Huaxi: The beauty sector of Double Eleven continues to recover, and the industry's prosperity has significantly increased.

Huaxi released a research report stating that during this year's "Double Eleven" period, the beauty sector continued its recovery trend since the beginning of the year, with various platforms taking multiple measures to promote market stabilization and recovery. Foreign brands have shown improvement this year, while domestic brands have also shown steady performance. Top brands still hold steady positions in various rankings, and domestic brands have made significant progress. Facing intense competition for traffic, domestic brands with core technology and cultural characteristics, as well as prominent brand strength, product power, and operational capabilities, are expected to continue to lead the market and stand out. Recommendations include: 1) Brands with stable growth and strong performance certainty: MAO GEPING (01318), Guangdong Marubi Biotechnology (603983.SH); 2) Brands with continuous trend reversal and significant marginal improvement: SY Group (300740.SZ), Shanghai Jahwa United (600315.SH); 3) Brands with core technology endorsement and clear medium- to long-term trends: GIANT BIOGENE (02367); 4) Daily chemical brands with cost-effectiveness advantage and excellent operation in emerging channels: Runben Biotechnology (603193.SH), Dencare (001328.SZ). Huaxi's main points are as follows: Market: The market growth is stable, and instant retail performance is impressive After the normalization of major promotions, various platforms have increased sales by extending the promotional period and enhancing discounts. According to Xingtu data, the total online retail sales during the "Double Eleven" in 2025 reached 1,695 billion yuan, an increase of 14.2% year-on-year (from 2025/10/7 to 11/11 compared to 2024/10/14 to 11/11). The comprehensive online retail sales amounted to 1,619.1 billion yuan, an increase of 12.3% year-on-year, with significant improvements on major platforms. Tmall's "Double Eleven" achieved its best growth in four years, with 88VIP making a significant contribution; JD.com's transaction volume reached a historical high, with a 40% increase in new users and nearly 60% increase in order volume; Douyin drove content and live streaming synergies, with the number of beauty brands surpassing 10 million yuan in sales during Double Eleven live streaming increasing by 313%. In addition, instant retail performance was impressive, with sales reaching 67 billion yuan during the "Double Eleven," an increase of 138.4% year-on-year. E-commerce apps have boosted daily active users through instant retail support, thereby driving overall sales growth; instant retail has gradually cultivated Chinese consumers' consumption habits, while product categories have further enriched, offering significant room for imagination in the future. Beauty: Beauty sector outperforms the e-commerce market, industry sentiment is rebounding According to Xingtu data, the comprehensive e-commerce sales of beauty and skincare products during this year's "Double Eleven" reached 99.1 billion yuan, while perfume and makeup sales reached 33.4 billion yuan, both estimated to have achieved double-digit growth year-on-year and surpassing the market growth rate. Considering the elongated promotional period this year, when looking at the beauty and makeup sectors in October separately, according to Jiuqian data, the sales of skincare and makeup products on Taobao, Douyin, and JD.com in October increased by 11.7% and 10.6% respectively. The beauty sector's growth rate has significantly improved, showing a marked rebound in industry sentiment. Brand breakdown: Strong domestic brands maintain dominance, international luxury brands show some recovery Tmall: Proya Cosmetics remains in the top position, while MAO GEPING enters the top 20. According to Qingyan Intelligence, domestic brands occupy 5 positions in the top 20 of Tmall's beauty rankings for "Double Eleven" in 2025, including Proya Cosmetics (remaining in the top spot), Venoa (8th/+1), Kefumei (18th/-5), Natural Hall (19th/steady), and MAO GEPING (20th/entering the top 20). While the number of domestic brands on the list is still relatively small, those that have made it onto the list have a relatively stable position, with top brands continuing to gain consumer recognition through brand strength, product power, and channel operation capabilities. Among international brands, L'Oreal's ranking has declined due to its positioning in the mid-range, while Shu Uemura, Clarins, Estee Lauder, La Mer, and SK-II, among other top brands, have achieved double-digit year-on-year growth throughout the entire cycle. International brands have gradually regained market share by increasing discounts and collaborating with influencers. Douyin: Hanshu and Proya Cosmetics remain in the top two positions, while Guyu and Baiquelin enter the top ten. According to Qingyan Intelligence, domestic brands occupy 5 positions in the top 10 of Douyin's beauty rankings for "Double Eleven" in 2025, including Hanshu (1st/steady), Proya Cosmetics (2nd/steady), Guyu (6th/entering the top 10), Natural Hall (7th/+1), Baiquelin (9th/entering the top 10), with Kefumei dropping out of the top 10 (ranked 5th last year). In the skincare rankings, only Helena, an international brand, ranks third in the top 5, with the rest being Hanshu, Proya Cosmetics, Guyu, and Natural Hall; in the makeup rankings, only YSL, an international brand, ranks first in the top 5, with the rest being Tirofuei, MAO GEPING, Carslan, and Huaxizi. Domestic brands hold a dominant position in the Douyin channel due to their mature operational systems and advantages, especially in marketing and channel adaptability among top brands, which outperform international brands. Risk factors 1) Increased market competition; 2) Slow recovery of consumer markets; 3) Increased competition for e-commerce traffic; 4) Industry policy risks.