Core Insights - The global beauty industry is transitioning from a "big and comprehensive" era characterized by aggressive acquisitions to a "precise and focused" era that emphasizes core competencies and deepens competitive advantages [1][2] Group 1: Industry Trends - Major beauty companies are increasingly engaging in "subtraction" by divesting brands that do not fit their core strategies or have underperformed, such as Estée Lauder's evaluation of selling Dr.Jart+ and Unilever's sale of Kate Somerville [6][7] - The traditional growth model of rapid acquisitions and global expansion is becoming ineffective as companies face challenges in adapting regional brands to a global framework, leading to a focus on divesting non-core and high-risk businesses [10][13] Group 2: Strategic Shifts - Companies are now prioritizing depth over breadth, moving from a focus on scale to optimizing their structural capabilities in response to changing market dynamics [13][16] - The rise of online channels and the diversification of aesthetic standards have made the previous models of global brand replication less viable, prompting companies to rethink their strategies [16][17] Group 3: Future Opportunities - Beauty giants are investing in high-barrier sectors such as high-efficacy skincare and medical aesthetics, as seen with L'Oréal's acquisition of Medik8, to align with consumer demand for scientifically-backed products [17][20] - The luxury beauty segment is becoming a competitive battleground, with significant acquisitions like Kering's sale of its beauty business to L'Oréal, indicating a shift towards integrating luxury with beauty [20][23] Group 4: New Growth Models - Companies are focusing on building capabilities rather than merely acquiring brands, emphasizing the importance of adaptable and innovative operational models that can thrive in diverse markets [26][27] - The emphasis is on creating a portfolio of capabilities that can operate across cultures and categories, rather than relying solely on a single successful product [26][27] Group 5: Implications for Chinese Brands - The experiences of global giants provide a framework for Chinese brands to develop localized strategies that resonate with diverse cultural markets, moving away from a one-size-fits-all approach [28][31] - Chinese brands are encouraged to establish a clear brand core, develop cultural translation capabilities, and create agile supply chains to effectively compete in the global market [31][34][37]