Orient: Foreign cosmetics market warms up while domestic products break through, the entire industry is moving towards a high-quality "value war."

Orient released a research report, stating that this year, major platforms during the June 18th promotion abandoned the lengthy deposit mechanism and transitioned to directly offering discounts on instant products. With the decline of traffic dividends and the industry's trend towards high-quality upgrades, beauty brands need to adhere to a long-term perspective, return to product innovation, deepen brand building, and refine their focus on meeting user needs. Brands that work together with platforms that have certain value can better navigate through the competition and achieve sustained growth. Key points from Orient are as follows: Beauty Market during June 18th Promotion: Transformation towards no pre-sales, Taobao and Douyin dominate, domestic brands focusing on content 1) Change in pace and subsidies: The 2026 June 18th promotion shows a transformative shift towards "no pre-sales" and "precise wave-like progression", achieving a cycle of "even sales accumulating strength" and "peak explosion" through segmented pulse transitions such as "pre-purchase, opening sales, final sprint". Major platforms have abandoned the lengthy deposit mechanism and transitioned to directly offering discounts on instant products. 2) Market data and segmented categories: Online beauty market turnover increased by 11.4% year-on-year, with skincare and beauty accounting for the majority. 3) Competitive landscape: The channels show a stable "Taobao + Douyin" dual-core feature, with Taobao Tmall (44.8%) and Douyin (31.9%) accounting for over seventy percent market share, followed by JD, Kuaishou, and Pinduoduo. Overall, Tmall, JD, and other traditional e-commerce platforms remain the core stronghold for international brands, while content e-commerce platforms like Douyin and Kuaishou show a trend of domestic brands leading the way and driving overall market growth. Douyin: Foreign major brands making a strong comeback, channels accelerating shelfization and decentralized transformation 1) In terms of sales performance, total GMV of cosmetics on Douyin reached 32.535 billion yuan (up 16.70% year-on-year), with facial care having the highest proportion and fastest growth. In facial care, foreign major brands like Helena, Estee Lauder, and La Mer experienced a resurgence in the top three positions; domestic brands showed differentiation, with Proya Cosmetics and Hanshuo ranking at the forefront. But mid-range domestic brands faced a narrow survival path due to the infiltration of foreign brands and rising traffic costs. In makeup, the foreign brand Yves Saint Laurent remained in the second place, while the domestic brand MAO GEPING rose to the top, with the former top brand Hua Xi Zi falling out of the top ten. 2) Channel structure transformation: Decentralization of traffic was significant, with over 570,000 small and medium-sized influencers contributing to nearly 80% of GMV. Additionally, shelf e-commerce (product cards) is rising rapidly. The report believes that Douyin e-commerce has evolved from a simple content platform to a core infrastructure for comprehensive long-term operation that includes "influencing searching converting repurchasing." Tmall: Maintains dominance as the core platform, domestic big brands compete, moving towards high-quality "value war" 1) In terms of sales performance, total GMV of cosmetics on Tmall reached 45.69 billion yuan, remaining the main stronghold for international brands. In the facial care sector, top domestic brand Proya Cosmetics showed strong resistance with its single product, breaking the long-term monopoly of foreign brands and consistently ranking first for three years since 2024; there was rotation among foreign brands with Shu Uemura rising to second place and L'Oreal dropping out of the top five. In terms of makeup, Yves Saint Laurent's consecutive crowning for two years validates the foreign brand's position in premium base makeup, while domestic brands Caixiang and MAO GEPING break through and take turns on the list. 2) Channel trends: This year, beauty and skincare products were included in the national subsidies for the first time, with brands like Proya Cosmetics, Caixiang, and Kefumei receiving direct subsidies of 12%-20%. In addition, the platform shifted its focus from "low-price promotions" to embracing the 88VIP high net worth group (contributing over 40% of repurchases and conversions) with over 62 million members. Faced with changing platform rules and declining traffic dividends, brands are moving away from "volume for price" and focusing on high-price new products (new products during promotions increased by 60% year-on-year, such as the sold-out Winona 311 barrier cream). Additionally, brands are expanding store broadcasts to replace some influencer broadcasts, in order to build user assets and improve operational cycles. Risk warning: Continuous weakening of end consumer demand, new product promotions falling short of expectations, intensified industry competition.