Zhongjing Securities: In 2026, young workers in the retail beauty industry grasp the main line of emotional consumption, layout the bottom reversal, and catalyze new technologies.

China Gold Corporation releases the outlook for the light industry retail cosmetics industry in 2026, stating that in the outlook for 2026, with consumers' continued pursuit of emotional and functional value, the upgrading of industry supply and the support of consumption policies, the narrative logic of the light industry retail cosmetics industry is further shifting from "expansion" to "improvement in quality." Investments should adhere to three main directions: emotional consumption, fundamental reversal, and industrial transformation catalyzed by new technologies. Industry outlook: 1) Beauty and medical aesthetics: The report predicts that the growth of the sector in 2026 will be driven more by the supply side, such as structural opportunities brought by ingredient innovations such as PDRN and functional upgrades. It is expected that domestic leading companies will continue to increase their market share. 2) Trendy retail: The report predicts that trendy categories will continue to be prosperous globally, with continued category and product innovation from leading companies, deep IP operations, and upgraded channel iterations expected to create new growth opportunities, while international expansion is still in its early stages. 3) Light industry manufacturing: The report predicts a weak recovery in industry demand but identifies structural opportunities, with a positive outlook for export-oriented enterprises with capacity and brand advantages, as well as companies seizing the opportunity of industrial transformation to develop new businesses and generate new growth engines.