La Mer soars, L’Oréal stalls: The split in China’s high end beauty

For the latest on skincare, cosmetics, fragrances, wellness, emerging Chinese and APAC beauty brands,subscribe to our weekly Jing Beauty Newsletter. What happened In the first half of 2025, China’s beauty and skincare market underwent a complex structural shift. According to Magic Mirror and China Beauty, online sales reached 235 billion RMB ($32.9 billion), up 10.1% YoY, while volume grew 5.5% to 2.6 billion units. The gap between revenue and volume growth reflects a market transitioning from price-driven consumption toward more value-oriented purchasing. Low-cost, high-performance products expanded, mid-tier brands gained share, and high-end segments experienced uneven performance. Anti-aging products emerged as a standout category, while cosmetics shifted toward natural, authentic aesthetics, signaling changing consumer priorities across demographics, price points, and categories. The Jing Take: Divergent consumer logic Amid broader “consumption downgrade” pressures, shoppers demonstrated dual behaviors: seeking affordable, high-cost-performance products for everyday use while allocating discretionary spending to high-quality solutions in targeted categories. This produced a “low-end expansion, high-end segmentation, mid-tier resurgence” pattern. Skincare products below 100 RMB ($14) grew market share by 3.9%, while offerings above 300 RMB ($43) contracted. Makeup showed a more polarized trend: the low-price segment edged up 0.5%, the high-end one (500 RMB, $70) rose modestly, and the mid-tier stratum (100–500 RMB, $14-$70) lost share. Consumers concentrated spending on either cost-effective basics, or premium solutions for specific needs. Shifting market concentration Market dynamics reveal structural change. The top 10 brands grew only 3.3%. In contrast, mid-tier brands gained 2.1% share and achieved 7.5% sales growth, reflecting agility and innovation potential. International heavyweights diverged: L’Oréal led at 5.34 billion RMB ($749 million), but growth stagnated (+0.3%), while La Mer surged 27.3%, with its star product, The Treatment Lotion, generating 130 million RMB ($18 million). Legacy high-end brands like Helena Rubinstein declined, showing consumers now prioritize efficacy over a brand halo. Mid-tier brands and scenario marketing French mid-tier skincare brand Galénic, owned by Perfect Diary, achieved 204.5% growth, thanks to immersive experiential marketing in the form of its “Bright Platinum Tennis Court” pop-up in Shanghai, which blended sporty themes with skincare technology. Social media amplification via Xiaohongshu (also known as RedNote) generated over 500 million interactions, exemplifying the “scenario innovation + social virality” strategy as a path to breakout growth. Anti-aging as a core engine Anti-aging product sales reached 65.5 billion RMB ($9.2 billion) (up 30.3%), showing that rational consumption does not preclude investment in quality. Growth is multi-dimensional: expansion from facial to body care, male inclusion, and younger demographics (25+) entering “preventive aging.” Notably, male anti-aging sales exploded, with Kans’ men’s line sales rising 209.9% and while volume expanded 376%, underscoring this as a newly emergent segment. Makeup trends reflect authenticity In cosmetics, “no-makeup makeup” dominates, with natural, personalized aesthetics replacing concealment. Consumers now prioritize deep self-expression over perfection, prompting brands to innovate around “nude tones + multi-functionality” in lip, eye, and base products. Given the category’s 94.3% YoY growth, this shift is seeing color cosmetics gravitate toward authenticity and self-identification. New competitive logic Brands must now compete on three fronts: breakthrough core technology, scenario-aligned product relevance, and trend-setting aesthetic leadership. China’s 2025 beauty market exemplifies a more mature, multi-layered ecosystem where price is secondary to value, efficacy, and identity. The result is a market structured around rational, discerning consumers, positioning the industry for sustainable growth while enabling both brands and buyers to thrive in a more sophisticated, human-centered marketplace. 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.

China’s shoppers ditch brand halo for beauty efficacy

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China’s shoppers ditch brand halo for beauty efficacy