零售更新：中国美容产品销售额增长4.4%，表现逊于整体销售

USA | Cosmetics, Household & PersonalCare Retail Update: China Beauty +4.4%,Underperforms Overall Sales China beauty sales were +4.4% in May vs. +7.2% in April and +1.1% in March.Cosmetic sales underperformed overall retail sales and moderated M/M.Overall, China's retail sales accelerated by 130bps M/M to +6.4% and came inabove market ests. China Retail Sales Highlights:Overall China retail sales in May were +6.4% Y/Y, beating consensusestimates by 155bps and improving from +5.1% in April. For more details, see report HERE. China Beauty Retail Sales:China cosmetic sales moderated to +4.4% in May. Cosmeticsdecelerated vs. April, and the category underperformed overall retail sales by 200bps. The multi-month pattern includes +1.1% in Oct-23, -3.5% in Nov-23, +9.7% in Dec-23, +4.0% in Jan/Feb-24,+2.2% in March-24, -2.7% in April-24, +18.7% in May-24, -14.6% in June-24, -6.1% in July-24, -6.1% inAug-24, -4.5% in Sept-24, +40.1% in Oct-24, -26.4% in Nov-24, +0.8% in Dec-24, +4.4% in Jan/Feb-25,+1.1% in March-25, +7.2% in April-25, and +4.4% in May-25. Share Fragmentation as Market Matures:China's prestige beauty market grew ~31% from 2019to 2024 (~6% CAGR), close to ~US$30Bn, and ~45% of sales take place online — primarily Tmall.The channel shift towards online has been the key contributor to growth by giving brands the abilityto reach T3+ cities without physical investment. There were ~60 beauty brands on Tmall in 2018.In 2019 alone, 1,000 brands launched on Tmall. In the US, 1,000 new brands came to the marketbetween 2014 and 2018 (5 years), which caused market fragmentation and share loss from thelarge beauty brands. As more brands enter China, we would expect brand market share to fragmentas in more mature beauty markets. Ex. 2 shows further share gains from China domestic costhrough 2024 (e.g. Proya Cosmetics, Jala). .Source: China National Bureau of Statisics; VisibleAlpha;Jefferies Ashley Helgans * | Equity Analyst(212) 336-7367 | ahelgans@jefferies.com Sydney Wagner * | Equity Associate(212) 778-8943 | swagner1@jefferies.com Bryan Pinedo, CFA * | Equity Associate+1 (917) 421-1958 (office) | bpinedo@jefferies.com Blake Anderson, CFA * | Equity Associate(212) 323-7686 | banderson2@jefferies.com Analyst Certification: I, Ashley Helgans, certify that all of the views expressed in this research report accurately reflect my personal views about the subject security(ies) and subjectcompany(ies). I also certify that no part of my compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressedin this research report. I, Sydney Wagner, certify that all of the views expressed in this research report accurately reflect my personal views about the subject security(ies) and subjectcompany(ies). I also certify that no part of my compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressedin this research report. I, Bryan Pinedo, CFA, certify that all of the views expressed in this research report accurately reflect my personal views about the subject security(ies) and subjectcompany(ies). I also certify that no part of my compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressedin this research report. I, Blake Anderson, CFA, certify that all of the views expressed in this research report accurately reflect my personal views about the subject security(ies) andsubject company(ies). I also certify that no part of my compensation was, is, or will be, directly or indirectly, related to the specific recommendations or viewsexpressed in this research report. As is the case with all Jefferies employees, the analyst(s) responsible for the coverage of the financial instruments discussed in this report receives compensationbased in part on the overall performance of the firm, including investment banking income. We seek to update our research as appropriate, but various regulationsmay prevent us from doing so. Aside from certain industry reports published on a periodic basis, the large majority of reports are published at irregular intervalsas appropriate in the analyst's judgement. Investment Recommendation Record (Article 3(1)e and Article 7 of MAR) Recommendation PublishedJune 16, 2025 11:29 A.M.Recommendation DistributedJune 16, 2025 11:29 A.M. Explanation of Jefferies Ratings Underperform - Describes securities that we expect to provide a total return (price appreciation plus yield) of minus 10% or less within a 12-month period.The expected total return (price appreciation plus yield) for Buy rated securities with an average security price consistently below $10 is 20% or more within a 12-month period as these companies are typically more volatile than the overall stock market. For Hold rated securities with an average security price consistentlybelow $10, the expected total return (price appreciation plus yield) is plus or minus 20% with