What occurred: 3CE Stylenanda is the most recent Korean model to shut its doorways in China. On June 18, the wonder and style firm ceased operations within the Sanlitun space of Beijing after the lease expired, leaving solely two instantly operated shops within the nation. 3CE Stylenanda joins a rising record of Okay magnificence firms that diminished their bodily footprint on the mainland in the course of the pandemic, together with Studio Home And Innisfree.
The Jing takes: Not like these extra skilled gamers, 3CE Stylenanda is a rookie as compared. Established in 2004 in South Korea, Stylenanda launched its 3CE make-up division in 2009, after which entered China in 2019 after being acquired from the wonder large L’Oréal Group the yr earlier than. However regardless of being new to the market, the corporate, favored by Asian Technology Z and millennials, recorded over $ 15 million (100 million RMB) throughout Singles’ Day 2021, rating third for gross sales amongst coloured cosmetics labels after Saint Laurent and Estée Lauder. In truth, she has over 12 million followers in her Tmall flagship retailer, signaling that the Continental’s love for Okay-beauty is much from over.
Nonetheless, Okay-beauty nonetheless faces main hurdles to win over native customers. Though South Korean merchandise are beloved for his or her top quality, the market positioning of their manufacturers will be imprecise. 3CE, for instance, is greatest identified for its younger and vibrant packaging, large product choice and collaborations with style idols like Esther Yu and Simon Gong. Nonetheless, the identical could possibly be stated for Chinese language magnificence unicorn Excellent Diary, which boasts an much more aggressive advertising technique.
On the identical time, 3CE has a restricted bodily footprint, with one in every of its remaining two areas in Nanjing opening simply this month. It would not assist that the COVID-19 blockade has affected style homes on the whole, lowering foot visitors to shops and delaying deliveries (within the first quarter of 2022, the Chinese language magnificence market skilled gradual progress of 1.8 %). The query then is: Will closing 3CE’s retailer unlock assets to deal with e-commerce, which is clearly one in every of its strengths? Or will the downsizing of brick and mortar be step one in direction of catastrophe?
The Jing Take studies one of many fundamental information gadgets and presents our editorial group’s evaluation of the principle implications for the posh trade. Within the recurring column, we break down the whole lot from product launches and mergers to the heated debate on Chinese language social media.