Core Insights - Tmall has released the "2025 New Brand Development Report," indicating that over 150,000 quality new merchants have launched brands on the platform in the past year, marking a historical high [1] Group 1: Brand Performance - The number of brands that achieved over 100 million in sales in their opening year has increased by over 40% year-on-year [1] - Within three years of opening, 276 new brands have reached annual sales of over 100 million, while 5,026 brands have surpassed annual sales of 10 million, with all metrics hitting historical highs [1]

Group 1 - The company is currently collaborating with Alibaba's Tmall platform, which serves as a significant channel for its internet marketing business [2] - The company is continuously optimizing its full-link marketing strategy through Alibaba's advertising platform, including core functionalities such as full-site promotion, AI Xiaowan, Gravity Cube, and Direct Train [2] - The optimization efforts aim to enhance user profiling, data collection and analysis, and advertising placement, ultimately achieving an increase in return on investment (ROI) and reducing costs while improving efficiency [2]

Summary of Conference Call Industry Overview - The conference call primarily discusses the performance of the beauty and cosmetics industry during the recent promotional event, specifically the "Three-Eight Festival" in China, which is a significant shopping event similar to Black Friday in the West [1][2]. Key Points and Arguments 1. **Overall Performance**: The overall performance during the promotional event showed mixed results, with some brands experiencing structural opportunities while others, particularly traditional overseas brands, did not meet growth expectations [2][3]. 2. **Consumer Behavior**: There has been a shift in consumer demand towards mid to high-income users, which has impacted the overall growth of the beauty market [3][4]. 3. **Promotional Strategies**: The promotional strategies this year focused on expanding domestic demand, utilizing AI advertising, and creating new product lines, contrasting with last year's price-cutting strategies [2][3]. 4. **Membership Impact**: The reduction in benefits for high-end VIP members has negatively affected the overall growth of beauty sales on platforms like Tmall [3][4]. 5. **Sales Targets**: Specific sales targets were set for major platforms, with Tmall aiming for 860 billion yuan and Apple aiming for 1.73 trillion yuan, achieving 843.5 billion yuan, which was below expectations [7][8]. 6. **Beauty Segment Growth**: The beauty segment saw a growth rate of 9.54%, with total sales reaching 106.7 billion yuan, compared to 83.3 billion yuan last year [8][9]. 7. **Influencer Performance**: The performance of key influencers, such as Jiaqi, showed a decline in efficiency, impacting overall sales [8][9]. 8. **Advertising Efficiency**: The integration of AI in advertising has improved efficiency, with some brands seeing a significant reduction in advertising costs [5][10]. 9. **Emerging Categories**: New categories such as men's skincare and nail care are emerging as potential growth areas, although they currently represent a small market share [6][7]. 10. **Market Dynamics**: The market is experiencing a shift towards higher quality and premium products, with brands needing to adapt to changing consumer preferences [12][13]. Other Important Insights - **Brand Performance**: Specific brands like H&M and Ole are increasing their advertising investments, indicating a positive trend in brand engagement [17][18]. - **Consumer Trends**: There is a notable increase in demand for sunscreen products, particularly as the weather warms up, indicating a seasonal trend [13][14]. - **Challenges**: Brands face challenges in maintaining growth amidst a competitive landscape, with some experiencing negative growth rates [26][27]. - **Future Outlook**: The overall growth target for the year is set at a modest increase of 2.7% to 2.8%, reflecting cautious optimism in the market [12][13]. This summary encapsulates the key discussions and insights from the conference call, highlighting the current state and future outlook of the beauty and cosmetics industry in China.