Bernstein on China Online Beauty: Very Weak July Performance

Investing.com -- The Chinese beauty e-commerce market recorded a gross merchandise value decline of 13.2% in July, according to Bernstein data. Tracked beauty companies posted a 3.8% GMV decline, outperforming the broader market. July represents approximately 3.5% of annual sales contribution.

L'Oréal grew GMV by 9% and gained 100 basis points of market share. The company's performance was supported by Kérastase, Lancôme, SkinCeuticals and YSL. CeraVe led sales growth at 52%, followed by Lancôme and SkinCeuticals at 37% each, Helena Rubinstein at 30% and Kérastase at 29%.

Estée Lauder recorded 5% GMV growth and gained 103 basis points of market share. The Estée Lauder brand added 128 basis points of share, The Ordinary added 89 basis points and Le Labo contributed 45 basis points. Too Faced and The Ordinary grew fastest at 177% and 120% year-over-year. Year-to-date, Estée Lauder posted 24% GMV growth with a 161 basis point market share gain.

LVMH grew 7% and gained 121 basis points of market share, up from 54 basis points over the last three months. Guerlain and Dior both grew 20-25% month-over-month.

Beiersdorf recorded 14% sales growth and gained 61 basis points of share. Chantecaille grew 83%, La Prairie increased 59% and Coppertone rose 18%. Nivea returned to growth at 13%, gaining 103 basis points of market share.

Henkel Beauty Care grew 18% and added 46 basis points of share, driven by Shiseido Professional's 37% sales growth and Schwarzkopf's 16% increase.

P&G Beauty declined 27% but gained 20 basis points of share. Olay fell 46% and SK-II declined 13%.

Unilever BPC declined 18% while gaining 85 basis points of share. Vaseline grew 34%, Dove rose 19% and Lux increased 16%. AHC fell 60% and Pond's declined 29%.

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