According to the report released by Huaxi Securities, based on Qingyan Intelligence, the total GMV of beauty products during the entire 618 period across the four major e-commerce platforms (Taobao, JD.com, Douyin, Kuaishou) reached 60-70 billion yuan, a year-on-year increase of over 10%. Among them, the Taobao platform maintained its position as the number one online beauty channel with a market share of 41.3%, Douyin contributed 35.7% of the GMV, JD.com accounted for 14.8%, and Kuaishou held an 8.2% share. The growth momentum in the Douyin beauty sector is rapid, driven by support for merchants through commission reductions and leveraging consumer interests to achieve double-digit growth. Proya and Han Shu lead the skincare category, while domestic brands like Mao Ge Ping are strong in the makeup category. The beauty sector during the 618 promotion landed steadily, but the landscape between platforms and brands continues to evolve, suggesting a focus on domestic companies with deep moats.
<h2>The main points from Huaxi Securities are as follows:</h2>
Commission reduction and interest-based content ecology, continuous transformation of platform landscape
During the promotion period, the GMV share of Douyin's beauty sector is gradually approaching that of the Taobao platform, with a large transaction scale. According to Qingyan Intelligence, the total GMV of beauty products during the entire 618 period across the four major e-commerce platforms (Taobao, JD.com, Douyin, Kuaishou) reached 60-70 billion yuan, a year-on-year increase of over 10%. Among them, the Taobao platform maintained its position as the number one online beauty channel with a market share of 41.3%, Douyin contributed 35.7% of the GMV, JD.com accounted for 14.8%, and Kuaishou held an 8.2% share.
Rapid growth in Douyin's beauty sector, driven by commission reductions and interest-based consumer engagement
Douyin e-commerce continues to promote commission-free benefits and support for merchants: in May alone, the commission-free subsidy for product cards reached 1.4 billion yuan, with the highest reduction for a single merchant reaching 2.99 million yuan. It is reconstructing the platform ecology through a series of benefit policies. From #immersive unboxing to #makeup sharing to #new Chinese aesthetics, Douyin has become the source of the latest beauty trends. The logic of brand promotion is gradually shifting from traffic-driven thinking to user interest-oriented ecological operations. As the beauty category continues to migrate to Douyin, the requirements for online marketing, sales, and brand promotion capabilities for beauty brands are expected to further increase.
Proya and Han Shu lead skincare, while domestic brands like Mao Ge Ping are strong in makeup
In the beauty and skincare category: the competitive landscape is relatively stable, with Proya and Han Shu topping Tmall and Douyin respectively. According to Qingyan Intelligence, the number of domestic brands on the list remains limited, but Proya and Han Shu have continued to hold the top spots since last year's 618 on Tmall and Douyin. The top 5 brands in the beauty and skincare category on Tmall during the 618 event remained stable, with SkinCeuticals making its first appearance in the top five, replacing La Mer. The top 10 brands in the beauty and skincare category on Douyin during the 618 promotion were relatively stable, with 8 brands appearing on the list for three consecutive years, including Helena Rubinstein, La Mer, and L'Oréal, all showing an upward trend, while SK-II also returned to the top ten.
According to the WeChat account of Shangmei Co., during the 618 period, Han Shu ranked first across all categories on Douyin's beauty and skincare overall list, self-broadcast list, domestic skincare brand list, self-broadcast list, facial care set list, and men's skincare list. On other platforms, GMV on Tmall, JD.com, Vipshop, and Pinduoduo increased by 46%, 81%, 40%, and 229% respectively. For infant and toddler brands, GMV on Douyin, Tmall, and JD.com increased by 190%, 106%, and 158% respectively, ranking in the top 5 for infant and toddler care on Douyin, second for infant and toddler skincare on Tmall, and third for infant and toddler care on JD.com
Makeup and Fragrance Category: Emerging Brands Breakthrough, Mao Geping and Other Domestic Brands Still Dominate
The top brand in the Douyin makeup category is the domestic new brand TILOWEI, which has achieved rapid breakout by focusing on base makeup products. Additionally, among the top 10 brands in the Douyin makeup category, there are 8 domestic brands, with Mao Geping rising 9 places to second. The only foreign brands on the list are Yves Saint Laurent and MAC, ranking third and sixth respectively. The competition in the Tmall makeup and fragrance category is fierce, with Yves Saint Laurent taking the top spot, while Caitang and Mao Geping have risen to second and third places, respectively, and the brands Clé de Peau Beauté and 3CE have exited the top five.
International Brands' Localization Strategies Take Effect, Domestic Leading Brands Diversify to Breakthrough
International brands have performed better than expected, and domestic brands are likely to break through further. The performance of international brands in the beauty and skincare category remains strong, mainly due to their marketing strategies becoming more localized, fully embracing traffic and influencer tactics, and adopting a more humble approach to competition. Fundamentally, Chinese consumers still recognize the long-term brand power of high-end international brands. In the high-end skincare sector, the technological patents, laboratory techniques, and clinical validations accumulated by international big brands over the long term still hold significant advantages. Huaxi Securities believes that in the medium to long term, leading domestic brands will gradually break out of the cycle of &#34;ingredient competition&#34; and &#34;efficacy competition,&#34; placing more emphasis on brand influence, comprehensive user experience, and omnichannel layout capabilities, thereby forming a stronger brand moat.
Investment Recommendations: The 618 Shopping Festival's Beauty Sector Lands Steadily, but the Platform and Brand Landscape Continues to Evolve; Focus on Domestic Companies with Strong Moats
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Mid-to-high-end brands with a complete omnichannel layout and strong brand power, with a focus on Mao Geping (01318), benefiting the stock Shuiyang Co., Ltd. (300740.SZ); 2) Leading brands occupying dominant positions on platforms, with a focus on Proya (603605.SH), benefiting the stock Shangmei Co., Ltd. (02145).
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Technology-driven skincare brands that capture consumer mindshare through efficacy skincare or specific ingredients in niche segments, with a focus on BTN (300957.SZ), Juzhi Biotechnology (02367), and Marubi (603983.SH), benefiting the stock Jinbo Biotechnology (832982.BJ); 4) Daily chemical brands with strong cost-performance ratios and excellent management of emerging channels, with a focus on Runben Co., Ltd. (603193.SH) and Dengkang Oral (001328.SZ).
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Risk Warning
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<li>Intensified industry competition; 2) Economic recovery not meeting expectations; 3) Increased fees on e-commerce platforms; 4) Industry policy risks</li>
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300957

300740

09618

603605

Huaxi Securities released a research report indicating that the beauty sector performed steadily during the 618 shopping festival, with the beauty GMV of the four major e-commerce platforms reaching 60-70 billion yuan, a year-on-year increase of over 10%. Among them, the market share of the Taobao platform is 41.3%, while Douyin contributes 35.7%. Douyin achieved double-digit growth through reduced commission policies and an interest-based content ecosystem, and it is recommended to pay attention to domestic companies with deep moats

- Huaxi Securities reports that the total GMV for beauty products during the 618 shopping festival across four major e-commerce platforms reached 600-700 billion yuan, with a year-on-year growth of over 10%.  
- Taobao maintained the largest market share at 41.3%, followed by Douyin at 35.7%, JD at 14.8%, and Kuaishou at 8.2%.  
- The report suggests focusing on domestic brands with strong competitive advantages as the market landscape continues to evolve.

Zhitong

JD.com

JD-SW

Proya

HUAXI Securities

L'Oréal S.A.

BABA-W

ByteDance

KUAISHOU-W

Marubi

Vipshops

Huaxi Securities: Beauty industry 618 ends smoothly, pay attention to the changes in platform and brand landscape