2 1 Shi Ji Jing Ji Bao Dao·2026-02-15 10:56Core Insights - L'Oréal reported a sales revenue of €44.05 billion (approximately ¥360 billion) for 2025, marking a 4% year-on-year growth, with the North Asia region, including China, showing signs of recovery after two years of decline [1] - Estee Lauder also demonstrated strong performance, with a 6% increase in sales to $4.229 billion for the second fiscal quarter of 2026, and a significant turnaround in net profit from a loss of $590 million to a profit of $162 million [1][2] - The recovery in the beauty industry reflects not only a cyclical rebound but also the resilience and potential of the Chinese consumer market [1] Company Performance - L'Oréal's professional hair products segment led with a comparable growth of 7.5%, surpassing €5 billion, while the skincare segment grew by 5.5% to €7.2 billion [2] - Estee Lauder's net sales for the first half of the 2026 fiscal year reached $7.71 billion, a 5% increase, with a net profit turnaround from a loss of $746 million to a profit of $209 million [2] - Both companies attribute their recovery to improved consumer confidence and proactive adjustments in product structure and channel efficiency [1][2] Market Trends - The high-end beauty segment is showing signs of recovery, with L'Oréal's sales in China increasing from 1% growth in the first half to 5% in the second half of 2025 [3] - The overall Chinese cosmetics market reached a total transaction value of ¥1.104245 trillion in 2025, growing by 2.83%, solidifying its position as the largest cosmetics market globally [7] - Domestic brands have increased their market share to 57.37%, indicating a shift in consumer preferences towards local products [7] Strategic Adjustments - Estee Lauder has restructured its organization to treat the Chinese market as a strategic core, reporting a full-year sales figure of $2.741 billion (approximately ¥19.6 billion) for mainland China [6][7] - L'Oréal is focusing on enhancing its digital and direct-to-consumer (D2C) strategies, with e-commerce sales surpassing 30% of total revenue for the first time in 2025 [7] - The competitive landscape is shifting, with international brands needing to solidify their high-end offerings while adapting to local consumer demands [8]