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Maybelline to shut all stores in China

By Aiko TanakaChina
2 min read
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The L’Oréal-owned American cosmetic brand Maybelline is gradually shuttering all of its physical stores across China as it aims to shift its focus in the market to online, the brand confirmed Wednesday.

In a statement sent to local media, the brand said, “In response to changes in the market and consumer demand, Maybelline New York has been gradually strategically transforming its traditional offline channels since 2020 to achieve a cohesive online and offline shopping experience and to bring consumers a more diverse beauty shopping experience.”

Customer service from the brand further revealed that the timeline for store closures is not clear so far, but counters within the drugstore chain Watson’s will continue to operate.

The century-old beauty brand, acquired by L’Oréal in 1996, entered the Chinese market in 1997 and soon became a popular choice for a large number of women who moved from the countryside to big cities in pursuit of an office job as the nation was shifting to a service industry-led economy at the time.

Maybelline was a key player in the affordable cosmetic sector through brick-and-mortar channels such as supermarkets and department stores, but the brand in recent years failed to catch up with local competitors and adapt to the disruptive Chinese e-commerce model.

The brand withdrew from the supermarket channel in 2018 and began to leave department stores in 2020.

This shift coincides with the rise of C-beauty brands, as well as L’Oréal gradually pivoting its focus toward the prestige category.

Data from market researcher Qianzhan Industry Research Institute shows that Maybelline’s market share in the Chinese market fell to 4.9 percent last year from 10.7 percent in 2018, while Florasis and Perfect Diary became two of the most popular brands, taking market shares of 6.8 percent and 6.4 percent, respectively.

Questions & Answers

Q.

What is Maybelline's main reason for closing its physical stores in China?

A.

Maybelline is strategically transforming its traditional offline channels to focus on online sales. This change is a response to shifts in the market and consumer demand, aiming to create a cohesive online and offline shopping experience.

Q.

Will all of Maybelline's retail points in China close?

A.

No, not all retail points will close. While the brand is shutting its physical stores, counters within the drugstore chain Watson’s will continue to operate, ensuring some offline presence remains.

Q.

When did Maybelline begin its shift away from traditional offline channels in China?

A.

Maybelline began strategically transforming its traditional offline channels in China in 2020. This followed its withdrawal from the supermarket channel in 2018 and preceded its departure from department stores.

Q.

How has Maybelline's market share in China changed in recent years?

A.

Maybelline's market share in China has significantly decreased, falling to 4.9 percent last year from 10.7 percent in 2018. This decline coincides with the rise of local competitors like Florasis and Perfect Diary.

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