Investing.com -- China's online beauty market contracted 3% in July compared to a 10% increase in the same month last year, according to new data from Jefferies based on Meritco tracking.

The decline affected both major categories, with skincare sales falling 2.4% and color cosmetics dropping 3%. Combined sales of skincare and color cosmetics, which account for over 80% of China's beauty market, all showed negative growth for the month.

The online performance was weaker than China's National Bureau of Statistics reported for overall retail beauty sales, which showed 6.8% growth in July, down from 12.6% in June.

L'Oréal's online sales in China fell 16% in July, with skincare down 13% and color cosmetics declining 21%. SkinCeuticals dropped 18%, L'Oréal Paris fell 31%, Lancôme decreased 5%, and Kiehl's declined 45%. Helena Rubinstein grew 10%, while La Roche-Posay and CeraVe each increased 29%. YSL color cosmetics sales fell 17%.

Estée Lauder's group sales contracted 8% in July. Within skincare, the Estée Lauder brand grew 23%, but La Mer fell 26%. Color cosmetics declined 18%, with Jo Malone down 55%, Bobbi Brown falling 47%, Tom Ford decreasing 8%, and Mac dropping 9%.

Other multinational brands also showed weak performance. P&G sales fell 26%, Shiseido declined 18%, and LVMH contracted 35%. Beiersdorf fell 15%, with both La Prairie and Nivea down 10% and 15% respectively.

Galderma's Cetaphil was an exception, growing 81% in July.

Among Chinese domestic brands, Proya declined 19% in July. Kans, Winona, and Florasis also recorded sales decreases. Grain Rain and Maogeping were the largest share gainers in the month.