China’s retail sales of consumer goods rose 4.8% year-on-year to 4.23 trillion RMB ($581 billion) in June 2025, according to data released on July 15. However, cosmetics sales declined by 2.3% to 40.7 billion RMB ($5.59 billion), making it one of the few categories to register negative growth. The drop contrasts with the strong performance during this year’s 618 shopping festival, when total online cosmetics sales surged 63% year-on-year to 57.5 billion RMB ($7.9 billion)—the best result in four years.

Analysts attribute the discrepancy to the early and extended promotional period, which concentrated demand ahead of June. In the first half of 2025, cosmetics sales reached 229.1 billion RMB ($31.4 billion), up 2.9% year-on-year. Though growth has slowed compared to previous years, the market continues to expand, signaling a shift from rapid growth to value- and quality-driven consumption.