Core Viewpoint - The global beauty industry remains dominated by foreign giants, but in the Chinese market, local brands are rapidly gaining market share, indicating a shift in competitive dynamics [2][21]. Group 1: Global Market Overview - In 2025, L'Oréal leads the global beauty industry with revenue exceeding 356.36 billion RMB, significantly larger than its closest competitors, Unilever and Procter & Gamble, whose revenues are approximately 205.87 billion RMB and around 100 billion RMB respectively [5]. - The top ten companies in the beauty sector show a slowdown in growth, with nearly half experiencing revenue declines due to global consumption slowdowns and inventory adjustments [7]. - Puig and Galderma are notable exceptions, with Puig achieving a 5.3% growth and Galderma a remarkable 17.7% growth, highlighting the resilience of specialized beauty companies [9]. Group 2: Regional Insights - Japanese beauty companies are undergoing structural adjustments, with Shiseido focusing on core brands and improving profitability, while Kao is also seeing growth in its cosmetics business due to a recovery in the Chinese market [10][17]. - Korean beauty companies show a split performance; Amorepacific grew by 8.5% driven by emerging markets, while LG Household & Health recorded a 6.7% decline, reflecting challenges in the Greater China region [10][11]. Group 3: Chinese Market Dynamics - By 2025, domestic brands have captured 57.37% of the Chinese beauty market, a significant increase from less than 30% a decade ago, indicating a structural shift in market dynamics [2][21]. - International beauty companies are increasingly viewing the Chinese market as a critical battleground for testing organizational and innovative capabilities, rather than just a growth engine [23]. - L'Oréal's revenue in North Asia, including China, was approximately 100.75 billion euros, while Estée Lauder reported 27.41 billion USD in China, showing the competitive landscape between foreign and local brands [20]. Group 4: Strategic Adjustments - Estée Lauder has upgraded China to an independent reporting region, reflecting its strategic importance and allowing for more localized decision-making [23]. - Procter & Gamble has established a "Brand Growth Department" in China to enhance agility and responsiveness to market changes [25]. - Companies are adapting to the unique Chinese market ecosystem, with a focus on digital marketing and e-commerce channels, as seen with L'Oréal and SK-II's performance on platforms like Douyin [28].