Regional subsidies boosting beauty product sales during 6.18

研报英文原文证据摘录

Regional subsidies boosting beauty product sales during 6.18

y on (1) subsidy rollout: Some regional governments stepped up subsidies on beauty, TT: Taobao/Tmall

but disproportionately benefited domestic brands, with estimated subsidy ratio of c.12-

KOL: Key opinion leader20% vs. c.4-8% for int’l brands. Domestic top brands saw higher share of subsidies, while

among int’l brands, the US/EU firms saw better support than Korea/Japan peers; and (2) SKU: Stock keeping unit

platform traffic reallocation: both TT and Douyin reduced reliance on top-tier KOLs and

reallocated traffic to mid-tier influencers and brand self-operated channels. Given higher ROI: Return on investment

exposure to self-operated channels, domestic brands were less impacted, while int’l brands Int’l: International

faced greater execution challenges due to higher reliance on top KOLs.

Improving conversion and lower return rate

Transaction quality improved meaningfully during the 618 period. On TT, pre-shipment

Exhibit 1: PO change summaryreturn rates declined c.4ppt to <20%. At the same time, TT’s conversion efficiency We lower our beauty coverage sector POs by

improved, driven by enhanced AI-powered recommendation algorithms, which better 6% on average

matched supply with demand and supported higher ROI for brands.

Company Old New Chg

Price segmentation diverged across platforms Proya 64.2 70.0 9.0%

Price mix trends diverged between Tmall and Douyin during the 618. On Tmall, growth Jahwa 21.6 19.0 -12.0%

was skewed toward the premium segment, with >RMB1,000 products leading (c.+35- Mao Geping 125.0 105.0 -16.0%

Average -6.3%40% YoY), followed by the RMB800-1,000 band (+25%), supported by rising 88VIP

contribution. Lower price segments underperformed.