When Estée Lauder Companies (ELC) launched The Ordinary into China’s domestic channel in February 2025 exclusively with Sephora China, it represented a strategic pivot for both organizations. The brand had been present for years through cross border e-commerce, previously working with the distributor SuperOrdinary. Cross border enables early entry without registration, but due to it only being available on certain platforms and with quotas for consumers, its reach is limited. Domestic general trade unlocks offline distribution, broader consumer visibility.

The timing of this shift is important. The China beauty market has undergone a structural reset. Consumers are no longer blinded by prestige brands. They compare price against function, switch brands freely, and expect clear reasoning behind every RMB they spend. The center of gravity has moved from storytelling to efficacy and price logic.

This created a strategic challenge for Estée Lauder in China. Much of its portfolio sits at high price points with marketing-led value propositions. In a market where functional C-beauty, derma cosmetics, and biotech brands are winning share, this left a clear gap.

L’Oréal, by contrast, is better prepared for this shift, with a much broader portfolio across derma cosmetics, professional, and luxe. The Ordinary gives ELC a credible offer in the part of the market where it previously lacked representation.

For Sephora China, the partnership is equally context driven. The retailer has struggled with several compounding issues. The assortment did not evolve quickly enough. There was hesitation to adopt Asian and domestic Chinese brands at the pace consumers expected. Many global brands remained stuck in cross border, which reduced what Sephora could stock.

Meanwhile Sephora never succeeded on Tmall and Douyin, and this has become a disaster as its market share has grown. The in-store experience reflects these pressures. Incorrect signage, discount bins at the entrance, and half-empty shelves made the stores feel neglected. The Ordinary stands out as one of the few well-executed and visually energizing areas.

Strategically, this matters. Sephora needs brands that anchor a clearer point of view. The Ordinary brings a functional, science-aligned proposition that resonates with younger consumers and sits in a price band Sephora has historically been underweight in. It does not solve Sephora’s core challenges, but it strengthens the retailer’s relevance at a time when it needs renewal.

The Ordinary’s early domestic numbers show some decent success in its first year. RedNote followers increased by 117%. Tmall domestic subscribers reached 232,000 within six months, with estimated GMV of RMB 35 million ( $4.8 million). Combined GMV across cross border and domestic stores is estimated at RMB 120 to 150 million over twelve months ( $16.5 to $20.6 million). These results support ELC’s reported 9%China sales growth in the July to September quarter and highlight the value of having a credible offer in the functional segment.

The broader message is clear. The Ordinary’s domestic entry did not create a new direction for China beauty; far from it. It is capitalizing on the direction already taken by consumers.

Efficiency, transparency, and price logic now outperform traditional prestige cues. Brands and retailers that align with this reality will grow. But they need to keep up with “China speed.”Let’s hope they can.