1. Chinese cosmetics companies that previously outpaced global competitors are losing momentum, weighed down by weakening flagship brands and fading marketing formulas [para. 1]. In the first half of 2026, two of China’s largest homegrown cosmetics companies reported lackluster results: Shanghai Chicmax Cosmetic Co. Ltd. posted a decline in revenue and profit, while Proya Cosmetics Co. Ltd. saw largely flat sales overshadowed by falling underlying earnings [para. 2]. In contrast, L’Oréal SA and Estée Lauder Inc. reported stronger sales in China, helped by premium brands, heavier investment in e-commerce and more flexible online discounting [para. 3].
2. Chicmax’s revenue fell 8.6% from a year earlier to 3.8 billion yuan ($565 million), while profit plunged 79.4% to 108 million yuan [para. 4]. Its core brand Kans, which accounts for more than 80% of company revenue, recorded a 20.4% sales decline; Chicmax attributed the weakness to temporary market factors, though Kans remained a top seller in several personal-care and facial-care categories on Douyin [para. 5]. Kans had expanded rapidly in recent years by pairing anti-aging products with short-form dramas and influencer marketing [para. 6]. That strategy came under pressure after a report by state broadcaster CCTV late last year questioned the ingredients in two Kans facial masks and highlighted the gap between estimated production cost and retail price of a gift set; Kans disputed the ingredient allegations, but the report fueled criticism that the brand spent too heavily on marketing relative to product development [para. 7]. Haitong International Securities Group said Kans remained weak through the first quarter, with little improvement in April and May; Chicmax lowered its full-year revenue-growth target to 15%, reflecting the brand controversy and a challenging comparison with the previous year, according to the brokerage [para. 8].
3. Proya fared better on the surface: first-half revenue edged up 0.24% to 5.38 billion yuan, and net profit attributable to shareholders climbed 46.3% to 1.17 billion yuan [para. 9]. Most of that profit growth, however, came from a 445 million yuan investment gain after Proya took control of Chinese cosmetics brand Flower Knows; excluding nonrecurring items, attributable net profit fell 13.8% [para. 10]. Revenue at Proya’s two largest brands also declined: sales from the flagship Proya brand, which contributes nearly 70% of group sales, fell 7.2%, while sales at makeup brand Timage dropped 21.9% [para. 11]. Proya built its growth around blockbuster products and the “vitamin C in the morning, vitamin A at night” skin-care regimen; as that concept has lost novelty among consumers, the company is trying to extend the life of its core products while developing new lines in foundation, makeup removal and men’s skin care [para. 12].
4. The Flower Knows acquisition is central to Proya’s broader push into color cosmetics and overseas markets: Proya acquired a controlling 51% stake this year after investing in the brand in 2025 [para. 13]. Flower Knows, known for elaborate packaging and a young customer base, is already sold through U.S. retailers including Ulta Beauty and Urban Outfitters [para. 13]. The slowdown at Chinese brands contrasts with improving performance by global beauty groups [para. 15]. L’Oréal said first-half sales in North Asia rose 4.6% to 5.51 billion euros ($6.4 billion), with China serving as the region’s main growth engine; a recovery in premium beauty, including strong sales of Helena Rubinstein products and gains during the midyear “618” shopping festival, helped drive sales [para. 16]. CEO Nicolas Hieronimus said China’s beauty market was shifting back toward premium products, and L’Oréal’s luxury and dermatological-beauty divisions both recorded sales growth of nearly 7% in China [para. 17].
5. Estée Lauder also reported signs of a premium-beauty recovery: China sales rose 7% in the quarter ended June to $824 million, while companywide revenue increased 5% to $3.63 billion [para. 18]. The company said online sales in China grew at a double-digit rate, supported by brands including Estée Lauder, La Mer and Jo Malone London; e-commerce now accounts for more than half of its China revenue, and the group has launched 11 brands on Douyin [para. 19].
AI generated, for reference only
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