What occurred: 3CE Stylenanda is the newest Korean model to shut its doorways in China. On June 18, the wonder and vogue firm in Beijing’s Sanlitun district closed down after the lease expired, leaving solely two directly-operated shops within the nation. 3CE Stylenanda joins a rising listing of Ok-beauty firms lowering their bodily footprint on the mainland through the pandemic, together with Etude Home and Innisfree†
The Jing Take: In contrast to these extra skilled gamers, 3CE Stylenanda is a rookie by comparability. Based in 2004 in South Korea, Stylenanda launched its make-up division 3CE in 2009 and moved to China in 2019 after being acquired by magnificence big L’Oreal Group the 12 months earlier than. However regardless of being new to the market, the corporate—favored by Asian Era Z and millennials—booked over $15 million (100 million RMB) throughout Singles’ Day 2021, ranked third in gross sales amongst coloration beauty labels after Saint Laurent and Estée Lauder. In actual fact, it has over 12 million followers in its flagship retailer in Tmall, indicating that the mainland love for Ok-beauty is much from over.
Nevertheless, Ok-beauty nonetheless faces main obstacles to win over native customers. Whereas merchandise from South Korea are beloved for his or her prime quality, the market positioning of their manufacturers might be imprecise. For instance, 3CE is finest identified for its younger, vibrant packaging, broad choice of merchandise and collaborations with fashionable idols corresponding to Esther Yu and Simon Gong. Nevertheless, the identical might be stated for the Chinese language magnificence unicorn Excellent Diary, which has an much more aggressive advertising technique.
On the similar time, 3CE has a restricted bodily footprint, with one of many remaining two places in Nanjing opening solely this month. It would not assist that the COVID-19 lockdowns are hitting giant houses, lowering foot visitors to shops and delaying deliveries (within the first quarter of 2022, China’s magnificence market reported sluggish development of 1.8 p.c† The query then is: will the closure of 3CE shops unlock assets to deal with e-commerce – which is clearly one in all its strengths? Or will scaling bricks and mortar be step one to catastrophe?
The Jing Take stories on a bit of breaking information and presents our editorial workforce’s evaluation of the important thing implications for the luxurious business. Within the recurring column, we analyze every part from product drops and mergers to heated discussions that erupt on Chinese language social media.