These notable events occurred in the beauty industry this week

Tong Ren Tang has \"cut off\" its cosmetics subsidiary

In July, the retail sales of cosmetics increased by 6.8% year-on-year, outperforming the market during the off-season

Estee Lauder\'s growth in China reached 12%, leading the global market

With a net loss of 4.1 billion, Coty fell out of the top ten global beauty brands

Shanghai Jahwa has shaken off Sephora and achieved a five-year high in performance

Juzi Bio\'s net profit in the first half of the year dropped by 20.5%

Brand

Tong Ren Tang has \"cut off\" its cosmetics subsidiary

Recently, the First Intermediate People\'s Court of Beijing ruled to accept the application for compulsory liquidation of Beijing Tongrentang Cosmetics Co., LTD. The applicant is precisely its controlling shareholder, China Beijing Tongrentang (Group) Co., LTD.

In 2005, Tong Ren Tang Group and Hong Kong Guoxing Group jointly established Tong Ren Tang Cosmetics. Tong Ren Tang Group held 51% of the shares and Hong Kong Guoxing Group held 49%. It has launched nearly 10 brands such as \"Tongren Bencao\", \"Yizhuang\", \"Liyanfang\", \"Pailang\" and \"Jiabao Le\". However, the strategy of multiple entities running in parallel and multiple brands being rolled out does not bring about economies of scale, but rather ambiguous positioning and scattered resources.

Third-party data shows that the sales of \"Tong Ren Tang\" related cosmetics on mainstream e-commerce platforms are expected to reach approximately 930 million yuan in 2025, a year-on-year decline of nearly 45.6%. What is more fatal than performance is the continuous depletion of brand value. In recent years, Tong Ren Tang has been plagued by frequent irregularities in OEM and licensing, raising doubts among consumers, among which there are no shortage of quality issues.

However, Tong Ren Tang\'s cosmetics business also includes Tong Ren Tang Maierhai and the Meikang branch of Tong Ren Tang Technology, which was newly established in February 2026. At the strategic level, beauty products remain a direction that Tong Ren Tang is reluctant to give up.

The predicament of Tong Ren Tang is not an isolated case. Hundreds of pharmaceutical companies have ventured into the beauty industry, but only a few have managed to stand out. Consumers will not automatically purchase a pharmaceutical company\'s skin care products just because it can produce good medicine. Brands need to be built independently, and minds need to start from scratch. There is no shortcut for pharmaceutical companies to take when it comes to cosmetics.

Market

In July, the retail sales of cosmetics increased by 6.8% year-on-year, outperforming the market during the off-season

On August 17th, the National Bureau of Statistics released the social retail sales data for July 2026: In July, the total retail sales of consumer goods reached 3,902.2 billion yuan, increasing by 0.6% year-on-year. From January to July, the total retail sales of consumer goods reached 28,774.4 billion yuan, increasing by 1.2% year-on-year.

Among them, the retail sales of cosmetics in July reached 28.5 billion yuan, increasing by 6.8% year-on-year, setting the highest growth rate for the same period in July in the past five years. From January to July, the total retail sales of cosmetics reached 272.3 billion yuan, increasing by 6.3% year-on-year. It has outperformed the overall social retail sales market for seven consecutive months.

It should be noted that the data for July dropped by approximately 37.5% compared to the peak of 45.6 billion yuan in June. But this is more of a seasonal correction after the overdrawn \"618\" promotion, and it does not change the overall growth tone of the category. Major promotions create peaks but not trends. Compared with the pulse-like fluctuations in a single month, the sustainability of cumulative growth rates is a more reliable indicator for observing the industry.

When the overall consumer goods category is under pressure, cosmetics have demonstrated with data that it still has the resilience to weather the cycle by outperforming the market for seven consecutive months. However, whether this resilience can be sustained depends on whether enterprises can find new growth space in the double squeeze of intensified competition in the online market and the slow recovery of offline customer flow.

Financial report

Estee Lauder\'s growth in China reached 12%, leading the global market

On August 19th, Estee Lauder Companies released its financial report for the fiscal year 2026: net sales reached 15.049 billion US dollars (approximately 101.2 billion yuan), representing a year-on-year growth of 5%, ending the downward trend that had lasted for three consecutive fiscal years. Operating profit was 780 million US dollars (approximately 5.24 billion yuan), marking a turnaround from -785 million US dollars in the same period last year.

By department, the perfume department was the fastest-growing department. The net sales for the whole year increased by 12% year-on-year, led by the three brands Le Labo, TOM FORD and KILIAN PARIS. The skincare business grew by 5%, jointly driven by La Mer, The Ordinary and Estee Lauder brands. The makeup business grew by 2%, with the growth of M·A·C and TOM FORD offsetting the decline of Barbie Brown and Too Faced.

By region, all four regions of Estee Lauder Companies achieved growth. The net sales of the Chinese mainland, which is classified as a separate region, for the whole year reached 3.058 billion US dollars (approximately 20.6 billion yuan), increasing by 12% year-on-year. It was the region with the highest growth rate. The operating profit soared by 92% year-on-year to 373 million US dollars (approximately 2.5 billion yuan).

It is worth mentioning that the number of brands worth 1 billion US dollars under the group has increased to six, with Jo Malone and TOM FORD as new members. After four consecutive quarters of organic growth, Estee Lauder is shifting from a \"hemostatic\" phase to a \"blood-making\" one. The real test for this beauty giant lies in whether it can transform the restorative momentum into sustainable growth momentum.

With a net loss of 4.1 billion, Coty fell out of the top ten global beauty brands

On August 20th, Coty Group released its financial report for the fiscal year 2026: its net revenue for the full year was 5.806 billion US dollars (approximately 39 billion yuan), a year-on-year decline of 2%. The net loss was 618 million US dollars (approximately 4.15 billion yuan). Net revenue in the fourth quarter was 1.269 billion US dollars, increasing slightly by 1% year-on-year, but the net loss rose to 144 million US dollars.

Behind the disastrous performance lies the simultaneous loss of two core businesses. The net revenue of the high-end beauty business for the whole year was 3.806 billion US dollars, accounting for 61% of the company\'s total sales. It declined by 4% compared with LFL, and turned from profit to loss in the fourth quarter. The net revenue of the mass beauty business for the whole year was 2 billion US dollars, accounting for 34% of the company\'s total sales. Compared with LFL, it declined by 7%, and the operating profit loss expanded to 443 million US dollars. The geopolitical conflicts in the Middle East, the rising cost of tariffs and the decline in sales have become the triple shackles that crush profits.

The regional markets were equally dismal: both the Americas and EMEA regions declined, while only the Asia-Pacific market saw a 2% increase in net revenue for the entire year. According to the financial report, Kering Group redeemed the Gucci beauty license from Coty one year ahead of schedule with a compensation of 400 million US dollars. This core asset, which contributes hundreds of millions of dollars in revenue annually, will be officially transferred to L \'Oreal in June 2027.

It is worth mentioning that according to the financial report for the first half of this year, Coty has dropped out of the top ten global beauty brands list, ranking 11th with a valuation of 17.2 billion US dollars. After losing the golden brand of Gucci, Coty\'s road to recovery will become even longer and more difficult.

Shanghai Jahwa has shaken off Sephora and achieved a five-year high in performance

On August 19th, Shanghai Jahwa announced that it plans to sell 19% of its shares in Sephora Shanghai and Sephora Beijing to Sephora Asia for 70 million euros (approximately 555 million yuan), completely withdrawing from this joint venture that has lasted for more than two decades. The semi-annual report disclosed on the same day shows that Shanghai Jahwa\'s revenue in the first half of the year was 3.79 billion yuan, an increase of 8.99% year-on-year, and its net profit attributable to the parent company was 381 million yuan, a significant increase of 43.35% year-on-year, both setting new highs for the same period in the past five years.

Public information shows that in 2004 and 2006, Shanghai Jahwa successively invested 42.726 million yuan and 12.359 million yuan to acquire 19% equity in each of the two operating entities of Sephora China. However, since 2022, Sephora China has turned from profit to loss, with a cumulative loss of over 1.4 billion yuan over the past three years. The investment gains and losses of Shanghai Jahwa over the past three years have exceeded 235 million yuan. After the completion of this transaction, Shanghai Jahwa is expected to increase its after-tax investment income by approximately 474 million yuan.

While selling its joint venture equity, Shanghai Jahwa\'s main business is undergoing a \"profit repair\". As Lin Xiaohai has been the chairman and CEO for two years, the effects of the \"Four Focuses\" strategy are being realized: The revenue of the beauty business (Yuze, Baocaoji, Shuangmei, and Diancui) reached 1.033 billion yuan, representing a year-on-year growth of 38.27%. The personal care business (Liushen and Mayagen) generated revenue of 1.744 billion yuan, representing a year-on-year growth of 9.69%. The online channel saw a year-on-year growth of over 40%, and its proportion of domestic business rose to 45%.

Lin Xiaohai stated that in the second half of the year, they will proceed along the established route: expand the existing billion-yuan single products, cultivate new billion-yuan single products, maintain high double-digit growth online, and at the same time enhance channel efficiency through content self-operation capabilities.

Juzi Bio\'s net profit in the first half of the year dropped by 20.5%

On August 18th, Juzi Biotech released its 2026 financial report: During the period, its sales revenue was approximately 2.92 billion yuan, a year-on-year decrease of 6.3%. The net profit was approximately 940 million yuan, a year-on-year decrease of 20.5%. The adjusted net profit was approximately 950 million yuan, a year-on-year decrease of 21.5%.

By brand, the core brand Kefumei\'s revenue was 2.347 billion yuan, a year-on-year decrease of 7.7%, accounting for 80.4% of the total revenue. Kelijin\'s revenue was 499 million yuan, basically the same as that of the same period in 2025, accounting for 17.1% of its total revenue. The combined revenue of other brands was 64.5 million yuan, representing a year-on-year growth of 11.0%.

The core issue currently faced by Juzi Biotech is that its growth model is overly monotonous. Kefumei and Kelijin together contribute over 97% of its revenue, while the proportion of other sub-brands is less than 3%. Previously, the brand \"SKIGIN\", which had been in operation for four years under its umbrella, announced the suspension of operations, reflecting the practical predicament that Juzi Biotech is facing in cultivating multiple brands.

To break through the bottleneck, Juzi Biotech is accelerating its strategic transformation. Judging from the quarter-on-quarter performance, Juzi Biotech is gradually emerging from the trough: its revenue in the first half of this year increased by 21.3% compared with the second half of last year, and its net profit attributable to the parent company rose by 28.3% quarter-on-quarter, showing a recovery trend. Overall, the growth momentum of Juzi Biotech is still highly concentrated in its two major brands. Whether the new strategy can successfully open up a second growth curve remains to be tested by the market.

This article focuses on aromatherapy and fragrances, combining the latest industry trends to provide practical references for readers who are interested in fragrances.

Source: 品观网 (https://www.pinguan.com/)

This article is reproduced from the original source for information sharing only. If it infringes any copyright, please contact us and we will remove it promptly.

© 2026 CeresMall | www.CeresMall.com