Core Viewpoint - Leading cosmetic brands are transitioning from "strategic exploration" to "systematic attack" in the skincare sector, indicating a significant shift in their business strategies [2][4]. Group 1: Brand Strategies - Major brands like Mao Geping, Huaxizi, and Perfect Diary are leveraging their brand DNA and market insights to develop systematic strategies for entering the skincare market, focusing on high-end positioning, technological innovation, and concept extension [4]. - Mao Geping has established a comprehensive skincare line, achieving a revenue of 3.885 billion yuan in 2024, with skincare contributing 1.429 billion yuan, a year-on-year growth of 23.19%, accounting for 36.8% of total revenue [4]. - Perfect Diary is centered on "technological iteration," having launched its first generation of biomimetic membrane technology in 2023 and planning to upgrade to the third generation by 2025 [5][7]. Group 2: Product Development - Perfect Diary has expanded its product range to include a "biomimetic membrane" skincare series, integrating makeup and skincare, thus establishing a unique technical barrier [7]. - Huaxizi has developed a database of over 100 floral formulas, successfully extracting and preparing 50 types of floral ingredients, which supports its "flower-based skincare" concept [8][9]. - The "气色双生莲萃" series from Huaxizi includes various products such as creams and serums, combining Eastern plant extracts with modern skincare technology [8]. Group 3: Market Trends - The skincare market in China is significantly larger than the color cosmetics market, with skincare accounting for approximately 70% of the total cosmetics market, valued at over 700 billion yuan, compared to the color cosmetics market at around 88 billion yuan [16]. - Consumer demand is evolving, with over 60% of consumers expecting makeup products to also provide skincare benefits, indicating a trend towards "makeup and skincare integration" [16][17]. Group 4: Challenges and Competition - The transition of color cosmetic brands into skincare faces challenges, including establishing consumer trust and overcoming the perception of expertise in skincare [21][22]. - The skincare market is highly competitive, with international giants dominating the high-end segment, while domestic brands are rapidly emerging with a focus on quality-price ratio and efficacy [22][24]. - The complexity of skincare product formulation requires significant R&D investment and a robust quality control system, posing a challenge for brands traditionally focused on color cosmetics [22][24].