Market Share of Foreign Brands in China’s Beauty Market (2025)
China’s beauty market is a ¥485 billion ($68B) behemoth, with foreign brands holding ~50% market share as of 2024. However, domestic brands like Florasis, Winona, and Proya are rapidly closing the gap, growing at 15-20% YoY vs. foreign brands’ 6-8%. Key segments dominated by foreign players:
- Premium Skincare: 65% share (Estée Lauder, Lancôme, SK-II).
- Luxury Makeup: 70% share (Dior, MAC, YSL).
- Medical Beauty: 40% share (La Roche-Posay, Avene).
Market Analysis: Drivers, Challenges, and Trends
- Growth Drivers:
- Gen-Z & Post-00s Consumers: 58% of beauty spenders; prioritize novelty and social media trends.
- Guochao (National Pride): Domestic brands leverage cultural heritage, but foreign brands counter with localized storytelling (e.g., Lancôme x Chinese Zodiac collections).
- E-Commerce Dominance: 42% of beauty sales occur online (Tmall, JD, Douyin).
- Challenges for Foreign Brands:
- Regulatory Hurdles: Stricter ingredient bans (e.g., parabens) and labeling laws.
- Price Wars: Domestic brands undercut with affordable innovations (e.g., Colorkey lip oils at ¥69 vs. MAC’s ¥199).
- Cultural Missteps: Failure to align with festivals (618, Singles’ Day) or sensitive issues (e.g., Taiwan references).
- Trends Shaping 2025:
- Hyper-Personalization: AI-driven skincare diagnostics (e.g., Shiseido’s Optune).
- Sustainability: 64% of consumers pay premium for eco-packaging.
- Live Commerce 2.0: Interactive livestreams with gamified rewards (e.g., Estée Lauder’s “Treasure Box” giveaways).
6 Tactics for Foreign Brands to Win Chinese Consumers in 2025
1. Dominate Douyin (TikTok) with Algorithm-Driven Content
- Action: Partner with Douyin’s KOLs like @Chuxuan (20M fans) for “Get Ready With Me” tutorials using trending filters.
- Case: L’Oréal Paris boosted sales 300% by syncing campaigns with Douyin’s “#LipBlurChallenge.”
2. Tiered KOL/KOC Strategies
- Strategy:
- Mega KOLs (5M+ fans): Drive brand awareness (e.g., Austin Li’s livestreams).
- Micro-KOCs (10k–100k fans): Seed authenticity via Xiaohongshu “skin diaries.”
- Budget Split: 60% to KOCs (higher ROI), 40% to KOLs.
3. Livestream Gamification
- Tactics:
- Flash Sales: Offer ¥9.9 mini serums during livestreams to spike engagement.
- Virtual Gifts: Fans send digital red envelopes to unlock discounts (used by Sulwhasoo to lift conversions by 25%).
4. Culturally Rooted Innovation
- Product Development:
- Ingredients: Infuse traditional elements (ginseng, jasmine) into formulations (e.g., Origins’ Ginseng Moisturizer).
- Packaging: Design limited editions for Lunar New Year/Mid-Autumn Festival (e.g., Clinique’s Red Lantern Serum Box).
5. Co-Branding with Local IPs
- Partnership Ideas:
- C-Dramas: Create makeup collabs with hits like 《The Untamed》 (e.g., MAC x Honor of Kings sold 100K units in 1 hour).
- Museums: Co-launch collections with the Palace Museum (e.g., YSL’s Forbidden City Lipstick).
6. AI-Powered Personalization
- Tech Integration:
- Skin Diagnostics: Use WeChat Mini-Programs to analyze selfies and recommend products (e.g., Olay’s Skin Advisor).
- Custom Packaging: Let consumers add initials/emoji to product boxes (e.g., Kiehl’s “Doodle Jar” campaign).
Case Study: How Estée Lauder Captured Tier-3 Cities
- Tactic: Partnered with Douyin livestreamers to sell ¥299 mini serums with free delivery to lower-tier cities.
- Result: 45% of 2023 sales came from cities like Chengdu and Xi’an.
2025 Checklist for Foreign Brands
- Preempt Regulations: Submit ingredient lists 6+ months ahead via China’s “Green Channel.”
- Localize Fast: Launch 3–5 China-exclusive SKUs annually (e.g., La Mer’s Rose Quartz Cream for “pink beauty” trends).
- Leverage Data: Use Alibaba’s FashionAI to predict color/fragrance trends.
- Go Green: Adopt refillable packaging (e.g., Chanel’s Water Cream Refills) to appeal to eco-conscious Gen-Z.
Final Take: Foreign brands can still dominate China’s beauty market by blending global prestige with local agility. The winners will be those investing in Douyin-native storytelling, hyper-personalization, and guochao-aligned innovation.
Sources: CBNData 2024, iiMedia, Alibaba Beauty Trends Report
GMA – Your Bridge to China’s Beauty Billions
The Chinese Cosmetics market
An highly concentrated market
On site, some see only mere announcement of the local authorities, hoping to attract private investors and public funds. These projects are still in very early phases. Chinese won’t continue to let 60% of the domestic market of beauty in the hands of foreign groups (even 80% in the mid-range and luxury sectors!): The American Procter & Gamble, the French L’Oréal, The Japanese Shiseido, the Anglo-Dutch Unilever…
Shanghai Jahwa, China’s leader, only has the tenth part of this highly concentrated market, despite a large number of actors and Chinese SMEs. It does not stop there, Jahwa has a very popular brand portfolio in China, covering premium range and entry-level products. Herborist, one of its flagship brands, inspired by the traditional pharmacopoeia, is distributed since 2011 by Sephora in France, 100% owned by a subsidiary of Ping An, the first insurer in the country, Jahwa has a strong investment capacity. Having achieved a turnover of 636 million dollars last year, it will implement international stores to distribute Herborist.
The Chinese offensive is effective
These new ambitions made China’s exportations to France in cosmetics
Including France, the seventh destination of these shampoos, toothpastes, shaving products or bath, deodorant … The United States is the first customer. Except in the hair care segment, few of the locals are really able to compete with foreigners with their low to mid-range cosmetics. Yet some Chinese actors gradually part from other manufacturers. Their niche is the quality and promising segments like anti-aging, with natural ingredients coming from Traditional Chinese medicine.
French manufacturers don’t take lightly the arrival of those newcomers. Indeed, These very modern brand are way more dynamic and have a better understanding of the market dynamics.
Strategic partnerships
The hexagonal historic expertise arouses the appetite of Chinese. French beauty products are synonymous in their eyes of technology and cared design, but also of higher quality, particularly in terms of safety and environmental responsibility. Threat … or asset for the French cosmetics actors? They want to develop brands for the domestic market but make them on our French lines and plants to benefit from the image of Made in France. Consumers do not want the cosmetics to be made in China! It might be more the case in ten years…
Even French SMEs decline Chinese bids, like Filorga a laboratory specialized in cosmetic and skin aging products. But Filorga does not exclude strategic partnerships to distribute its products there. Chinese ambitions are also reflected in an increased protectionism. With a market share of 32.77%, France remains the leading supplier of beauty of the country, ahead of Japan and the United States. But imports are increasingly difficult.
Western companies’ strategies consist in buying companies and produce locally. The perfumer Coty has thus seized in 2010 T Joy, a popular cosmetic manufacturer in China. L’Oréal, has two factories in Suzhou and Yichang. The Cosmetic Valley is still the world’s leading resource centre in perfumery and cosmetics. A rare first place he should not … give to the Chinese.
Do you want to know more?
- An overview of the Chinese cosmetic market
- How to sell your cosmetics in China
- Study of L’occitan marketing strateggy in China