The Point for Asia Pacific

Research evidence excerpt

The Point for Asia Pacific

Point |

Friday, 10 July 2026

Top Call | Country Top Calls | Key Rating and Target Price Changes

Top Call

Global Cosmetics - China Cosmetics Survey – Resilient but Polarized Demand;

Premium and Derma Positive

Our recent China cosmetics survey reveals resilient industry demand, yet

consumption is becoming polarized. High-spending consumers in top-tier cities

are trading up, while younger and lower-tier city consumers exhibit weaker

sentiment and greater price sensitivity. The competitive landscape is evolving,

with foreign brands using discounts to expand their customer base and leading

domestic brands moving upmarket. We find consumers are becoming more

sophisticated, prioritizing core ingredients over brand reputation. This leads to

higher brand-switching but also indicates opportunities for companies that can

deliver product innovation. We also see strong potential in the functional skincare

segment. Overall, we see that our findings are positive for premium and derma

positioned players. Among our Buy-rated stocks, the pecking order in China

cosmetics is Mao Geping > Giant > Proya. In Citi’s global cosmetics space, we favor

Amorepacific, Beiersdorf, EL, Kolmar, L’Oreal and PG.

Tiffany Feng | Cedric Besnard | Filippo Falorni, CFA | Paul Hwang | Hiroki Watanabe

Spending on other personal care categories Brands bought in the past 12 months vs.

Brands planned to buy in the next 12 months

(red box showing decrease and green box

showing increase potential)

Spending less Spending the same Spending more Don't use these products Estee Lauder

1% 5% 1% 1% 6% 5% 0% 2% Lancome

L'Oreal Paris

48% 48% 48% 41% 40% 39% 36% 33% 46% 44% Shiseido

Proya

Olay

La Mer

43% 45% 43% 46% 54% 55% 50% 53% 49% 49% Kans

SK-II

9% 6% 8% 8% 5% 5% 8% 8% 5% 6% Winona

Today vs.