscal years ending March 31, 2023, 2024, and 2025, respectively. Net profits for the same periods were 173 million yuan, 206 million yuan, and 227 million yuan [4]. - The company has shown continuous revenue growth, primarily driven by its agency business model, which heavily relies on fragrance brand representation [4]. Business Model and Brand Dependency - The company has secured agency rights for over 60 international fragrance brands, including Hermes, Chopard, Albion, Dolce & Gabbana, and Lola Marc Jacobs. Fragrance sales accounted for 89.3%, 88.5%, and 81.7% of total revenue for the fiscal years 2022 to 2024 [4][5]. - However, the heavy reliance on agency business poses a risk, as many beauty companies are reclaiming brand agency rights. Notably, Kering Group and Richemont Group have announced plans to take back control of their fragrance brands [6]. Brand Authorization Risks - As of March 31, 2025, Ying Tong Holdings has 65 external brands in its portfolio, with 4 brands no longer under its authorization. Among the remaining brands, 22 will see their authorization expire within a year, and 19 within one to three years [6]. - The loss of agency rights has already impacted the company's gross margin, which fell from 48.3% in fiscal 2023 to 45.8% in fiscal 2024 due to a non-renewed distribution agreement with a luxury brand [7]. Market Competition and Funding Needs - The competitive landscape in the cosmetics industry is intensifying, with rising price competition and marketing expenditures. This necessitates additional funding for companies to enhance market competitiveness, making IPO financing a crucial avenue for Ying Tong Holdings [7]. Strategic Initiatives - To mitigate risks and enhance growth, Ying Tong Holdings plans to use part of the raised funds to develop its own brands and invest in external brands. The company has already launched its own eyewear brand, Santa Monica, and entered the fragrance market in 2022 with five products [8]. - Currently, the revenue from self-owned products accounts for less than 1% of total revenue, indicating significant room for growth in this area [8].

Core Viewpoint - The city of Qingdao is focusing on enhancing the development of small and medium-sized enterprises (SMEs) and the private economy, aiming to create a supportive business environment and boost confidence among enterprises [1][5]. Group 1: Economic Contributions - In the first five months, the private economy contributed over 60% of the city's investment (62.2%) and tax revenue (60.0%), over 70% of imports and exports (70.8%), over 80% of urban new employment (89.0%), and over 90% of the number of operating entities (98.4%) and enterprises (96.0%) [3]. Group 2: Industry Development - Qingdao has established 3 new provincial-level characteristic industrial clusters, totaling 6 national-level characteristic industrial clusters, ranking first in the province and tied for first among national plan-separated cities [3]. - The city ranks 8th among sub-provincial cities in the 2024 national SME development environment assessment, with the market environment index ranking 3rd nationally, an improvement of 2 positions from the previous year [3]. Group 3: Initiatives and Actions - A special working group for the development of the private economy (SMEs) has been established [7]. - Various events and initiatives have been launched, including media exchange meetings, training for foreign trade enterprises, and campaigns to promote the Private Economy Promotion Law [8][9][10]. - The city is implementing a "service-oriented law enforcement" model to ensure fair and civilized law enforcement while supporting enterprise development [10].

Group 1 - The core viewpoint of the articles highlights the revitalization of Shanghai's commercial districts driven by consumption expansion policies, with retail sales in monitored districts growing by 2.1% year-on-year from January to May, surpassing the overall retail growth rate by 0.7% [1] - The opening of new experiential retail stores, such as the first shopping center store of the domestic beauty brand Huaxizi in Shanghai, is a significant driver of consumer engagement and aims to create an immersive shopping experience [1][2] - Huaxizi is expanding its presence both domestically and internationally, with plans to open its first European store in Paris in September 2024 and its first overseas flagship store in Tokyo in January 2025, indicating a strategic focus on global market penetration [2] Group 2 - The emergence of new retail formats like JD MALL, which integrates online and offline shopping experiences, is becoming a new traffic center, emphasizing immersive shopping spaces centered around home scenarios [2][3] - During the 618 shopping festival, JD MALL locations reported significant foot traffic and sales, with the Beijing Double Qiang store attracting over 100,000 visitors in the first two days and achieving sales exceeding 10 million within two hours of opening [3] - The concept of "experience economy" is rapidly penetrating Chinese consumer life, enhancing market diversity and serving as a crucial engine for economic growth, as consumers value tactile experiences and personal interactions in shopping [3]

[Table_Title] 研究报告 Research Report 27 Jun 2025 Research Report on the Entire 618 Cycle of the Beauty Category on both Taobao/Tmall and Douyin Platforms 中国化妆品 China (A-share) Cosmetics 美妆品类 618 全周期淘系和抖音双平台调研报告 寇媛媛 Yuanyuan Kou 吴颖婕 Mindy Wu yy.kou@htisec.com mindy.yj.wu@htisec.com [Table_yemei1] 热点速评 Flash Analysis [Table_summary] (Please see APPENDIX 1 for English summary) 本次 618 期间，淘系为美妆销售主战场但销售略低于预期，抖音美妆增速高于抖音大盘增速。淘系平台 5.13-6.20 的 GMV 略超 400 亿，同比增长超 10%，不及平台预期目标。总体淘系平台大盘增速同样不及预期，主要由于政策 调整导致爆发力减弱，去年跨店满减活动单日 ...

Core Insights - The Ordinary, a skincare brand under Estée Lauder, will launch its flagship store on Tmall on July 11, utilizing advanced AI technology to enhance consumer experience and establish a new paradigm in beauty retail [1][5] Group 1: AI Integration and Consumer Experience - The collaboration will leverage AI to optimize shopping experiences through features like intelligent skin diagnostics and personalized product recommendations [3] - The flagship store will focus on three main scenarios to provide a personalized and immersive online shopping experience: - "One Skin, One Formula" for precise recommendations based on skin type and concerns [3] - Professional usage and pairing suggestions tailored to specific skin issues and lifestyle needs [3] - Clear ingredient efficacy information for ingredient-conscious consumers, offering personalized insights and product comparisons [3] Group 2: Strategic Vision and Commitment - The launch of The Ordinary's Tmall flagship store marks a significant step in Estée Lauder's AI strategy in the Chinese market, aiming to become a consumer-centric global leader in high-end beauty [5] - AI is a key driver for Estée Lauder's strategic vision of "Beauty Reimagined," with ongoing development of AI tools to enhance product innovation and marketing across the entire value chain [5] - The company is collaborating with technology partners, such as Microsoft and Adobe, to develop AI solutions that leverage over 80 years of consumer and market data [5] Group 3: Privacy and Future Developments - Estée Lauder emphasizes the importance of user privacy while exploring AI technologies, ensuring consumer information security [6] - The company plans to continuously optimize AI models to improve service quality and create a safer, smarter beauty ecosystem [6]