China Consumer Connections_ Online Brand Tracker_ Earlier start of Double 11 led to high growth in Oct; Tissue_RVC led

Summary of Key Points from the Conference Call Industry Overview - The conference call primarily discusses the China Consumer Market, focusing on various sectors including cosmetics, sportswear, home appliances, and infant milk formula (IMF). The early start of the Double 11 shopping event significantly influenced sales performance across these categories [3][4][25]. Key Highlights 1. Category Performance - Tissue/RVC categories showed strong performance with completion rates of 67% and 57% respectively, while categories like IMF, skincare, and pet foods lagged with completion rates of 45-50% [3]. - Cosmetics sales grew by 92% year-over-year (YoY) in October, with a 46% completion rate compared to the same period in 2023. Including Douyin, the growth was 66% YoY [8]. - Home appliances experienced significant growth, particularly in major categories like white goods and kitchen appliances, with YoY growth rates of +97%, +56%, and over 70% [9]. 2. Brand Performance - Local brands in cosmetics outperformed multinational corporations (MNCs), with Giant Biogene achieving a 388% YoY growth and a completion rate of 127%. Other local brands like Botanee and Bloomage also reported strong growth rates of 166% and 155% respectively [26][27]. - Among MNCs, LG H&H led with 252% YoY growth, while L'Oreal and Estee Lauder reported 187% and 164% growth respectively [27]. 3. Infant Milk Formula (IMF) Market - The IMF category saw a 48% YoY growth on Tmall/Taobao, with local brands like Yili and Feihe achieving 105% and 41% growth respectively [19][20]. - Overall, IMF sales grew by 30% YoY in October, indicating a strong recovery from previous months [20]. 4. Sales Trends and Consumer Behavior - The early start of the Double 11 event led to a front-loaded sales performance, with many categories experiencing higher growth rates compared to previous months [4][25]. - Discount levels were better than expected, contributing to a positive sales environment for sportswear and other categories [5]. 5. Challenges and Underperformance - Certain categories, particularly supplements, continued to struggle with a 0% YoY growth rate on Tmall/Taobao, indicating a need for strategic adjustments [7]. - Amore was noted as the underperformer in the cosmetics sector, with only 8% YoY growth, significantly below the levels seen in 2023 [27]. Additional Insights - The divergence in performance across categories suggests varying consumer preferences and market dynamics, with some brands successfully leveraging omni-channel strategies to enhance sales [6]. - The completion rates provide a clearer picture of sales performance, mitigating the effects of base year comparisons and timing differences associated with the Double 11 event [25]. This summary encapsulates the critical insights from the conference call, highlighting the performance trends, brand dynamics, and market challenges within the China consumer sector.