L'Oreal Leads at CN¥ 5.34B While Mid-Tier Brands Surge +7.5% in China

Executive Summary

L'Oreal (欧莱雅) maintained its leadership position in China's online cosmetics market at CN¥ 5.34 billion (+0.3% YoY) in H1 2025, while mid-tier brands expanded market share by +2.1 percentage points with sales growing +7.5% YoY. This brand landscape analysis examines the competitive dynamics reshaping China's makeup and skincare industry, from premium performers like La Mer (海蓝之谜) achieving +27.3% growth to breakout mid-tier success stories like Galenic posting +204.5% YoY gains.

Market Concentration Shifts Toward Mid-Tier Brands

Market concentration shifted decisively toward mid-tier brands in H1 2025. Top 10 brands grew sales +3.3% YoY but saw CR10 decline -1.0 percentage points, signaling erosion in category leadership. Mid-tier brands captured this opportunity by expanding market share +2.1 percentage points while achieving +7.5% YoY sales growth.

This dynamic reveals an increasingly competitive landscape where challenger brands gain ground against established leaders. Digital-first marketing strategies and targeted product innovation enabled smaller players to compete effectively against global giants.

Key drivers behind this market shift include:

• Consumer preference for niche and specialized products over mass-market offerings
• Effective digital marketing on platforms like Douyin (抖音) and Xiaohongshu (小红书)
• Product innovation addressing specific skincare concerns
• Value-conscious consumers seeking quality alternatives to premium brands

Top 10 Brand Performance Analysis

L'Oreal (欧莱雅) maintains leadership at CN¥ 5.34 billion, with domestic champion PROYA (珀莱雅) close behind

International vs Domestic Brand Dynamics

The top 10 brand ranking reveals a compelling narrative of international and domestic competition. L'Oreal (欧莱雅) leads at CN¥ 5.34 billion with marginal +0.3% YoY growth, demonstrating stability but limited expansion potential. PROYA (珀莱雅), China's top domestic champion, trails closely at CN¥ 5.19 billion despite a -2.4% YoY decline.

International premium brands showed mixed performance:

• Lancome (兰蔻) generated CN¥ 4.52 billion but declined -3.8% YoY
• Estee Lauder (雅诗兰黛) reached CN¥ 4.12 billion with -5.3% YoY contraction
• Olay (玉兰油) posted CN¥ 2.34 billion but suffered the steepest decline at -11.1% YoY

Domestic brand KANS (韩束) achieved +7.7% YoY growth to reach CN¥ 4.48 billion, demonstrating that local players can compete effectively against global giants through digital-native marketing and product innovation tailored to Chinese consumer preferences.

La Mer Leads Premium Growth

Rising Star: La Mer (海蓝之谜)

La Mer (海蓝之谜) posted the highest growth among top 10 brands at +27.3% YoY, leveraging product innovation and coordinated marketing-channel execution. Its star product Concentrate La Mer generated CN¥ 130 million in sales, demonstrating how premium positioning can thrive amid market polarization.

La Mer's exceptional performance validates the premiumization strategy in China's cosmetics market. The brand achieved CN¥ 3.32 billion in H1 2025 sales, with growth driven by effective storytelling around its luxury heritage and targeted digital campaigns.

Helena Rubinstein (赫莲娜) followed with +21.0% YoY growth, reaching CN¥ 2.76 billion. These results demonstrate that ultra-premium brands can outperform the broader market when they execute integrated product-marketing-channel strategies effectively.

Other strong premium performers include:

• YSL (圣罗兰) at CN¥ 2.36 billion (+12.4% YoY)
• SK-II at CN¥ 2.75 billion (+8.5% YoY)

Mid-Tier Brand Breakthrough Performance

Mid-tier brands captured exceptional momentum in H1 2025, with several achieving triple-digit growth rates through targeted product innovation and digital-first marketing strategies.

Mid-Tier Growth Leaders

The mid-tier segment demonstrates that smaller brands can achieve outsized growth through focused execution and authentic consumer engagement.

Galenic Success Story: Experiential Marketing Drives Triple-Digit Growth

Galenic Success Story

Galenic achieved +204.5% YoY growth in H1 2025 through integrated product, marketing, and channel execution. In May 2025, the brand launched its "Brightening Platinum Tennis Court" pop-up store at Shanghai New World Daimaru Department Store, merging sports tanning scenarios with technology-driven skincare. The activation generated over 500 million exposures on Xiaohongshu (小红书), demonstrating how experiential marketing converts social engagement into sales momentum.

Forest Cabin (林清轩) achieved the second-highest growth at +178.0% YoY by doubling down on natural ingredient positioning and leveraging livestream commerce effectively. Pechoin (百雀羚), a heritage Chinese skincare brand, posted +93.5% YoY growth through successful brand revitalization targeting younger consumers.

MAOGEPING (毛戈平), a Chinese cosmetics brand founded by celebrity makeup artist Mao Geping, grew +36.4% YoY by capitalizing on the "Chinese aesthetic" trend and Eastern beauty positioning that resonates strongly with domestic consumers.

Strategic Implications for Market Participants

The H1 2025 brand landscape reveals several actionable insights for market participants:

For established leaders: Top 10 brands face pressure from agile mid-tier competitors. Maintaining market share requires renewed innovation and authentic digital engagement rather than relying on brand heritage alone.

For mid-tier challengers: Triple-digit growth rates prove that focused execution on product innovation, experiential marketing, and platform-native content can overcome scale disadvantages.

For international brands: Success stories like La Mer (+27.3%) and YSL (+12.4%) demonstrate that premium positioning can thrive, but brands like Olay (-11.1%) and Estee Lauder (-5.3%) show that mass-premium strategies face increasing headwinds.

Key Takeaways

• L'Oreal (欧莱雅) leads at CN¥ 5.34 billion (+0.3% YoY) while mid-tier brands surge +7.5% with +2.1pp market share gain
• La Mer (海蓝之谜) posts the highest top-10 growth at +27.3% YoY through premium positioning and integrated marketing
• Galenic achieves +204.5% YoY growth via experiential marketing generating 500M+ social exposures
• KANS (韩束) demonstrates domestic competitiveness with +7.7% growth to CN¥ 4.48 billion
• CR10 declined -1.0pp as challenger brands erode established leaders' market concentration

About the Data

This analysis draws on Moojing Market Intelligence data covering H1 2025. Moojing tracks 400,000+ brands across 30+ e-commerce platforms including Tmall (天猫), JD.com (京东), and Douyin (抖音), representing 58-65% of China's online retail GMV^[1]. Brand rankings reflect online retail sales across major platforms. Market concentration (CR10) measures combined market share of top 10 brands by sales value.

^[1] National Bureau of Statistics of China, "Statistical Communiqué of the People's Republic of China on the 2024 National Economic and Social Development," February 2025.