C-beauty brands face slow retail expansion outside China

Chinese beauty brands are encountering a slow slog in expanding their retail presence outside China. CLSA analyst Chris Gao notes that for established domestic cosmetics companies attempting to expand abroad, progress is still in its early stages.

‘C-beauty’ brands, or Chinese beauty brands, are pushing to expand their retail operations beyond China, but the process is proving to be a slow slog. As reported by the South China Morning Post, the cosmetics firm Mao Geping is named after its founder, China’s most famous make-up artist, who has contributed to numerous mainland films, television programmes, and reality shows.

CLSA’s Chris Gao states: ‘For established domestic cosmetics companies attempting to expand abroad, progress is still in its early stages.’ Keywords point to potential markets such as Japan, the UK, Hong Kong, Singapore, France, and Southeast Asia, along with brands like Proya, Florasis, and Skintific, suggesting areas of interest, though details remain sparse.

The article, published on December 24, 2025, highlights the challenges in this expansion trend.

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Vibrant CIIE expo scene with Zespri and Canadian firms networking, showcasing revenue growth and China-tailored innovations.
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CIIE drives global firms' expansion in China

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As the 8th China International Import Expo approaches, companies worldwide highlight its key role in expanding into the Chinese market. From New Zealand's Zespri to Canada's health brands, participants report doubled revenues and innovations tailored to Chinese consumers.

Chinese cosmetics brands are rapidly expanding in global markets, narrowing the gap with South Korea's K-beauty powerhouse. In the first 11 months of 2025, China's exports reached $3.99 billion, up 8.7 percent, while Korea's hit a record $10.3 billion, rising 11.8 percent, though China's faster growth signals intensifying rivalry.

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Amid shifting dynamics in China's retail sector, several foreign and Hong Kong brands are closing physical stores on the mainland. High-profile closures include those of Lane Crawford, Ikea, Triumph, Zara Home, and Zara. German lingerie maker Triumph Group International had closed all its bricks-and-mortar stores on the mainland as of December 31.

Vendors at the Hong Kong Brands and Products Expo anticipate up to a 20% sales increase from last year, thanks to larger crowds and favorable weather. The 59th edition of the event, organized by the Chinese Manufacturers’ Association of Hong Kong, opened at Victoria Park in Causeway Bay and runs for 24 days until January 5. Financial Secretary Paul Chan Mo-po was among the first visitors, browsing and purchasing various items.

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Venture capitalist Nisa Leung says mainland China and Hong Kong should ease listing rules for biotechnology companies and lower takeover thresholds for listed firms to capitalize on renewed foreign interest in the healthcare sector. She made the comments in a sideline interview during China's annual meetings of the CPPCC and NPC.

Government data shows that outbound online sales by South Korean businesses reached a record 3.02 trillion won in 2025, marking the third consecutive year of growth. This represents a 16.4 percent increase from the previous year. Sales rose notably in the United States and China, but fell in ASEAN countries.

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Chinese contract drug makers including WuXi AppTec, WuXi Biologics and WuXi XDC face a less certain long-term revenue outlook as US pharmaceutical companies reshore production amid US-China tensions. Cui Cui, head of healthcare research for Asia at Jefferies, said earnings visibility for 2026 and 2027 remains strong due to order backlogs, but longer-term order growth lacks clarity.

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