Sephora continues its strategic adjustments in Asia, following its departure from the Taiwanese market last May. The LVMH group's prestigious perfume chain is now gearing up to exit South Korea due to intense local competition.
Announced through social media channels, Sephora South Korea will commence a gradual withdrawal from the country starting May 6, 2024. This decision encompasses the closure of its six physical stores, its local e-commerce platform, and its mobile application.
Established in South Korea since 2019, Sephora initially expressed confidence in the market's growth potential, despite encountering challenges exacerbated by the Covid-19 pandemic. However, the market landscape, dominated by formidable local players like CJ Olive Young boasting over 1,300 outlets, posed significant obstacles.
In January, Sephora saw the departure of its managing director for China, a move also attributed to the fierce competition with local rivals. This competitive landscape has hampered Sephora's growth in China, although the country remains a key focus alongside the United States.
With a global presence spanning 35 countries, Sephora has been forecasted by industry experts to achieve €12 billion in sales by 2022. The company has its sights set on reaching €20 billion in sales, although no specific deadline has been provided.
