Author | Zheng Qiao
Editor | Wang Xiaojuan
In the chess game of beauty giants, Estée Lauder Group has made another move—this time, the target is the Chinese market.
Recently, Estée Lauder Group's skincare brand The Ordinary announced its official entry into China's Sephora, where it will be exclusively sold. Additionally, the brand plans to launch on Tmall and Douyin platforms in July 2025 to further expand its sales channels.
The brand has previously accumulated a considerable user base in the Chinese market through channels like Tmall Global. This move marks its transition from cross-border testing (entering through Tmall Global in 2019) to a fully localized operation.
The Ordinary is the core brand of Canadian beauty company DECIEM. Since its establishment in 2013, it has quickly emerged in the global skincare market with its simple packaging, affordable prices, and effective, transparent ingredient formulations.
In terms of brand positioning, The Ordinary is known as the &#34;ingredient bucket,&#34; with a product line covering various skincare needs such as moisturizing, anti-aging, whitening, and acne treatment, making it popular among ingredient-conscious consumers and Generation Z. Public data shows that in the first quarter of 2024, The Ordinary ranked among the top two well-known skincare brands in Canada and the United States, and among the top four in France, Germany, and the United Kingdom.
With its entry into the Chinese market, The Ordinary not only continues its brand positioning of &#34;high cost-performance + ingredient transparency&#34; but also makes localized adjustments for the Chinese market. The brand has registered 24 imported ordinary cosmetics with the National Medical Products Administration under the Chinese name &#34;Yan Du Gong Shi,&#34; including localized versions of classic products and new products customized for the Chinese market.
The addition of The Ordinary is a key step for Estée Lauder Group in laying out its strategy for the young consumer market and reshaping its brand matrix. Previously, Estée Lauder and The Ordinary underwent a seven-year &#34;long-distance acquisition.&#34;
Estée Lauder's acquisition of DECIEM began in 2017, with an initial investment holding 29% of the shares; in 2021, Estée Lauder increased its stake to 76% with an investment of $1 billion; on May 31, 2024, Estée Lauder Group completed the acquisition of the remaining shares of DECIEM for $860 million, marking the official conclusion of this seven-year &#34;phased acquisition.&#34; Thus, The Ordinary became a wholly-owned subsidiary of Estée Lauder Group.
This acquisition not only indicates Estée Lauder's long-term optimism about The Ordinary but also reflects its urgent need for a youthful strategy.
In recent years, traditional brands under Estée Lauder, such as the Little Brown Bottle and La Mer, have long been recognized in the high-end market but also face the challenge of gradually losing young consumers. With an average product price below 100 yuan and clear ingredient formulations, The Ordinary is expected to attract millennial and Generation Z consumers, thereby enhancing its layout in the affordable skincare sector.
The Chinese market presents both opportunities and challenges for The Ordinary
The Chinese skincare market is large and maturing, with consumers increasingly focused on ingredients and cost-effectiveness. The entry of The Ordinary may open up new avenues through differentiated positioning, forming a competitive relationship with local brands such as Winona and Proya. However, intense market competition and the waning novelty of &#34;ingredient-focused&#34; brands will also test The Ordinary's long-term appeal.
At the same time, China has its own local &#34;ingredient bucket&#34; brand, John Jeff. As an international brand, The Ordinary's &#34;ingredient bucket&#34; image is well established, but John Jeff offers overall lower prices and is more accessible. According to a comparison by Wall Street Insights, the price range of products in The Ordinary's overseas flagship store is between 63 to 376 yuan, while John Jeff's Tmall flagship store ranges from 19 to 149 yuan.
Leading strong value brands to penetrate the Chinese market is also due to the ongoing financial pressure on Estée Lauder Group, particularly the noticeable decline in the Asia-Pacific market, including China, which urgently needs new growth points.
According to the recently released second-quarter report for fiscal year 2025, the company's net sales decreased by 6% year-on-year to $4 billion, and the operating profit margin fell from 13.4% in the same period last year to -14.5%.
Specifically, in the second quarter, Estée Lauder's skincare business saw a net sales decline of 12%, makeup business down by 1%, fragrance business grew by 2%, and hair care business decreased by 8%. By market segmentation, net sales in the Americas remained flat, while Europe, the Middle East, and Africa saw a decline of 6%, and the Asia-Pacific market dropped by 11%.
Despite the overall sluggish performance, Estée Lauder remains optimistic about The Ordinary's global expansion potential. Public information shows that in the fiscal report for the entire year of 2023, The Ordinary became the skincare brand that achieved double-digit growth for Estée Lauder Group. In the third quarter of fiscal year 2024, The Ordinary was one of the five brands driving organic sales growth for Estée Lauder Group.
In the global strategy, the Chinese market is given a special status. The financial report indicates that Estée Lauder has listed mainland China as a new geographical cluster, managed vertically by the group CEO, as Estée Lauder views the Chinese market as one of its most critical markets.
&#34;China is the world's second-largest beauty market, second only to the United States, and we are launching a very strong product portfolio in China,&#34; said Jasper Rasmussen, Global Brand President of Estée Lauder.
Estée Lauder's acquisition of The Ordinary and its entry into the Chinese market is not only a &#34;first aid&#34; response to market downturns but also a strategic investment for the future. By integrating DECIEM's innovative genes with its own global resources, Estée Lauder aims to find a balance between premiumization and mass-market appeal, as well as between traditional channels and digitalization.
However, the success of this gamble ultimately depends on whether The Ordinary can continue to resonate with rational and pragmatic young consumers in China's &#34;most competitive&#34; market with its story of &#34;ingredient transparency.&#34;

A "high cost-performance" breakthrough for youth

- Estée Lauder Group's skincare brand The Ordinary has officially entered the Chinese market through exclusive sales at Sephora and plans to launch on Tmall and Douyin by July 2025.  
- This move marks a shift from cross-border operations to full localization, with 24 products registered for the Chinese market, including modified versions and new products tailored for local consumers.  
- The entry into China presents both opportunities and challenges, as The Ordinary aims to attract younger consumers while facing competition from local brands and the need to maintain its appeal in a rapidly evolving market.

Estee Lauder's affordable brand enters China