Foreign beauty brands sitting pretty in China

A gradual recovery in China's premium beauty and luxury goods market is providing fresh momentum for the world's leading beauty companies. Foreign players including The Estee Lauder Companies, L'Oreal and LVMH reported stronger performance as Chinese consumers return to higher-end beauty products and brands accelerate localization strategies.

After a period of slower growth marked by cautious consumer spending and intense competition from domestic brands, the beauty segment in the country has shown signs of recovery this year, benefiting companies with strong brand portfolios, innovation capabilities and deeper digital engagement with consumers.

For New York-based Estee Lauder, the Chinese market delivered one of the strongest turnarounds in its global business. The company said organic net sales from the Chinese mainland market increased 9 percent for fiscal-year 2026, including 7 percent growth in the fourth quarter, marking six consecutive quarters of market share gains.

"China is not only one of our most important global markets, but also an increasingly vital source of talent, insights and inspiration for the company," said Stephane de La Faverie, president and CEO of ELC.

De La Faverie will visit China for the first time as CEO during the ninth China International Import Expo in Shanghai in November.

Estee Lauder said its fiscal 2026 performance marked the successful execution of its "Beauty Reimagined" strategy, with organic sales rising 3 percent globally and reported sales increasing 5 percent to $15 billion.

The company's growth was supported by a recovery across regions and categories, with fragrance remaining a major growth engine.

On the Chinese mainland, skincare, makeup and fragrance all posted growth, with fragrance achieving double-digit expansion globally. Within China, ELC brands including La Mer, Le Labo and Tom Ford were among the strongest contributors.