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Japanese and Korean Beauty Brands Decline, While Chinese Beauty Brands have Taken the Lead in Double 11

It’s another year for Double 11, the most important e-commerce promotion event, where beauty brands consider it the year-end test. Recently, major beauty promotion platforms such as JD.com, Tmall, and Douyin have successfully released the beauty industry’s pre-sale performance results. From these lists, we can observe various changes and emerging trends.

Chinese beauty brands perform exceptionally well

At 8:00 PM on October 24th, the Tmall Double 11 officially kicked off, and the beauty category witnessed a blazing start! In just 10 minutes, the sales of 12 beauty brands exceeded 1 billion RMB. Within the first 4 hours of the pre-sale phase, including brands like FLOSSOM and Giving, many brands successfully entered the “billion yuan club.”

This feast, regarded as the biggest growth opportunity of the year by brands, has officially begun, and both luxury brands and emerging domestic brands have experienced the expected sales growth.

In the domestic beauty sector, over 20 domestic brands surpassed their full-day sales from last year within the first hour of Double 11 pre-sale. Among them, Proya achieved over 1 billion RMB in sales in just 2 hours. Its popular products like the 3.0 Ruby Cream sold over 500,000 units in one hour, and the Dual Anti-Mask 2.0 sold over 270,000 units in one hour, receiving great acclaim.

In this year’s Double 11, domestic beauty brands witnessed a collective explosive growth. CONFIME saw year-on-year growth of 4927%, FLOSSOM’s growth was 2652%, AMIRO’s growth exceeded 407%, TIMAGE’s growth surpassed 315%, Galenic’s growth was over 1873%, BIOHYALUX’s growth exceeded 216%, Jmoon’s growth surpassed 8412%, and Flower Knows’s growth exceeded 5681%. These new domestic players achieved significant growth in the market.

On the evening of October 24th at 8:00 PM, Tmall Double 11 officially commenced, and the beauty category experienced a lively start! Within just 10 minutes, the sales of 12 beauty brands surpassed 1 billion RMB. In the first four hours of the pre-sale phase, several brands, including Proya and Qiechu, successfully entered the “billion yuan club.”

As the rising star among domestic brands, Proya not only ranked first overall in Tmall’s beauty pre-sale but also claimed the top spot in the skincare category. Simultaneously, Proya’s cosmetics brand, TIMAGE, secured the second position in Tmall’s makeup pre-sale. This brand performance report showcases Proya’s remarkable performance in the beauty market. Although foreign brands still dominate the top 20, the growth rate of domestic brands is remarkable.

While popular domestic makeup brands such as Perfect Diary and Florasis are no longer on the list, some emerging players continue to make strides. For instance, Flower Knows achieved sixth place in Tmall’s makeup pre-sale. Other notable domestic high-end makeup brands such as Maogeping.

On the Douyin platform, the top three makeup brands are all domestic, with Funny Elves, acquired by the parent company of Winona, BTN, ranking second after TIMAGE, followed by Maogeping.

Apart from well-known international brands like Yves Saint Laurent, Prada, and MAC ranking fifth, eighth, and ninth respectively, Douyin has become the main battlefield for domestic makeup brands. This is closely related to Douyin’s content creation and dissemination model, where domestic brands currently find it challenging to surpass international giants in brand strength but can attract consumer attention through creative short videos.

In addition to breakthroughs in the makeup sector, domestic beauty brands are also reshaping the skincare landscape, traditionally dominated by international brands.

Top-tier financial advisory firm Bernstein pointed out that Chinese cosmetic brands have gained market share by adapting to local consumer preferences. Recent growth has been observed in brands such as Proya, Marubi Holdings, and VENNA under the Baeteeni umbrella. Javier Gonzalez Lastra, portfolio manager at Tema Luxury Exchange Traded Fund, stated, “Chinese are happy to go more than before with local brands.”

According to Guotai Junan Securities’ prediction, the proportion of domestic brands in the upcoming November 11th “Double 11” promotion will double compared to last year, reaching over 40%. Based on the pre-sale results, domestic brands have begun gradually capturing the market.

Beauty devices are once again gaining popularity

In addition to skincare and cosmetics, beauty devices are also a rapidly growing category that cannot be ignored.

According to data from CHAILEEDO Intelligence on Douyin and Kuaishou, from October 18th to October 26th, on the Kuaishou Beauty Ranking, the second-ranked brand is Jmoon, with a GMV (Gross Merchandise Volume) of up to 108 million yuan, making it the only beauty device brand besides Prof-Ling that surpassed 100 million yuan in GMV. Apart from Jmoon, AMIRO ranked sixth with a GMV of 44.828 million yuan.

In addition to Kuaishou, beauty devices are also witnessing strong sales on Douyin.

According to data from CHAILEEDO Intelligence, on October 21st, Jmoon, YA-MAN, and AMIRO all exceeded tens of millions in GMV for that day. Jmoon ranked first with a GMV ranging from 50 to 75 million yuan, while YA-MAN achieved a GMV of 25 to 50 million yuan, and AMIRO, although relatively lower than the first two, reached 10 to 25 million yuan. On October 22nd, YA-MAN continued to be listed in the Douyin Beauty Ranking, with a GMV of 10 to 25 million yuan for that day. On October 24th, AMIRO had a breakthrough, surpassing 100 million yuan in GMV for that day, ranking first and doubling the GMV of the second-ranked brand. On that day, Swiss beauty device brand GEMO made the list, ranking eighth with a GMV of 10 to 25 million yuan.

Although Tmall has not released specific data on beauty devices, during this year’s June 18th (618) shopping festival, beauty devices stood out in the beauty rankings. According to Tmall’s “618 Fast-Moving New Brands” list, three out of the top five brands were from the beauty device industry. Jmoon and GEMO ranked first and second, respectively, while Huazhi ranked fifth. During the 2022 Double 11 event, sales of beauty devices increased by a remarkable 169% compared to the previous year, making it the only subcategory in the beauty sector with a growing market share. This trend has garnered widespread attention, indicating the potential and growth space in the beauty device market.

According to previous data, from 2019 to 2022, the sales of beauty devices through traditional e-commerce channels such as Tmall and JD.com increased from 7.6 billion yuan to 11.9 billion yuan, with a compound annual growth rate of 16.35%. Taking Douyin as an example in the live-streaming e-commerce sector, the sales of beauty and body instruments reached 3.269 billion yuan in 2022, with a year-on-year growth of 102.22% in the fourth quarter of 2022.

As early as the 2019 Double 11 event, beauty devices had already become regulars on the beauty rankings. According to data from Tmall International, on that day, the sales of beauty devices exceeded 250,000 units, with a year-on-year increase in transaction volume of 44%. The sales of technological beauty products showed significant growth on import platforms dominated by cross-border e-commerce. In addition to beauty devices, a range of imported technological beauty products that cater to specific needs, such as oral electronic devices, hair growth helmets, intelligent microcurrent beauty devices, moisturizing oxygen infusion devices, and dental irrigators, are also gaining popularity among domestic consumers.

Over the past decade, the domestic beauty device market in China has maintained high-speed growth. As of 2021, the market size has reached 9.76 billion yuan, with a staggering compound annual growth rate of 26.4%. It is projected to reach nearly 21.5 billion yuan by 2026. Despite stricter regulatory trends in the past year, the industry as a whole continues to experience rapid growth. During the 2022 Double 11 event, sales of beauty devices increased by 169%, and the market share growth reached 5%, making it the only subcategory in the entire beauty and skincare market with a positive growth rate.

Unlike four years ago, domestic beauty device brands now dominate the domestic market. According to related data based on market share, in February of this year, the top three brands in the beauty device market share ranking were AMIRO, NOWMI, and Jmoon, with Miguang and Jmoon being domestic brands. Among the top ten on the list, six are domestic brands, with AMIRO leading the pack with a market share of 20.96%.

In April of this year, the National Medical Products Administration’s Center for Medical Device Evaluation issued the Guiding Principles for Review of Registration of Radiofrequency Beauty Devices, which further standardized the beauty device market. In recent years, domestic brand beauty devices have become regulars on major beauty rankings, just like domestic beauty and skincare brands.

Decline in Japanese and Korean beauty brands, stability in European and American beauty brands

Based on data from Tmall’s Double 11 and Douyin/Kuaishou, it is evident that Japanese and Korean beauty brands, which have been affected by Japan’s disposal of nuclear wastewater, as well as the sluggishness of Korean brands in recent years, have experienced significant declines. On the other hand, European and American brands have shown more stable performance.

Taking Douyin as an example, on the first day of Singles’ Day, domestic beauty device brand Miguang achieved a Gross Merchandise Volume (GMV) of 100 million yuan, leading by a wide margin and nearly double the GMV of the second-ranked Jourdeness. Douyin predominantly features domestic brands. Among the top 20 rankings, there are eight Chinese brands, with beauty devices performing well. Apart from Miguang, another domestic beauty device brand, Ulike24, achieved a GMV of 7.5-10 million yuan, ranking 17th.

In contrast, Japanese and Korean brands had only one brand, SK-II, listed in the top 20. SK-II achieved a GMV of 10-25 million yuan on that day, while no Korean brand made it to the list. It is worth noting that the high-end skincare brand Erno Laszlo from the United States ranked fifth with a GMV of 10-25 million yuan. Estée Lauder, which has seen declining performance in recent years, also performed well on Douyin, with a GMV of 10-25 million yuan, ranking sixth.

However, there have been some changes on Tmall.

According to Tmall’s data, Japanese and Korean brands have suffered setbacks once again, with no Japanese or Korean companies among the top 20. Instead, domestic brand Proya occupies the top spot.

Overall, European and American brands continue to dominate on Tmall’s Double 11. Among the top 20 rankings, 12 brands are European and American, while the remaining eight are domestic brands. Japanese and Korean brands, on the other hand, experienced declines. According to the data from the pre-sale of Tmall’s Double 11, the GMV of the top ten Japanese beauty brands witnessed a significant year-on-year decline. Among these ten brands, only Shiseido achieved a GMV exceeding 100 million yuan. Shiseido’s GMV on the first day of pre-sale reached 130 million yuan, representing a decline of 74.1% compared to the previous year. In addition to Shiseido, seven other brands including CPB, SK-II, and Dior saw their GMV decline by more than 50%. Among them, SK-II experienced the highest year-on-year decline in GMV, reaching 85.8%. In this year’s Double 11, whether on Douyin or Tmall, Japanese and Korean beauty brands have become mere spectators.

Looking at the data from Tmall and Douyin, two main characteristics can be observed in terms of product categories.

Firstly, luxury and high-end brands remain popular. On the first day of Douyin, besides SK-II, the high-end skincare brand Erno Laszlo from the United States ranked fifth with a GMV of 10-25 million yuan, making a notable impression. Additionally, the high-end beauty device brand Jumo from Switzerland made the list, ranking eighth with a GMV of 10-25 million yuan. Traditional high-end brands like Lancôme, Helena Rubinstein, and La Mer also performed well, ranking 12th to 14th, with GMV exceeding 10 million yuan.

On Tmall, Lancôme ranked third. Other traditional high-end brands, such as Guerlain, Helena Rubinstein, and La Mer, also made the list. Fresh, a high-end skincare luxury brand under the LVMH group, successfully ranked 19th.

In addition to the popularity of high-end brands, this year’s noteworthy performance comes from skincare brands with a focus on dermatology. On the first day of Tmall, SkinCeuticals and La Roche-Posay made the list. Additionally, the domestic-sensitive skincare brand, Winona, also performed well, ranking sixth.

In the quarterly reports recently released by L’Oréal and Beiersdorf, it is evident that dermatological products are becoming an important growth driver for international beauty giants.

In the first three quarters of this year, L’Oréal achieved sales of 30.577 billion euros. Among all divisions, the dermatology cosmetics department led the way with a growth rate of 28.7%, generating sales of 4.911 billion euros. La Roche-Posay ranked first in terms of growth rate and continued its upward trajectory, while the U.S. brand CeraVe achieved double-digit growth in North America and various regions worldwide.

In the first nine months of this year, Beiersdorf’s sales increased to 7.3 billion euros, representing organic growth of 11.2%. The brands Eucerin and Aquaphor, under the Beiersdorf umbrella, once again performed well, with organic sales growth of 24.8% in the first three quarters.

It is evident that in this year’s Singles’ Day on major platforms, European and American brands continue to dominate, but domestic brands have shown significant growth. As Japanese and Korean brands have become mere spectators, domestic brands are expected to gradually gain a dominant position.

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