China's Slowing Economy Stymies Global Beauty Giants as Local Brands Capture Market Share
• Chinese consumers cutting back on cosmetics spending amid economic slowdown, spelling trouble for global beauty brands like L'Oreal and Estee Lauder that relied on China for growth
• Shoppers becoming more discerning, prioritizing skincare over "lifestyle-driven luxury," benefitting domestic brands tailored to Chinese preferences
• Multinationals offering deep discounts up to 40% but still seeing sales fall - LVMH beauty down 8%, Estee Lauder down 12%, Shiseido revising profit forecast down
• Domestic brand Botanee Biotech's Winona skincare line seeing almost 18% revenue growth this year
• Analysts say global giants will need to adjust to new normal of slower, single-digit growth in China rather than keep chasing past boom years