Estée Lauder’s The Ordinary enters China market to compete in the mass market segment

Estée Lauder Group’s science-driven skincare brand, The Ordinary, is making a strategic push into China with an exclusive debut at Sephora. The brand will further expand to Tmall and Douyin in July, marking a shift from cross-border trials to localized operations. Known for its high-potency, single-ingredient formulations, The Ordinary has disrupted the traditional skincare market since its launch in 2016. The brand’s transparent naming — such as “Niacinamide 10% + Zinc 1%” — strips away the jargon and simplifies skincare for consumers, while its direct-to-consumer model has enabled rapid global expansion. Despite rising production costs, The Ordinary has largely maintained its price advantage, positioning itself as a strong contender in China’s increasingly value-driven beauty sector. “China is the second-largest beauty market in the world behind the U.S., and it took time to make sure we were big enough to get to that level,” Jesper Rasmussen, Deciem’s Global Brand President, told the media. “And we are launching with a very strong assortment in China with some adaptation of the products and some new ones as well.” China’s regulatory landscape was once a barrier to entry. The country’s mandatory animal testing requirements kept The Ordinary out, due to its commitment to cruelty-free practices. However, with regulatory changes in 2021, the brand has since registered 24 products, signaling a full-scale commitment to the market. Online reactions: Will China skintellectuals favor The Ordinary? Since 2019, the Ordinary has built a strong following in China thanks to cross-border platforms like Tmall Global. On Xiaohongshu, the brand has amassed 67,000 followers, with related hashtags generating over 1.38 million user-generated posts. Its ingredient-focused philosophy resonates with China’s growing skintellectual community, which values high-efficacy formulas over brand prestige. However, as a late entrant in China’s saturated beauty market, The Ordinary faces stiff competition from domestic brands that dominate the mid-to-mass segment. Local players like Winona and Proya have cultivated deep consumer loyalty through aggressive digital marketing strategies. The Ordinary’s reliance on mid-tier KOLs for market penetration suggests a patient, grassroots approach to brand building rather than a high-profile splash. Verdict: Estée Lauder bets on mass market Estée Lauder Group has spent the past three decades crafting a tiered strategy in China, launching ultra-luxury brands like La Mer alongside mid-range labels like Clinique and Origins. The Ordinary’s entry marks its first serious play in the mass skincare category, a timely shift given China’s growing trend toward rational consumption. Luxury beauty in China has cooled, while mass-market demand has surged. L’Oréal’s 2024 earnings reflect this trend: Its mass beauty segment generated $17.2 billion, up 5.4% YoY, compared to a modest 2.7% rise in luxury sales. This signals a growing appetite for high-quality yet affordable skincare — The Ordinary’s core proposition. For Estée Lauder, The Ordinary serves as a gateway brand, drawing younger consumers into its ecosystem. The brand has already proven its global scalability, expanding into India, the Middle East, and South Africa under the group’s leadership. Its 2023 sales placed it among Estée Lauder’s fastest-growing skincare brands, with net sales ranging from $500 million to $1 billion. If its China rollout succeeds, The Ordinary could soon join the beauty giant’s billion-dollar club.

The Ordinary enters China: Late to the party?

Upgrade to Pro

Sectors

Insights

Company

The Ordinary enters China: Late to the party?