Benefit returns to China, but faces uphill battle

What happened After less than a year away, Benefit Cosmetics – once hailed as the world’s leading eyebrow brand – has announced its return to Chinese e-commerce. On October 28, the American beauty label posted an official announcement on its WeChat account titled “Cherish the Beauty, Benefit Returns,” revealing the relaunch of its Tmall overseas flagship store. In January this year, Benefit pulled out of major platforms, including Tmall, JD.com, and Douyin, citing a readjustment of its development focus in mainland China. The brand continues to maintain its presence in the market through LVMH-owned multibrand retailer, Sephora. Despite anticipation from diehard fans, the store’s sparse following – just 886 followers on Tmall at the time of writing – and near-zero sales underscore a potentially challenging re-entry. Furthermore, signature products that once captivated Chinese consumers, such as the Porefessional primer and Dandelion blush, have lost some of their appeal in recent years due to fierce competition from both local and global brands. The Jing Take A crucial challenge for Benefit is navigating China’s crowded mid-tier cosmetics market. Its eyebrow pencils, priced at 225 RMB ($31), face tough competition from domestic brands like Florasis and Perfect Diary, which are popular among younger audiences thanks to their competitive pricing and agile social media strategies. Brands like Sanzitang have intensified competition by introducing specialized products, such as a dual-brush eyebrow pencil for beginners, at a fraction of Benefit’s price: 45 RMB ($6). In this climate, the timing of Benefit’s relaunch — just ahead of China’s Double 11 (Singles’ Day) shopping festival — could either rejuvenate its market presence or exacerbate its positioning challenges. China’s cosmetics industry, valued at 797.2 billion RMB ($110 billion) in 2023, saw local brands’ market share surge to over 50%, reflecting a 21.2% increase year-over-year. With local beauty giants claiming significant shelf space, Benefit’s return strategy will likely hinge on regaining relevancy with Chinese consumers. The Jing Take reports on a piece of the leading news and presents our editorial team’s analysis of the key implications for the luxury industry. In the recurring column, we analyze everything from product drops and mergers to heated debate sprouting on Chinese social media.

Benefit returns to China, but faces uphill battle

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Published November 01, 2024

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Benefit returns to China, but faces uphill battle