Whimsical Chinese cosmetics brand Flower Knows hopes to win over British consumers with products such as its £20 Strawberry Rococo and Shell Ballet blush. Its fairytale aesthetic is part of a vast cosmetics industry in China, one that is showing signs of overseas ambitions.
Soon after debuting on shelves at UK retailer Boots earlier this year, Flower Knows was consolidated into Proya, the biggest Chinese player to emerge in a sector that has transformed dramatically in recent decades. Local challengers had by 2025 seized more than half of the market, worth almost Rmb1tn ($149bn), according to Frost & Sullivan. Proya will launch in 400 US stores operated by Ulta Beauty in November.
At home, however, these companies face a challenging backdrop, from slowing economic momentum to intense competitive pressure. The sector is now the world's second largest but remains extremely fragmented. Proya, which became the first local player to surpass Rmb10bn ($1.5bn) in revenues in 2024, holds just 1.5 per cent of the Chinese market. By contrast, L'Oréal has by far the biggest market share in China at 8.6 per cent, with global revenues of €44bn.
Lorraine Tan, director of equity research for Asia at Morningstar, said there is still a long runway for Chinese companies, both domestically and in the region, but that they must expand their brand portfolios to avoid being subject to trend changes. Chando's finance chief Li Zhuoguang says Chinese firms have an advantage in their "agility", even if foreign firms hold a "significant advantage" at the top end. Chinese supply chains, backed by the world's biggest packaging industry, also let companies innovate quickly.
Source: Financial Times Companies · Summarized by HeadlinesBriefing