Domestic Beauty Brands Enter Mid-Game Battle: Evolving Strategies in China’s Cosmetics Market

6 mins read
October 20, 2025

Executive Summary

  • Domestic beauty brands in China are transitioning from viral marketing tactics to emphasizing product quality, innovation, and offline retail experiences.
  • Brands like Proya (珀莱雅) and Maogeping (毛戈平) are leading with robust financial performance and strategic channel diversification.
  • Overseas expansion efforts face cultural and market barriers, but initiatives like cultural exchange programs offer new pathways.
  • The integration of e-commerce influencers like Li Jiaqi (李佳琦) continues to drive brand discovery and consumer engagement.
  • Future growth hinges on technological advancements, consumer insights, and collaborative global strategies.

The Double Eleven Catalyst: Domestic Beauty Brands Shine

The 2025 Double Eleven shopping festival kicked off with a bang as Li Jiaqi (李佳琦) returned to his live stream, underscoring the pivotal role of e-commerce in propelling domestic beauty brands. Within the first hour, gross merchandise value (GMV) for beauty products surged year-over-year, with the Super Beauty Day segment recording a notable uptick in orders. This performance is remarkable given the broader market context. According to the National Bureau of Statistics (国家统计局), China’s cosmetics retail sales for H1 2025 grew a modest 2.9%, lagging behind the 5.0% growth in total consumer goods retail. Third-party data cited by Cosmetics Review (化妆品观察) indicated a 10% decline in GMV for beauty products on major e-commerce platforms in 2024, highlighting the competitive pressures.

Li Jiaqi’s live stream has evolved beyond mere sales—it now serves as a launchpad for domestic beauty brands, fostering deep consumer connections and co-creating products. Over the years, his platform has amplified brands like Proya (珀莱雅) and Winona (薇诺娜), transforming them from niche players to household names. The sustained engagement reflects a broader shift where domestic beauty brands are leveraging digital ecosystems to build loyalty and trust. As the market matures, the emphasis is moving from quantity to quality, with brands investing in R&D and consumer education to stay ahead.

Market Dynamics and Consumer Behavior

Data from this year’s Double Eleven presales revealed Proya (珀莱雅) claiming the top spot in beauty sales, marking its second consecutive year at the pinnacle. The leaderboard featured an increased presence of domestic brands, both in numbers and rankings. Financial reports from listed Chinese beauty companies corroborate this trend. Among the top ten domestic beauty firms, eight posted revenue and profit growth in H1 2025. Companies like Shanghai Jahwa (上美股份), Giant Biogene (巨子生物), and Maogeping (毛戈平) reported impressive gains, with total revenue increases of 17.3%, 22.5%, and 31.3%, respectively. This momentum signals a maturation phase where domestic beauty brands are capturing market share from international rivals through targeted strategies.

From Marketing Hype to Quality Foundations

The early success of domestic beauty brands was often attributed to aggressive marketing and social media seeding. However, as the market saturates, the focus is shifting to product efficacy, service quality, and brand integrity. Brands are recognizing that long-term viability depends on moving beyond transactional relationships to building emotional equity. For instance, Maogeping (毛戈平) distinguished itself by prioritizing high-end positioning and offline retail from its inception, countering the perception that domestic brands are solely online-centric. In H1 2025, nearly half of Maogeping’s revenue came from offline channels, compared to just 4.61% for Proya (珀莱雅).

This rebalancing act involves recalibrating resources toward innovation and consumer touchpoints. Winona (薇诺娜), under parent company Botaine (贝泰妮), is expanding its offline footprint through direct stores and pharmacy partnerships. According to Zhong Wei (钟巍), Botaine’s PR Director, offline channels boast higher repurchase rates and average order values, underscoring the synergy between digital and physical retail. The push toward omnichannel strategies is not merely about expansion—it’s about embedding brands into consumers’ daily lives through personalized experiences and reliable products.

Case Study: Maogeping’s Offline Excellence

Maogeping (毛戈平) operates over 2,800 beauty advisors across 120 cities, forming one of the largest dedicated service teams in the industry. This infrastructure enables the brand to deliver its renowned “makeover magic,” enhancing its premium appeal. By investing in professional training and in-store consultations, Maogeping has cultivated a reputation for transformative consumer experiences. Similarly, Winona (薇诺娜) leverages its “Red Book”—a compilation of over 300 research papers validating product efficacy—to educate consumers and build credibility. These efforts illustrate how domestic beauty brands are rooting their growth in substance rather than spectacle.

Strategic Channel Diversification

Domestic beauty brands are increasingly blending online and offline channels to create seamless consumer journeys. While e-commerce remains a powerhouse, physical retail offers tactile engagement and instant gratification. Brands like Winona (薇诺娜) are tapping into pharmacy OTC channels, where staff expertise reinforces the brand’s professional skincare claims. Meanwhile, Proya (珀莱雅) continues to dominate online but is exploring pop-up stores and counters to amplify reach. The convergence of channels allows brands to gather real-time feedback, iterate products, and foster community.

Li Jiaqi’s (李佳琦) influence extends beyond sales—he actively participates in product development, as seen with Winona’s (薇诺娜) 311 Barrier Collagen Serum, which he helped name. This collaborative model highlights how influencers are evolving into brand partners, co-creating value with consumers. As domestic beauty brands refine their channel strategies, they are also addressing logistical challenges, such as supply chain bottlenecks. Botaine (贝泰妮), for example, resolved stockouts for its Aike Man (瑷科缦) anti-aging line by commissioning a new digital factory, ensuring product availability during high-demand periods like Double Eleven.

Leveraging Data for Personalization

Advanced analytics enable brands to tailor offerings to consumer preferences. By analyzing purchase patterns and engagement metrics, companies can develop targeted campaigns and limited-edition products. For instance, Aike Man (瑷科缦) saw sales double during this year’s Double Eleven presales, partly due to data-driven inventory planning and personalized recommendations. This data-centric approach not only boosts sales but also enhances customer retention by delivering relevant content and solutions.

Global Ambitions: Navigating Overseas Markets

Domestic beauty brands are venturing abroad with renewed vigor, though the journey is fraught with challenges. Programs like Paris Partners (巴黎合伙人), a cultural export reality show featuring Li Jiaqi (李佳琦), spotlight brands such as Winona (薇诺娜), Chando (自然堂), Aike Man (瑷科缦), and Twin Sisters (双妹) in Parisian pop-up stores. While these initiatives boost brand perception domestically, actual overseas sales remain modest. Customs data shows a 12% year-over-year increase in Chinese mass-market beauty exports in H1 2025, outpacing domestic growth. However, key destinations include culturally proximate markets like Japan and emerging economies in Southeast Asia, rather than Western hubs.

In Europe and North America, domestic beauty brands struggle with cultural resonance and consumer preferences. Olivier, former Global Creative Director at Guerlain, noted in Paris Partners that Chinese aesthetics may be perceived as “too youthful” for French tastes, which favor mature, avant-garde styles. Similarly, Winona (薇诺娜) products in North America are largely confined to Asian supermarkets, limiting mainstream penetration. Past endeavors, such as Herborist (佰草集) shuttering its Paris flagship after initial fanfare, reveal the difficulties of sustaining overseas presence.

Overcoming Barriers with Authenticity

Success in international markets requires authentic storytelling and product validation. Winona’s (薇诺娜) “Red Book,” with its evidence-based research, resonated with a French customer in Paris Partners, leading to a purchase. This incident underscores the power of transparency and scientific backing in crossing cultural divides. Moreover, brands are exploring partnerships with local distributors and influencers to bridge gaps. As TikTok gains traction globally, there’s potential to replicate China’s live-streaming success, with influencers acting as cultural translators for domestic beauty brands.

Future Outlook: Innovation and Collaboration

The next phase for domestic beauty brands will be defined by technological innovation and strategic alliances. Companies are investing in proprietary ingredients, such as plant-based extracts and biomaterials, to differentiate their offerings. Brands like ReFa (可复美) are gaining confidence through product performance, reducing reliance on marketing gimmicks. Concurrently, cross-border collaborations are increasing, with international brands seeking insights from Chinese counterparts on digital engagement and supply chain efficiency.

KKV’s expansion into Southeast Asia illustrates how offline retail models can support brand出海. By establishing stores in prime locations, KPV provides exposure for domestic beauty brands in new markets, creating a ripple effect. Looking ahead, domestic beauty brands must balance global aspirations with local relevance, adapting formulations and messaging to diverse audiences. The mid-game battle is not just about surviving—it’s about thriving through adaptability and resilience.

Embracing Sustainable Practices

Consumer demand for sustainability is shaping brand strategies. Domestic beauty brands are incorporating eco-friendly packaging, clean formulas, and ethical sourcing to appeal to conscious shoppers. Initiatives like carbon-neutral production and refillable containers are becoming selling points, aligning with global trends. By prioritizing environmental responsibility, brands can enhance their appeal both domestically and internationally.

Key Takeaways and Forward Guidance

The evolution of domestic beauty brands reflects a broader maturation of China’s consumer market. From dominating e-commerce to deepening offline roots and exploring global frontiers, these brands are rewriting the playbook for success. The shift from marketing-driven growth to quality-centric strategies is not just a trend—it’s a necessary pivot for long-term relevance. Investors and stakeholders should monitor brands that demonstrate innovation, consumer-centricity, and agile adaptation to regulatory and market changes.

For professionals in the beauty industry, the message is clear: prioritize authentic engagement and product excellence. Domestic beauty brands that invest in R&D, consumer education, and cross-cultural dialogue will lead the next wave of growth. As the landscape evolves, staying informed through reliable sources and market analyses will be crucial for making strategic decisions. Embrace the transformation and leverage emerging opportunities to capitalize on the rise of domestic beauty brands.

Eliza Wong

Eliza Wong

Eliza Wong fervently explores China’s ancient intellectual legacy as a cornerstone of global civilization, and has a fascination with China as a foundational wellspring of ideas that has shaped global civilization and the diverse Chinese communities of the diaspora.