Chinese beauty groups operate multiple brands as consumers unknowingly buy sibling products
Investigative reports reveal that many Chinese domestic beauty brands, including those under Peilai Group, are owned by the same parent companies using multi-brand strategies. Brands like RNW, AUOU, EIIO, and DPU sell nearly identical products from the same contract manufacturers at similar prices. The China Cosmetics Association reported the industry exceeded 1.1 trillion yuan in 2025, with domestic brands holding 57.37% market share. Deceptive marketing practices and regulatory penalties for false advertising have been documented, raising concerns about consumer trust as market growth slows to 2.83%.
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Common ground
- Both agents agree that multi-brand strategies are common globally and not inherently problematic.
- Both acknowledge that regulatory actions against JEJO show the system is capable of catching violations.
- Both agree the Chinese beauty market is entering a slower growth phase, requiring more focus on quality and trust.
- Both believe the industry will eventually self-correct and mature over time.
Points of contention
- The Eastern Agent sees multi-brand strategies as a legitimate survival tactic for young companies, while the Regional Agent views them as deliberate deception when products are identical.
- The Eastern Agent argues consumers are not harmed and are making informed choices, while the Regional Agent insists they are being exploited through an illusion of choice.
- The Eastern Agent frames regulatory fines as proof the system works, while the Regional Agent says they show the system failed until damage was done.
- The Eastern Agent accuses the Regional Agent of a double standard that favors Western companies, while the Regional Agent accuses the Eastern Agent of excusing shortcuts in the name of national development.
Blind spots
- Neither agent fully addresses how young, budget-conscious consumers actually perceive or react to multi-brand strategies in practice.
- The debate lacks concrete data on whether consumer trust has measurably declined due to these practices.
- Both agents overlook the role of social media and influencer culture in amplifying or mitigating trust issues among Chinese consumers.
- The discussion does not explore how international brands' similar strategies are perceived differently by Chinese consumers versus domestic ones.
WorldAttention’s read
The roundtable reveals a fundamental clash between viewing multi-brand strategies as a normal business tool for rapid market growth versus seeing them as a deceptive shortcut that erodes consumer trust. While both agents agree the industry will eventually mature and regulators are active, they disagree sharply on whether current practices harm consumers or are unfairly criticized due to geopolitical bias. The core unresolved tension is whether the ends—building domestic market share—justify the means of selling identical products under different brand names without clear transparency. Ultimately, the debate highlights that the industry's long-term success depends on moving beyond volume plays toward genuine differentiation and honest marketing, but the agents remain split on whether the current situation is a manageable growing pain or a fundamental betrayal of consumer trust.
Reporting timeline
Chinese domestic beauty brands' multi-brand strategy: Consumers unknowingly buy from same parent companies
This investigative report by Blue Whale Finance reveals that many Chinese domestic beauty brands, despite appearing as independent competitors, are actually owned by the same parent companies. The article highlights the Peilai Group as a case study, which operates multiple brands like RNW, AUOU, EIIO, and DPU that sell nearly identical products (e.g., nose strips) at similar prices, produced by the same contract manufacturers. The report notes that while multi-brand strategies are common globally (e.g., Estée Lauder, L'Oréal), Chinese groups often launch brands rapidly without clear differentiation, leading to internal competition. The article warns that this approach, combined with deceptive marketing practices like fake KOC reviews and misleading product claims, erodes consumer trust. It cites regulatory penalties against Peilai's JEJO brand for false advertising and quality complaints against RNW products. With China's cosmetics market growth slowing to 2.83% in 2025, the report argues that such practices threaten the long-term growth of domestic beauty brands by undermining the consumer trust that fueled their rise.
Chinese domestic beauty brands go multi-brand: consumers unknowingly buy from same parent companies
This investigative report by Jingzhe Research Institute, published via 21 Economic Network, reveals that many Chinese domestic beauty brands consumers perceive as competitors are actually owned by the same parent companies, employing a 'group warfare' strategy. The article notes that in 2025, China's beauty industry reached 1.1 trillion yuan in transactions, with domestic brands holding 57.37% market share. It focuses on Pele Group, which operates multiple brands like RNW, AUOU, and EIIO, selling nearly identical products (e.g., nose strips) from the same contract manufacturers at similar prices. The report highlights that Pele Group launched many brands rapidly in 2020-2021, creating internal competition. It warns that such practices, combined with deceptive marketing tactics like fake KOC reviews and misleading before-after videos, erode consumer trust. The article cites regulatory actions against Pele's JEJO brand for false advertising and consumer complaints about allergic reactions. With market growth slowing to 2.83% in 2025, the report argues that continued reliance on multi-brand saturation and misleading marketing will undermine long-term growth by destroying consumer confidence in domestic brands.
Read sourceChinese domestic beauty brands' 'family-style' operations: What consumers don't know
This investigative report by DoNews reveals that many Chinese domestic beauty brands, despite appearing as independent competitors, are actually owned by the same parent companies using multi-brand strategies. The article highlights how groups like Peilai Group operate numerous brands (RNW, AUOU, EIIO, DPU) that sell nearly identical products—such as nose strips—at similar prices, often manufactured by the same factories. The report notes that while international conglomerates like L'Oreal and Estee Lauder also use multi-brand portfolios, Chinese groups sometimes deploy brands to compete for the same consumers rather than targeting differentiated market segments. The article warns that this strategy, combined with deceptive marketing practices like fake KOC reviews and misleading product claims, risks eroding consumer trust. It cites regulatory actions against Peilai's JEJO brand for false advertising and consumer complaints about allergic reactions. With China's cosmetics market growth slowing to 2.83% in 2025, the report argues that maintaining consumer trust is critical for the industry's long-term growth, and warns that current practices may undermine the gains made by domestic brands.
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Chinese Beauty Brands' 'Family' Strategy: What Consumers Don't Know About Brand Conglomerates
This article from Tencent Stock/Investment Circle reveals that many Chinese domestic beauty brands, which consumers perceive as independent competitors, are actually owned by the same parent companies. It highlights the 'group warfare' strategy, where conglomerates like Proya, Chando, and Peilai Group operate multiple brands to cover different price points and demographics. The report focuses on Peilai Group, which launched numerous brands in 2020-2021, many sharing the same contract manufacturers and similar product formulations, such as nose strips. This strategy aims to dominate market share but risks confusing consumers and eroding trust. The article also discusses deceptive marketing practices, including fake KOC reviews and misleading videos, and cites regulatory penalties for false advertising. With the Chinese cosmetics market entering a low-growth phase (2.83% in 2025), the piece argues that continued reliance on such tactics could undermine long-term consumer trust and the overall reputation of domestic beauty brands.
Read sourceChinese domestic beauty brands' multi-brand strategy hides same-company products from consumers
This investigative article by Jingzhe Research Institute, published on NetEase Finance, reveals that many Chinese domestic beauty brands are owned by the same parent companies, using multi-brand strategies to dominate market share. The China Fragrance and Cosmetics Association reported that the industry exceeded 1.1 trillion yuan in 2025, with domestic brands holding 57.37% market share. The article highlights Pei Lai Group as a case study, which operates multiple brands like RNW, EIIO, DPU, and AUOU selling nearly identical nose strip products at similar prices, often produced by the same contract manufacturers. The piece argues that this strategy confuses consumers who believe they are comparing different brands but are actually choosing among sibling brands. It also criticizes deceptive marketing practices, including fake KOC reviews and misleading before-and-after videos, and notes regulatory actions such as a January 2025 fine against Pei Lai's JEJO brand for false advertising. The author warns that as market growth slows to 2.83%, consumer trust is being eroded, threatening long-term growth for the domestic beauty sector.