Shenwan Hongyuan: The trend of fine segmentation and efficacy is unchanged, and the potential of domestic personal care products is unlimited.

Shenwan Hongyuan released a research report stating that the hair care industry, as the second largest sector in the cosmetics field, is entering a golden period of domestic substitution. With consumers upgrading their pursuit of quality of life, the increasing demand for segmentation and personalization is creating new opportunities. Domestic brands have an advantage because they understand the needs of local consumers better, and in the context of international brands dominating the market and the scattered market share of domestic goods, differentiated positioning can seize the opportunity to tap into the customer base of the segmented market. Recommended stocks to watch include: LAFASO, SHANGMEI, Jiahua, and P&G.