In the 1990s, a foreign cosmetics company launched its first face cream in China, promoting it as a cure-all for fine lines, rough skin, enlarged pores, and a host of other imperfections. To promote the product, it enlisted a red-hot film and television celebrity of the time. Catchy lines like “one bottle tackles multiple skin concerns” and “youthful glow for 24 hours” aired repeatedly during prime time on television stations across the country.
But long before arriving in China, this kind of marketing was already a staple in the West. Italian author Maura Gancitano wrote in her book Specchio delle mie brame that face cream ads always seem to offer an illusionary promise. These creams are packed with nutrients that can’t be eaten—because that would lead to weight gain—yet they can be rubbed on skin, alluding to doubts over how they actually work.
The Ordinary may have been the first brand to challenge this illusion.
Unlike other beauty brands of its time, The Ordinary’s sales associates didn’t try to sell customers a set of products. They recommended a single item tailored based on skin condition—or, in some cases, telling customers outright to see a dermatologist. Most of the brand’s products came in minimalist dropper bottles, with labels that clearly listed active ingredients and concentrations. With no flashy names, they looked more like lab samples than luxury serums.
Even more disruptive than the minimalist packaging was the price tag—some products sold for very low prices. Its 10% niacinamide serum costs RMB 98 (USD 14), less than a quarter the price of similar formulations from competing brands. This price-slashing positioning quickly earned it a cult following. In 2021, The Ordinary rolled out 24 skincare and haircare products across more than 430 Sephora stores in North America, raking in USD 500 million in revenue. It was a testament to founder Brandon Truaxe’s vision of “a better world of beauty” that’s affordable and sustainable.
In 2017, Estee Lauder Companies made its first investment in The Ordinary’s parent company, Deciem. Last June, it completed a full acquisition, valuing the company at approximately USD 2.2 billion. After the acquisition, Truaxe stepped back from the spotlight, and Jesper Rasmussen, a longtime Deciem executive with prior experience managing regional operations for several multinational firms, became global brand president—reporting into Estee Lauder.
At the beginning of this year, The Ordinary officially entered the China market. Previously available only via cross-border e-commerce, it’s now stocked in Sephora stores, features prominently on Xiaohongshu, and is live streaming directly to Chinese consumers. This rollout coincided with Estee Lauder’s largest ever revival plan, launched in February and dubbed “Beauty Reimagined.” The strategy, spearheaded by new CEO Stephane de La Faverie, aims to reinvigorate growth by broadening the brand portfolio, putting consumers at the center of its operations, and increasing visible ad spending—ultimately targeting double-digit operating margins in the years to come.
36Kr sat down for an interview with Rasmussen to talk about The Ordinary’s strategy in China, whether the future of beauty leans more toward science or luxury, and how the brand plans to stay nimble and independent under the umbrella of a beauty giant.
The following transcript has been edited and consolidated for brevity and clarity.
36Kr: Functional skincare is no longer a novelty. Why did you choose now to enter the China market?
Jesper Rasmussen (JR): That’s a great question—why now? Why not five years ago? (Well, ten years ago we weren’t even in the market.) The answer largely comes down to China’s evolving regulations on animal testing for imported cosmetics.
The Ordinary is a cruelty-free brand. That’s a non-negotiable principle for us. It was a major factor in choosing this specific moment to enter the Chinese market. Beyond that, we had to develop entirely new products—some existing items couldn’t be sold in China due to regulatory reasons, or because they weren’t suitable for local skin types. That kind of localization takes time.
36Kr: How long did the preparation take?
JR: More than a year. And frankly, we moved fast. Just look at our competitors—most have only eight, ten, maybe 12 SKUs at Sephora. It’s not that they don’t want to do more—it’s that they can’t.
36Kr: Can you give a specific example of product adaptation?
JR: Sure. Our glycolic acid toner is one of our global bestsellers, but it couldn’t be registered in China. So, we faced a choice: do we lower the product’s concentration, or develop something better? In the end, we created a new formula with antioxidant ingredients built on the glycolic acid base. That’s what tailored product development looks like.
It’s not just about how many products we can launch, but also offering a lineup that genuinely suits Chinese consumers. And right now, very few brands can do that for Sephora China.
36Kr: But clearly, this isn’t the best timing. The Ordinary is affordable, but there are even cheaper brands on the market.
JR: We don’t really consider The Ordinary a “mass market” brand. This is something the industry often debates, but consumers don’t typically ask, “Is this mass or premium?” That actually gives us a unique opportunity to define ourselves.
We think the line between mass and premium is increasingly blurry.
36Kr: Still, there must be some line of demarcation.
JR: It really comes down to distribution, not just price. Brands can thrive at different price points: luxury, mid-tier, or budget. We position ourselves as premium largely by controlling where we’re sold. For instance, you won’t find us at Carrefour or Walmart.
That said, the boundaries are shifting. Amazon, for example, has created high-end storefronts to attract brands like ours—even though it also carries pharmacy and grocery brands.
The difference lies in how these stores are run. But ultimately, it’s your distribution strategy that defines your brand positioning.
36Kr: So, you’re very selective about shelf placement.
JR: Absolutely, though that doesn’t mean we’re slow to act. We won’t spend ten years deciding where to launch. Of course, we think carefully about where we want to be, but even more important is understanding where consumers expect to find us.
Our pricing is highly competitive, and that gives us leverage when choosing channels. We ensure full transparency on both efficacy and cost—that’s part of our “honest skincare” philosophy. But we never do price promotions. Anytime you buy a product from The Ordinary, you’re paying the fairest possible price.
36Kr: How do you maintain a price advantage?
JR: Take niacinamide, for example—it’s a popular ingredient in skincare. Honestly, there’s no need to spend hundreds of thousands of dollars validating its effectiveness. There are over 4,000 studies globally that back it up. Anyone can just look them up. That’s point one.
Point two is simple economics: raw materials like niacinamide have a market price. No matter which brand is using it, the base cost is the same. Our ability to price the 10% niacinamide and 1% zinc serum lower comes from our global sourcing scale. We get better pricing on ingredients and we pass those savings directly to the consumer. That’s our philosophy: price based on actual cost.
Of course, we don’t cut corners on formulation. For that same serum, our lab went through countless test batches just to get the texture right for the skin. If it didn’t meet our standards, we tossed it and started again. Affordable doesn’t mean compromising on quality.
36Kr: For functional skincare brands, how do you localize marketing in China? What’s different compared to overseas?
JR: In the US and Europe, we’ve built our brand entirely through word of mouth. We only start paid advertising after the community begins talking about a product on its own. Compared to traditional brands that rely heavily on ad spend, our approach makes it harder to predict sales—you can’t calculate exposure and conversion the same way.
But you’re right that China is a unique case. You simply can’t avoid paid media here. So, we had to find a middle ground: maximize local engagement without sacrificing the soul of our brand.
With content seeding on social media, we care more about quality than quantity. We aim to build deep, long-term relationships with creators. And we’re also serious about engaging directly with consumers. On Xiaohongshu, we respond to every comment, helping users figure out which product suits them best.
36Kr: Tell us about your career background.
JR: I’ve been in the beauty industry for over 25 years now—it has been a long journey. I’m Danish. I spent my first ten years working in various Nordic countries, first in the food industry, then in L’Oreal.
At L’Oreal, I worked across functional skincare, luxury, and mass market segments. About 17 years ago, I left to join Estee Lauder Companies. I started in Denmark, spent three years there, then moved to Germany for another three. Later, I joined Clinique, where I oversaw the brand’s operations in Europe, the Middle East, and Africa.
36Kr: Was it a big adjustment moving from a big corporation to a startup-like environment at The Ordinary?
JR: Denmark has just five million people—we’re used to adapting. And though I officially stepped into this role last year, I’ve actually been at The Ordinary for three years now. I first met the Deciem founder seven years ago, so I’ve had plenty of time to absorb the culture of both Deciem and The Ordinary.
36Kr: But your personality and background seem very different from the brand’s founders.
JR: To be honest, I don’t think the company picked me because I’m wildly ambitious. I was chosen because of three things: my deep understanding of the beauty industry, my willingness to make tough decisions, and the fact that I can be inspired by Deciem’s wildly creative spirit. It’s like a puzzle—we just fit. This isn’t about who’s “better.” It’s about who’s the right fit—someone who can lead boldly and still nurture the brand’s rebellious streak.
36Kr: Is The Ordinary still 100% independent under Estee Lauder?
JR: I don’t really buy into the idea of 100% independence. We don’t need to be completely separate. What Estee Lauder offers is exactly what we need. That said, we do operate independently. We control all our decisions—product development, launch plans, marketing campaigns. In most cases, the group only finds out about these decisions after the fact. It’s not about keeping secrets—it’s just how we work.
When you’re scaling globally, every market needs serious investment. We couldn’t do that alone. That’s where Estee Lauder’s strength comes in. Its local teams helped us establish our China presence, and that support is a big reason we’ve succeeded globally.
36Kr: As CEO, how do you balance standardization across the group with the brand’s own identity?
JR: At Deciem, I’m the only person who reports directly to the group CEO. There are no other reporting lines. That structure gives us autonomy while still allowing for strategic alignment when needed.
And I have to say—I really enjoyed working with the former CEO, Fabrizio Freda, and I’m enjoying working with our current CEO, Stephane de La Faverie. I’ve reported to him for three years now. Our collaboration is independent but close. That doesn’t mean I get to slack off—his expectations are very high.
We’re a brand that wants to disrupt the industry and drive innovation. But as global brand president, I also have to deal with real-world constraints. People at the company need to get paid. I have to respect that, and make sure there’s structure and accountability. Striking that balance is crucial, right?
36Kr: In your view, will the future of beauty be more about science-backed efficacy, or will luxury make a comeback?
JR: There’s room for both. The market is still evolving. But demand for truly effective products will keep rising—not just in skincare, but increasingly in makeup too. Consumers today are incredibly informed. I often meet users who know ingredients better than we do.
That pushes us to improve our product education—explaining how ingredients work, why we price the way we do, even why we chose a certain packaging. What’s clear is that the science-driven trend is still growing fast. It’s nowhere near its peak.
36Kr: What are your expectations for the China market?
JR: Our goal is to become the top skincare brand in Sephora China. Globally, we’re already one of the top three skincare brands at Sephora.
36Kr: One last number—how close is The Ordinary to hitting USD 1 billion in revenue?
JR: Very close.
36Kr: 70% there?
JR: Closer than that.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This article was written by He Zhexin for 36Kr.