Domestic beauty brands are on the rise, gradually occupying the market share of international cosmetics in China, which is expected to achieve a breakthrough from catching up to surpassing.

　　Recently, A-share cosmetics listed companies have successively disclosed the 2023 performance forecast. Under the background of consumption recovery, many companies, including Freda, Marubi, Shuiyang and Kesi, expect net profit to increase year-on-year.

　　The performance of subdivided tracks is beautiful

　　Marubi, a veteran domestic beauty company, released a performance forecast saying that the company expects to achieve a net profit of 300 million yuan to 330 million yuan in 2023, an increase of 72% to 89% year-on-year; The net profit after deduction was 220 million yuan to 250 million yuan, a year-on-year increase of 62% to 84%.

　　The company said that it is actively promoting the transformation of online channels. Among them, the content e-commerce of Marumi brand represented by Tik Tok Aauto Quicker increased by over 100%, and the second brand PL Love Fire increased by over 100%. In addition, the company firmly divides channels and products, implements the strategy of "big mind and single product", optimizes product structure, and reduces costs and improves efficiency.

　　The single product strategy and the promotion of online channels are the reasons why most domestic cosmetics listed companies achieved performance growth last year.

　　According to the data of Youth Intelligence, in 2023, the growth rate of platform cosmetics sales in Tik Tok was 47%, and that in Aauto Quicker was 69.7%. This feature is also reflected in the performance forecasts of many companies.

　　Shuiyang shares are expected to achieve a net profit of 280 million yuan to 320 million yuan in 2023, a year-on-year increase of 124% to 156%; The non-net profit deducted was 260 million yuan to 300 million yuan, up 169% to 210% year-on-year. The company owns its own brands: Effidan, Dashuidi and Royal Mud Workshop, and its agency brand business is also deeply bound with Johnson & Johnson.

　　Shuiyang Co., Ltd. said that during the reporting period, the multi-level brand matrix system of the company’s own brands was further improved, brand assets continued to precipitate, the agency brand business entered a benign track, the overall business and product structure were further optimized, and the proportion of high-margin brands continued to rise.

　　Freda is expected to achieve a net profit of 260 million yuan to 290 million yuan in 2023, an increase of 472% to 538% year-on-year; The non-net profit deducted was 116 million yuan to 146 million yuan, up 98% to 150% year-on-year.

　　After divesting the real estate development business, Freda has continuously empowered its core business development by relying on the strength of scientific research and development and the advantages of multi-brand omni-channel development. The company said that during the reporting period, the cosmetics business continued to build a brand matrix, broaden sales channels and achieve sustained and steady growth.

　　On the raw material side, Kesi, a leading sunscreen company, expects the net profit of returning to the mother in 2023 to be 720 million yuan to 760 million yuan, up 85.50% to 95.80% year-on-year.

　　During the reporting period, with the steady improvement of the market position of KES and the continuous growth of the market demand for sunscreen products, as well as the improvement of the company’s overall capacity utilization rate and the rapid release of new product capacity represented by new sunscreen agents, it helped the company to improve its main business income and gross profit margin. According to reports, in the future, the company will also invest in the construction of "10,000 tons of sunscreen products in Malaysia" to expand market demand in Asia-Pacific, Europe and other regions.

　　The medical and beauty sector also showed signs of recovery. Aimeike expects to achieve a net profit of 1.81 billion yuan to 1.9 billion yuan in 2023, a year-on-year increase of 43% to 50%; The non-net profit was 1.782 billion yuan to 1.872 billion yuan, a year-on-year increase of 49% to 56%.

　　Aimeike said that the company actively pays attention to market changes, provides high-quality services for downstream medical and beauty institutions at the academic and operational ends, better meets the needs of beauty seekers and enhances the depth of cooperation with customers. At the same time, through the distribution model, we will further expand the number of institutions covered by the company’s products and enhance the breadth of cooperation with customers. The company continues to increase investment in research and development expenses and do a good job in the research and development of pipeline products.

　　According to the performance forecast released by Jinbo Bio, the company’s net profit for returning to its mother in 2023 is expected to be 280 million yuan to 300 million yuan, up 156.47% year-on-year to 174.79%. The main reason for the increase in performance is that the company continues to increase R&D investment, actively develops new products and product upgrades, and strives to increase brand promotion and market development.

　　Constructing core competitiveness with high quality

　　Some people in the industry told reporters that scientific research is still the core issue. With the upgrading of consumer demand and the trend of rational consumption, cosmetics brands began to "roll" research and development, "roll" technology, "roll" ingredients and "roll" raw materials.

　　High-quality domestic brands sold well last year, mainly because they gradually gained the trust and recognition of consumers in terms of quality and safety, and their market competitiveness was constantly enhanced. At the same time, consumers’ rational consumption awareness was enhanced, and domestic brands with high cost performance and good use experience became the preferred choice.

　　In addition, the domestic beauty care brand has also broken the traditional operation mode and made bold innovations and attempts in marketing, attracting more young consumers. With the continuous improvement of the product strength and research and development strength of domestic beauty brands, its rising trend is expected to continue.

　　Caixin Securities Research Report pointed out that in the long run, with the gradual recovery of consumption, domestic brands continue to consolidate their brand potential and adjust their marketing strategies in time. Domestic brands with solid R&D functions, strong marketing capabilities and multi-brand matrices are expected to rise further.

　　It is worth noting that the market space for domestic beauty products to expand is still increasing. The report "Insight into the Development and Consumption of Cosmetics Market in China in 2023" shows that the market size of China’s cosmetics industry is about 516.9 billion yuan in 2023, up 6.4% year-on-year, and it is expected to increase to 579.1 billion yuan in 2025.

　　Recently, the General Office of the State Council issued the Opinions on Developing the Silver-haired Economy and Improving the Well-being of the Elderly. This is the first time that a special policy with the theme of silver-haired economy has been introduced at the national level, and it is also the first time to encourage the development of anti-aging products at the national level, which mentions promoting the research and development of cosmetic raw materials, formulation and production process design and development.