Core Insights - The decline of traditional beauty retail stores like Sa Sa and Watsons reflects a significant transformation in China's beauty retail industry, driven by changing consumer preferences and the rise of e-commerce [1][2][4] - The traditional retail model based on information asymmetry and personal sales has become ineffective, leading to a shift towards online shopping and new retail formats that prioritize consumer experience [4][5][12] Group 1: Decline of Traditional Retail - Watsons' parent company reported a 3% year-on-year decline in revenue to HKD 6.666 billion, with a net reduction of 145 stores, marking the fourth consecutive year of revenue decline [1] - Sa Sa International has completely exited the mainland China market, closing all physical stores by June 30, 2025, with a staggering 38.2% drop in revenue from offline channels, amounting to HKD 103 million [1] - The profitability of Watsons has significantly decreased, with EBITDA dropping 53% to HKD 117 million, the lowest in seven years [1] Group 2: Rise of New Retail Formats - New beauty retail players are emerging, focusing on experiential shopping and social media engagement, which resonate more with younger consumers [5][8] - These new stores, such as The Colorist and WOW COLOUR, emphasize a "freedom of experience" and have become popular destinations for young shoppers [7][9] - The new retail model prioritizes immersive experiences and interactive activities, transforming traditional shopping into a more engaging and enjoyable process [8][11] Group 3: Challenges and Future Outlook - The beauty retail industry faces the risk of homogenization, as many new stores adopt similar aesthetics and experiences, potentially diminishing their appeal [12][13] - To sustain consumer interest, new retail formats must innovate beyond surface-level replication and focus on unique brand narratives and product offerings [15][18] - The challenge remains to convert one-time visitors into loyal customers, requiring either exclusive product offerings or exceptional service experiences [16][17]
美妆集合店@2026：逃离「复制粘贴」的困局