Sephora to exit South Korea market

French cosmetics giant Sephora has announced plans to exit the South Korean market following a challenging battle for market share against local competition.

Sephora’s Korean unit took to social media on Tuesday to outline its phased exit strategy, set to begin on May 6. The withdrawal will impact Sephora’s online mall, mobile application, and brick-and-mortar outlets across South Korea.

The LVMH-owned retailer ventured into the Korean cosmetics market in 2019 with the inauguration of a flagship store in the Gangnam district of southern Seoul, and went on to open five additional stores in the capital of Seoul. 

Sephora Korea’s struggle with sales has been compounded by the dominance of local players like CJ Olive Young, which operates a network of over 1,300 stores nationwide. Sephora currently operates other retail locations in the Asia Pacific region, including in China, Australia, Thailand and more.

Last month, Sephora announced a new brand signature — We belong to something beautiful — launched across all of its 35 markets for the very first time. The company said the new brand slogan underlines its “purpose to inspire its communities through its inclusive vision, within which all forms of beauty are celebrated”. 

It launched in the North American market in 2019 and is now coming to life in Europe, the Middle East and Asia through an immersive campaign.