Sephora to withdraw from South Korea: The Asian division of Sephora is still undergoing a process of rationalization. The LVMH group’s selected perfume chain is getting ready to leave South Korea after already leaving the Taiwanese market in May owing to intense competition from local brands.

Estee Lauder Through various social media platforms, South Korea has declared its intention to begin a gradual withdrawal from the country beginning on May 6, 2024. The cosmetics store’s six brick-and-mortar locations, mobile app, and local e-commerce site would all be impacted by the withdrawal.

Even though it has been operating in South Korea since 2019, Sephora reported problems there since the COVID-19 pandemic in 2022. Nonetheless, it had faith in the future and expansion possibilities of the market. However, local competitors like CJ Olive Young—which has over 1,300 stores in the nation—have made matters worse.

Jan. of last year saw the resignation of Sephora’s managing director for China. Another factor that contributed to Sephora’s stagnant growth in the Middle Kingdom—its intense competition with local rivals—was this employee’s decision to leave. Nonetheless, this nation is still Sephora’s second-most-important market.

Experts predict that Sephora will earn €12 billion in sales by 2022, and the company, which operates in 35 countries, is striving for €20 billion without specifying a timetable.