Core Insights - The core theme of the report is the transformation of China's beauty industry by 2025, characterized by "omnichannel breakthroughs," with significant growth in both online and offline channels [1][6]. Market Overview - By the first half of 2025, the retail sales of cosmetics in China are projected to grow by 2.9%, reaching a market size of 610 billion yuan, with a year-on-year growth rate of 12.1% [1][25]. - The beauty industry has shown resilience despite global economic pressures, indicating strong consumer vitality and potential for further growth [1]. Consumer Behavior - Chinese consumers exhibit diverse and pragmatic beauty consumption habits, with 66% making purchasing decisions across both offline and online channels [2]. - 79% of consumers turn to online platforms when products are out of stock in physical stores, significantly higher than the global average of 63% [2]. - The willingness to pay a premium for faster delivery is noted in 58% of consumers, highlighting the importance of immediacy and convenience in purchasing decisions [2][21]. Channel Dynamics - Offline channels are adapting through differentiated positioning, with cosmetic stores focusing on core categories like skincare and attracting online brands to explore physical retail [3]. - Small supermarkets are transitioning to community-focused models, while large department stores are emphasizing customization and premium offerings [3]. - Online channels, particularly emerging e-commerce platforms, are driving growth in the beauty sector, with Douyin (TikTok) becoming the leading channel with sales reaching 276 billion yuan, a 47% year-on-year increase [4][22]. E-commerce Trends - Traditional e-commerce platforms like JD and Taobao still play crucial roles, with JD's beauty sales at 54.2 billion yuan (10% growth) and Taobao at 52.2 billion yuan (1.4% decline) [5]. - The beauty sector across various channels is not merely competitive but forms a complementary ecosystem, with different channels serving unique consumer needs [5][29]. Future Outlook - The integration of technology and omnichannel strategies is expected to be central to the future of beauty retail, with AI and advanced technologies enhancing consumer experiences [6]. - There is a growing demand for "one-stop channels," with 77% of consumers preferring stores or platforms that offer a comprehensive range of products [6][21].