Core Viewpoint - BRANCHIC, a brand under FANCL Group, is closing all its online flagship stores in China, marking its exit from the Chinese market after only three years of operation [1][5][11]. Group 1: Brand Closure Details - BRANCHIC announced the closure of its online flagship stores on platforms such as Tmall, Douyin, and JD, effective August 1, 2024, due to group business adjustments [5][6]. - The brand was launched in Japan in October 2021 and entered the Chinese market in 2022, focusing on online sales [6][11]. - The closure indicates a complete withdrawal from the Chinese market, with only a limited offline presence planned for a pop-up store in Shanghai [5][12]. Group 2: Performance and Market Challenges - Despite initial success, including ranking in Tmall's top 20 for imported essence sales during the 2022 Double 11 shopping festival, BRANCHIC's performance declined significantly [11][12]. - The brand's online presence showed limited engagement, with Tmall followers at 26,900 and product sales peaking at over 4,000 for some items [12][14]. - The overall performance of FANCL Group's cosmetic business has been declining, with a reported 3.5% drop in sales for the 2025 fiscal year [17][20]. Group 3: Broader Industry Context - The closure of BRANCHIC is part of a larger trend of Japanese beauty brands withdrawing from the Chinese market, with 14 brands reported to have exited or closed stores in 2024 alone [15][22]. - Factors contributing to this trend include economic pressures, geopolitical issues, and a shift in consumer preferences towards domestic brands [20][23]. - The competitive landscape for beauty brands in China is increasingly challenging, necessitating strategic adjustments for survival [23].