THE WHAT? Etude House has announced that it has withdrawn from the Hong Kong market, according to a report published by the South China Morning Post. The K-beauty brand closed its remaining retail space at the end of April.
THE DETAILS The AmorePacific-owned brand has not disclosed how many employees would be affected by the move.
THE WHY? The company did not cite a reason for its exit from the market but the South China Morning Post speculates that the withdrawal was prompted by weak consumer sentiment in Hong Kong amid the shift to online shopping during the pandemic with Senior Economist at Natixis Corporate and Investment Bank, Gary Ng Chuek-yan telling the newspaper, “It is more of a structural problem as Etude House shares the dilemma of mass-targeted K-beauty names in fierce competition, including local Chinese brands, and more options through online channels.”