Carol Huang
Oct 14, 2020

Maybelline to pull out of department stores in China

The brand will continue to rely more on online sales while opening more flagship and experience stores.

Maybelline to pull out of department stores in China

L'Oreal brand Maybelline will gradually quit using department store channel in China, adjusting its offline channels to offer more user experiences while expanding online sales.

According to Southern Metropolis Daily, L'Oréal confirmed the change and said it will continue to open flagship stores and experience centres in China.

Since 2018, Maybelline has been reducing its offline sales in supermarkets in line with a strategy to upgrade its brand image. General manager Wang Qianyuan of L'Oréal's makeup department said in an event earlier that Chinese consumers have a mature understanding of makeup products, and Maybelline would accordingly adjust its stores and image.

In its statement, L'Oréal said the reason to retreat from department stores is to "emphasize its unique image of a fashion brand and to better catering consumers' need".

Online sales have become L'Oréal's major source of income. According to its latest earnings report, online sales of increased by 52.4% year-on-year to €4.6 billion (US$5.4 billion). And since the beginning of 2020, sales from e-commerce contributed about 50% of L'Oréal China's sales.

Although the pandemic has made an impact on Maybelline's global sales, the impact in China is quite limited. Maybelline was one of the first makeup brands to start live-streaming sales as it adapted to the fast-changing Chinese environment. Early in 2016, it invited 50 internet celebrities to help sell lipsticks online, achieving 10,000 sales in two hours. Today, Maybelline still works with live-streamers in multiple channels to boost its sales online.

Source:
Campaign Asia

Related Articles

Just Published

12 hours ago

Agency Report Cards 2023: We grade 31 APAC networks

Campaign Asia-Pacific presents its 21st annual evaluation of APAC agency networks based on their 2023 business performance, innovation, creative output, awards, action on DEI and sustainability, and leadership.

12 hours ago

OpenAI inks multi-year content deal with News Corp

The five-year agreement comes as Microsoft, OpenAI, and Google face intense scrutiny over training AI models on copyrighted content usage without consent.

13 hours ago

Agency Report Card 2023: Initiative

Losing long-term client Carlsberg is a blow for the agency, and Initiative has tried to mitigate the losses with solid employee initiatives.

13 hours ago

Global indie media rankings: PMG and Cossette lead ...

Big single wins for Australia's Nunn Media and Howatson+Co helped them place 3rd and 11th respectively.