China is emerging as a core innovation powerhouse reshaping research and development rhythms and product pipelines across the global beauty industry, global CEOs of cosmetic giants said during exclusive interviews with China Daily on the sidelines of the ninth China International Import Expo in Shanghai.
From importing global blockbusters to partnering with local tech and clinical experts, while also exporting China-developed innovations overseas, foreign beauty players have entered an era of co-creation in China to reshape innovation timelines and product directions for the global beauty industry.
Their strategic outlooks show that the narrative of foreign beauty companies in China has shifted from "selling global products to China" to "innovating by leveraging China's ecosystem and exporting Chinese-born solutions to the world".
"Investing in China is investing in the future," said Nicolas Hieronimus, CEO of L'Oreal, adding that China's market value extends well beyond sales volume. "China is a fabulous source of inspiration for us, a stimulation and many of the things we do for China, in China are inspiration for the rest of the world."
At this year's CIIE, held Nov 5-10, L'Oreal's locally focused innovation spans product R&D, industrial investment and medical-research co-creation. The group announced a minority equity investment in PAM2L, a Chinese artificial intelligence-driven biomaterials enterprise, to jointly develop novel bioactive beauty ingredients. E-commerce operational playbooks and smart-fulfillment-center standards proven in China have become global templates rolled out across L'Oreal's worldwide footprint.
Stephane de La Faverie, president and CEO of The Estee Lauder Companies Inc, outlined China's market transformation over a decade.
"Ten years ago, the China opportunity was defined mainly by the size of the market and its growth potential. Today, it is defined by scale, innovation and global influence," he said. "What happens here increasingly influences the future of global beauty."
"I would describe China's value to our global business in three words: growth, speed and inspiration," de La Faverie added.
Through its open-innovation program Beauty X, ELC has engaged more than 1,000 local tech startups. The world's first skincare product featuring recombinant salmon-derived polydeoxyribonucleotide (PDRN) moved from initial engagement to market launch in merely nine months. A new MAC powder, tailor-made for Chinese consumers, made its global debut, with local consumer insights directly shaping a worldwide product. Under its roadmap, ELC's China Innovation Center will generate around 30 percent of the group's global innovation-driven sales in fiscal 2027.
Both giants announced joint-research partnerships with Shanghai Skin Disease Hospital during the CIIE, forging deep ties with local clinical-research resources.
Solid business performance underpins their expanded commitments. By the end of September, L'Oreal's earnings report showed North Asia registered 5.5 percent adjusted like-for-like sales growth in the first nine months, with the pace accelerating to 7.8 percent in the third quarter, driven primarily by China.
ELC posted a 15 percent year-on-year rise in net sales in Chinese mainland in the first quarter of fiscal 2027, marking seven consecutive quarters of market-share gains in prestige beauty. The group has also lifted its full-year financial forecast.
"We are confident in China's long-term opportunity, and that confidence rests on three things: Chinese consumers, the capabilities we have built here and the progress we are making through 'Beauty Reimagined'," de La Faverie said.
In addition, both CEOs observed that vigorous competition from home-grown beauty brands is not a threat, but a powerful catalyst for continuous iteration and closer consumer engagement.
Contact the writers at heqi@chinadaily.com.cn
