In June, cosmetics growth continued to accelerate.

Great Wall Securities pointed out that in June 2019, the growth rate of clothing increased slightly, while that of cosmetics continued to accelerate. In a single month, the total amount of social zero in June 2019 was 3.4 trillion yuan, an increase of 9.8%, a decrease of 0.8 PCT and an increase of 1.2 PCT. The retail sales of clothing, footwear, caps and knitwear/cosmetics above the quota were 1091/26.5 billion yuan, up 5.2%/22.5% year-on-year respectively, and the growth rate was - 4.8 pct/+11.0 PCT year-on-year, and the growth rate was + 1.1 pct/+5.8 PCT year-on-year, respectively. Overall, although the growth rate of the apparel sector is still at a low level, the ring ratio has slightly improved; the cosmetics sector continues the strong growth trend since May, which is expected to be related to 618 promotion on consumption, but also reflects that under the "lipstick effect", the cosmetics sector has strong consumer resilience.

Three main lines of recommendation for apparel and home textiles are: (1) Mass brand of "high performance-price ratio+low-line upgrade": recommending Red Bean Stock and Pellaira; (2) medium and high-end brand of "stable demand+multi-brand operation": recommending Gelisi and Anzheng Fashion; (3) fine plate brand of "high prosperity+excellent pattern": We recommend Sunma clothing, Shanghai Jiahua, and Anta sports. Bailong Oriental and Jiansheng Group are recommended for textile manufacturing.