Core Insights - The growth of quality original brands continues, with over 4,100 brands on Tmall achieving over 100 million in transactions in 2024, maintaining a growth rate of 20% [1] - Tmall's strategic resource allocation focuses on merchant incentives, new product support, brand membership, quality live streaming, and user growth to expand the business ecosystem and ensure sustainable development [1][3] Group 1: Brand Support Strategies - Tmall's support for quality merchants is a long-term strategy aimed at maintaining high-value supply in the ecosystem amidst industry profit erosion due to market competition [4] - By the end of March, 90% of brands in beauty, apparel, and outdoor sports achieved double-digit growth targets through commission trials [5] - Tmall's systematic support strategy for quality brands is set to expand across all industries with high-frequency coverage throughout the year [6] Group 2: New Product Launches - Tmall launched 4,500 super new products in 2024, generating a total transaction of 100 billion, with 34,000 super single products achieving over 10 million in sales [10] - The competition for new products is fundamentally a battle for consumer attention, with the probability of new products becoming bestsellers decreasing [11][13] - Tmall has lowered the entry barriers for new products, allowing emerging brands with limited budgets to participate in the market [16] Group 3: User and Membership Growth - There are still 11.8 billion user relationships that have not become members, indicating significant potential for membership growth [27] - Tmall's data shows that over 50% of business from top brands is contributed by brand members, highlighting the importance of membership in driving sales [29] - The platform is enhancing membership operations to convert private domain activity into public domain traffic, creating a positive cycle of membership growth and sales increase [34] Group 4: Market Trends and Consumer Behavior - The consumer market is witnessing a shift towards value-driven consumption, with brands focusing on product innovation rather than low prices [46][48] - Tmall's internal observations indicate that the growth in the sports category is primarily driven by female consumers, suggesting a shift in target demographics [48] - The platform aims to create real value for users rather than being driven by short-term sales anxiety, indicating a long-term vision for brand growth [51]

Core Viewpoint - Tmall's 2025 strategy emphasizes supporting high-quality, original brands rather than spreading resources evenly across all brands, indicating a shift towards fostering innovation and creativity in the brand ecosystem [1][5][12]. Group 1: Strategy Implementation - The new strategy was not abruptly introduced but was piloted in the fast-moving consumer goods, apparel, and sports outdoor sectors for several months, showcasing data results to brand partners before a broader rollout [4]. - Tmall's support for original brands includes extending the incubation period for new products from 30 days to 90 days and doubling the number of supported new products from 4,000 to 8,000 [14][19]. Group 2: Current Brand Ecosystem - The current brand ecosystem is characterized by a decline in innovation, with a 3% decrease in new cosmetic product registrations in 2024 compared to 2023, and a 14.6% drop in new products from major international cosmetic brands in China [7]. - Many mature brands have relied on retail channel efficiency rather than product innovation, leading to a decline in their competitive edge and market share [8][9]. Group 3: Tmall's Competitive Advantage - Tmall's strategy aims to leverage its high repurchase rates and user engagement, with 90-day repurchase rates averaging 15% across industries and 30% for member users [18]. - The platform's focus on expanding user purchase categories and enhancing member benefits is designed to create a closed-loop system that maximizes value for both Tmall and brands [19]. Group 4: Market Trends and Future Outlook - The trend towards supporting original brands is expected to create significant growth opportunities, with 469 emerging brands achieving top sales in niche categories during the 2024 Double 11 shopping festival [26]. - Tmall's commitment to fostering original brands is anticipated to lead to the emergence of innovative brands capable of creating new market segments [27].

Investment Rating - The investment rating for the industry is "Outperform the Market" (maintained) [1] Core Viewpoints - The report highlights that Amer Sports achieved an 18% year-on-year revenue growth in 2024, reaching $5.183 billion, and turned around its adjusted net profit to $236 million from a loss of $103 million in 2023 [2][6] - The growth was primarily driven by the Arc'teryx brand, direct-to-consumer (DTC) channels, and strong performance in the Greater China region [2][3] - The management has provided guidance for 2025, expecting a revenue growth of 15.5-17.5% at constant exchange rates, with an operating profit margin increase of 50-100 basis points [2][29] Summary by Sections Performance and Guidance - In 2024, Amer Sports' revenue exceeded Bloomberg consensus expectations and the company's previous guidance, with a notable performance from the Arc'teryx brand and DTC channels [2][3] - The adjusted EBITDA for 2024 grew by 32% to $808 million, with a margin increase of 1.6 percentage points to 15.6% [6][9] - The fourth quarter of 2024 saw a revenue increase of 23% year-on-year, reaching $1.636 billion, with an adjusted net profit of $90 million compared to a loss of $31 million in Q4 2023 [2][6] Revenue Structure - The Technical Apparel segment saw a revenue increase of 36% to $2.194 billion, driven by strong growth in footwear and women's products [14] - The Outdoor Performance segment achieved a 10% revenue growth to $1.836 billion, with significant contributions from the Salomon brand [14][15] - The Ball & Racquet segment's revenue grew by 4% to $1.154 billion, with Wilson's footwear sales doubling [15] Regional Performance - The Greater China region experienced a remarkable revenue growth of 53.7% in 2024, reaching $1.298 billion, while North America grew by 6.5% to $1.859 billion [14][15] - Other Asia-Pacific regions also showed strong growth, with a 45.5% increase in revenue [14][15] Channel Performance - The DTC channel reported a 43% year-on-year revenue growth, accounting for 44% of total revenue, while wholesale channels grew by 4% [6][14] - The DTC channel's growth was particularly strong in the fourth quarter, with a 46% increase [6][16] Management Guidance for 2025 - For 2025, the company expects revenue growth of 13-15% (constant currency 15.5-17.5%), with an adjusted gross margin of 56.5-57.0% and an operating profit margin of 11.5-12.0% [29][30] - The Technical Apparel segment is projected to grow by approximately 20%, while the Outdoor Performance segment is expected to see low double-digit growth [29]