The scattered epidemic superimposed the early impact of the Spring Festival holiday, and the overall performance of beauty consumption in January was relatively weak. In January 2022, the Gmv of Taoxi platform cosmetics (skin care + make-up) totaled 13.67 billion yuan, with a month on month ratio of – 20.3% and a year-on-year ratio of – 28.5%. Among them, the Gmv of beauty and skin care was 8.793 billion yuan, a year-on-year increase of – 31.9%, accounting for 64.3%; Makeup Gmv was 4.87 billion yuan, a year-on-year increase of – 21.3%, accounting for 35.7%. The scattered epidemic in many places across the country continued to affect consumer confidence and the release of optional consumer demand. Without the stimulation of major promotion activities, beauty consumption was relatively weak in January. At the same time, the 22 year Spring Festival is relatively early. As non essential consumer goods, the overall performance of beauty products before the festival is relatively weak.
The performance of domestic brands continues to differentiate, and the competitiveness of medium and high-end national cosmetics brands continues to be verified by the market. The overall performance of Amoy sales of international beauty brands in January was weak. Except Lancome, which increased slightly year-on-year, other brands decreased in varying degrees. The performance of domestic beauty brands continued to differentiate. The sales of Winona Taoxi in January were + 0.52%, Proya Cosmetics Co.Ltd(603605) and Caitang were + 14.54% and + 3.85% year-on-year respectively. The three brands achieved growth for three consecutive months. Their brand strength and product strength continued to be verified by the market, and the performance of other domestic brands was relatively weak. We believe that domestic beauty brands that focus on medium and high-end tracks, have advantages in technology R & D, classic product development ability and can shape a strong brand image will have more competitive advantages. This view has been continuously verified. In the future, we will continue to be optimistic about the rapid development of high-quality domestic beauty brands, especially the medium and high-end domestic beauty brands focusing on effective skin care and high-tech support, which are expected to accelerate their growth under the guidance of policies.
The tiktok platform is ready to go, and sales are further diverted, but the overall online beauty consumption is good. Tiktok tiktok released the annual inventory of the 2021 beauty industry. The number of Companies in the 1-11 months of the industry was rising. The international brand of cosmetics was up +78.5%, luxury brands were +67.8%, and nearly 100 cosmetics producers were over 1000 live. We believe that with the rapid development of live e-commerce, social e-commerce and other platforms, the sales proportion of Amoy platform may further decline. However, the introduction of the new platform is expected to activate the market vitality of online beauty consumption. Brands with advanced layout and strong channel operation ability on the new platform are expected to benefit first.
Investment strategy: the awakening of beauty awareness and the formation of beauty consumption habits continue to drive the growth of the industry, and the improvement of national self-confidence helps the development of domestic beauty brands. Affected by the epidemic situation in many places and the advance of the Spring Festival, the overall consumption of Amoy cosmetics in January was relatively weak. However, Winona, Proya Cosmetics Co.Ltd(603605) and other brands that focus on medium and high-end tracks, have advantages in technology research and development and classic product development ability, and their early views have been verified. In the future, we will continue to be optimistic about the rapid development of high-quality domestic beauty brands, especially the medium and high-end domestic beauty brands focusing on effective skin care and high-tech support, which are expected to accelerate their growth under the guidance of policies.
Risk tip: the promotion and sales are not as expected, the regulatory policies of the industry have changed, and the macroeconomic environment has changed.
