Core Insights - The beauty industry is facing a significant price war, with over 70% of brands expected to engage in price reductions between 2024 and 2025, including international brands initiating over 200 official discount promotions in 2024, with some products seeing discounts as high as 50% [2][5] - Kao Group emphasizes a strategy of providing high-value products at reasonable prices to meet the needs of young consumers, aiming to avoid the pitfalls of price wars [2][5] - The company is focusing on localizing product development in China, with plans to transfer production lines for mid-range products to China and launch unique products tailored to Chinese consumers [5][6] Industry Dynamics - The cosmetics market is currently in a "mixed battle" era, with online sales dominating at 64.23%, while offline channels are under pressure, leading many international giants to close stores and shift to a model focused on flagship stores and online sales [6][7] - Kao Group is implementing a "slimming" strategy by closing inefficient brands and reducing distribution inventory, while also increasing its budget for the European market by 20% in 2025 [6][7] - The company recognizes the importance of balancing online and offline channels, as offline stores provide unique customer touchpoints and service experiences that cannot be replaced [6][7]