On June 18th, the annual examination of the beauty industry finally came to a close.
According to CHAILEEDO data, both Taobao and Douyin platforms experienced growth, and the top positions in various categories were still dominated by familiar international brands and leading Chinese brands. Additionally, a group of emerging brands made their debut on the Douyin platform.
On the battlefield of the annual Chinese mid-year 618 shopping festival (618), different brands are adjusting their platform and brand strategies to discover their own new generation of “game rules.”
Proya tops on Tmall, KANS takes the lead on Douyin
According to SYNTUN, the total online sales during this year’s “618” period reached 742.8 billion yuan ($102.3 billion). Among comprehensive e-commerce platforms and Dianxiao platforms (excluding live-streaming e-commerce platforms like Douyin), beauty and skincare remained the largest market in the beauty industry, with sales of 26.1 billion yuan ($3.6 billion), while perfume and cosmetics sales amounted to 9.1 billion yuan ($1.25 billion). Both sectors saw a year-on-year decline of 13.3%.
In terms of platforms, Tmall’s growth and scale in the beauty industry during 618 ranked first across all platforms.
Furthermore, according to official information from Douyin, the overall sales volume of beauty products on Douyin during the 618 period grew by 107% compared to the previous year’s event. Eye masks, face masks, and neck masks all experienced triple-digit growth, while sales of men’s skincare products increased by 147% compared to last year.
Specifically in the skincare category, according to CHAILEEDO data, the top brands are still mostly occupied by international brands, while Chinese brands are striving to break through. However, it is worth noting that both Tmall and Douyin’s top sales positions are held by Chinese brands. Proya holds the top spot on Tmall, while KANS ranks first on Douyin.
This marks the first time in recent years that Chinese beauty brands have surpassed international brands on both Tmall and Douyin during the 618 shopping festival.
CHAILEEDO data shows that during Tmall’s 618 period (May 20th to June 18th), sales in the skincare category grew by 2%, with 20 brands surpassing 100 million yuan ($13.77 million) in sales, representing a 43% year-on-year increase. The total sales of the top 10 brands increased by 10.86% compared to last year, and the threshold for making the list rose from 290 million yuan ($39.94 million) to 302 million yuan ($41.6 million).
Among them, Proya ranked first with sales of 1.014 billion yuan ($139.7 million), a 30.7% year-on-year increase, while L’Oreal ranked second with sales of 872 million yuan ($120.11 million), a 10.8% decline compared to the previous year.
In 2023, only two Chinese brands, Proya and Winona, made it to the top 10 list for skincare on Tmall. However, in this year’s 618 event, Winona slipped to the 11th position with an 8.1% decline in sales, while Kefumei entered the top 5 list with a remarkable sales increase of 190.2%, making it one of the two Chinese brands to enter the top 10.
On the Douyin platform, the GMV (Gross Merchandise Volume) for the beauty and skincare category ranged between 11 billion and 15 billion yuan ($1.52 billion-$2.1 billion), slightly higher compared to the same period last year, which was 11.3 billion yuan ($1.56 billion).
Although Douyin has become an important battleground for Chinese brands to break through, international brands still dominate 70% of the top 10 list. Among the 18 brands with billion-level GMV, 9 are international brands.
However, compared to the continuously expanding Chinese brands, international brands have shown relatively weaker growth. This year, KANS and Proya rapidly climbed to the first and second positions, and Kefumei also entered the top 10 list. In contrast, last year’s top three brands, HR, Estee Lauder, and Lancôme, all experienced declines in their rankings. LA MER even dropped by 6 places and only ranked 9th.
Chinese Makeup Brands Steadily Moving Forward
In the makeup category, the rise of Chinese brands is becoming increasingly evident. According to CHAILEEDO data, Chinese brands have taken the top spots on both Tmall and Douyin. The top brands on these platforms are TIMAGE and Florasis, respectively. These two Chinese makeup brands have emerged as the favorites among consumers during the 618 shopping festival.
Specifically on Tmall, the total sales of the top 10 brands in the makeup category increased by 7% compared to the previous year. The threshold for making the list rose from 73.43 million yuan ($10.11 million) to 77.54 million yuan ($10.68 million), and six brands surpassed 100 million yuan ($13.77 million) in sales, the same as last year.
Among them, Chinese brands occupy four positions. TIMAGE ranked first with sales of 170 million yuan ($23.42 million) and a growth rate of 62.2%. Mao Geping and Carslan secured the seventh and ninth positions, with sales increasing by 75.6% and 55%, respectively. However, last year’s top-ranked brand, Florasis, did not perform well on Tmall this year, experiencing a significant sales decline of 41% and only ranking sixth.
As for international brands, MAC and 3CE saw a decline in sales and their rankings. Their sales decreased by 37.8% and 15.5%, respectively. CPB, YSL, NARS, and Estee Lauder all experienced slight improvements in their rankings.
On the Douyin platform, according to CHAILEEDO data, the Gross Merchandise Volume (GMV) in the makeup category ranged between 3.5 billion and 4.5 billion yuan, slightly higher compared to the same period last year, which was 3.49 billion yuan ($480.7 million). There were two brands with GMV surpassing 100 million yuan ($13.77 million), the same as last year. Among the top 20 brands, Chinese brands still dominate with only six spots occupied by international brands. However, compared to last year, two new brands, Armani and 3CE, have been added to the list.
Florasis maintained its first-place position on the TOP 10 list on Douyin, with a total GMV exceeding 100 million yuan ($13.77 million). YSL became the only other brand in the makeup category on Douyin to surpass 100 million yuan ($13.77 million) in GMV, ranking second on the list.
It is worth mentioning that the emerging makeup brand FUNNY ELVES is the only new entrant on this list, skyrocketing to the third position with a GMV ranging from 75 million to 100 million yuan ($13.77 million).
In fact, FUNNY ELVES has performed exceptionally well in this year’s 618 shopping festival. It claimed the first spot on the Pinduoduo’s “100 Million Subsidy” ranking for individual products with its Soft Focus Powder Cake. The second and third spots on the list were taken by AKF Soft Matte Lip Mousse and PRAMY Setting Spray, respectively.
Blossoming in Niche Segments
While some “familiar faces” still dominate the overall rankings in skincare and makeup, CHAILEEDO has also discovered that many brands are seeking breakthroughs in niche segments and achieving impressive results. As a result, a diverse landscape of brands has emerged in these niche segments.
According to CHAILEEDO data, in the 18 cosmetic niche segments on Tmall’s 618 shopping festival, L’Oreal performed well in multiple categories, securing a spot in the top three for face masks, sunscreens, men’s skincare, and skincare sets. Estee Lauder also entered the top three in the categories of emulsion creams, eye care, and foundation. Additionally, brands such as 3CE, CPB, TIMAGE, HR, Joocyee, Lancome, Proya, and shu uemura each made it into the top three of niche categories on two occasions.
Furthermore, brands like Kiss me, Zhiben, Flower Knows, Flortte, Z:SEA, and UNISKIN, which did not make it to the top 20 overall rankings, secured a place in the top three of niche segments. This indicates that niche segments on the Tmall platform can still help brands gain visibility.
On Douyin, the advantages of brand segmentation are even more pronounced among the 22 major beauty niche segments. Brands with strong niche labels such as C Ka Beauty, Mistine, MANCODES, Urban Decay, and Zhu Ben have all become the top brands in their respective fields on Douyin.
Furthermore, Proya, HBN, Lancome, Estee Lauder, MEIKING, KANS, Florasis, AKF, YSL, and LITTLE DREAM GARDEN have entered the top three in multiple segments.
Overall, for brands with more precise positioning, establishing niche visibility and delivering quality products in niche segments are important strategies for making a breakthrough during major promotional events.
Has the Live Streaming Ecosystem Changed with the Fading of Super livestreamer?
Of noteworthy attention, this year’s 618 shopping festival presented several differences compared to previous years, beyond the changes in data and rankings. This includes various mainstream e-commerce platforms canceling pre-sales, extending the promotion period, and increasing the intensity of discounts. It can be observed that these consumer-friendly measures have successfully led to a concentrated surge in growth for the beauty industry during the 618 period.
For example, according to CHAILEEDO, the sales of beauty products on Taobao and Tmall in May (after deducting returns) increased by 69.2% year-on-year and 40.9% month-on-month. Undoubtedly, such high growth rates are closely related to the cancellation of pre-sales during this year’s 618, as major platforms directly started sales on May 20.
Another significant change is that the hype scene of super livestreamer driving sales across all platforms and propelling brand data to soar has slightly diminished this year. The influence of super livestreamer seemed less powerful than before during the 618 promotion period. Concerns about the declining ability of top livestreamer to drive beauty product sales were even discussed and debated within the industry during this year’s 618.
Taking Li Jiaqi as an example, he officially started his live streaming session on May 19 this year and retained the pre-sale system. However, the gross merchandise value (GMV) of Li Jiaqi’s beauty category in the pre-sale that evening was approximately 2.675 billion yuan ($368.4 million), which is a staggering 46% decrease compared to the nearly 5 billion yuan ($688.7 million) achieved last year. Li Jiaqi even openly stated, “This year’s 618 promotion is the most challenging.” Similarly, the leading live streamer for sales on Douyin, Xiao Yangge, has gradually reduced the frequency of his live streaming sessions for product promotions. According to CHAILEEDO statistics, from January 1 to June 16 this year, Xiao Yangge’s live streaming sessions for product promotions have decreased to 68, a decrease of 13 compared to the same period last year, and his GMV for beauty product sales has dropped by 67% year-on-year.
However, the fading of the first generation of super livestreamer does not mean the decline of live streaming for product promotions; instead, it has provided opportunities and traffic for other livestreamer. CHAILEEDO data shows that beauty influencers on Douyin with over ten million followers (not a complete statistic) have achieved a remarkable 47.8% year-on-year growth in total GMV for beauty products.
It is worth mentioning that on the Douyin platform, as Xiao Yangge gradually “retires,” Jia Nailiang has emerged as the new “king of product promotions” on Douyin. According to Feigua data, in Jia Nailiang’s product promotions over the past 30 days, the first-ranked category is beauty, accounting for 81.9% of his product promotions. During the promotion period, Jia Nailiang’s live streaming sessions for Kefumei and HR brought in sales ranging from 75 million to 100 million yuan ($10.33 million-$13.77 million).
On the other hand, the flourishing of store broadcasts has, to some extent, taken over the traffic once driven by super livestreamer. For instance, this year, 43 beauty brands on Tmall achieved sales of over one billion yuan through their live streaming rooms, which serves as proof of the power of brand live streaming. In fact, as early as two years ago, industry experts expressed to CHAILEEDO that “store broadcasts are the inevitable path for brand live streaming e-commerce. If brands want healthy development, they must break free from dependence on top livestreamer.” Numerous cases in the industry have demonstrated that being too closely tied to super livestreamer leads to collective success and failure.
Therefore, some industry insiders believe that the era of super livestreamer in live streaming for product promotions has come to an end. Phenomenal super livestreamer like Li Jiaqi, Xiao Yangge, and Dong Yuhui, as well as the highly concentrated live streaming model for product promotions, may be difficult to replicate in the future.
Has the Turning Point for China’s Beauty Industry Arrived?
Although the 618 shopping festival has come to an end, the story of China’s beauty industry continues.
From CHAILEEDO’s observations, in the past two years, the most noticeable aspect of the 618 festival is its “quietness,” which is reflected in the scarcity of brand reports, upstream companies not rushing to fulfill orders, and a lack of widespread discussion about popular products among consumers. Everything seems to be more rational and calm.
Due to the underwhelming performance of the cosmetics industry in the first quarter of this year, as indicated by CHAILEEDO’s data, the market size of China’s cosmetics industry in Q1 was 219.63 billion yuan ($30.25 billion), a 0.28% year-on-year decrease. Prior to this year’s 618 festival, there were voices within the industry expressing skepticism about its success. Even before the festival, several small and medium-sized manufacturing companies expressed to CHAILEEDO that “this year’s 618 is nothing special” and “customer orders are the same as usual without the urgency and excitement of a major promotion”…
However, looking at the latest released rankings, the overall performance of China’s beauty industry during this year’s 618 festival was not as “disappointing” as expected. What is even more noteworthy is the recent data released by the National Bureau of Statistics, which shows that from January to May, the total retail sales of cosmetics reached 176.3 billion yuan ($24.28 billion), a 5.4% year-on-year growth. In May, the total retail sales of cosmetics were 40.6 billion yuan ($5.59 billion), an 18.7% year-on-year increase. This growth rate reached a new high for a single month this year and a 10-year high for the same period. Clearly, this set of data has injected confidence into the beauty industry, and industry insiders expressed their joy, saying, “The beauty industry is confident again.”
Although the significant growth in cosmetic retail sales in May is partly attributed to the cancellation of pre-sales for this year’s 618 festival, industry professionals should also recognize the resilience of China’s beauty industry. Overall, from the cancellation of pre-sales, to Chinese brands like Proya and TIMAGE taking the spotlight during 618, to the fading of super anchors and the rise of store broadcasts… Perhaps, this year’s 618 festival will be an important turning point for the beauty industry in China, marking the beginning of a new development stage.
