China Online Beauty: Global Beauty Leaders Outperform Through CNY in a Mixed Jan-Feb Market
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The Chinese beauty e-commerce market experienced mixed results in January and February 2026 due to the timing shift of the Lunar New Year. While February GMV declined 8.2% year-over-year, the combined January-February period grew 5.3%, providing a clearer trend. Bernstein's tracked beauty companies collectively outperformed slightly, with aggregate GMV rising 5.5%.
Global beauty conglomerates notably outperformed the broader market. L'Oreal posted a 12% GMV increase, driven by robust double-digit growth from premium brands like Lancome (+36%), YSL (+43%), and SkinCeuticals (+65%). Estee Lauder (uncovered) surged 29%, while LVMH grew 28%, fueled by Dior and Guerlain. Beiersdorf also delivered a 28% gain, led by Eucerin (+103%) and Nivea (+14%).
Conversely, domestic brands faced significant pressure. Proya declined 8% over the two-month period, with its main brand down 14%. Giant Biogene plunged 20%, losing 15 basis points of market share. Shiseido managed only 4% growth, though CPB (+25%) and NARS (+11%) showed resilience.
Bernstein maintains Outperform ratings on Beiersdorf, Unilever, and Giant Biogene, Market-Perform ratings on L'Oreal, Henkel, and Proya, and an Underperform rating on Shiseido. Giant Biogene needs more aggressive promotional, product innovation, and channel expansion strategies to support a turnaround.