Chinese cosmetics and personal care products, collectively known as C-beauty, are targeting Southeast Asia as a crucial market for expansion. This strategy involves undercutting Japanese and Korean rivals on price, quickly rolling out new products, and tailoring offerings to local preferences, such as diverse skin-tone ranges and halal-certified products for the region's over 200 million Muslims. While many Korean brands are vegan and halal-friendly, they often don't pursue official certification, giving C-beauty a potential competitive edge if it prioritizes this.
This approach is already showing results, with China's beauty exports to the 10-member Association of Southeast Asian Nations more than doubling over the past five years. Indonesia, the world's fourth most-populous country, stands out as a key market. Shanghai-based Joy Group, with brands like Judydoll and Joocyee, saw its international sales surge tenfold to $87 million in 2025, contributing to a 22% increase in group revenue to $620 million. Three of its top five overseas markets are in Southeast Asia. Similarly, Proya Cosmetics Co. is focusing on a physical presence in Malaysia, and Florasis is also targeting the region.
China's overall beauty exports were modest at $5.7 billion, about a quarter of France's and 60% of the US total. However, exports rose nearly 12% year-on-year to over $5 billion in the first eight months of 2025, marking a third consecutive year of double-digit growth. The domestic competition in China's $141 billion beauty market (where Chinese brands account for nearly 60% of sales) is driving this overseas push. The similarity of Southeast Asia's online shopping ecosystems, with platforms like Lazada and TikTok Shop owned by Chinese companies, facilitates strategies like livestream promotions that are successful in China.
Cultural influence is also playing a significant role. Just as Korean entertainment boosted K-beauty, Chinese dramas and "Douyin makeup" trends are introducing C-beauty aesthetics to Southeast Asian audiences. The global C-beauty market is projected to grow from approximately $18.7 billion last year to over $49 billion by 2035. This expansion into Southeast Asia is seen as a stepping stone for further growth in markets like the Middle East and Latin America, driven by the need for new growth drivers amid intense competition and squeezed margins in the domestic Chinese market.
While overseas sales of Chinese beauty brands are currently about half those of South Korea, the gap is narrowing. Unlike K-beauty, which has the US as its largest market, C-beauty's initial focus is not on Western markets. The expansion is part of a broader "China Shock 2.0" characterized by more sophisticated and branded exports. Companies like Joy Group are also adapting products for overseas markets, for example, formulating items specifically for Singapore's heat and humidity, with some products not even sold in China.
