Core Insights - The Chinese cosmetics market is undergoing a significant structural transformation, presenting both opportunities for brands and severe survival challenges, particularly for international beauty brands [1][3][4] Group 1: International Brand Challenges - Colgate's French skincare brand Filorga announced the closure of its Tmall flagship store, marking a strategic retreat from the Chinese market after being acquired for nearly €1.5 billion (approximately ¥12.2 billion) [3] - Over 30 international beauty brands are projected to experience a "mass retreat" from China by 2025, with a notable concentration of closures among Japanese and Korean brands, which account for nearly 80% of the total [3][7] - In 2025, 16 Japanese beauty brands are expected to close or withdraw from the Chinese market, indicating a worsening trend for these brands [7][8] Group 2: Japanese Brand Dynamics - Japanese brands are characterized by a "slow craftsmanship" approach, which has become a liability in the fast-evolving market, leading to significant challenges against local and Western competitors [8][21] - Historical data shows that brands like Sekkisei and Decorte, which once thrived in China, are now retracting their presence due to declining sales and market pressures [9][10] - The overall performance of Japanese beauty brands in China has been declining, with Shiseido reporting a 12.4% drop in sales in the Chinese market in the first half of 2025 [20] Group 3: Korean Brand Struggles - Korean beauty brands are also facing difficulties, with a reported decline in exports to China, which fell below 20% for the first time in 2025 [22] - Six Korean brands are expected to close or withdraw from the Chinese market, with most being under the Amorepacific Group, indicating a significant contraction in their market presence [25][26] - Despite challenges, some Korean brands are attempting to optimize their strategies in China, focusing on digital innovation and resource allocation [30] Group 4: European and American Brand Trends - European and American brands are experiencing a decline in their presence in China, with closures primarily among budget and niche makeup brands [32][33] - The exit of brands like LA Girl and Flower Beauty highlights the competitive disadvantage faced by foreign budget brands against local alternatives [36] - The rise of domestic budget makeup brands, which have shown significant growth, further complicates the landscape for foreign brands [36] Group 5: Domestic Brand Landscape - In 2025, 17 domestic beauty brands are reported to have closed, primarily those established between 2017 and 2024, indicating a challenging environment for newer entrants [39] - The closures are attributed to rising costs, funding pressures, and strategic shifts within companies, reflecting a broader trend of consolidation and optimization in the industry [44][45] - The market is expected to continue evolving, with a focus on differentiation and adaptation to consumer demands becoming crucial for survival [46]