China consumer roundup: Baozun posts steady rebound, Yamafen surges in Greater China, Proya doubles down on HuazhiXiao as Estée Lauder–Puig talks collapse

Earnings and regional momentum

E‑commerce services provider Baozun (宝尊) reported first‑quarter net revenue of RMB 2.4 billion, up 15% year‑on‑year, marking a cautious recovery in China’s branded e‑commerce sector. The company said non‑GAAP operating profit turned positive at over RMB 8 million, a sharp swing from a RMB 67 million loss a year earlier; its core e‑commerce business (BEC) grew 10% to RMB 1.9 billion while brand management (BBM) jumped 39% to RMB 540 million, driven in part by steady profitability at GAP under Baozun’s management.

Outdoor and sporting goods group Yamafen Sports (亚玛芬体育) delivered a stronger beat. The firm posted fiscal Q1 revenue of US$1.945 billion, up 32% year‑on‑year (26% at constant currency), with Greater China the standout: revenue in the region climbed 44.5% to US$645 million. Brands such as Salomon accelerated further — Greater China was the fastest‑growing market for the label — and Wilson’s footwear and apparel registered robust double‑digit gains, underscoring resilient domestic demand for sport and outdoor categories.

Dealmaking: domestic consolidation vs. stalled global tie‑ups

On the M&A front, Proya (珀莱雅) said it will increase its stake in young colour cosmetics brand HuazhiXiao (花知晓) to 51% via a further RMB 351.1 million investment, up from an initial 38.45% hold. HuazhiXiao, with annual revenue north of RMB 1.7 billion, will be consolidated into Proya’s accounts once the transaction closes — a clear signal that incumbents are choosing scale and in‑house brand incubation to chase younger consumers. It has been reported that some industry observers and netizens praised the move as a tactical play by Proya’s new management to accelerate multi‑brand expansion.

Meanwhile, cross‑border consolidation among Western majors has hit a snag: Estée Lauder Companies (雅诗兰黛公司) and Spain’s Puig (Puig集团) confirmed they have terminated talks about a potential merger after exploratory discussions, with neither side reaching an agreement. The collapse comes amid a more cautious global M&A climate — heightened regulatory scrutiny, geopolitics and shifting valuations all complicate big beauty deals. What does this divergence mean? Domestic players are consolidating within China’s large and still‑growing market, even as some global tie‑ups falter under external headwinds.