In 2024, international beauty brands that frequently emphasized "consumer education" found themselves outpaced by Chinese consumers, who no longer fall for traditional brand narratives.
Years of exposure to global campaigns, exclusive product launches, and cutting-edge innovations have made Chinese consumers some of the most sophisticated in the world. Adding to this are local beauty brands, which share their innovative technologies openly, and the rise of knowledgeable beauty influencers. As a result, many Chinese consumers have become well-versed in industry jargon, some even resembling beauty experts themselves. These savvy shoppers—including older generations—are no longer impressed by labels like "luxury" or "niche."
This shift has rendered the old playbook for international beauty brands ineffective. The financial repercussions were stark in 2024, with many global beauty giants reporting disappointing earnings and a steady "mass exodus" of brands—on average, at least two international names exited the Chinese market each month.
While some companies described these exits as "channel adjustments," the reality is clear: without bold changes in product offerings, marketing strategies, and mindset, the trend will continue into 2025. For brands, this means losing a critical customer base. For consumers, it means missing out on potential "hidden gems." To avoid this lose-lose scenario, ConCall has identified actionable strategies for international beauty brands to thrive in China’s competitive market.
While international brands excel at "storytelling," today’s sharp and informed Chinese consumers expect more. To stay competitive and relevant, brands must anchor themselves with standout hero products while regularly introducing innovative and exciting new launches to keep consumers engaged.
La Roche-Posay offers a great example. The brand first captured the attention of Chinese consumers with its Thermal Spring Water and then built a loyal following with products like Anthelios sunscreen, B5 Cream, and B5 Masks. These staples helped the brand grow its reputation, fueled by positive word-of-mouth that solidified its credibility and influence.
More recently, La Roche-Posay has sustained this momentum by continuously innovating and expanding its product lineup in China. Leveraging the strong R&D capabilities of its parent company, L’Oréal Group, the brand launched the Effaclar Serum targeting acne-prone skin, introduced its Regenmedic series, and debuted several new products at the 2023 CIIE, such as the B5 Multi-Repair Serum, DUO+M Lotion, and the Mela B3 Serum featuring the innovative ingredient Melasyl.
In contrast, brands like Benefit Cosmetics and Peter Thomas Roth highlight the risks of complacency.
Both brands once enjoyed immense popularity and strong loyalty from their consumer base. However, as the market evolved, Benefit lagged behind in product innovation, appearing sluggish compared to both established players and up-and-coming competitors. Its retro aesthetic, which had once been a unique selling point, lost relevance as vintage trends faded from the spotlight. Similarly, Peter Thomas Roth struggled with the same lack of innovation, compounded by an overly cautious approach to distribution and a failure to adapt to new marketing platforms and strategies. These missteps caused it to miss critical opportunities for growth in the Chinese market.
Great marketing is as essential as great products. When the two align, they create a powerful force to drive consumer engagement and loyalty.
Over a decade ago, China’s consumer market began rapidly moving online. The efficiency and agility of e-commerce channels fueled a vibrant marketplace, allowing brands that catered to even the most niche consumer demands to thrive and create countless business success stories.
In the past three to four years, platforms like Weibo, Douyin, Xiaohongshu, and Kuaishou have all joined the e-commerce race by launching built-in shopping features. This has led to increasingly granular consumer segmentation, skyrocketing online customer acquisition costs, and the unavoidable fragmentation of brands’ already limited resources.
While well-established local brands and global giants have weathered these changes with ease, smaller international beauty brands often struggle. Whether due to limited budgets, a lack of familiarity with China’s unique e-commerce ecosystem, or unclear brand positioning, these companies frequently find themselves investing more but gaining less.
In 2024, as store closures swept through the industry, many brands referred to these shutdowns as "channel adjustments." This reveals a growing awareness of how different platforms serve distinct consumer segments in the Chinese market.
For international brands looking to grow, partnering with experienced local distributors is one of the most efficient ways to succeed. René Furterer’s collaboration with Joy Group, for instance, has proven mutually beneficial. However, having the right local partner is only half the battle. Brands must also develop their own understanding of China’s marketing landscape. Learning from local beauty brands that have already mastered this highly competitive market is not just advisable—it’s essential.
For international beauty brands to succeed in China, it’s essential to tailor marketing strategies to fit the brand’s identity and the unique audience of each e-commerce platform.
For online channels, brands need to strike a balance between staying true to their core values and adapting their approach to each platform’s culture. Being agile and seizing trends quickly is the key to achieving breakthrough visibility.
Proya is a standout example of precision channel management. The company has implemented unique strategies for Tmall, Douyin, and JD. On Tmall, Proya focuses on increasing the visibility of its hero products, driving bundled promotions, and boosting member acquisition and engagement. On Douyin, it has built a robust network of accounts tailored to specific product audiences, seamlessly integrating product education with sales. On JD, the focus is on tapping into strong product categories and creating tiered pricing strategies to encourage repeat purchases and conversions.
Keeping a close eye on what excites consumers is equally important. In 2023, Chicmax capitalized on the growing popularity of short dramas on Douyin by partnering with Jiang Shiqi, an influencer with over 35 million followers whose audience aligned with the Kans brand. Together, they created five drama series, each generating between 650 million and 1.2 billion views. By weaving subtle product placements for Kans’ "Polypeptide Collagen Softening Serum" into the storylines, the brand gained significant exposure and converted that buzz into sales through live-streaming sessions.
However, consumers are increasingly seeking meaningful, personalized interactions with brands. This has made offline channels a compelling investment opportunity.
Take Maogeping, for example. By offering exclusive in-person makeup tutorials that double as emotional experiences, the brand has cultivated a loyal customer base driven by organic word-of-mouth. This strategy not only builds consumer loyalty but also delivers impressive profitability.
Over the past month, "gift-giving" has emerged as a hot topic across social media and e-commerce platforms.
On December 18, 2024, WeChat introduced a "gift-giving" feature inspired by the massive success of WeChat Red Packets. Soon after, platforms like Taobao, Douyin, and JD followed suit with their own customized gift-giving features.
This innovation comes on the heels of an unprecedented level of platform collaboration during this year’s Double 11 shopping festival, which saw seamless integration across logistics, payment systems, and link sharing. These synergies have carried over into the new gift-giving features.
Taobao’s gift-giving tool allows users to send nearly any item from its extensive product catalog, with seamless sharing options for apps like WeChat and DingTalk. JD, on the other hand, has added a playful twist with its "group gift-giving" feature, where users can purchase multiple gifts and share them in a WeChat chat group. Members can then claim random gifts through a lucky draw, adding an element of surprise and fun.
Agile local beauty brands have already seized the business opportunities these new features present. Kans, for instance, partnered with WeChat to promote its products through this feature, creating a buzz across its official WeChat account and search pages. The campaign also generated widespread visibility on WeChat Moments, sparking discussions and driving engagement.
To thrive in the competitive Chinese market, brands must stay attuned to consumer needs, quickly adapt their strategies, and consistently produce high-quality content. But the next essential step is reflection—breaking free from the cycle of chasing traffic and short-term rewards that can erode long-term brand value.
China’s marketing landscape, particularly online, evolves at a dizzying pace. Brands need to be nimble, but they must also resist the temptation to prioritize traffic above all else. Over-focusing on short-term gains risks undermining the trust and loyalty painstakingly built with consumers over time.
Korean beauty brands like Su:m37° and Whoo offer valuable lessons. Once prominent fixtures in live-streaming sales and positioned as high-end "crown jewels" of their parent companies, these brands diluted their premium image through overly aggressive live-stream promotions. The persistent deep discounts confused consumers about the brands’ value and created significant roadblocks for their upscale positioning in China.
The same is true for the short-drama craze. While many international beauty brands have eagerly invested in this format to capture younger audiences, crafting content that maintains a premium image while resonating with viewers is no easy task. Without careful execution, these efforts can dilute rather than enhance a brand’s reputation.
China’s beauty market is undeniably competitive, but it is also one of the world’s most dynamic and promising. While winning over China’s discerning consumers can be challenging, brands that immerse themselves in local culture and genuinely connect with communities have the potential to forge lasting relationships. When brands shift from being seen as mere sellers to becoming trusted friends, the door to China’s vast opportunities will open wide.