Uncovering C-Beauty: Growth Strategies and Market Outlook

This report comes in PPT.

Key findings

C-beauty brands overall outperform the market in China in the last five years

C-beauty brands have seen strong growth in beauty and personal care in China. Among the top 20 brands in colour cosmetics, the portion of the retail value of C-beauty brands doubled from 14% to 26% between 2017 and 2022. C-beauty brands like Winona, Proya, and Florasis thanks to their strong digital capabilities and the rising e-commerce penetration in China.

Confluence of five factors supports the rise of C-beauty brands

A group of factors has accelerated the boom in C-beauty brands in the market. A mature industry supply chain, changing consumer awareness, a highly developed digital landscape, the availability of sufficient talent, and government and capital market investment have contributed to the increase in the number and quality of C-beauty brands in China.

C-beauty brands seek solid competitiveness to extend the lifecycle

After rapid growth, a significant challenge for C-beauty brands is maintaining their performance and finding a second growth curve for a solid market position. C-beauty brands seek future growth in areas like R&D, brand value communication, and premiumisation.

C-beauty brands will compete with foreign brands in the broader market

Expansions of C-beauty brands to fragrances and overseas will bring them to compete with foreign brands in the broader market on an equal footing. However, the country-based label of beauty brands will gradually play a minor role when consumers purchase; only the products with substantive innovations will win the market.