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.

A professor at one of China's top universities argues that consumers' reluctance to buy luxury goods stems partly from feeling stigmatized. He urges authorities to address this deep-seated 'luxury-phobia' and view luxury pursuits as a sign of social progress. The idea contrasts with the government's austerity drive last year.

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Mannings, one of Hong Kong's largest health and beauty chains, will cease all retail operations in mainland China, both online and offline, as it adjusts its strategy in the highly competitive market. Physical stores will close permanently after January 15, 2026, and online operations will stop from December 26. Cross-border channels on WeChat, Tmall, JD, and PDD will continue.

Tariffs may ebb and supply chains may detour, but US shoppers and giants like Walmart and Amazon still rely heavily on Chinese goods. At the National Retail Federation (NRF) showcase, attendees expressed more optimism for the year ahead.

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Chinese carmakers sold more than 2.6 million electric vehicles to overseas markets last year, up 104 percent from the previous year, according to the China Association of Automobile Manufacturers. As the world's leading EV producer, China benefits from low production costs and advanced battery technologies that make its vehicles highly competitive globally. Yet, export growth is now facing a slowdown.

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