Core Viewpoint - The global beauty industry is facing growth bottlenecks, and Beiersdorf is not immune to this trend, as indicated by its recent financial report for the first half of 2025, which reveals performance slowdowns, profit pressures, and brand performance disparities [2][4]. Financial Performance - Beiersdorf reported revenue of €5.188 billion (approximately ¥434.45 billion), a year-on-year increase of 0.2% (organic growth of 2.1%), which is a significant slowdown compared to last year's 4.3% (organic growth of 7.1%) [8]. - The consumer goods segment, which accounts for over 80% of total revenue, generated €4.33 billion (approximately ¥362.6 billion), remaining flat year-on-year (organic growth of 1.9%) [8]. Brand Performance - The Derma brand continues to act as a "growth engine," with strong performances from Eucerin and Aquaphor driving a growth of 10.5% (organic growth of 12.2%) [10]. - Conversely, the luxury skincare brand La Prairie saw a decline of 10.8% (organic decline of 10.7%), despite achieving 3% growth in China during Q2, reflecting the broader trend of low demand in the global high-end market [10]. - Nivea, the largest brand in the consumer segment, experienced a decline of 1.2% (organic growth of 1.0%), indicating a critical period of brand adjustment [10]. Strategic Adjustments - Beiersdorf has lowered its full-year guidance for 2025, adjusting the organic sales growth target from 4-6% to approximately 3%, and the EBIT margin expectation from a 50 basis point increase to a 20 basis point increase [12]. - The company is focusing on innovation to drive growth, with plans for a significant new product launch from Nivea, the "Epigenetic Essence," set to launch in September across 30 countries [19][20]. Market Dynamics in China - In China, Beiersdorf has shown significant structural adjustments and channel breakthroughs, with La Prairie achieving 3% organic growth, primarily driven by a 36% surge in e-commerce sales [15][26]. - Nivea is undergoing structural adjustments, particularly in lower-tier cities, where it is shifting from low-margin products to higher-end offerings, aiming to better align with consumer preferences [17]. - The upcoming launch of Nivea's epigenetic essence is expected to be the largest product launch in the company's history, with a price point 40-50% lower than Eucerin, aiming to capture a larger consumer base [19][20]. Future Outlook - Beiersdorf's growth in China will depend on its ability to penetrate core segments and compete effectively against rivals in terms of efficiency and content [22]. - The company is strategically focusing on the skincare segment, reducing low-margin SKUs, and introducing innovative products to attract a broader consumer base [22][24]. - The successful performance of Eucerin and the recovery of La Prairie in the e-commerce space are seen as positive indicators for future growth [20][26].