Market Overview

In July, the Chinese online beauty market recorded a gross merchandise value (GMV) decline of 13.2% year‑over‑year, according to Bernstein data. Tracked beauty companies collectively posted a smaller 3.8% GMV decline, thereby outperforming the broader market. July sales represent roughly 3.5% of the sector’s annual sales contribution.

Company Performances

  • L’Oréal increased its July GMV by 9% and captured an additional 100 basis points of market share. Growth was driven by its premium brands Kérastase, Lancôme, SkinCeuticals and YSL, with CeraVe delivering the strongest sales surge of 52%, followed by Lancôme and SkinCeuticals at 37% each, Helena Rubinstein at 30% and Kérastase at 29%.
  • Estée Lauder Companies posted a 5% rise in July GMV and added 103 basis points to its market share. Within the group, the Estée Lauder brand contributed 128 basis points, The Ordinary 89 basis points and Le Labo 45 basis points. The fastest‑growing sub‑brands were Too Faced (+177% YoY) and The Ordinary (+120% YoY). Year‑to‑date, Estée Lauder’s GMV is up 24% with a cumulative market‑share gain of 161 basis points.
  • LVMH recorded a 7% GMV increase and expanded its market share by 121 basis points, up from a 54‑basis‑point gain over the preceding three‑month period. Its luxury beauty houses Guerlain and Dior each posted month‑over‑month growth of between 20% and 25%.
  • Beiersdorf achieved 14% sales growth and gained 61 basis points of market share. Brand‑level performance included Chantecaille (+83%), La Prairie (+59%) and Coppertone (+18%). Nivea returned to growth with a 13% increase and added 103 basis points of share.
  • Henkel Beauty Care grew 18% in July, adding 46 basis points of market share. The growth was led by Shiseido Professional, which posted a 37% sales increase, and Schwarzkopf, which rose 16%.
  • Procter & Gamble Beauty saw a 27% decline in GMV but still managed a modest 20‑basis‑point share gain. The Olay brand fell 46% and SK‑II declined 13%.
  • Unilever Beauty & Personal Care (BPC) experienced an 18% GMV contraction while gaining 85 basis points of market share. Within the portfolio, Vaseline grew 34%, Dove 19% and Lux 16%, whereas AHC fell 60% and Pond’s declined 29%.

Market Implications

Despite the overall market weakness, several multinational beauty groups demonstrated resilience, with most gaining market share even as their GMV fell or grew modestly. The data highlights divergent performance across brands, indicating that premium and niche segments (e.g., Kérastase, Guerlain, Chantecaille) are driving growth, while mass‑market lines (e.g., Olay, AHC) face steep declines.