AI Search
Artificial intelligence (AI) has become a familiar topic in beauty. Over the past two years, the industry has embraced a wave of experimentation: virtual try-ons, chatbot advisors, and generative marketing copy. Many of these tools are useful. But in most markets they remain peripheral—improvements to existing workflows rather than a transformation of how brands actually operate.
China tells a different story.
Across the country’s sprawling digital commerce ecosystem—spanning Alibaba’s Tmall, JD.com, Douyin, and Xiaohongshu (RedNote)—AI is increasingly embedded not just in marketing tools, but in the operating fabric of beauty brands themselves. It shapes how products are developed, how creative content is produced, how livestreams are run, how customer service teams convert shoppers, and how supply chains respond to demand.
The result is something closer to an “AI stack” for beauty commerce: a layered system in which platforms, tools, and workflows combine to create a new competitive baseline. Brands that learn to operate within that system can move faster and iterate more effectively. Those that do not, risk falling behind.
According to data from the China Academy of Information and Communications Technology, China’s AI industry exceeded RMB 500 billion (around $70 billion) in 2023, with retail and e-commerce among the fastest-growing application areas. Within e-commerce specifically, Alibaba has reported that millions of merchants now use AI-powered tools embedded in its platforms for tasks ranging from creative generation to customer service and operational analytics.
For global beauty executives trying to make sense of the AI moment, China offers a glimpse of what a fully integrated, AI-enabled commerce environment might look like in practice.
From Marketing Tool to Operating Layer
To understand why AI adoption in China accelerated so quickly, it helps to start with the structure of the market itself.
China’s beauty industry is deeply intertwined with its digital commerce platforms. Rather than operating primarily through independent e-commerce websites, brands sell through integrated ecosystems where discovery, content, retail, payment, and logistics are tightly connected. Tmall, Douyin, and Xiaohongshu are not simply channels. They are operating environments.
And in recent years, those platforms have begun embedding AI directly into their merchant infrastructure.
On Taobao and Tmall, AI copilots are increasingly used inside merchant dashboards to analyze performance and recommend operational decisions. Reporting by Chinese business outlet Jiemian describes these systems as “AI employees” that can assist with tasks ranging from data analysis to marketing optimization and store operations . The aim is not simply to automate individual actions, but to reduce the complexity of running an online storefront.
Alibaba has also introduced a suite of generative AI tools for merchants during major promotional events such as Double 11. These include automated product imagery generation, AI-written product descriptions, and tools that convert static images into short promotional videos.
This shift matters because it changes how quickly brands can operate. When creative production, data analysis, and campaign management are embedded into platform tools, AI becomes less of an optional experiment and more of a default capability.
In China’s beauty market, that default capability is beginning to compound.
AI at the Source: Product Development and Smart Manufacturing
One of the most interesting aspects of AI adoption in China’s beauty ecosystem is how it extends upstream into product development and manufacturing.
Florasis (花西子), the Chinese cosmetics brand known for its elaborate cultural packaging and product design, has invested heavily in what it describes as a “smart factory” in Hangzhou. According to press reports, the facility integrates robotics, laser-guided production systems, and AI-driven quality monitoring designed to improve manufacturing precision and reduce defect rates.While automation in manufacturing is not new, the integration of AI-enabled monitoring and data feedback loops reflects a broader trend in China’s consumer goods sector: Production environments are becoming increasingly digitized and responsive.
The connection between e-commerce data and product development is also tightening. Platforms such as Tmall generate enormous volumes of insight into consumer behavior—from ingredient trends to skin concerns and purchasing patterns. Brands and platforms are increasingly exploring ways to translate that data into product iteration.
L’Oréal’s partnership with Alibaba around its La Roche-Posay brand illustrates this approach. The companies jointly launched an AI-powered acne analysis application that allows users to upload selfies for skin condition assessment using machine learning models.
Domestic Chinese brands are also experimenting with AI-enabled R&D. Proya (珀莱雅), one of China’s fastest-growing skincare companies, has invested in data-driven research platforms that analyze online reviews, ingredient conversations, and consumer feedback across e-commerce platforms to guide product development. These systems allow the company to identify emerging skincare concerns and rapidly develop formulations aligned with those insights.
Winona (薇诺娜), the dermatological skincare brand owned by Botanee Group, has similarly partnered with dermatology research institutes and AI-driven analytics tools to analyze skin sensitivity patterns across China’s different climates and demographics. The brand uses this data to refine formulations and product positioning for its sensitive skin portfolio.
Another domestic brand pushing into AI-enabled research is Kans (韩束), part of the Shanghai-based Chicmax Group. The company has invested in an “AI skin science” research program that uses machine learning to analyze skin imaging data and consumer testing results in order to refine skincare ingredients and product claims.
Over time, these feedback loops shorten the distance between market insight and product response.
The Industrialization of Beauty Content
If AI is reshaping product development at the source, its most visible impact in China has been on creative production.
Beauty e-commerce is intensely content-driven in China. Brands must produce a continuous stream of short videos, livestream segments, influencer collaborations, product imagery, and promotional landing pages. The success of a campaign often depends less on media spend than on the ability to test creative ideas quickly and adapt based on performance.
This environment has turned creative production into a kind of industrial process.
Platforms are increasingly embedding generative tools that allow merchants to scale that process. Alibaba’s merchant tools, for example, include features that generate product visuals and convert static imagery into video content suitable for short-form platforms.
ByteDance’s Ocean Engine advertising ecosystem has taken a similar approach. Its creative platform, known as “即创” (Jichuang), is designed to help brands move rapidly from concept to script to finished asset, supporting formats ranging from short video to livestream promotion (Digitaling).
The significance of these tools lies less in cost reduction than in velocity. When brands can produce hundreds of creative variations quickly, they can test messaging, imagery, and product positioning more aggressively.
Chinese beauty brands have embraced this approach aggressively. Perfect Diary (完美日记), the digitally native cosmetics brand created by Yatsen Holding, built much of its early growth through rapid experimentation across Xiaohongshu and Douyin. The company relies heavily on data analytics and AI-assisted social listening tools to identify emerging aesthetic trends and optimize influencer collaborations.
Florasis has also applied AI tools to its digital marketing operations, analyzing engagement data across livestreams and social media campaigns to refine storytelling and creative formats for its culturally themed products.
Proya has similarly adopted AI-driven marketing analytics to evaluate campaign performance across Douyin and Tmall, enabling the brand to quickly adjust content strategies during major promotional events such as 618 and Double 11.
The scale of the content ecosystem helps explain why these capabilities matter. According to QuestMobile, Chinese consumers spend more than 2.5 hours per day on short-video platforms such as Douyin and Kuaishou, creating enormous demand for continuously refreshed content and creative experimentation.
In other words, AI is helping transform creative production from a handcrafted process into a scalable system.
Livestream Commerce and the Digital Human
No discussion of beauty e-commerce in China would be complete without addressing livestreaming.
Livestream commerce has become a central pillar of product discovery and sales in the country’s beauty sector. Influencers and brand hosts broadcast product demonstrations in real time, interacting with viewers and driving immediate purchases.
AIis now beginning to reshape how those broadcasts operate.
JD.com has developed a digital human technology platform known as Yanxi (言犀), which allows brands to deploy AI-powered virtual hosts capable of presenting products and responding to common customer questions. According to reporting in People’s Daily, the system can support extended livestream operations and has been adopted by a growing number of merchants during major promotional events.
Kuaishou has also explored AI-driven broadcast infrastructure that allows brands to extend livestream hours and experiment with automated formats.
Some domestic beauty brands have already experimented with these formats. Proya and Kans have both trialed AI-generated presenters and automated livestream scripts during quieter shopping periods, allowing brands to maintain continuous livestream presence without requiring large hosting teams.
This is particularly relevant in a market where livestream commerce is enormous. According to China’s Ministry of Commerce, livestream e-commerce generated more than RMB 4.9 trillion (approximately $680 billion) in sales in 2023, with beauty and personal care among the most active product categories.
The emerging model appears increasingly hybrid: AI-driven hosts maintain baseline interaction and product explanation, while human presenters step in for key promotional moments.
Customer Service as Conversion Infrastructure
Another area where AI is quietly reshaping beauty commerce in China is customer service.
On Western e-commerce platforms, customer support is often framed as a necessary cost. In China, it plays a direct role in driving conversion. Shoppers routinely interact with brands before making a purchase, asking questions about ingredients, shades, or suitability for specific skin concerns.
AI-powered service systems are increasingly handling those interactions.
Alibaba’s AI customer service assistant, Dian Xiaomi (店小蜜), has evolved into a sophisticated platform capable of managing large volumes of queries while recommending products and assisting with transactions.
JD’s Yanxi platform similarly integrates service and marketing functions, allowing AI agents to provide product information and resolve customer issues within the shopping journey.
Industry reports suggest that AI-powered service agents can now handle more than 80% of routine e-commerce customer queries on major Chinese platforms. This allows human teams to focus on complex questions, product education, and high-value customer relationships.
The boundary between marketing, service, and sales begins to blur.
Why China’s AI Ecosystem Is Moving Faster
One reason AI adoption has accelerated so quickly in China’s beauty sector is that the country’s e-commerce platforms provide the infrastructure necessary to support it.
Rather than relying on fragmented technology stacks, brands operate within ecosystems where data, payments, logistics, and content distribution are tightly integrated.
This structural advantage is compounded by the scale of China’s digital commerce environment. The country now has more than one billion internet users and hundreds of millions of active online shoppers.
The result is an ecosystem where experimentation happens continuously, and successful innovations can spread rapidly across the market.
A New Competitive Baseline
The rise of AI across China’s beauty commerce ecosystem does not mean that technology alone determines success. Brand storytelling, product innovation, and consumer trust remain fundamental.
What AI does change is the baseline level of operational capability.
Brands that integrate AI tools into their workflows can analyze data more quickly, produce creative assets more efficiently, and maintain continuous engagement with customers. Over time, those advantages compound.
In this sense, China’s emerging AI beauty stack functions less like a novelty and more like a competitive moat. It allows brands to compress the distance between insight and execution.
For global beauty companies watching from outside the market, the lesson is not necessarily to replicate every element of China’s ecosystem, but rather study the structural conditions that enabled its unique development.
But the broader trajectory is difficult to ignore.
For companies operating at the intersection of global brands and China’s fast-moving digital commerce ecosystem, the challenge increasingly lies in helping brands navigate and integrate these capabilities. Platforms, tools, and data systems are evolving rapidly, and translating them into practical operating workflows requires both technological understanding and local market expertise.
At YASO, we see this shift firsthand through the brands we support entering and scaling in China’s social commerce landscape. Increasingly, success in the market depends not simply on creative campaigns or influencer partnerships, but on the ability to integrate AI-driven insights, content production, and operational systems into a coherent commercial strategy.
China’s beauty market may not provide a perfect blueprint for the rest of the world, but it does offer a glimpse of what an AI-native commerce environment might look like.
And that future may arrive sooner than many brands expect.
© BeautyMatter 2026
All Rights Reserved
