Growth of Chinese Domestic Beauty Brands Reveals Overlap and Consumer Confusion

A recent social media post highlighted how a user discovered that nose patch products from brands RNW and AUOU, which he believed to be distinct, were actually produced by the same company. This revelation sheds light on a lesser-known aspect of the domestic beauty sector: consumers may think they are choosing between various brands when in reality, they might be selecting products from the same enterprise.

The trend of domestic beauty brands operating under a multi-brand system is not uncommon. Well-known international groups like Estée Lauder and L'Oréal manage several brands, including Lancôme and M·A·C, all of which consumers generally recognize. However, the same awareness does not apply to many domestic beauty groups, creating confusion.

For instance, Proya produces several brands, including Proya and Off&Relax, while CHANDO owns brands like Maysu and Spring & Summer. Other groups, such as Marubi and Judydoll, follow a similar strategy. This multi-brand approach often aims to cater to diverse market segments by covering various product categories and price points, thereby maximizing revenue.

This strategy typically manifests in two ways: acquiring established brands or cultivating new ones independently. Successful examples include Judydoll Group’s expansion from makeup into scalp care and skin care by acquiring established brands. In contrast, companies like Peilai Group adopt a rapid brand-launching strategy, introducing over 20 brands, many of which target the same consumer group with overlapping products.

For example, Peilai’s nose patches—available under multiple brands—such as RNW and AUOU—come from the same OEM manufacturers, like Shanghai Zhumei Biotechnology Co., Ltd. and Guangzhou Yachun Cosmetics Manufacturing Co., Ltd. This shared production often results in similar ingredients and pricing, complicating consumers' ability to discern differences among the products.

Recent market trends indicate a significant overlap in product offerings, with many brands competing for the same consumer base. For instance, nose patches from multiple Peilai brands are priced similarly, ranging from 25 to 50 yuan, making it challenging for consumers to recognize unique selling points.

While the rapid expansion of domestic beauty brands reflects a growing consumer trust in local products, many marketing tactics raise ethical concerns. Brands often employ subtle promotional strategies, including KOC (Key Opinion Consumers) content that contrasts their products unfavorably with international rivals. Additionally, misleading advertisements sometimes lead consumers to believe they are using unbiased evaluations when, in fact, these content pieces are guided by the brands themselves.

Despite the market growth, issues persist. Complaints about product safety and efficacy—such as those regarding RNW nose patches—have been noted. Furthermore, brands within the same group may inadvertently harm each other's reputation when competing for a shared market segment.

Regulatory scrutiny has increased, with agencies like the Market Supervision Administration penalizing brands for misleading marketing practices. For instance, Peilai’s brand JEJO faced penalties in January 2025 for false advertising.

Overall, the domestic beauty industry appears to be rapidly evolving, yet many of its practices may lead to long-term brand erosion and consumer disillusionment.