Summary of 2021 China cosmetics annual meeting: on December 7, 2021 China cosmetics annual meeting was held, at which many professionals shared. Gao Chunming, general manager of Shandong Furuida biology: the cosmetics industry is stepping into the era of beauty industry 3.0, and the local beauty industry has begun to enter the stage of scientific and technological innovation competition from traffic competition. Shi Qiwei, founder & CEO of Xiran: Guochao brand is cold this year, mainly because the epidemic has become the norm, incremental traffic is difficult to tap, traffic is becoming more and more expensive, and users are more mature. Li Chengliang, President of Dongfang Meigu functional skin care products research institute: at present, the regulatory policy is becoming more strict and favorable, and the development of skin care brands with R & D strength and high safety and efficacy. Huang Hai, partner of Zesheng venture capital: to do a good job of cosmetics brand, we need to establish a deeper relationship with users.
Textile and garment export data in November: China’s textile export volume in November 2021 was US $13.245 billion, with a year-on-year increase of 10.01% in November, an increase of 2.82 PCT compared with the year-on-year increase in October, and a cumulative year-on-year decrease of 7.50% from January to November. Garment exports amounted to US $15.414 billion, with a year-on-year increase of 22.82% in November, 1.87 PCT lower than that in October, and a cumulative year-on-year increase of 25.10% from January to November.
USDA monthly report on cotton production, sales and inventory in December: according to the forecast of USDA monthly report in December, compared with the global cotton production forecast in November 2021 / 22, the global cotton production forecast is reduced by 49000 tons, the consumption is increased by 37000 tons, the import volume is increased by 70000 tons, the export volume is increased by 74000 tons, and the ending inventory is reduced by 261000 tons. China’s cotton production and consumption in 2021 are predicted to be the same as in November.
Market review: textile and garment sector: last week (December 6 to December 10, 2021), Shanghai Composite Index, Shenzhen Composite Index and Shanghai Shenzhen 300 index rose or fell by + 1.63%, + 1.47% and + 3.14% respectively. Textile and garment sector rose 0.88%, ranking 13th among 28 Shenwan industries. Among them, textile manufacturing sector fell 0.64% and clothing and home textile sector rose 1.67% in the past month (November 10 to December 10, 2021) the Shanghai stock index, Shenzhen Component Index and Shanghai Shenzhen 300 index rose and fell by + 4.54%, + 3.70% and + 4.30% respectively,
The textile and garment sector rose 3.77%, ranking 18th among the 28 Shenwan industries. Cosmetics and medical beauty sector: the cosmetics sector rose 7.89% last week, outperforming the CSI 300 index by 4.74pct. The cosmetics sector rose 0.86% in the past month, underperforming the CSI 300 index by 3.44pct. Last week, the medical and American sector rose 11.16%, outperforming the Shanghai and Shenzhen 300 index by 8.02pct. Over the past month, the medical and American sector rose 8.51%, outperforming the Shanghai and Shenzhen 300 index by 4.21pct.
Industry news: lululemon’s net sales in the third quarter increased by 30% year-on-year; Deloitte announced the top 100 global luxury brands in 2021; Boy London tmall and JD flagship stores were closed; Yayang’s parent company acquired French natural skin care brand; Mentholatum’s Lip Balm SPF15- is cold. L’Oreal Group acquired the American natural skin care brand youth to the people; Japanese makeup brand Kate may withdraw from the cabinet.
Investment suggestions: 1) textile and clothing: it is still in the peak sales season in the short term, and continue to pay attention to the sales of winter clothes and the performance of the promotion of the 12th National double. The recent epidemic has occurred in many places, which may hinder offline consumption. The central economic work conference was held, looking forward to the introduction of policies to boost consumption. We continue to recommend Anta sports, Li Ning, Biem.L.Fdlkk Garment Co.Ltd(002832) , Shenzhou International, Huali Industrial Group Company Limited(300979) . 2) Cosmetics industry: maintain the previous point of view and promote in November. From the results, although the competition pattern is still dominated by international brands, many domestic brands have outstanding performance in key months of e-commerce, showing a certain brand reputation. In the future, we expect the rising trend of domestic products to continue, and pay attention to the sales performance of cosmetics brands during the double 12. We continue to recommend Proya Cosmetics Co.Ltd(603605) , Yunnan Botanee Bio-Technology Group Co.Ltd(300957) , Bloomage Biotechnology Corporation Limited(688363) , Shanghai Jahwa United Co.Ltd(600315) . 3) Medical beauty industry: the industry has the characteristics of growth attribute and improvement of compliance degree. It is still in the early stage of development and is optimistic about the growth potential of formal institutions. We suggest paying attention to Imeik Technology Development Co.Ltd(300896) , Bloomage Biotechnology Corporation Limited(688363) , etc.
Risk tip: the macroeconomic growth rate is down, and the terminal consumption is weak due to repeated epidemics or extreme weather, which affects the consumption demand of clothing, cosmetics, medical beauty and other products; The intensification of industry competition and the price war of foreign leading brands will have an adverse impact on China’s benchmark brands; E-commerce platform traffic growth slowed down and traffic costs increased.
