At a cosmetics booth inside the ongoing China International Consumer Products Expo in Haikou, capital of South China's Hainan province, a visitor trying on lipstick wore a lightweight headset while cameras tracked her facial expressions.

As she looked at the packaging and applied the product, sensors monitored her brain waves and micro-expressions. Within seconds, a screen displayed which parts of the experience — from texture to design — triggered the strongest positive response. The system, developed by Chinese cosmetics brand Florasis, is designed to decode consumers' subconscious reactions to cosmetics.

"In the past, product testing often relied on questionnaires, which are highly subjective," said Zeng Min, general manager of public affairs at Florasis. "Now we can collect objective biological data such as brain waves, micro-expressions and eye-tracking signals to understand consumers' real preferences."

The technology reflects a broader shift across China's cosmetics sector, where companies are increasingly investing in research, ingredients and digital tools in one of the world's largest beauty markets.

The cosmetics industry of Chinese mainland recorded total sales of about 1.1 trillion yuan ($150 billion) in 2025, according to data released by the China Association of Fragrance, Flavor and Cosmetic Industries, maintaining its position as the world's largest cosmetics consumption market. Domestic brands accounted for more than 57 percent of the market, continuing a multiyear rise in local market share.

The expansion of local brands marks a turning point in a market once dominated by international companies. Industry analysts say the next stage of competition is likely to be driven less by online marketing and more by technology and product efficacy.

Consumers are becoming increasingly focused on ingredients and performance rather than brand labels alone. According to a report by KPMG on China's beauty industry, 58.8 percent of consumers now rank product ingredients as the most important factor in purchasing decisions, reflecting the rise of so-called "ingredient-conscious" buyers. At the same time, the market's most dynamic price segment has shifted toward midrange products priced between 300 and 500 yuan, while both ultra-low-cost and high-end categories face pressure from more rational consumer spending, the report said.

Florasis, founded in 2017 in Hangzhou, capital of East China's Zhejiang province, has positioned itself within this transition by combining traditional Chinese aesthetics with a growing emphasis on research and development.

At this year's Hainan expo — the company's third appearance — Florasis showcased an upgraded version of the artificial intelligence sensory analysis system used in product development.

First introduced around 2022, the latest version reduces the number of electrodes used to capture brain wave signals from more than 30 to four, making the device easier to wear while enabling real-time analysis that previously took one to two weeks.

Florasis said the technology is mainly used in the early stages of product development to evaluate factors such as texture, fragrance and packaging.

Chinese beauty brands are also looking abroad for growth. China's exports of cosmetics and personal care products rose 10.3 percent year-on-year in the first nine months of 2025, according to data cited in the KPMG report.