CBO reporter Zhu Cong
The popularity of Quan Zhixian's same HERA Heyan mermaid lipstick in "Star You" seems to be still yesterday, and the HERA Heyan China offline counter has been completely closed.
Following the reduction or withdrawal of Chinese offline counters by Innisfree and Itti's House, HERA Hye-yeon, a high-end brand owned by Korean cosmetics giant Amorepacific Group, has successively closed the Chinese offline counters.
01
HERA has completed the removal of the cabinets
The WeChat mall was closed in mid-March
At present, HERA Heyan WeChat Mall is discounting the whole line, 40% off lipstick and 30% off black gold cushion foundation.
△ HERA Heyan WeChat mall is discounting the whole line
The official customer service told the "Cosmetics Finance Online" reporter: "The HERA brand's offline counters in China have all completed the withdrawal of the cabinet, and the WeChat Mini Program Mall will be closed in mid-March, and other platforms will not be affected." ”
△ WeChat mall customer service reply
Obviously, the HERA brand is not withdrawing from the Chinese market, but is selectively concentrated online.
In this regard, Amorepacific China replied to the "Cosmetics Finance Online" reporter, "Due to the adjustment of business channels and strategic development, HERA Heyan WeChat Mall will be closed on March 25. Consumers can still make purchases through the HERA Tmall flagship store. ”
A person who once worked for Amorepacific revealed: "The withdrawal of the cabinet is related to the structural adjustment carried out by Amorepacific Group in 2020. ”
The outbreak of the epidemic in early 2020 caused a huge impact on offline channels, and Amorepacific Group was not spared.
According to the second quarter financial report of the year, the Group's turnover fell by 24.7% to 1.2 trillion won (about 7 billion yuan) and operating profit fell by 67.2% to 36.2 billion won (about 210 million yuan).
△ Amorepacific Group 2020 financial report
In China, due to the substantial growth of high-end brands such as Snowflake Show online, Amorepacific has increased its investment in e-commerce business of multiple brands, and at the same time, it has also reorganized the department store channels of IOPE and Dream Cosmetics, and continued to adjust the offline stores of the Innisfree and Itti House brands.
△ HERA Heyan is the first counter in China at SKP in Beijing
In 2016, HERA Heyan officially entered the Chinese market by opening the cabinet in Beijing SKP, due to its high-end positioning, there are not many department store counters, concentrated in high-end department stores, and the withdrawal of cabinets is also quiet.
△ Hangzhou Hubin Yintai discounted in September 2020 Hejiao counter, source: Little Red Book
According to the discussion in the Little Red Book, HERA Heyan's counter in Zhengzhou has been fully 50% off since March 2020, tianjin counters have been withdrawn in June, the only counter in Chongqing has been withdrawn in August, Hangzhou has been carried to September of that year, and the last counter in Shanghai has been closed in October.
△ The last store in Shanghai Image source: Little Red Book
02
The Hallyu ebb tide
Sister brands have different fates
A general environment that cannot be ignored is that the Korean makeup trend has become a thing of the past in the Chinese market.
At the beginning of 2022, innisfree, a beauty brand owned by Amorepacific Group, was rumored to be "withdrawing" from the Chinese market – the withdrawal rate exceeded 80%. Another beauty brand, Etude House, completely closed all offline stores in the Chinese market in March 2021.
△ ARITAUM Aridain
As a multi-brand collection store of Amorepacific Group, ARITAUM has quietly settled in Shanghai Four Seasons Place since the beginning of 2020, "closed in October", and only survived for 10 months.
When the news of the withdrawal of a number of brands came out, Amorepacific Group responded, "In the future in the Chinese market, the Group will focus on the high-end and online fields." ”
It is reported that Amorepacific, which has been deeply involved in the Chinese market for nearly 30 years, currently has 12 major brands in the Chinese market: laneige introduced in 2002, Mamonde introduced in 2005, Sulwhasoo introduced in 2011, innisfree introduced in 2012, Itti House introduced in 2013 and IOPE introduced in 2015. Ryo, HERA introduced in 2016, mise en scene in 2018, primera in 2019 and espoir introduced in January and BE READY in April.
What fate will other brands face is not yet known?
At the 2022 annual meeting, Amorepacific President Xu Qingpei said, "The company is planning to deepen its digital transformation to attract millennial and Gen Z consumers, and stressed the need to restructure its business to move forward." ”
△First
It is worth noting that the VIP welfare group led by the official public account of the HERA brand has been converted into the official community of Amorepacific's sister brand Flemena Primera, and the group is conducting a concession campaign for primera. It is reported that Primera positions high-end skin care, focusing on naturalistic seed fermentation, which is roughly equivalent to the high-end version of Innisfree, and this brand is obviously one of the main promoters of the group.
To be sure, the Snowflake Show brand will also continue to stick to it.
According to Amorepacific's 2021 financial report, the high-end camp to which Snowflake Show belongs is the pillar of Amorepacific Group's recent performance growth. In Asia, which is mainly driven by the Chinese market, Snowflake Show still contributed to the main performance, and sales increased by 50%.
"Han makeup is actually like this in China. In the past, many Chinese did not know that when Amorepacific, Snowflake Show had already entered a Department Store in China, and many Chinese only knew LG Home Appliances, and then they also opened department stores in China. Snowflake Show is a high-end brand and still has a good competitiveness. The above-mentioned person said.
Editor Edit | Peng Shi
Proofreader proofreader | Wang Yuying
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