Maogeping pushes into China’s top malls with near-luxury pricing

What happened Chinese beauty brand Maogeping is ramping up its high-end retail push while solidifying its position as a domestic alternative to international prestige names. It is expanding aggressively into China’s most elite retail spaces. Following recent openings in Wuhan SKP, Chengdu SKP, and Hangzhou Tower, the brand will debut a permanent store in Beijing SKP, China’s most prestigious luxury mall, this year. With this addition, the brand has now entered every SKP location across the country, positioning itself in the same commercial corridors as Hermès, Dior, and crucially, Chanel Beauty. Maogeping raises prices to sit just below Chanel Beauty Maogeping’s strength lies in cosmetics, particularly base makeup, which contributed 2.3 billion RMB ($321 million) in revenue last year. The brand’s average cosmetics unit price has risen steadily, from 180.3 RMB ($25) to 212.6 RMB ($30) in 2024, even as consumers grow increasingly value-conscious. While not at the level of Clé de Peau Beauté or Chanel, maogeping’s price positioning puts it in a unique tier: above most domestic peers, but below the international giants it seeks to rival. Its foundation and cushion compass, for instance, are often priced 20% to 40% below Chanel and YSL, yet higher than Estée Lauder and Nars for various SKUs. Offline channels remain central to its strategy. The company operates 378 self-run counters in over 120 cities, with offline retail accounting for nearly half of all sales. These direct-to-consumer stores offer premium services, including makeup SPAs and personalized consultations, features designed to enhance brand cachet and drive repeat purchasing. Notably, the offline repeat purchases rate stood at 34.9% in 2024, well above the 27.5% in online channels. In its 2024 earnings report, the company reported revenue of 3.89 billion RMB ($537 million), up 34.6% YoY, with net profit reaching 881 million RMB ($121 million), a 32.8% increase. The Jing Take Maogeping’s rise creates a rare moment in Chinese beauty: a domestic brand not only holding its ground at higher price points, but actively going after territory long dominated by international luxury names. Its calculated strategy — sit below Chanel in price, but stand beside it in store – reflects a sophisticated understanding of China’s beauty retail dynamics, where perceived prestige is often shaped as much by mall address as by product efficacy. Opening in SKP is a power move, but not without cost. Real estate and labor expenses are rising: The brand employs over 4,000 staff, with average annual salaries of 143,000 RMB ($19,700). Maintaining a high touch experience at scale, one that rivals Chanel’s, will test Maogeping’s operational discipline. And while its pricing undercuts global names by 20% to 40%, the risk is in perception. If consumers continue to see Maogeping as an “affordable alternative” (平替), it could struggle to justify its rising price tags. As price-efficacy still dominates much of China’s post-Covid consumption narrative, Maogeping must walk a fine line: offering enough value to convert status-driven shoppers without diluting its high-end image. Whether the C-beauty brand’s formula can sustain long-term growth, especially as the label moves into top-tier malls and commands higher price points, remains to be seen. Can a domestic brand truly occupy the same emotional and aspirational space as Chanel or YSL in the minds of Chinese consumers? Or will Maogeping remain in a category of its own: premium, but not quite luxury? 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.

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Maogeping pushes into China’s top malls