THE WHAT? Chinese cosmetics group Proya reported a 29.8 percent increase in third-quarter revenue, although higher marketing expenditure contributed to a 46.7 percent decline in profit as the company accelerated its international expansion.
THE DETAILS Third-quarter revenue reached RMB2.25 billion (US$338.2 million), while total profit fell 46.7 percent to US$21.9 million. The decline was attributed to increased promotional spending on product launches for its flagship skincare brand Proya, alongside marketing investment across its portfolio, including Flower Knows and Off&Relax. For the first nine months of 2026, revenue increased 7.5 percent to US$1.2 billion, while total profit rose 16.8 percent. The company also opened a European innovation laboratory in France and is preparing to introduce Proya products at Ulta Beauty in the US.
THE WHY? The results highlight the financial pressures facing Chinese cosmetics manufacturers as they invest in international expansion amid weaker domestic consumer demand. While overseas distribution and product innovation offer opportunities for growth, rising marketing costs are placing pressure on short-term profitability as companies compete for market share in established international cosmetics markets.
Source:The Business of Fashion
