China beauty brands reduce influencer marketing amid new regulations

New regulations in China have significantly altered the live e-commerce landscape. Following the implementation of measures by the National Market Regulation Administration and the Cyberspace Administration of China on February 1, 2026, product recommendations by creators are now legally classified as commercial advertising.

This legal shift has coincided with a major strategic pivot among major beauty brands. According to Sina Finance, 85% of the top 20 beauty brands in China reduced their influencer-led promotions in the first quarter of 2026 compared to the previous year. Notable brands such as YSL and Helena Rubinstein have seen significant declines in this channel.

While the new legal obligations play a role, profitability remains a primary driver for this shift. Data indicates that influencer-led live streams yield an average ROI of 1 to 1.2, whereas live streams broadcast directly by brands achieve a much higher ROI of 1 to 4.5. The combination of increased legal risk and lower returns has led to a rapid transition in media strategy.