According to the Guojin Securities Research Report, the beauty industry has moved into refined operation. The scale of 618 has been slightly reduced but the structure has been optimized. Brands have switched to repurchase and profit orientation, and upgraded categories such as makeup and fragrance have increased. The policy initially grants beauty subsidies to target leading domestic products and high-end efficacy brands. The cost reduction and efficiency of the entire AI link have been realized, and profit margins have been significantly increased in material generation and hosting. On the channel side, Taotian is the basic market for domestic products, and Douyin has become the main battleground for foreign investors to fight back. Domestic products need to build barriers in segments such as effective skin care and Guofeng makeup. It is recommended to focus on the three categories of targets: Q2 performance restoration, stable high-end mentality, and outstanding cost performance for the public to seize structural opportunities.

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