Benefit, once a globally renowned makeup brand, is now facing the fate of withdrawing from the Chinese market. According to a number of ** reports, Benefit will fully withdraw from the Chinese market due to poor sales in the Chinese market, which is the so-called "can't sell". This decision means that the international brand, which once had a place in China's beauty industry, will completely leave the Chinese market between the end of June and the beginning of July 2024.
Benefit's retreat did not happen overnight. As early as the end of 2023, Benefit has announced that its official *** on Tmall, JD.com, and Douyin will be closed, and it will no longer accept new orders from January 28, 2024. This marks the closure of Benefit's online sales channels in the Chinese market, leaving only Sephora's offline stores as the sales channel for its products. However, even in Sephora's counters, Benefit's products have been struggling to sell. According to reports, only some of the best-selling Benefit makeup products were displayed on the counter of Sephora's Beijing Sanlitun store, and the samples were incomplete. The clerk even revealed that Benefit's counter will be removed soon, and it is expected to be completed by the end of March at the latest.
Benefit's exit not only reflects the challenges faced by international brands in the Chinese market, but also reflects the fierce competition in the Chinese beauty market. In recent years, the rise of domestic beauty brands and the rise of emerging sales models such as live streaming have had a huge impact on international beauty brands. As an international brand, Benefit's market performance in China has gradually become "unadaptable". In addition, Benefit's performance reflects the LVMH Group's development in the Chinese market. Despite the growth of LVMH's sales revenue for the full year 2023, the relatively slow growth of its Perfumes & Cosmetics business unit, which includes Benefit, shows the challenges in the Chinese market.
The departure of Benefit has undoubtedly left a gap in China's beauty market, and at the same time, it has also brought reflection to other international brands: how to adapt and win the favor of Chinese consumers in a highly competitive and ever-changing market environment.
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