Chinese beauty brands losing profitability as online sales channels become saturated and competition intensifies

Chinese cosmetics companies like Hanbang (韩束) are experiencing dramatic profit collapses (nearly 80% decline) as online channel advantages disappear and customer acquisition costs skyrocket. Traditional e-commerce platforms (Tmall, JD.com) are oversaturated with competitors, making it increasingly expensive to maintain market share. Brands lack effective strategies to diversify beyond saturated online channels or differentiate in a crowded market.