Core Viewpoint - The beauty industry in China is facing three major crises: brand commoditization, price competition, and value hollowing, which threaten the unique identity and emotional connection of brands with consumers [2][3][13]. Group 1: Brand Commoditization - The rise of e-commerce and algorithm-driven marketing has led to the commoditization of beauty brands, where unique brand identities are lost in the pursuit of "best-selling" products [4][5]. - Brands are increasingly perceived as interchangeable, with consumers focusing on product functionality rather than brand stories or emotional connections, leading to a dilution of brand value [6][10]. - The phenomenon of "ingredient marketing" has resulted in brands being labeled as "ingredient carriers," where the popularity of specific ingredients overshadows the brand itself [4][6]. Group 2: Price Competition - The beauty industry is experiencing a "price war," driven by frequent promotional events and a culture of discounting, which diminishes brand loyalty and increases price sensitivity among consumers [7][8]. - Brands are caught in a "prisoner's dilemma," where not participating in promotions risks losing market visibility, leading to unsustainable business practices [8][9]. - The reliance on discounts has resulted in high marketing costs and reduced profit margins, pushing some brands into a cycle of "loss-leading for sales volume" [7][8]. Group 3: Value Hollowing - The focus on short-term returns on investment (ROI) has led to a neglect of product innovation and consumer relationship building, resulting in a hollowing out of brand value [10][11]. - The shift from sales points to experience points in retail highlights the need for brands to provide deeper consumer engagement beyond just product offerings [11][12]. - The overall trend indicates that without addressing these issues, the beauty industry risks losing its core values and innovative capabilities, leading to a less sustainable market environment [14][24]. Group 4: Industry Response - There is a call for a collective awakening among brands, platforms, and consumers to prioritize genuine product innovation and brand storytelling over mere traffic and price competition [14][15]. - Recent initiatives, such as the "China Fragrance and Cosmetic Brand Development Conference," aim to address these challenges and promote sustainable growth within the industry [15][23]. - The industry is encouraged to recognize that true value lies in unique brand resonance and continuous innovation, which are essential for long-term success [16][24].