Goldman Sachs analyzes the China cosmetics sector's 1Q26 performance, highlighting a shift toward omni-channel strategies and offline engagement as online ROI declines. The report favors Mao Geping and Giant Biogene while maintaining a Sell on Bloomage due to competition.
Key Takeaways
- 1.Branded leaders with omni-channel strategies are outperforming due to efficiency in customer acquisition and the return of offline channel relevance.
- 2.The China beauty sector faces ROI headwinds, with GPM-selling expense ratios contracting for many players due to online saturation.
- 3.Market share dynamics are shifting; Mao Geping and KANS are gaining share while previous leaders like Proya and Winona see share pressure.
Table of Contents
- Key Events to Watch for 2Q26
- Refreshing competitive dynamics in 2025
- 2025/1Q26 results summary
- Valuation
- Botanee (300957.SZ): 4Q25/1Q26 review
- Bloomage (688363.SS): 4Q25/1Q26 review
- Peer results read-across
- Price Target Risks and Methodology
- Disclosure Appendix
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Authors
Valerie Zhou
Securities
MGP2367.HK603605.SS688363.SS300957.SZ2145.HKMSCI China
Themes
Omni-channel StrategyROI Headwinds in E-commerceDomestic Substitution
Regions
Asia PacificChina