C-beauty
European and American consumer good companies are facing greater competition in China from domestic brands. For instance, in the last 5 years the market share of domestic Chinese color cosmetics in their home market nearly tripled from 14% in 2017 to 28% in 2022. Chinese domestic brands, often nicknamed “C-beauty”, have become very effective in the Chinese digital marketing and ecommerce landscape, sometimes outperforming their large European and American rivals. C-beauty brands are often quick to develop product tailoring to the latest local trends as they are unobstructed by a global headquarters. However, C-beauty brands still face several challenges, including short product life-cycles (consumers are not loyal), perceptions of cheapness and increasingly localized products from international competitors.
Source: Euromonitor, Jing Daily, 2023.