Summary of Conference Call Records Industry Overview - The high-end beauty market in mainland China is showing signs of recovery, with several foreign beauty brands such as La Perla, L'Oréal, and Estée Lauder reporting performance growth, reversing previous declines. This recovery is primarily driven by high-end consumer demand rather than currency fluctuations [1][2][4]. Key Insights and Arguments - **Market Recovery**: LVMH achieved mid-single-digit growth in mainland China for the first time in the third quarter, exceeding market expectations. La Perla reported double-digit growth, a performance not seen in years [2][3]. - **Long-term Trends**: Despite short-term uncertainties, companies like Shiseido and L'Oréal expect the trend of high-end beauty market recovery to continue. Shiseido has adjusted its business metrics to reflect double-digit growth when combining travel retail and domestic sales [1][4]. - **Consumer Demand**: The demand for beauty and health remains strong, with companies like L'Oréal and Puig seeing significant performance in medical-grade skincare and fragrance categories [1][5][6]. - **E-commerce Growth**: Online channels are crucial for sales growth, with L'Oréal's e-commerce channel in China experiencing double-digit growth. Offline sales in high-end malls are also showing signs of recovery [8]. Additional Important Points - **Promotional Strategies**: During the recent Double Eleven shopping festival, foreign brands like Lancôme and Helena Rubinstein achieved significant online growth, primarily through discount strategies, which impacted profit margins [9]. - **Local Brand Advantage**: Chinese local brands have advantages in supply chain responsiveness and understanding rapidly changing consumer demands. This positions them well for long-term market share growth [13][15]. - **Market Sentiment**: The overall market sentiment in 2024 is low, but the beauty sector shows resilience. Companies like L'Oréal have begun to recover after experiencing negative growth in previous quarters [5][11]. - **Competitive Landscape**: The competition between foreign and local brands is characterized by foreign brands leveraging online discounts while local brands focus on supply chain agility and consumer responsiveness. This dynamic is expected to continue without significantly hindering local brands' growth [15]. Conclusion - The high-end beauty market in China is on a recovery path, driven by strong consumer demand and effective sales strategies across various channels. While the overall market sentiment remains cautious, the resilience of the beauty sector and the competitive advantages of local brands suggest a promising outlook for future growth.

天眼查App显示，近日，连云港灵睫梦美妆用品有限公司成立，法定代表人为朱彤，注册资本2万人民 币，经营范围为一般项目：化妆品批发；化妆品零售；个人卫生用品销售；工艺美术品及礼仪用品销售 （象牙及其制品除外）；美发饰品销售；专用化学产品销售（不含危险化学品）；日用百货销售；日用 品销售；互联网销售（除销售需要许可的商品）；技术服务、技术开发、技术咨询、技术交流、技术转 让、技术推广；专业设计服务；包装服务（除依法须经批准的项目外，凭营业执照依法自主开展经营活 动）。 ...

Group 1: Coty vs. Kering and Gucci - Coty has filed a lawsuit against Kering and Gucci over a beauty business licensing agreement set to expire in 2028, with Kering planning to transfer Gucci's beauty business to L'Oréal after the contract ends [1] - The lawsuit highlights a broader struggle among luxury brands for control and profit distribution in the beauty sector, with Gucci's beauty business being a critical asset for Coty [1] - Kering's decision to partner with L'Oréal may be aimed at leveraging L'Oréal's stronger beauty operations to enhance brand positioning and market influence [1] Group 2: TikTok and iHeartMedia Collaboration - TikTok and iHeartMedia have announced a multi-platform partnership to launch a TikTok podcast network featuring 25 new shows hosted by TikTok creators [2] - This collaboration signifies TikTok's strategic move into the audio space, aiming to extend its content creation capabilities and enhance user engagement through long-form audio content [2] - The partnership will involve the establishment of new co-branded podcast studios in major U.S. cities, including Los Angeles, New York, and Atlanta [2] Group 3: Burger King China Ownership Change - CPE Yuanfeng has acquired a controlling stake in Burger King China, injecting $350 million to support restaurant expansion, marketing, menu innovation, and operational improvements [3] - Following the transaction, CPE Yuanfeng will hold approximately 83% of Burger King China's equity, while the international group will retain about 17% [3] - This partnership aims to help Burger King catch up with competitors like McDonald's and KFC in the Chinese market by leveraging local investment and resources [3] Group 4: Douyin E-commerce Pricing Regulations - Douyin has clarified that rumors regarding penalties for selling Moutai below market prices are false, emphasizing a campaign against misleading low-price promotions [4] - The platform's initiative to combat false advertising in high-value goods like alcohol aims to purify the e-commerce ecosystem [4] - Balancing low-price competition with brand integrity remains a challenge for all e-commerce platforms moving forward [4]

Core Insights - Shiseido is currently undergoing a painful reform period, with a decline in net sales and operating profit reported for the third quarter [1][7] - The company has lowered its sales forecast for the entire year of 2025, indicating ongoing challenges in its transformation efforts [1][7] Performance Decline - For the first three quarters of 2025, Shiseido's net sales amounted to 693.817 billion yen, a year-on-year decrease of 4%, with an operating loss of 33.35 billion yen [2] - In 2023, net sales were 973 billion yen, down 8.8%, and operating profit was 28.1 billion yen, a decline of 39.6% [2] - The decline is attributed mainly to the impact of the Chinese and travel retail markets, with sales in these regions dropping by 6% and 9% respectively [2] - The high-end makeup brand, Drunk Elephant, saw a significant revenue drop of 49% in the first three quarters, marking it as a key factor in the overall performance decline [2][3] Transformation Strategy - Shiseido has been implementing a transformation strategy called "SHIFT 2025 and Beyond," focusing on revitalizing its domestic business in Japan [4] - The company introduced a more actionable "Action Plan 2025-2026" to achieve three main goals: consolidating brand foundations, rebuilding profit bases, and enhancing operational management [4] - Shiseido has identified eight priority brands, including "Core 3" and "Next 5," and plans to invest an additional 30 billion yen (approximately 1.45 billion RMB) in marketing for these brands [4] Management Restructuring - In 2025, Shiseido initiated a global management restructuring plan to optimize organizational structure and improve operational efficiency [5] - The company has made 12 key executive changes across various strategic regions, impacting brand management, marketing, and travel retail [6] - The appointment of new leadership, including a new CEO, aims to strengthen the company's strategic direction and operational capabilities [6] Future Outlook - Shiseido has revised its sales forecast for 2025 from an initial 995 billion yen to 965 billion yen, with expected losses increasing to 42 billion yen [7] - Industry experts suggest that the current performance decline may be temporary, and with ongoing reforms, Shiseido could return to growth in the near future [6][7]

新媒体统筹：丁青云 曾婷芳 赖禧 黄达迅 南方财经21世纪经济报道记者 高江虹、李依农 上海报道 在接受南方财经采访时，杜嘉班纳美妆首席执行官詹卢卡·托尼奥洛（Gianluca Toniolo）分享了品牌在 中国市场的发展理念与战略。他表示，今年对杜嘉班纳美妆而言意义非凡，参加进博会不仅是一次展 示，更是一种向中国消费者表态的机会。通过香水、彩妆和护肤等丰富产品系列，以及数字化工具，品 牌希望为消费者提供沉浸式的体验，让他们能够亲身试用、感受产品，并找到最适合自己的选择。托尼 奥洛强调，意大利文化与中国文化相近，未来品牌希望与中国艺术家共同打造美妆产品，通过产品展现 中意文化魅力。他指出，杜嘉班纳在产品设计上坚持将经典与创新融合，并通过奢华包装与高品质性 能，为消费者带来独特的品牌体验。 策划：赵海建 监制：施诗 编辑：和佳 记者：高江虹 李依农 剪辑：李群 （原标题：杜嘉班纳美妆首席执行官：希望共同打造展现中意文化的产品） 海外运营监制: 黄燕淑 海外运营内容统筹: 黄子豪 海外运营编辑：庄欢 吴婉婕 龙李华 郑全怡 出品：南方财经全媒体集团 ...

Core Insights - Shiseido is currently undergoing a painful reform period, as indicated by its recent third-quarter performance report, which shows a decline in net sales and operating profit losses [1][3] - The company has been experiencing a consistent decline in net sales over multiple quarters, prompting the implementation of a transformation strategy and the establishment of growth targets [1][5] - Shiseido has lowered its sales forecast for the entire year of 2025, reflecting ongoing challenges in its business operations [1][9] Financial Performance - For the first three quarters of 2025, Shiseido's net sales amounted to 693.817 billion yen, a year-on-year decrease of 4%, with an operating loss of 33.35 billion yen [3] - In 2023, Shiseido's net sales were 973 billion yen, down 8.8% year-on-year, and operating profit was 28.1 billion yen, a decline of 39.6% [3] - The decline in performance is primarily attributed to the impact of the Chinese and travel retail markets, with sales in these regions dropping by 6% and 9% respectively [3][4] Brand Performance - The significant decline in revenue from the high-end makeup brand "Drunk Elephant" has adversely affected Shiseido's overall performance, with a 49% year-on-year drop in revenue for the first three quarters [4] - In the third quarter alone, Drunk Elephant's revenue fell by 19%, following a 57% decline in the first half of the year [4] - The brand's management has acknowledged issues with its market positioning and is focusing on inventory management [4] Strategic Initiatives - Shiseido has been actively pursuing transformation strategies over the past two years, including the "SHIFT 2025 and Beyond" mid-term strategy aimed at revitalizing its domestic business [5] - The company has outlined an "Action Plan 2025-2026" to achieve three main goals: consolidating brand foundations, rebuilding profitability, and enhancing operational management [5] - Shiseido has identified eight priority brands for development, including "Core 3" and "Next 5," with an additional marketing investment of 30 billion yen (approximately 1.45 billion RMB) planned for these brands [5] Management Changes - In 2025, Shiseido initiated a global management restructuring plan to enhance human resource efficiency and streamline operations [6] - Key leadership changes include the appointment of Kenji Fujihara as the new CEO and the introduction of new executives to strengthen the company's travel retail business in the Asia-Pacific region [6] Future Outlook - Shiseido has set ambitious targets in its 2030 mid-term strategy, aiming for a core operating profit margin of over 10% by 2030 and a compound annual growth rate in sales exceeding market growth by 2%-5% from 2025 to 2030 [7] - Despite current challenges, there are indications that Shiseido's performance may improve in the future as it adapts to market demands and consumer preferences [8] - The company reported an 8% growth in its China travel retail segment in the third quarter, driven by the performance of its core brands [8] Sales Forecast Adjustment - Shiseido has revised its sales forecast for the entire year of 2025 from an initial 995 billion yen to 965 billion yen, with expected losses widening to 42 billion yen [9] - The ongoing adjustments in business operations and management are seen as efforts to mitigate the impact of the current reform period [9]

中国高端美妆市场仍深陷红海之战！ 高盛报告显示，过去4年中国高端美妆市场规模蒸发2 1 4亿元。今年以来，存量市场环境下， 不少品牌纷纷押注"院线级"、"高浓度"、"数据可视化"，陷入一场功效宣称的竞赛，"媲美热 玛吉" "涂抹式水光针"成为美妆柜台和电商详情页的高频话术。 然而，在这场喧嚣之中，法国希思黎全球总裁Ph ili p p e d 'Or n a n o，这位执掌家族企业的贵族 后裔，显得格外冷静与克制。 " 我们不想盲从于潮流，因为坚信产品好才是真的好，消费者觉得真有效才会再回购。 " 每周三，与母亲、妹妹及研发团队一起开例会是Ph ili p p e d 'Or n a n o雷打不动的安排。这种惯 例，是源于这个美妆世家对于产品创新的极大热情。 从 祖 父 Gu ill a ume d 'Or n a n o 到 父 亲 Hu b e rt d 'Or n a n o ， 再 到 传 承 者 Ph ili p p e d 'Or n a n o ， " 蓝 血贵族"多纳诺家族在近一百年间曾打造了包括法国希思黎在内的三个高端美妆品牌，积累了 深厚的美妆知识储备，并在护肤的基础上向彩妆、香氛和洗 ...

Core Insights - The structural changes in China's consumer market are reshaping the development paths of multinational companies, which are increasingly investing in China to tap into its vast market potential and consumer demand [2] - Companies are focusing on deepening connections with users and enhancing brand influence to adapt to the unique characteristics of the Chinese market [2] Group 1: Multinational Companies' Strategies - Kering Group's Balenciaga and Bottega Veneta launched new fragrance lines at the China International Import Expo, marking their first appearances in the Asia-Pacific region [3] - Kering's CRAFT Creative Residency Program aims to support Chinese designers by enhancing their brand building and commercial capabilities, fostering the international potential of Chinese brands [5] - Crocs has integrated into China's cultural ecosystem since 2016, focusing on emotional interaction with young consumers through collaborations and localized creative designs [7] Group 2: Consumer Insights and Trends - Accenture's report highlights that product strength is crucial for retaining consumers, emphasizing the need for brands to provide clear and perceivable value through innovation and emotional connection [8][12] - 37% of consumers are using AI tools in shopping, with a significant portion relying on these tools for brand comparisons and exploring new solutions [12] Group 3: Sustainable Development Initiatives - The LEGO Group is focusing on cultural resonance with Chinese consumers by launching traditional festival-themed products and committing to sustainable packaging by 2027 [10][11] - L'Oréal is enhancing its AI capabilities through a strategic partnership with Alibaba Cloud, aiming to accelerate its transformation into a beauty tech company in China [12][14]

Core Insights - The significance of the Double Eleven shopping festival is perceived to be declining, with a noticeable shift in the dynamics of live-streaming sales channels [1] - The competition among top live-streaming accounts has stabilized, with fewer leading influencers remaining active [1][5] - The pricing strategy of top live-streaming accounts has changed, leading to consumer complaints about higher pre-sale prices compared to regular stock [2] Group 1: Live-streaming Dynamics - The top live-streaming accounts are experiencing a reduction in the number of active influencers, with only a few remaining prominent [1] - Data shows that top live-streaming rooms still maintain a significant sales advantage, with notable increases in visitor numbers and sales during the pre-sale period [1] - The average return on investment (ROI) for merchants on Douyin has decreased, indicating rising costs and challenges in achieving profitability [3] Group 2: Pricing and Consumer Behavior - Consumers have reported instances of higher pre-sale prices in live-streaming sessions, leading to a wave of returns [2] - The competitive landscape has made it difficult for merchants to offer lower prices and attractive incentives, particularly in the beauty sector [3] - New brands are increasingly seeking exposure and brand recognition through collaborations with top live-streaming accounts during Double Eleven, rather than focusing solely on sales [4] Group 3: Content and Innovation - Top live-streaming accounts are investing more in content and innovative formats to attract consumers, as traditional low-price strategies become less effective [6] - The trend towards content-driven live-streaming is evident, with successful accounts adapting to audience preferences for less sales-oriented presentations [7] - The need for differentiation and innovation in live-streaming strategies is becoming critical for sustained growth in the industry [7]

Core Viewpoint - Coty has filed a lawsuit against Gucci and its parent company Kering regarding the licensing of Gucci's beauty and fragrance products, which may impact Coty's future sales and operations significantly [1][2] Group 1: Lawsuit Details - Coty is suing Gucci and Kering in the UK commercial court over the licensing agreement for Gucci's beauty and fragrance products [1] - The licensing contract between Coty and Gucci is set to expire in 2028, with Gucci's beauty business accounting for approximately 8% of Coty's total sales and 11% of its profits [1] - Kering announced a partnership with L'Oréal on October 19, granting L'Oréal exclusive rights to Gucci's fragrance and beauty products for 50 years after the expiration of the current agreement with Coty [1] Group 2: Financial Performance - Coty's Q1 FY2026 net revenue was $1.578 billion (approximately 11 billion RMB), a decline of 6% year-over-year, with a comparable basis decline of 8% [1] - The net profit for the same period was $64.6 million (approximately 450 million RMB), down 19% year-over-year, with an adjusted gross margin of 64.5% [1] - The high-end beauty segment generated $1.07 billion (approximately 749 million RMB), accounting for 68% of total sales, while the mass beauty segment generated $508 million (approximately 355.6 million RMB), accounting for 32% of total sales, both showing declines of 6% and 11% respectively [2] Group 3: Market Position and Future Outlook - Analysts suggest that losing the Gucci beauty and fragrance licensing could reduce Coty's annual sales by approximately $500 million (around 3.5 billion RMB) [2] - Coty's CEO, Sue Nabi, emphasized the company's commitment to defending its rights regarding the ongoing lawsuit and maintaining its operations under the current licensing agreement [2] - Kering has publicly denied Coty's claims and stated its intention to defend its position vigorously [2]