Sephora, a global beauty editing shop in France, announced on the 21st (local time) that it will cut about 120 employees, or about 3% of its local employees, due to the worsening Chinese economy.
“We are simplifying the organizational structure of Sephora China’s headquarters to respond to the challenging market environment and ensure long-term sustainable growth,” Sephora said.
Sephora, run by French luxury brand Louis Vuitton Moet Hennessy (LVMH), sells beauty products of various brands such as perfumes and makeup products.
It has about 350 stores in more than 100 cities in China alone.
However, overseas brands, including Sephora, are taking a toll on sales due to the prolonged slump in consumption due to China’s real estate crisis and high unemployment.
Changes in consumption patterns, in which many beauty products are sold on online platforms in China, are also cited as one of the reasons for Sephora’s sluggish performance.
Cosmetics companies have warned in recent weeks that high unemployment and a slump in the property market will all have a significant impact on Chinese sales, hurting consumer confidence.
SOPHIA KIM
US ASIA JOURNAL
