中国在线美容：6.18数据显示在整体市场持平的情况下，我们追踪的美容公司实现了温和增长

The Beauty sales data for the June 6.18 event reveals a -1.5% YoY decline in GrossMerchandise Value (GMV) within the China eCommerce market, closely aligning withMay's pre-sales performance of -1.3%. However, our tracked beauty companiesperformed slightly better, achieving an average GMV increase of +5.8% during the6.18 event, with June at +1.5% and May at +9.5%. Market share performance for ourtracked beauty companies was robust, gaining +135bps over the past two months.During this year's 6.18 event (May+June combined), major international playerssuch as L'Oreal, Estee Lauder, and P&G sustained positive GMV growth with strongmarket share gains. On the other hand, Shiseido and LVMH recorded LSD decline inGMV. Proya, one of the domestic heavyweights, experienced a -6% GMV decline, althoughwith +3Obps share gain. The other local C-beauty brands such as Chicmax and Yatsensaw sharp double-digit growth with notable share gains. In the 6.18 event, luxury brands(Lancome, YSL, La Prairie, SK-ll, La Mer, etc.) appear to have broadly outperformed massbrands (Dove, Nivea, Olay, etc). This trend is likely due to significant discounts offeredduring the festival, which are limited throughout the year and Chinese consumers beingunder pressure, likely flocked to seize opportunities to purchase international/premiumproductsahese discounted prices instead of opting for mass/local brands6.1g shbpping festival is significant for the beauty eCommerce, contributing approximatelyearlier (May 13) compared to last year, extending the promotional period to 35-40 days.This timing discrepancy likely contributed to the volatility in YoY GMV growth observedin May and June. However, to avoid this we have calculated combined May+June YoYgrowth data - See below summary exhibits with red outlined columns. The contrasting GMVperformance between market (-1.4%) versus beauty tracked total (+6.4%) is attributed toconcentratedbeautysales duringmajore-commerce events like 6.18 and 11.11,whereconsumers are drawn in by substantial discounts from leading brands. Nevertheless, thesluggish market level performance continues to raise serious concerns around Chineserecovery.Company performance:L'Oreal experienced modest GMV growth in June (6.18 sales) at +3.4%, following a similartrend in May (6.18 pre-sales) with a growth rate of +3.6%. Notably, market share increasedby +24Obps during the last two periods, driven by strong performances from L'Oreal Paris(+94bps), Lancome & Kiehl's (+110bps each), SkinCeuticals (+133bps), and La Roche-Posay (+186bps). In the 6.18 event, YSL and SkinCeuticals emerged as the top performers.each achieving GMV sales growth of around +20%. In contrast, Kiehl's and L'Oreal Parissaw declines of -7% and -5%, respectively.Estee Lauder (not covered) reported impressive GMV growth during the 6.18 event at+17%, with June alone showing a growth of +6%. This followed a robust performance inMay, which recorded a +24% increase in GMV. (Continued on next page..)www.bernsteinresearch.com The company also gained +199bps in market share over the past two months, driven bystrong contributions from La Mer (+186bps), Estee Lauder (+120bps), MAC (+41bps), andTom Ford (+82bps).While all major brandsperformed well during the 6.18 event, smallerbrands such as Dr. Jart+, Clinique, Origins, and The Ordinary experienced significant GMVdeclines.LVMH GMV declined -10% YoY in June (6.18 sales), with total GMV growth over the 6.18event (June + May) declining -3% YoY (+72bps share gain), as some of the demand pulledbroadly stable over the last 3 months, with GMV growth -800bps to -900bps behindtrackedbeautycompanies.Atbrandlevel,GuerlainandGivenchybeautycontinuedtobethebiggest detractorsonbothL1Mand L3Mbasis.Proya saw a disappointing 6% YoY decline during the May-June period (6.18 shoppingfestival) and a 2% YoY drop in Q2 overall, with its flagship Proya brand performingparticularly poorly at -13% YoY in May-June despite launching numerous new SKUspre-festival specifically to stimulate growth.In contrast, TIMAGE saw a significant salesacceleration, achieving a 34% YoY growth in May and June, and 29% YoY growth in2Q.Meanwhile, the emerging Off&Relax brand shows promise, though its contribution tothe overall revenue mix remains limited. Proya continues to face challenges as the newlyinstalled management team struggles to establish a consistent performance track recordafter this disappointing quarter.Shiseido delivered mixed results, with overall online sales declining 2% during May-June and dropping 4% YoY in Q2. The flagship Shiseido brand showed encouragingsigns of recovery with 8% YoY growth in Q2, but this positive performance was offset byweakness across the portfolio. The company's premium line, Cle de Peau, declined 4% YoYin Q2, while smaller brands faced even steeper challenges: Anessa, IPSA, and Aupress allexperienced double-digit revenue contractions. This performance divergence suggests aits core Shiseido brand potentially at the expense of sma