MS Conference Call Slide Deck: China Beauty – Skin in the Game on 9/12 at 8:30AM ET We are hosting a Morgan Stanley Conference Call: China Beauty – Skin in the Game, on September 12th at 8:30AM ET. Toll-Free Dial-In: (877) 266-4808 International Dial-In: (706) 679-8534 Conference ID: 4975194 Related Report: China Beauty – Skin in the Game (here) September 12th, 2019 Morgan Stanley does and seeks to do business with companies covered in Morgan Stanley Research. As a result, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of Morgan Stanley Research. Investors should consider Morgan Stanley Research as only a single factor in making their investment decision. For analyst certification and other important disclosures, refer to the Disclosure Section, located at the end of this report. += Analysts employed by non-U.S. affiliates are not registered with FINRA, may not be associated persons of the member and may not be subject to NASD/NYSE restrictions on communications with a subject company, public appearances and trading securities held by a research analyst account. M O R G A N S T A N L E Y R E S E A R C H Dara Mohsenian, CFA dara.mohsenian@morganstanley.com +1 212 761 6575 Kelly Kim, CFA kelly.kim@morganstanley.com +82 2 399 4837 Richard Taylor richard.taylor@morganstanley.com +44 20 7425-7922 Haruka Miyake haruka.miyake@morganstanley.com +81 3 6836-5421 Edouard Aubin edouard.aubin@morganstanley.com +44 20 7425-3160 Dustin Wei dustin.wei@morganstanley.com +852 2239-7823 Daniel Oh daniel.s.oh@morganstanley.com +82 2 399-4938 September 12, 2019 10:00 AM GMTM O R G A N S T A N L E Y R E S E A R C H China Beauty: Skin in the Game September 12th 2 1. Demand Sustainability Greater than the Market Perceives Based on Consumer Intentions 2. Diverse Sources of Increased Spending Provide Sustainability Comfort 3. Breadth of Demand by Consumer Groups is Encouraging 4. Premiumization Trends Remain Strong 5. Brand Fragmentation is Reversing 6. Macroeconomic Risk Appears Manageable Proprietary AlphaWise China Beauty Industry Survey Takeaways Between April and May 2019, AlphaWise conducted the third edition of the China Beauty Industry Survey among 1,547 beauty product users from Tier 1-3 cities using online methodology. M O R G A N S T A N L E Y R E S E A R C H China Beauty: Skin in the Game September 12th 3 Key Point #1: Demand Sustainability Greater than the Market Perceives M O R G A N S T A N L E Y R E S E A R C H China Beauty: Skin in the Game September 12th 4 China Beauty Sales Growth Has Rapidly Accelerated Source: Euromonitor, Morgan Stanley Research 16%13%13%14%10%10%9%7%6%12%15%23%18%16%19%12%12%9%8%10%26%29%14%11%11%13%10%9%8%7%5%7%8%0%5%10%15%20%25%30%35%20082009201020112012201320142015201620172018China Beauty Euromonitor Retail Sales GrowthOverallPremiumMassM O R G A ...
