Core Insights - The Chinese beauty industry is undergoing a transformation with a shift towards omnichannel strategies, where online and offline channels are evolving in response to changing consumer behaviors and technological advancements [1][2]. Industry Development Stages - The retail sector of the Chinese beauty industry has experienced three phases: 1. Pre-2016: Consumption development phase, with cosmetics retail underperforming compared to overall retail market. 2. 2017-2021: High growth phase, outperforming the overall retail market. 3. 2022 onwards: Rational return phase, with performance lagging due to consumer confidence issues [1][2][19]. Retail Channel Dynamics - The Chinese beauty market heavily relies on online channels, reaching a scale of 610 billion yuan with a year-on-year growth of 12.1%. Notably, Douyin has emerged as a leading platform with sales of 244.5 billion yuan, marking a 43.6% increase [2][26]. - Offline channels are facing challenges, with department stores and malls experiencing a year-on-year decline of 8%, and cosmetic stores down by 10%. However, there is a trend towards differentiation in offline retail, with cosmetic stores catering to refined needs and modern channels optimizing product layouts [2][37][41]. Consumer Behavior Trends - Consumer expectations are improving, with 58% willing to pay a premium for faster delivery. The beauty category ranks fifth in high premium consumption tendencies, indicating untapped consumer potential [1][2][25]. - A significant 77% of consumers prefer shopping in one-stop channels with comprehensive product offerings, highlighting the need for refined operational strategies [2][26]. Technological Integration - Technology and artificial intelligence are becoming crucial drivers in the beauty industry, with companies like L'Oréal and Shiseido implementing AI skin detection and health correlation technologies to enhance consumer shopping experiences [2][2]. Future Outlook - The overall direction for the Chinese beauty industry is towards omnichannel integration and intelligent upgrades, presenting both opportunities and challenges in the evolving market landscape [2][4].