Overall, domestic beauty brands performed well in this year's 618 promotion, especially on interest-based e-commerce platforms such as Douyin, where they have a competitive advantage. With the support of product strength and efficient marketing promotion, some domestic brands have continued to surpass international big names in ranking, and their market competitive advantages have been continuously consolidated, bullish on the rapid development of high-quality domestic beauty brands.
Zhongtong Finance app learned that Dongxing Securities released a research report stating that while the overall consumption recovery is weak, the prosperity of beauty consumption is still present. High-quality domestic beauty brands with high cost performance have undertaken the consumption downgrading transfer from more mid-to-high-end international big names. Coupled with the improvement of the company's own research and development capabilities and the enhancement of brand power, these brands have a large development space. Dongxing Securities continues to be bullish on the long-term development of high-quality domestic beauty companies. Intensified industry competition and continuous brand differentiation will favor beauty brands with advantages in technology, classic product development capabilities, and strong brand image shaping.
The overall sales of the 2024 618 promotion were relatively sluggish, and live-stream e-commerce platforms performed more outstandingly. Xingtu data shows that during the 618 promotion period (from the start time of the 618 promotion announced by major platforms until 23:59 on June 18), the cumulative sales of all major platforms reached 742.8 billion yuan. In terms of channels, the total sales of comprehensive e-commerce platforms reached 571.7 billion yuan, a year-on-year decrease of 6.9%, accounting for 76.9%, and the proportion further decreased from the 81% share in the 2023 singles' day sales. Tmall, JD.com, and PDD were the top three platforms. The total sales of live-stream e-commerce platforms reached 206.8 billion yuan, accounting for 27.84%, with Douyin, Kuaishou, and Diantao as the top three platforms. The real-time retail and community group buying sales amounted to 24.9 billion yuan and 13.9 billion yuan, respectively. Overall, the consumer market still remains sluggish, comprehensive e-commerce platforms performed weakly, and live-stream e-commerce platforms remain the main driver.
"Low price" and "simplification" have become the themes of this year's 618 promotion, reflecting the change towards high cost performance consumption. This year's 618 promotion cancelled the pre-sale stage for the first time, and the overall rules are simpler, providing greater convenience for consumers. At the same time, all major platforms have made "low price" an important marketing point, such as JD.com displaying "cheaper than Tmall" on its page, and Tmall displaying "how to compare, it's all low price", and for the first time launched the 88VIP shopping monthly card, providing consumers with a better shopping experience while enjoying low prices. The changes in platform operations reflect the increased importance that major platforms attach to customer acquisition under the overall background of weak consumer demand, and also reflect the trend towards consumer structures that pay more attention to cost performance.
The overall performance of the beauty category was weak, and consumer demand has not yet recovered, but live-stream e-commerce platforms such as Douyin have grown rapidly. The sales of personal care and beauty products on comprehensive e-commerce platforms totaled 35.2 billion yuan, a year-on-year decrease of 13%. Among them, the sales of beauty and skin care products reached 26.1 billion yuan, a year-on-year decrease of 13%, and the sales of makeup and perfume reached 9.1 billion yuan, a year-on-year decrease of 14.15%. The "Douyin Mall 618 Good Product Festival" consumption data report shows that the overall sales volume of Douyin e-commerce beauty products during the promotional period increased by 107% compared to the same period last year. Overall, the performance of the beauty category was average, consumer demand has not yet recovered, and comprehensive e-commerce platforms continue to be subdivided, while live-stream e-commerce platforms represented by Douyin have a better growth trend.
Brand differentiation continues to intensify, and high-quality domestic beauty brands are breaking through against the trend. Against the backdrop of the overall slowdown in industry growth, market competition has intensified, and brand differentiation has continued to increase. In the Tmall beauty 618 full-cycle brand rankings, two domestic beauty brands have entered the top 10, and five brands have entered the top 20. Proya has maintained its top position, while Viñona has dropped five places to tenth place compared to the 2023 singles' day sales, and KeFumei has risen from 20th place to 12th place. The top 10 brands for beauty in Douyin's double 11 good product festival are Hanshu, Proya, Helena, Jimo, Olay, Lancome, Estee Lauder, Lvyu, KeFumei, and OLAY. Hanshu has consolidated its first place in the 2023 singles' day sales, Proya's ranking has risen, and KeFumei has entered the top 10 for the first time. Specifically:
Proya: The official battle report shows that the brand has the highest transaction amount in the Tmall, Douyin, and Pinduoduo beauty categories, with year-on-year growth rates of more than 70%, 110%, and 60%, respectively. In JD.com and Vipshop domestic beauty categories, it ranks first, with year-on-year growth rates of more than 80% and 30%, respectively. The sub-brand Cai Tang ranks first in Tmall's makeup industry, with a year-on-year growth rate of more than 80%, and the GMV on Douyin has remained basically flat year on year. The GMV of OR on Tmall, Douyin, and JD.com platforms increased by more than 70%, 10%, and 60% year on year, respectively. The company's large-product strategy continues to increase, brand awareness has been cultivated, and the channel growth rate is eye-catching. After surpassing international big names in the 2023 singles' day sales, it has continued to consolidate its competitive advantage and leads the beauty track.
Official battle report of Juzi Biotech shows that GMV of KeFuMei brand's full-cycle online channels increased by more than 60% YoY, with Tmall, Douyin, JD and vipshop respectively increasing by more than 50%, 65%, 100%, and 200% YoY, ranking among the top three of Tmall's domestic beauty brands and Douyin's domestic skincare brands. KELIJIN's GMV of full-cycle online channels increased by more than 100% YoY, with Tmall, Douyin, JD, and vipshop respectively increasing by more than 70%, 300%, 200%, and 170% YoY, maintaining last year's strong growth momentum during Singles' Day sales and further increasing growth rate, occupying consumers' minds with its high-quality collagen raceway after heavy restructuring.
Official battle report of Shangmei Holdings shows that sales of Hanshu brand on Tmall, Douyin, JD, vipshop, and PDD platforms respectively increased by 140%, 136%, 175%, 46%, and 225% YoY, achieving high-speed growth; sales of New Page, a baby and child skincare brand, increased by more than 420% YoY. The company has been continuously adjusting its strategies in brand, product, and channels for the past two years, and the effect of transformation has begun to show.
Overall, domestic beauty brands performed well in this year's 618 promotion, especially in interest-based e-commerce platforms represented by Douyin, which have a more competitive advantage. With the support of product strength and efficient marketing promotion, some domestic brands are continuously surpassing international brands in rankings, such as Proya, Hanshu, and KeFuMei, and their market competition advantages are continuously consolidated. We are bullish on the rapid development of high-quality domestic beauty brands.
Investment advice: Consumption recovery is generally weak but the prosperity of beauty consumption remains. High-quality domestic beauty brands with relatively high cost performance have taken on more consumption downgrading transfers from middle and high-end international brands. Combined with the improvement of the company's R&D capability and brand power, it has great development potential. Dongxing Securities continues to be bullish on the long-term development of high-quality domestic beauty companies. Industry competition is intensifying and brand differentiation is continuing to increase. Beauty brands with technological R&D advantages, development capabilities of classic products, and the ability to shape strong brand images will have more competitive advantages. We recommend focusing on targets that have already built strong product and brand power, such as Proya, Be'ter and targets focused on high-quality raceways and skincare effectiveness, such as Juzi Biotech and Guangdong Marubi Biotechnology.
Risk reminder: Risks include weak demand for beauty and personal care consumption and intensifying market competition.