CBO reporter Li Jianzi
The "war" outside the battlefield continues.
Uncertainty is emerging in the global economy and the beauty industry due to the impact of the war.
Since the Russo-Ukrainian War, in the context of the further severe international political situation, major luxury retailers and beauty groups have also been involved in the "war" outside the battlefield. The luxury industry came under intense pressure after Bulgari said sales in Russia had risen sharply due to the depreciation of the ruble.
Last week, luxury giants including LVMH Group, Hermès and Richemont collectively announced the suspension of operations in Russia and donated funds to Uk, and the stock prices of luxury industry companies plummeted across the board after the news was announced.
Fast forward to this week, the "stand-in" continues to spread from the luxury industry to the beauty industry, LVMH's beauty chain Sephora and Estée Lauder Group have announced the suspension of operations in Russia.
01
Sephora closes all stores in Russia
A few days ago, Sephora said through overseas social media, "In view of our growing concerns about the current situation and the complexity of conducting business, we will suspend our activities in Russia until further notice." ”
Since March 6, Sephora's outlets and e-commerce business in the Russian market have been completely closed.
Earlier this week, the LVMH group said it had raised its first emergency donation of €5 million (about 31.549 million yuan) from the International Committee of the Red Cross (ICRC) to help the direct and indirect victims of the conflict in Ukraine.
In 2008, Sephora acquired a 45% stake in the Russian select perfume chain "Ile de Beauté". The agreement gives Sephora the option to become a majority shareholder of "Ile de Beauté" over time. Ile de Beauté is one of The leading russian distributors of perfumes and cosmetics. The move is fully in line with Sephora's international strategy to enter a market with strong potential. The Russian beauty market has grown considerably and has become one of the main markets in the European sector.
Obviously, the impact of this war will also bring shock to Sephora and the entire European beauty industry.
While shutting down its Russian operations, Sephora is also exploring new models. U.S.-based department store chain Kohl's announced it will partner with Sephora for 400 "shop-in-shops." These stores will be located in 36 U.S. states, 8 of which have not previously opened Sephora. Kohl's store's Sephora measures approximately 465 square metres and offers a fully immersive beauty experience that mimics the look and feel of individual Sephora.
02
Estée Lauder suspends russian business investment
Not only Sephora, but also giants such as Estée Lauder Group, which has a certain say in the global beauty market, are also involved.
On March 7, the Estée Lauder Group announced on its official social media that "following the suspension last week of Estée Lauder's business investments and plans in Russia, we have also decided to suspend all business activities in Russia, including the closure of every store and brand website we own and operate, and the cessation of shipments to any of our retailers in Russia." ”
The Estée Lauder Group added that "it continues to provide compensation and support to the company's employees in Russia at this time".
Meanwhile, Estée Lauder said it has supported Ukrainian employees by compensating, maintaining regular communication and providing relocation assistance.
In addition, the Estée Lauder Charitable Foundation has pledged US$1 million to support relief efforts in Ukraine. The company said it would donate its products to "those displaced and in need." The company also said an employee charity matching gift program "will enable eligible employees to donate to various disaster relief non-profit organizations throughout the year, including those already active in Ukraine and neighboring countries."
At present, according to the China News Network, according to the Russian government website, on the 7th local time, the Russian government approved a list of countries and regions that take unfriendly actions against the Russian Federation, Russian companies and citizens. Among them, the United States, Japan, South Korea and Switzerland and Canada are listed. So far, most beauty companies and brands in these countries have not spoken out against the Russo-Ukrainian war.