Beauty / news
AI-Driven Commerce Reshapes China's Beauty Market, Says Yaso Co-Founder
Adam Knight, co-founder of Yaso, advises beauty brands to adopt an AI-first approach as China's market shifts away from legacy retail routes, with AI integration far ahead of the West.
China's beauty market is undergoing a fundamental transformation, with traditional distribution channels becoming obsolete, according to Adam Knight, co-founder of consultancy Yaso. Speaking on the changing landscape, Knight emphasized that brands should not dismiss China despite recent market challenges.
Knight pointed out that much of the negative sentiment about China stems from players whose margins are under pressure due to outdated strategies. He argued that the new competitive advantage lies in AI-driven operations, from research and development to supply chain and brand building.
Chinese consumers are adopting AI for product discovery at double the rate of U.S. consumers, using local large language models rather than global tools like ChatGPT or Claude. This shift requires brands to rethink their market entry and engagement tactics.
Knight urged beauty companies to either embrace AI-first strategies for entering China or at least observe Chinese innovations to stay competitive in their home markets. He warned that building without an AI focus risks catering to a market that no longer exists.