Douyin E-Commerce Slow Down (traffic costs keep rising)
Yes in the Fashion Lystyle industry in China…. Douyin is slowing down… China’s Video content commerce has moved from easy dividend-driven growth into a new stage focused on “refined “normal” operations and differentiated growth.
I am Marcus Zhan, Director of GMA… 11years today in GMA… And we have known during the past 4 years, Douyin has been the strongest growth engine for the fashion industry.
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Famous Douyin algorythm… smart algorithm helped brands (and agencies like us 😉 turn the whole marketing process into one smooth loop: show good content, run a livestream, and drive immediate purchases….
This Ecom model worked so well because of 3main things, low-cost traffic, high novelty, and impulse buying.
But in 2026, all three are Changing .
On a bigger scale, China’s consumer market has entered what analysts call the “stock era”, an era of slower growth where people are more careful with their spending. According to the National Bureau of Statistics, cosmetics retail sales grew 5.1% in 2025. That was still better than overall retail, but far from the double-digit jumps we saw in earlier years.
At the same time, the way people behave on Douyin is changing. Shoppers are no longer so easily attracted by new trends or viral videos. They now want real results, clear ingredient lists, and good value for money, especially when it comes to skincare.
In the past, growth came mostly from curiosity and quick decisions,
Today, consumers are becoming more rational. (less stupid) 😉 The market is not slowing down. It is simply waking up.
This shift is pushing out many bullshit products, including those low quality whitelabel items (pinduoduo craps) that grew fast through big advertising but did not deliver real performance.
A Clear Divide Between Fashion and Skincare on Douyin
The different results between Fashion, and beauty on Douyin show a deeper issue: the platform and the product types do not always match well.
Short-video platforms like Douyin are made for speed, entertainment, and quick reactions. People scroll fast and decide in just a few seconds. This kind of environment naturally favors products that show instant, visible changes.
Fashion Makeup and haircare fit this style perfectly. For example, you can show a beautiful lipstick shade a foundation finish right away. Chinese Viewers see the result immediately and can buy without much thinking.
Skincare well is different. Its real benefits often take weeks or even months to appear. People need more information before they buy, things like ingredient details, clinical tests, and honest long-term reviews.
“Douyin’s entertainment driven system does not match skincare’s need for building trust,
Real conversion now happens between users and trusted experts, such as dermatologists, formulators, and ingredient-focused creators. (only alow to communicate on dermo cosmetics… by the way . 😉
Real problem : traffic cost
As traffic costs on Douyin keep rising, this difference becomes even more obvious. Brands cannot rely only on big volumes of exposure anymore.
They need to focus on what Philip Chen partner in GMA calls “trust migration”, moving their budgets from simple traffic buying toward content made by credible voices and real experts.
Building Customer Trust
Higher traffic costs on Douyin have been a hot topic in the industry. But many analysts believe the cost itself is not the main problem. It is simply showing the deeper weaknesses in how brands have been using the platform.
For skincare brands in particular, the focus is shifting toward educational content, teaching people about ingredients, and showing real user results over time. The goal is to turn someone who is just watching into someone who actively searches for the brand or its hero products.
- “If a brand’s content can move users from passive watching to active searching at a cost lower than the industry average, then it is building something sustainable,”
- “Douyin’s algorithm will reward that with cheaper traffic later because it actually improves the user experience.”
Because of this, brands are now paying more attention to new measurements of success, such as user lifetime value and search equity, which show deeper trust and real buying intent.
A New Division of Labor in the E-commerce Ecosystem
As Douyin evolves, the whole Brands e-commerce world is also changing “more specialized “
Douyin is becoming the main discovery engine, the place where new trends are born, hero products get amplified, and new brands gain quick visibility.
Meanwhile, traditional platforms like Tmall and JD are becoming more important again for repeat purchases, premium positioning, and keeping loyal customers.
This pattern is very clear among international beauty brands. Companies like Lancôme, Estée Lauder, and La Mer have shown stronger growth on Tmall than on Douyin recently. They are moving more resources to platforms that better support long-term brand value and loyalty.
At the same time, local Chinese brands are taking advantage of the opportunities. Agile players such as Proya and Chando are gaining share on Douyin, especially in more affordable and niche segments where fast content and competitive prices still work well.
Even these domestic brands are now building multi-platform strategies. They use Douyin to attract new customers and rely on other platforms to build deeper relationships.
From Betting on 1 Platform to Building a Brand Strategy
The message for brands is quite clear.
For many years, success in China’s beauty market often came from mastering just one big platform. Today, that approach is no longer enough. Growth has become more fragmented, so brands need to match the right platform to the right category and to how consumers actually make decisions.
In practice, this means using Douyin to create awareness, test new products, and create viral moments, while using Tmall and other channels to capture long-term value through membership programs, stable pricing, and better brand storytelling.
Some hybrid products are doing especially well now, for example skin-like foundations that combine makeup and skincare benefits, or effective scalp treatments. These products can use Douyin’s fast visual appeal while still building trust over time.
The New Growth Brand guide for 2026
March 2026 small dip may turn out to be more of a turning point than a simple slowdown.
China’s beauty market is not shrinking. In fact, it continues to grow steadily, thanks to more sophisticated consumers and strong demand. But the rules of the game are changing.
The old era of easy hyper-growth through cheap traffic is ending. The new era rewards precision, real differentiation, and genuine trust. Platforms now have different roles, and not all categories grow at the same speed.
For both international and local beauty brands, success in 2026 will depend on understanding these shifts and building smart, flexible, multi-platform strategies.
Have you noticed similar changes in your beauty marketing in China?
Feel free to share your thoughts and experiences in the comments. I’d love to hear how different brands are adapting to this new stage and add me on LInkedin. Marcus Zhan
