Core Viewpoint - Innisfree, a brand under South Korean beauty giant Amorepacific, announced the closure of its Tmall overseas flagship store, effective July 1, marking a significant shift in its strategy in the Chinese market [1][5]. Group 1: Company Actions - Innisfree has only closed its Tmall overseas flagship store, while its domestic Tmall flagship store and Douyin flagship store continue to operate normally [5]. - Since 2020, Innisfree has been implementing a "slimming" strategy in the Chinese market, closing 90 loss-making stores in 2020 and 170 stores in 2021, reducing its total store count from over 800 to 140, resulting in a closure rate exceeding 80% [5]. Group 2: Market Context - Amorepacific stated that the adjustment aims to "integrate resources and build more efficient channels," with the goal of "enhancing consumer service and interaction experience" [8]. - Industry insiders noted that the decline in the popularity of the "Korean Wave" has reduced the appeal of Korean beauty brands, while domestic beauty brands are rising rapidly, capturing market share with high cost-performance products that meet local demands [8].