The well-known beauty brand Midea announced the closure of the store and completely withdrew from the online platform.

China Fund News reporter Yishan

A few days ago, the well-known beauty brand Midea released a store closure announcement, announcing that it would close its online store at the end of October, which caused widespread concern.

According to the announcement issued by the WeChat applet of Meiji Mall on September 30,The official store of the United States will be closed on October 30, and the store will stop accepting new orders from September 30, and the goods that have been placed before will be delivered normally.

After October 30th, the membership points will be cleared. If customers have after-sales or points problems, they can consult the official customer service of the store before October 30.

According to the screenshot released by netizens, the official customer service of the United States once said that the official channel stopped placing orders on September 30, and customers can still buy related products of the brand through offline channels.

Fund Jun found that at present, apart from some third-party online stores that are still selling products such as masks and facial cleansers, the official flagship stores of Midea on platforms such as Tmall, JD.COM and Vipshop have been unable to search. In addition, WeChat official account, the official WeChat of the United States, has been stopped for more than two months, and the official Weibo recently posted on September 10th.

After the news came out, many netizens were crying and said that the brand was "a real fire before" and "tears of the times".

According to public information, Midea was founded in 2003, and its flagship mask products have occupied the head position in the domestic mask market for a long time in the early years due to the characteristics of low price and single-chip sales.

In 2010, Midea officially landed on the Hong Kong Stock Exchange, becoming the first domestic mask to be listed. Since then, the company’s revenue and net profit have continued to grow. By fiscal year 2012, the company’s revenue reached HK$ 1.349 billion, a year-on-year increase of 41%; Net profit increased by 25% year-on-year to HK$ 200 million.

Excellent performance has attracted the attention of L ‘Oré al Group. 2In 2013, L ‘Oreal wholly acquired Midea for HK$ 6.538 billion.In 2014, Midea was officially delisted from the Hong Kong Stock Exchange and was included in the L ‘Oré al mass cosmetics department.

After being acquired, in 2014, L ‘Oré al China established the Beauty Mask Research Center for Beauty. In 2015, Kenya Hara, a Japanese design master, was invited to design a new Logo and packaging for Midea to reshape the brand image. In 2016, the first advertising brand of online celebrity Papi sauce was Beauty Mask. In addition, Dilraba, Chen Xiao, Olivia and other stars have all been spokespersons for the brand of Midea.

However, judging from the market reaction, the acquisition effect of L ‘Oreal was not good, and the performance of Midea began to lose money. According to the L ‘Oré al Group’s financial report, Midea lost 1.6 billion yuan in the first half of 2016. By 2018, some media exposed the news that the beauty mask was completely removed from Watsons. In this regard, L ‘Oré al has responded that the United States is about to use e-commerce as the main channel of the brand.

After the latest announcement that the United States will close its online stores, the industry generally believes that it is related to its poor online performance. According to the data of Feigua, in the first half of this year, the GMV of the United States, namely Tik Tok, was only 100,000 yuan to 250,000 yuan, ranking out of 4,000 in the beauty list of Tik Tok.

In addition, it is worth noting that, in addition to beauty, domestic beauty brands such as Little Nurse and Yuxi, which had a high reputation in their early years, seemed to be "acclimatized" to varying degrees after being acquired by L ‘Oré al Group. For example, Yuxi once heard the news of a large-scale withdrawal from offline department stores at the end of 2020.

After a series of adjustments, Yuxi has now become a high-end cosmetics brand under L ‘Oreal, and re-entered the department store channels in many places last year; However, the market share of little nurses has been shrinking and gradually faded out of consumers’ sight.