Core Viewpoint - The article discusses the intense competition in the beauty and skincare sector during the Double Eleven shopping festival, highlighting the aggressive marketing strategies employed by brands, particularly the use of "anti-aging" claims that skirt regulatory boundaries [1][2][4]. Group 1: Marketing Strategies - Many beauty brands are using "anti-aging" and "anti-initial aging" as key marketing slogans to attract consumers, emphasizing the emotional appeal of retaining youth [2][8]. - Brands like Proya and Pechoin are prominently featuring "anti-aging" in their promotional materials, despite the lack of regulatory approval for such claims [8][12][16]. - New brands, such as Guyu, are also engaging in similar marketing tactics, creating dedicated live streams to promote their "anti-aging" products [19][21]. Group 2: Regulatory Concerns - The National Medical Products Administration has not recognized "anti-aging" as a valid claim within the 26 categories of cosmetic efficacy, making such marketing potentially non-compliant [3][25]. - Several brands have faced administrative penalties for making unapproved efficacy claims, indicating a growing scrutiny from regulatory bodies [5][29]. - Despite previous penalties, many brands continue to push the boundaries of compliance, suggesting a calculated risk approach to marketing [30][31]. Group 3: Consumer Demand and Brand Behavior - The strong consumer demand for "anti-aging" products drives brands to prioritize short-term sales over regulatory compliance, viewing the risks as manageable [30]. - The article suggests that the true boundary lies in the respect brands have for consumers, emphasizing the importance of ethical marketing practices [31][32].

Investment Rating - The industry investment rating is "stronger than the market" (预计6个月内，行业指数表现强于沪深300指数5%以上) [63] Core Insights - The beauty industry is currently in a rational development phase, with increasing consumer power and competitiveness of domestic brands, particularly those that can quickly respond to consumer needs [3][59] - The 2025 edition of "All Girls' Offer" features 88 brands and 166 SKUs, with a significant increase in participation from domestic brands, reflecting the rise of domestic products and the pursuit of greater exposure by emerging brands [3][10][59] - The negotiation mechanism for this season's offers is more consumer-friendly, with deeper discounts, new products upgraded without price increases, and combinations that better meet consumer needs [3][59] Summary by Sections Consumer Power and Market Dynamics - Consumer power has significantly increased, indicating a "buyer’s market" in the current beauty industry [3][59] - The 2025 offer introduced a competitive mechanism where consumer votes account for 60% of the total, intensifying brand competition [10][59] Brand Participation and Offer Characteristics - This season's offers include a higher proportion of domestic and mass-market brands, with 32 domestic brands and 20 international brands participating [3][10][59] - The offers are characterized by deeper discounts, new products with no price increases, and simpler, cleaner bundles for returning customers [3][25][59] International and Domestic Brand Competition - International brands are continuously upgrading their products, while domestic brands are enhancing their research capabilities and actively participating in offer negotiations [3][42][45] - Emerging domestic brands are seeking greater exposure and sales growth by participating in the offers [53][59] Investment Recommendations - The report suggests focusing on brands such as 毛戈平, 珀莱雅, 上美股份, 爱美客, 贝泰妮, 润本股份, 巨子生物, and 丸美股份, which are well-positioned in the current market [3][59]

Core Insights - Li Jiaqi remains a significant influencer in the beauty industry during the Double Eleven shopping festival, with nearly 1,700 brands participating in his livestream, over 60% of which are domestic brands [1][17] - The first hour of GMV in Li Jiaqi's livestream during Double Eleven 2024 saw a year-on-year increase, with certain categories like beauty, maternal and infant products, fashion, and food experiencing growth of nearly 80% [1][6] - The negotiation dynamics between brands and Li Jiaqi are showcased in the variety show "All Girls' Offers," which has evolved to include user voting to determine brand outcomes [1][2] Brand Pricing Strategies - Foreign brands like L'Oreal and Shiseido are generally maintaining or slightly increasing prices, while domestic brands are more aggressive in offering discounts and promotions [3][6] - The pricing strategies of brands vary, with some opting for structural discounts rather than outright price reductions, creating a perception of value for consumers [6][10] - Gift money discounts for beauty brands on Tmall are concentrated in the 0.90-0.96 range, with some brands like Proya offering significant discounts while others like La Mer maintain their pricing strategy [7][9] Brand Participation Trends - The participation of foreign brands in Li Jiaqi's livestream has decreased, with many opting out or adjusting their strategies in the Chinese market due to pricing pressures and market challenges [15][17] - Domestic brands such as Proya, Winona, and Han Shu have shown consistent participation and growth, aligning their strategies with Li Jiaqi's livestream ecosystem [15][16] - The shift towards more domestic brands in the lineup has sparked discussions among consumers regarding brand recognition and the perceived value of the products offered [19] Market Dynamics - The overall market dynamics indicate that foreign brands are facing challenges in the Chinese market, with many considering exit strategies or channel adjustments [17][19] - Li Jiaqi's influence on foreign brands is diminishing, as they are less willing to offer competitive pricing compared to domestic brands, which are more flexible and responsive to market demands [17][19] - The evolving landscape of the beauty industry during major shopping events highlights the importance of brand adaptability and consumer engagement strategies [10][19]

Core Insights - Tmall's Double 11 pre-sale began on October 15, with significant growth in user engagement and sales through Taobao Live, surpassing last year's performance [1] Group 1: User Engagement - In the first hour, the number of users placing deposits through Taobao Live saw double-digit growth, with over one billion live streams, exceeding the same period last year [1] - Li Jiaqi's live stream experienced a visitor increase of over 45% in the first hour, with a positive year-on-year growth in GMV for add-to-cart items [1] Group 2: Sales Performance - Key categories such as beauty, maternal and infant products, fashion, and food showed outstanding performance, with some categories experiencing growth of nearly 80% [1] - Notable beauty brands like SkinCeuticals, La Roche-Posay, SK-II, Clarins, and Proya achieved over one billion in sales for their star products, while domestic brands like Huazhi Xiao, Proya, Weinuona, and Natural Hall also ranked high in beauty product sales [1]

Group 1 - The core viewpoint of the report indicates that platforms are shifting their promotional strategies from emphasizing "absolute low prices" to simplifying discount rules and providing direct subsidies to consumers, enhancing shopping experiences and accelerating purchase decisions [1] - The 2025 Double Eleven shopping event will start earlier than in 2024, with platforms like Douyin and JD.com beginning promotions on October 9, followed by Xiaohongshu and Tmall [1] - The report highlights a trend where most cosmetic brands are simplifying their gift offerings to "buy the main product and get the same one for free," which is seen as a more direct way to lower the effective price for consumers [1][3] Group 2 - In terms of brand collaboration, high-end foreign brands and leading domestic brands are increasing the number of SKUs promoted during the Double Eleven event, with top brands like L'Oréal, Proya, and Estée Lauder maintaining a similar number of products compared to last year [2] - The report notes that while some international brands have decreased their promoted product numbers, domestic brands like Proya and others have increased their offerings, often featuring new products [2] - The pricing mechanism is evolving, with many brands simplifying their gift offerings and some mass-market brands lowering prices on key products, while high-end foreign brands are narrowing discounts due to previous price reductions [3]

Core Insights - The article emphasizes the extended duration of the Double 11 shopping festival and the simplification of activity rules across multiple platforms, which is expected to enhance consumer purchasing decisions and boost brand performance during the peak season [1][2]. Group 1: Event Overview - The 2025 Double 11 shopping festival starts earlier than in 2024, with platforms like Douyin and JD launching promotions on October 9, followed by Xiaohongshu and Tmall on October 14, maintaining last year's schedule [2]. - Platforms are shifting focus from "absolute low prices" to simplifying discount rules and providing direct consumer subsidies, thereby optimizing the shopping experience and accelerating purchase decision-making [2]. Group 2: Brand Collaboration and Product Launches - High-end foreign brands and leading domestic brands are increasing the number of SKUs launched during the event, with top brands like L'Oréal, Proya, and Estée Lauder maintaining similar product launch numbers compared to last year [3]. - Domestic brands, except for Proya, have increased their product launches, with new products being introduced, indicating a growing trend in domestic brand popularity driven by influencer marketing [3]. Group 3: Pricing Mechanisms - The overall gift mechanism has been simplified, with many brands adopting a "buy the main product, get the same product free" approach, which directly reduces the effective price for consumers [4]. - Some high-end foreign brands are raising prices and reducing discount offerings, reflecting a strategic shift to focus on long-term brand value after years of price reductions [4]. - In contrast, mass-market brands are increasing promotional efforts to capture market share amid intense competition, with simplified gift offerings to attract consumers [4].

Industry Environment - The beauty industry is facing significant challenges due to a decline in consumer spending and cautious economic conditions, with CPI and PPI showing year-on-year decreases. Brands are adapting by focusing on functional and emotional value to drive growth, emphasizing the importance of user needs and differentiated advantages [1] - International beauty brands are leveraging top influencers on Douyin to boost sales, with international brands occupying 7 out of the top 10 beauty spots in May. The collaboration model is evolving from simple sales to full-value co-creation, while domestic brands are exploring high-end paths amidst intense competition [2] - Luxury and premium brands are struggling with frequent discounting, which undermines brand value and consumer trust. This has led to a "discount-only" shopping habit among consumers, necessitating a balance between maintaining high-end positioning and meeting sales demands [4] - During the 618 shopping festival, Taobao's beauty segment accounted for 45.1% of total sales, outperforming Douyin and JD. Notable products quickly surpassed sales of 100 million, indicating strong competition and the importance of new product launches [5] - Herbal skincare products are gaining popularity, with 76% of consumers preferring natural herbal ingredients. The market is seeing significant growth, driven by a trend towards "pure beauty" and "precise skincare" [6] Major Brand Developments - A major acquisition in the personal care sector occurred when a maternal and infant giant invested 1.65 billion yuan to acquire a leading hair care service provider, aiming to enhance service offerings and user engagement [8] - Dolce & Gabbana secured 150 million euros in funding to expand its beauty division, targeting 1 billion euros in sales by 2027. The brand is focusing on regaining market presence in China after previous controversies [9] - Camel Outdoor Beauty is focusing on outdoor skincare, leveraging its parent company's expertise to create specialized products for outdoor conditions, with a target of 150 million GMV [10] - The luxury perfume brand AMOUAGE opened its first flagship store in Asia, aiming to enhance its market presence and provide a high-end customer experience, with sales exceeding 100 million dollars in Q1 2024 [11]

Market Overview - The major stock indices in Shanghai and Shenzhen opened lower on May 16, with the Shanghai Composite Index experiencing a decline after initial fluctuations, while the Shenzhen Component and ChiNext indices showed wider fluctuations after filling gaps [1] - The Shanghai Composite Index closed at 3367.46 points, down 0.40%, with a trading volume of approximately 435.6 billion yuan; the Shenzhen Component closed at 10179.60 points, down 0.07%, with a trading volume of about 653.9 billion yuan; the ChiNext Index closed at 2039.45 points, down 0.19%, with a trading volume of around 298.5 billion yuan [1] Sector Performance - The PEEK materials sector and controllable nuclear fusion sector saw significant gains in the morning session, although the gains narrowed during the day, remaining among the top performers [1] - Other sectors that experienced notable increases included COVID-19 drug concepts, automotive parts, integrated die-casting, and cultivated diamonds, while sectors such as chemical fibers, warehousing logistics, and seed industry faced larger declines [1] Institutional Insights - According to Jifeng Investment Advisory, the A-share market is gradually finding a bottom with medium to long-term investment opportunities, driven by a series of counter-cyclical adjustment policies [2] - Guoyuan Securities noted that the "618" shopping festival has seen a shift in pre-sale periods, with platforms like Tmall and JD.com simplifying mechanisms and increasing subsidies, leading to strong performances from domestic products [2] - Guojin Securities highlighted that financial technology companies are actively seeking growth points in areas such as AI and overseas expansion, with a positive outlook for C-end stock trading software companies as market activity remains robust [2] Policy Developments - The Ministry of Commerce held a meeting on May 15 to promote the optimization of the departure tax refund policy, emphasizing its role in boosting consumption and responding to external shocks [3] - The State-owned Assets Supervision and Administration Commission (SASAC) announced a meeting to discuss further deepening the reform of state-owned enterprises, focusing on high-quality completion of reform actions by 2025 [4]