In a beauty industry increasingly dominated by social media trends and viral product recommendations, established cosmetics brands face a growing challenge: the proliferation of “dupes” – cheaper alternatives that mimic premium products in formulation, packaging, and marketing. While consumers celebrate these affordable options, industry insiders warn that the dupe phenomenon threatens innovation and long-term industry health in ways many beauty enthusiasts may not realize.
Beyond Social Media: The Global Scope of Cosmetic Duplication
The dupe trend extends far beyond TikTok influencers like Nina Pool, whose 3.6 million followers tune in for recommendations on affordable alternatives to luxury products. Under the surface, a more systematic approach lurks – mass industrial duplication that affects both Western and Asian markets.
Manufacturers, both in Western countries and China, sometimes find themselves involved in the production of copy-products, including those marketed within China. Additionally, some manufacturers have begun launching their own brands, which may compete directly with their clients. It is important to note that while Chinese regulations require the disclosure of the manufacturer’s name on product labels, the Chinese cosmetics market remains the second largest and fastest-growing globally. For many brands, establishing a presence in this dynamic market is an essential and non-negotiable part of their overall growth strategy.
Navigating Manufacturer Relationships: Protecting Your Intellectual Property
In today’s competitive cosmetics industry, safeguarding proprietary formulations and innovations is paramount. While manufacturers play a vital role in bringing products to market, brands must exercise caution in sharing sensitive information. It is essential that brands do not disclose proprietary formulas, manufacturing processes, or supplier details beyond trusted partners under strict confidentiality agreements.
An important area of risk lies in safety assessments and regulatory compliance. Outsourcing these assessments to third-party laboratories—especially those without established reputations or located in less regulated environments—can inadvertently expose confidential product information. Brands are advised to work with compliance partners who conduct safety evaluations in-house and maintain rigorous data security protocols to minimize risks.
Although many manufacturers operate with integrity, the reality of parallel production—where similar or copy products may be produced alongside original formulations—makes it critical for brands to have clear, robust contracts. These agreements should explicitly prohibit manufacturers from producing identical or substantially similar products for other clients and include strong confidentiality and non-compete clauses.
By maintaining strict control over proprietary information and carefully selecting manufacturing and compliance partners, brands can better protect their innovations and maintain a competitive edge in a market where duplication risks persist.
The Strategic Importance of the Chinese Market
China represents one of the largest and fastest-growing cosmetics markets globally, offering significant opportunities for Western and international brands to expand their consumer base and increase revenues. However, the regulatory requirement to disclose the manufacturer’s name and address on product labels introduces unique challenges.
While this transparency measure aims to protect consumers and ensure product accountability, it also inadvertently exposes brands to risks such as product duplication and intensified competition from local manufacturers and copycat producers. Therefore, global brands must conduct thorough research and due diligence before entering the Chinese market to mitigate these risks effectively.
Balancing the immense potential of the Chinese market with the need for caution is crucial. Brands that navigate this landscape strategically—by securing trusted manufacturing partners, protecting intellectual property, and working with reliable compliance agents—can capitalize on China’s growing demand for beauty products while safeguarding their innovations.
Chinese KOLs: From Recommending to Creating Dupes
The challenge for major brands has intensified as many Key Opinion Leaders (KOLs) in China have shifted from simply promoting “dupes” to launching and profiting from their own copycat products.
“Chinese influencers have recognized that they can leverage their follower base to sell their own dupe products rather than just promoting existing alternatives,” explains Knudsen. “They’re approaching manufacturers with specific requests to replicate successful Western formulations but at lower price points, effectively cutting out the innovation costs.”
Leading luxury beauty brands (especially within advanced skin- and haircare products) typically invest a minimum of $2-4 million in research and development for each new product launch. These are costs that dupe creators simply do not face.
The Hidden Cost of Dupes: Stalled Innovation
While consumers may celebrate access to affordable alternatives, cosmetic chemists and industry veterans warn of longer-term consequences.
“The tragedy of dupe culture isn’t just the heartbreak of ‘they copied my homework,’” says Charlotte Palermino, co-founder of Dieux Skin, in an interview with Beauty Independent. “It’s the slow death of innovation.”
When brands see their R&D investments quickly copied by competitors who do not need to bear those costs, it reduces the incentive to invest in groundbreaking research. As Kelly Dobos, a cosmetic chemist with over 15 years of experience, points out in a feature for Cosmetics Business, “Dupe culture incentivizes companies to focus on putting out products that are in line with the latest trends rather than creating something groundbreaking.”
Although patents expire, some brands are able to protect their innovation by robust trade secret measures. Although SkinCeuticals C E Ferulic serum’s patent expired in March 2025, it seems no competitor has been able to meet the technical know-how SkinCeuticals acquired over years of research and clinical testing to perfect their product. Accordingly, technically challenging products and a strategy of not disclosing everything in patents can extend the period in which the brand does not face direct competition from copycats.
Protecting Innovations Without Breaking the Bank
While patents offer strong protection for cosmetic innovations, the costs can be prohibitive, particularly for smaller brands. Industry estimates suggest that obtaining international patent protection in the main jurisdictions can cost upwards of $100,000. In addition, the patent holder will be hit with ongoing maintenance fees.
Companies lacking the resources to pursue extensive patent protection need the most cost-effective strategies to protect their innovations:
1. Strategic Manufacturing Agreements
“The manufacturing relationship is critical,” emphasizes Knudsen. “Brands must ensure their contracts explicitly prohibit manufacturers from producing identical or substantially similar products for other clients.”
These agreements should include non-compete clauses, confidentiality provisions, and clearly define ownership of formulations developed during the partnership. As Mark Schaub, International Partner at King & Wood Mallesons, notes: “A well-drafted contract will not magically solve every problem or turn a bad partner into a good one. But a poorly drafted contract can seriously undermine your ability to manage risk and to take effective measures if the relationship goes off the rails.”
2. Securing the Supply Chain
The unique characteristics of many premium cosmetic products often stem from proprietary ingredient blends or specialized raw materials. By securing exclusive relationships with key suppliers or developing proprietary ingredient technologies, brands can create barriers to perfect duplication.
3. Choosing Trusted Compliance Partners
For global brands entering markets like China, registration and compliance partners often gain complete access to product formulas, manufacturing processes, and supplier information. This creates significant vulnerability if these partners are not completely trustworthy.
“Your compliance agent essentially has your entire product playbook,” warns Knudsen. “Choosing the right partner is as important as any patent or legal protection.”
Vetting Your Registration Partners
For Western brands navigating Asian markets, particularly China, Knudsen recommends a thorough vetting process for potential registration partners:
- Speak directly with current clients: Request direct conversations with well-known brands the agency represents to verify their experience and trustworthiness.
- Examine internal processes: Investigate how safety assessments and registration dossiers are handled. Partners who conduct safety assessments in-house rather than outsourcing to third-party labs offer an additional layer of confidentiality.
- Verify data security: Demand offline systems/servers for storing confidential information to mitigate hacking risks, particularly in markets where intellectual property protection may be less robust.
- Maintain close communication: Regular interaction (weekly or bi-weekly) helps ensure your partner remains accountable and alerts you to potential issues before they become problems.
Proactive Protection in a Competitive Marketplace
International brands will need to adopt a comprehensive approach to protecting their innovations rather than simply accepting the reality of dupes. The SkinCeuticals case demonstrates that even after patent expiration, brands can maintain competitive advantage through confidential manufacturing processes that competitors have yet to fully replicate.
“The most successful brands implement protective measures at every stage of product development and commercialization,” explains Knudsen. “This means securing not just the formula, but the entire ecosystem around it – from unique raw material sourcing to proprietary manufacturing techniques, specialized packaging, and controlled distribution channels.”
For established brands, this integrated protection strategy might include:
- Developing proprietary delivery systems that enhance product efficacy in ways that are not immediately apparent from the ingredient list
- Creating signature sensory experiences that are difficult to duplicate without intimate knowledge of the manufacturing process
- Investing in continuous innovation to stay ahead of copycats, ensuring that by the time dupes appear, the original brand has already advanced to the next generation
Newer brands should build protection into their business model from inception. This may include working with legal experts to identify aspects of their innovation that can be protected through patents, trademarks, or trade secrets.
“The battle against dupes isn’t one any brand should concede,” concludes Knudsen. “With strategic planning and vigilance throughout the product lifecycle – from development through manufacturing to market entry and compliance – brands can preserve the competitive edge their innovations deserve. The future of the industry depends not on surrender to dupe culture, but on creating systems that reward and protect genuine innovation.”
For brands seeking to avoid the risk of dupes in China and ensure their innovations are protected, contact Knudsen&CRC for a confidential discussion.