Core Viewpoint - The offline cosmetics retail market in China is experiencing a decline, with a total retail value of 382.77 billion yuan in 2024, down 2.28% year-on-year, while online sales continue to grow, reaching 691.05 billion yuan, an increase of 5.86% [2][3]. Group 1: Current Status - The market share of department stores and shopping centers in the cosmetics retail sector decreased from approximately 15.41% in 2023 to 13.71% in 2024, while the cosmetics store channel maintained a share of 13.42% [6]. - The number of cosmetics counters in department stores has sharply decreased from 15,415 in 2019 to 9,502 in 2023, a reduction of 5,913 counters [7]. - High-end brands dominate the department store channel, accounting for 86% of sales in 2023, while mass brands represent only 0.0037% [10]. Group 2: Trends - The "Matthew Effect" is becoming more pronounced, with leading department stores like Yintai becoming the largest offline cosmetics retailers, hosting numerous top-selling brands [16]. - The overall sales in department stores have declined from 518.46 billion yuan in 2019 to 473.13 billion yuan in 2023, while the average product price surged by 86.38% from 344.71 yuan to 642.46 yuan [18][19]. - The growth in cosmetics retail in department stores is primarily driven by lower-tier markets, with luxury brands opening new counters in cities like Nanchang and Kunming [14]. Group 3: Channel Dynamics - Supermarkets and hypermarkets, once dominant in cosmetics sales, have seen their market share plummet to 6.5% by 2024, overtaken by e-commerce and department stores [40][41]. - The OTC pharmacy channel is gaining attention, with brands like Winona achieving over 1 billion yuan in sales, indicating potential growth in this sector [44][46]. - The trend of integrating cosmetics sales into clothing and accessory stores is rising, with brands like Sanfu Fashion Department Store reporting that cosmetics account for nearly 50% of their total revenue [24]. Group 4: Future Strategies - The recovery of offline channels will rely on three core strategies: prioritizing experiential services, focusing on lower-tier market needs, and leveraging technology for enhanced customer engagement [56]. - The shift in consumer behavior towards convenience and lifestyle over traditional shopping norms is reshaping the retail landscape, necessitating a re-evaluation of store locations and product offerings [39].