What Happened: In April, the total gross merchandise value (GMV) of local online makeup and skin care totaled $2.6 billion, and for the first time Chinese cosmetic brands surpassed international competitors in online GMV. Estée Lauder’s April sales reached $24.5 million, ranking it first among global names, but third overall.
Topping the list was domestic beauty brand Florasis with $33.5 million GMV followed in second place by Perfect Diary with $28.2 million GMV. Moreover, the trend continued in May; however, international companies rebounded in June during the lucrative 618 Shopping Festival.
The Jing Take: This short, but nonetheless, impressive victory for local brands suggests that these labels are now a significant threat to global names. Domestic consumers are paying less importance to a brands history and the origins of their products. However, the fact that international names reaffirmed their supremacy implies there is still a long way to go for domestic companies to take over China’s vast beauty market.
Lisa Nan – July 28, 2021
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