Sephora to withdraw from South Korea

Sephora is continuing to rationalise its operations in Asia. After exiting the Taiwanese market last May, the LVMH group’s selective perfume chain is preparing to leave South Korea due to strong local competition.
 

Sephora South Korea has announced via social networks that it will be gradually withdrawing from the country from May 6, 2024. The withdrawal will affect the beauty retailer’s local e-commerce site, its six shops and its mobile application.
 
Sephora, which has been present in South Korea since 2019, said back in 2022 that it was encountering difficulties there since Covid. However, it was confident about the market’s prospects and growth potential. But its difficulties have been exacerbated by the dominance of local players such as CJ Olive Young, which has more than 1,300 shops in the country.

Last January, Sephora’s managing director for China stepped down. This departure was also linked to Sephora’s strong competition with local rivals, which has caused its growth in the Middle Kingdom to suffer. However, this country remains a priority market for Sephora, after the United States.

With a presence in 35 countries, Sephora, which according to industry experts will achieve sales of €12 billion by 2022, is aiming for €20 billion, without giving a deadline.