Affected by the consumption promotion of the 11th National Congress of the Communist Party of China, the online sales of cosmetics slowed down in December, Chinese and overseas brands of skin care products were in a relatively dominant position, and Winona and Proya Cosmetics Co.Ltd(603605) always occupied a place in the national brand; In cosmetics, the leading national brand occupies the forefront of the industry. In terms of platforms, national brands perform better on emerging platforms.
Key points
Amoy platform sales: the sales growth of skin care products and cosmetics in December was weaker than that in the same period last year. The sales of skin care products industry in December decreased by 11.7% year-on-year, and the sales of color cosmetics industry in December decreased by 8.8% year-on-year. Skin care products, the overall sales situation in December, the country's brand growth slightly weak, elite products are selling well. Among the top 10 brands in Amoy platform sales in December 2021, only two domestic brands Proya Cosmetics Co.Ltd(603605) and Winona (ranking No. 6 and 10 respectively), and overseas brands such as Estee Lauder, Lancome and SK-II ranked in the forefront. In terms of make-up, domestic brands perform brightly, and lip makeup is hot. Among the top 5 brands in the sales of Amoy platform in December, the absolute value of overall sales is relatively close, among which domestic brands occupy the top 3, followed by perfect diary, huaxizi and colorkey. From the perspective of products, lip makeup is a hot category.
Tiktok sales: skin care products, the country card Proya Cosmetics Co.Ltd(603605) maintain strong momentum. In December 2021, tiktok ranked the top 10 in the top 9 sales of overseas brands, with sales of Estee Lauder and krani over 100 million yuan. In terms of color make-up, domestic brands tiktok sales are leading overseas brands. In December 2021, the top 10 brands in tiktok sales were brink, Givenchy, Estee Lauder, Armani and Dior, five of which were fourth, seventh, eighth, 9 and 10. Domestic brands performed well. Huaxizi, FV and perfect diary occupied the top three seats, and their sales were significantly ahead of overseas brands. Among them, huaxizi's sales performance was outstanding. After the double 11, the sales in December was still close to 100 million yuan, and its dominant position was obvious.
Investment advice
Cosmetics industry: in the past five years, the growth rate of China's cosmetics market has led the world. At the same time, brand competition has intensified, online channel sales have increased rapidly, and channel changes are conducive to the rapid market expansion of domestic brands. Brands that can accurately grasp consumer needs and enhance brand effect driven by diversified marketing are more likely to continue to expand the market. Key recommendation: leading skincare products of Dermatology grade with product differentiation Yunnan Botanee Bio-Technology Group Co.Ltd(300957) ; Focus on the strategy of large single products and constantly expand the series of large single products Proya Cosmetics Co.Ltd(603605) ; Self owned brands plus brand agents operate two wheel drive, showing an upward business inflection point of Syoung Group Co.Ltd(300740) . It is suggested to pay attention to: multi brand strategy layout and continuous operation improvement of Shanghai Jahwa United Co.Ltd(600315) ; Under the high growth terminal demand, the OEM demand is driven by Fujian Green Pine Co.Ltd(300132) ; The cost side is gradually repaired and the production capacity is further released Nanjing Cosmos Chemical Co.Ltd(300856) .
Medical beauty industry: China's medical beauty market is in the stage of rapid increase in penetration, and the terminal demand is relatively strong. At the same time, with the continuous improvement of R & D and technology of Chinese enterprises, domestic brands continue to expand the Chinese market with higher cost performance. In the current situation of stricter policy supervision and severely cracking down on the non-compliance and illegal medical and American market, it is beneficial to China's leading enterprises. It is suggested to pay attention to: medical beauty leader Imeik Technology Development Co.Ltd(300896) with the ability of forward-looking differentiated product layout; Leading hyaluronic acid raw material for continuous product development Bloomage Biotechnology Corporation Limited(688363) .
Main risks
New product expansion is less than expected; Industry competition intensifies; Policy risk; Product safety risk
