U.S. beauty brand E.l.f Beauty has announced its exit from the China market, according to a local fashion media report.
After four years in the market, E.l.f. is exiting China by the end of March due to “global strategy adjustments and other objective factors,” as reported by WWD.
As part of the exit, E.l.f will shut down its Tmall and Douyin Flagship Store on March 15 and exit the Chinese market on March 31.
“Since we entered the Chinese market, we have been attuned to the needs of our consumers and are committed to providing every eye, lip, and face with new and trendy makeup products,” the brand wrote on its Tmall homepage. “Unfortunately, due to global strategy adjustments and other objective factors, we will leave the China market.”
At the time of the announcement, the brand had around 480,000 followers on Tmall and 48,000 followers on Douyin. It currently, boasts 30 product listings on its Tmall and Douyin shop, all heavily discounted.
In its most recent trading update, the Oakland, California-based company said net income for the three months ending December 31, totalled USD 19.1 million, up from USD 6.2 million last year. Meanwhile, revenues for the third quarter lifted 49 percent to USD 146.5 million, driven by strength in both its retailer and e-commerce channels.
The news comes after a bevy of global cosmetics brands reassess their presence in China. Revlon announced last year it would be closing its Tmall flagship in mid-March, after re-entering the market two years prior.
Last month, Huda Beauty closed its Tmall flagship, prompting speculation that the brand has plans to leave the China market, while Estée Lauder-owned Too Faced also shut down its Tmall flagship last July.
According to GlobalData, the Chinese makeup market is expected to reach USD 11.7 billion by 2026, registering a compound annual growth rate of 7.4 percent.