Sephora to exit South Korea market
THE WHAT? Sephora has announced that it is pulling out of South Korea. On an Instagram post, the LVMH-owned retailer revealed that it would terminate operations with a phased withdrawal commencing from May 6, 2024.
THE DETAILS The phased withdrawal will affect Sephoras e-commerce platform, mobile app and bricks and mortar stores, according to a report published by Korea JoongAng Daily.
THE WHY? Korea JoongAng Daily posits that the beauty retailer has struggled in the face of stiff competition from local chain, Olive Young. An anonymous industry expert told Korea JoongAng Daily, When Sephora entered the market, it should have tailored its strategy to stand out but it struggled to adapt locally. Despite the high quality and relatively lower prices of Korean cosmetics, Sephora failed to offer enough unique advantages, which is disappointing from a strategic standpoint.
