Recently, multiple listed companies in the personal care and daily chemical industry released their financial reports for the first three quarters of 2025. New Distribution reviewed the reports of 13 companies, showing that on the revenue side, 11 achieved growth while only 2 declined; similarly, on the profit side, 11 saw net profit growth and 2 declined. Notably, some companies performed exceptionally well, such as C&S Paper with a net profit year-on-year increase of 329.59%, Shanghai Jahwa with 149.10%, and Jieya and Beijiajie with increases of 95.78% and 84.58%, respectively. The author compared the Q3 reports of the personal care and daily chemical industry compiled by New Distribution last year. We found that compared to the first three quarters of 2024, this year the industry shows a clear counter-trend growth, with profitability recovering and the vast majority of companies achieving profit growth. Given the overall market pressure this year, why have personal care and daily chemical companies managed to grow against the trend? The author analyzed the financial reports of relevant listed companies and found that their growth is not accidental but driven by common factors. Channel Side: Joint Efforts Online and Offline Online channels, especially interest-based e-commerce, have become the core engine for growth in personal care and daily chemicals. Many companies have shifted their marketing focus to online platforms that directly reach consumers and deliver quick results, while offline venues are gradually transitioning to providing experiences, services, and interactions. Take Shanghai Jahwa as an example. Its financial report shows that by decisively shifting to the online main battlefield, increasing investment in platforms like Douyin and Tmall, and transforming the online distributor agency model to a self-operated model, its domestic online channel revenue grew 1.7 times year-on-year in Q3 2025, with online revenue share exceeding 50% for the first time, directly driving a 149.10% surge in net profit. Meanwhile, offline channels have not become ineffective but are entering a phase of value reconstruction. For instance, Dencare Oral Care, by deeply cultivating third- and fourth-tier markets and strengthening cooperation with regional supermarket chains, achieved revenue exceeding 1.2 billion yuan in the first three quarters, up 8.3% year-on-year. Yunnan Baiyao also disclosed in its report that by optimizing offline channel structure and improving per-store output efficiency, it raised the gross margin of the supermarket channel by 2.1 percentage points. From this perspective, refined operations in lower-tier markets still hold sustainable growth potential. Product Side: Premiumization and Cost Reduction as Key Drivers In the financial reports, we also see another trend. From a product perspective, personal care and daily chemical companies show two commonalities in product strategy: premiumization and functional segmentation, as well as effectively leveraging the downward trend in raw material costs. On one hand, the premiumization strategy has become a profit stabilizer. For example, Yunnan Baiyao, relying on core products like toothpaste, continued its steady performance, with the revenue share of its high-end product series rising to 42%, solidifying its profit base. Shanghai Jahwa's high-end skincare series revenue grew 32%, driving an overall gross margin increase of 1.8 percentage points. At the same time, in niche segments, personal care companies are seeking differentiation opportunities. For instance, Beijiajie launched a specialized series targeting sensitive gums in the oral care field, and revenue from this series grew 56% year-on-year, becoming a new growth point. Jieya focused on the functional wet wipes market, launching makeup remover wipes containing skincare ingredients, which pushed the gross margin of wet wipe products to 35.2%. On the other hand, falling raw material prices have brought broad benefits to the industry. For example, C&S Paper cited the decline in raw material costs as the primary reason for its 329.59% year-on-year net profit growth, with pulp procurement costs down 18% compared to the same period last year. Beijiajie also mentioned a significant drop in procurement prices for major raw materials, with the average purchase price of polypropylene down 13.5% year-on-year. These cases demonstrate the direct impact of supply chain cost control on profits. Operational Side: Improving Efficiency Internally, Expanding Growth Externally At the operational level, facing growth opportunities, personal care and daily chemical companies mainly adopt two efficient strategies: improving efficiency internally and expanding growth externally. On one hand, they convert expense efficiency into profits through refined management. For example, C&S Paper's financial report shows that by optimizing R&D investment and resource allocation, the company achieved effective cost control, with the administrative expense ratio down 1.2 percentage points year-on-year in the first three quarters of 2025, successfully converting saved costs directly into profits. Another example is Mingchen Health, which through digital transformation of its supply chain reduced inventory turnover days by 5 days, significantly improved inventory turnover rate, and notably enhanced operational efficiency. Yunnan Baiyao also maintained good profitability by keeping its period expense ratio within a reasonable range while achieving revenue growth through refined management and procurement optimization. On the other hand, companies are also exploring new growth curves through external collaboration. This mainly manifests in two paths: First, generating returns through investment and mergers. Yunnan Baiyao's financial report shows that its investment income contributed significantly to company profits, with investment income up 38% year-on-year in the first three quarters of 2025. Second, expanding markets through strategic cooperation. For example, Shanghai Jahwa established deep cooperation with multiple emerging channels, driving substantial growth in online channel revenue; another example is Baiya Shares, which achieved rapid expansion in lower-tier markets by deepening cooperation with offline retail channels. Final Thoughts Overall, the growth of the personal care and daily chemical industry in the first three quarters of 2025 is the result of the combined effects of multi-dimensional capabilities in channels, products, and operations. In terms of channels, companies capture incremental growth through online transformation and tap into existing stock through offline reconstruction; in terms of products, premiumization and cost dividends jointly enhance profit space; in terms of operations, the shift from extensive expansion to lean operations ensures growth quality. This indicates that the logic of industry competition has fundamentally changed. The era when relying solely on channel dividends or blockbuster products could win is coming to an end. The key to market competition is no longer about finding the next trend but about competing on the intrinsic systemic strength of enterprises. Future competition will be a contest of comprehensive strength. Companies need to build a more resilient and healthy growth model: First, return to brand value, building consumer loyalty beyond price wars through product innovation and emotional connection. Second, return to supply chain resilience, internalizing cost control from relying on external dividends into a controllable and sustainable operational capability. Third, return to healthy profits, finding the optimal balance between scale and efficiency, and pursuing quality growth.