China Cosmetics_ Women's day pulse check_ Increasing divergence in Top tier KOL Day 1 livestreaming; Giant_MGP outperformed; Proya lags

Summary of the Conference Call on China Cosmetics Industry Industry Overview - The conference call focused on the China cosmetics industry, particularly the Women's Day Online Shopping event, which significantly contributes to online GMV in Q1, accounting for approximately 40% of the total online GMV for the quarter and nearly 10% of the annual total [1][8]. Key Insights 1. Discount Trends: - Discounts during the Women's Day event were slightly higher year-over-year (LFL) but lower than during major sales events like 618 and Double 11. Tmall/Taobao/JD offered an average discount of 15%, compared to 13% last year, while Douyin maintained a stable 15% discount [2][12]. 2. Brand Performance: - Giant and MGP were highlighted as outperformers during the Day 1 livestreaming event, with Comfy's GMV estimated to grow over 100%, driven by strong sales of its collagen single-use stoste, which saw a 131% increase LFL [4][17]. - Proya experienced a significant decline of 31% LFL, with its star products showing higher-than-average declines despite the introduction of new SKUs [6][16]. - MAOGEPING also saw substantial growth, with an estimated GMV of RMB 66.7 million, reflecting a growth of over 100% [6][19]. - Jahwa recorded a remarkable 573% LFL growth, primarily due to the introduction of new SKUs from its VIVE brand [6][19]. 3. SKU Listings: - Several brands, including Proya, Shiseido, and Winona, introduced more SKUs compared to previous major sales events, indicating a strategy to diversify product offerings [2][9]. - Proya had 17 SKUs listed, while Comfy increased its listings to 6 SKUs, including new products like Anti-acne single-use stoste [15][17]. 4. Sales Performance: - The overall performance varied significantly among brands, with some experiencing substantial declines. For instance, Bloomage recorded a 61% LFL decline, primarily due to weak sales of its Barrier Repair Mask [6][19]. - Whoo saw a 67% LFL decline, attributed to lower sales volumes of its Cheongidan skincare set [24]. 5. Market Dynamics: - The data suggests that the top-tier KOL livestreaming on Tmall may not fully represent brand performance, and aggregating data from Tmall and Douyin could provide a more comprehensive view [7]. Additional Observations - The Women's Day event serves as a critical testing ground for brands to gauge the market potential of new products and set the tone for the rest of the year [1]. - The overall discounting strategy appears to be more disciplined compared to previous major sales events, with many multinational brands opting for less promotional activity [3][12]. This summary encapsulates the key points discussed during the conference call, highlighting the performance and strategies of various brands within the China cosmetics industry during the Women's Day event.