Huayuan Securities: Douyin beauty category GMV grew by 20% year-on-year in September, with impressive performance of domestic brands.

HuaYuan Securities released a research report stating that in September 2025, the GMV of beauty products on Douyin increased by 19.7% year-on-year, but decreased by 10.4% compared to the previous month. From the perspective of sales, domestic brands performed well, with the number of brands in the TOP20 beauty brands list that contributed more GMV through self-operated channels than through influencer promotions reaching 60%. Brands with self-operated GMV accounting for over 50% were all domestic brands, with Han Shu and Baique Ling both having self-operated GMV accounting for over 70%, showing that domestic brands have a competitive advantage in self-operated channels. The logic of domestic substitution continues to be realized, and it is recommended to pay attention to domestic brands that continuously improve their market size and brand influence in mainstream channels. Key points from HuaYuan Securities: - 7 new brands entered the TOP20 beauty list on Douyin in September, with impressive performance from domestic brands through self-operated channels. - The total GMV of the TOP20 beauty brands on Douyin in September exceeded 30 billion RMB, a year-on-year increase of 38.59%. Han Shu continued to lead the list with over 5 billion RMB in GMV, and 40% of the brands achieved over double-digit growth in GMV, with AFU ranking first with a five-fold increase in growth. In addition, there were 7 new brands on the list, accounting for 35%, including Meishi, Shiseido, Colgate, HBN, Tilowei, Sanji Pharmaceutical, and AFU. In terms of sales performance, domestic brands showed strong performance through self-operated channels, with 60% of the brands in the TOP20 beauty brand list contributing more GMV through self-operation than through influencer promotions. Brands with self-operated GMV accounting for over 50% were all domestic brands, with Han Shu and Baique Ling both having self-operated GMV accounting for over 70%, demonstrating that domestic brands have a competitive advantage in self-operated channels. The price distribution of beauty and skincare products is relatively balanced, while the makeup and perfume categories highly rely on affordable products. It is suggested to pay attention to the following targets: 1) Strong brand momentum: MAO GEPING (01318), a leading domestic high-end beauty brand with continuous expansion in products and channels; Proya Cosmetics (603605.SH), with mature organizational structure and leading capabilities in product development, marketing, and management; Guangdong Marubi Biotechnology (603983.SH), with continuous growth in brand momentum. 2) Benefiting from the trend of affordable consumption: CHICMAX (02145), a brand with multiple categories and channels for coordinated development, performing better than expected in sales in a high base scenario; Runben Biotechnology (603193.SH), a quality domestic brand in the mosquito repellent and baby care market, with excellent management and significant growth potential in products and channels. Risks: - Failure to meet expectations for the recovery of end consumer demand; - Risks of a downturn in the cosmetics industry; - Increasing competition in the cosmetics industry; - Risks of new brand launches falling short of expectations.