Citi: China's cosmetics online sales slowed in Q3, local brands performed relatively well.

Citi issued a research report stating that China's cosmetics online sales growth slowed in Q3 2026 compared with the first half, mainly dragged down by international brands, as the market entered the off-season after the 618 shopping festival, consistent with the trend in retail data from the National Bureau of Statistics. Local brands accelerated growth during the off-season, reflecting a strategic shift toward self-operated livestreaming and less competition; however, the bank believes Q3 performance does not represent an inflection point and expects international brands to continue outperforming during Double 11, Q4 and 2027. By category, color cosmetics were an exception, with local brands outperforming international brands. Within the bank's coverage, GIANT BIOGENE (02367) brand online GMV is recovering from a low base, but Q3 was not yet encouraging enough; MAO GEPING (01318) and Yunnan Botanee Bio-Technology Group (300957.SZ) saw seasonal slowdowns, broadly in line with expectations. The bank's latest ranking is MAO GEPING > GIANT BIOGENE > Proya (603605.SH) > Shanghai Jahwa United (600315.SH) > Yunnan Botanee Bio-Technology Group.