Core Viewpoint - The article highlights the significant issue of post-treatment hyperpigmentation (referred to as "返黑") in the Chinese medical aesthetics market, with a reported 28% recurrence rate after light therapy treatments, which undermines the initial goals of skin whitening and brightening [3][5][6]. Group 1: Market Insights - The compound annual growth rate (CAGR) for post-treatment care products in China's medical aesthetics sector is projected to reach 30% from 2022 to 2026, with the market size expected to hit 25.38 billion yuan by 2026 [3]. - A survey by Estée Lauder in 2024 indicates that 84% of consumers participate in light therapy projects, making it the dominant choice in the market [3]. - The white paper reveals that 95% of consumers pursue light therapy primarily for skin whitening, yet over 25% experience worsening pigmentation [5][6]. Group 2: Consumer Challenges - The article discusses the psychological impact of post-treatment hyperpigmentation, with 90% of affected individuals feeling distressed, and 24% experiencing extreme distress [11][12]. - The unique skin characteristics of Chinese consumers, such as more active melanocytes and weaker skin barriers, contribute to a higher incidence of post-inflammatory hyperpigmentation (PIH) [7][9]. - Many consumers lack consistent sun protection awareness, particularly during autumn and winter, which exacerbates the issue of post-treatment pigmentation [9]. Group 3: Solutions and Innovations - Clinique has introduced a systematic solution called "妆械联合" (makeup and medical device integration) to address the complexities of post-treatment skin care, combining medical-grade products with daily skincare routines [14][16]. - The CX series, a new line of medical device products, includes a collagen-based wound care solution that enhances healing and skin barrier repair [17]. - The upgraded 302 Photon Laser Bottle aims to prevent post-treatment pigmentation and enhance daily whitening, utilizing a targeted formula that has shown promising clinical results [19][20]. Group 4: Industry Evolution - The article emphasizes the need for a paradigm shift in the medical aesthetics industry from short-term treatments to long-term management strategies, as highlighted by Clinique's approach [24][26]. - Clinique's integration of medical device technology with skincare formulations represents a significant advancement in addressing the specific needs of Asian skin types [26]. - The white paper serves as a scientific guide for consumers, aiming to establish industry standards and provide a comprehensive solution for pre-, intra-, and post-treatment care [22][24].

Core Viewpoint - Estée Lauder Group demonstrated resilience in the Chinese market, achieving mid-single-digit growth despite a global net sales decline of 10% to $3.55 billion (approximately RMB 25.81 billion) in the third quarter of fiscal year 2025 [2][4][10]. Group 1: Financial Performance - The group reported a 10% year-over-year decline in global net sales, with a total of $3.55 billion [4][10]. - Organic sales in the Asia-Pacific region decreased by 1%, with net sales of $1.14 billion, while the Chinese mainland market showed mid-single-digit growth [10][12]. - The skincare category saw the largest sales decline of 12%, totaling $1.807 billion, primarily due to a contraction in the Asia-Pacific travel retail business and weak consumer demand [4][5][12]. Group 2: Strategic Initiatives - The company is implementing a "Profit Recovery and Growth Plan" (PRGP) to enhance gross margins, which increased to 75% despite the sales decline [4][13]. - Estée Lauder is focusing on structural changes and cost optimization to maintain profitability amid challenges such as weak demand and geopolitical risks [13][31]. - The group is accelerating consumer coverage by introducing new brands and products, such as "The Ordinary" in the Chinese market, and expanding its retail presence [25][31]. Group 3: Market Dynamics - The high-end beauty market in China is facing pressure from domestic brands and changing consumer preferences, leading to a decline in the premium segment's growth rate [29][30]. - The company is adapting its strategy to integrate travel retail with general market operations, reflecting the importance of the Chinese market in its global strategy [29][34]. - Estée Lauder's brands, including La Mer and Tom Ford, are experiencing varying degrees of sales performance, with La Mer achieving a 19.8% growth in early 2025 [17][20]. Group 4: Future Outlook - The CEO expressed confidence in restoring sales growth by fiscal year 2026, contingent on resolving tariff issues and aligning with current market trends [13][29]. - The company is committed to innovation and digital channel expansion to drive long-term growth, particularly in the high-end market [13][31][34].