Core Viewpoint - Sasa International has announced the closure of all its offline stores in mainland China by June 30, 2025, shifting focus to online business due to a significant decline in offline sales and changing consumer preferences [4][6][9]. Group 1: Store Closures and Transition - Sasa will close its 18 offline stores in mainland China, transitioning to a supplier model to provide designated brand products to local partners [4][6]. - As of now, multiple Sasa stores in Beijing have already closed, with only one remaining store operational in the Fangshan area [3][4]. - The decision to close stores is driven by the fact that over 80% of Sasa's revenue in mainland China comes from online sales, and the current number of offline stores does not achieve economies of scale [4][6]. Group 2: Performance Decline - Sasa's annual revenue for the year ending March 31, 2025, fell by 9.7% to HKD 39.42 billion, with net profit dropping 64.8% to HKD 76.97 million [7]. - The mainland market specifically saw a 10.5% decrease in revenue to HKD 5.21 billion, with offline sales plummeting by 38.2% to HKD 1.03 billion [7]. Group 3: Challenges in Online Transition - Sasa attempted to pivot to online sales through various platforms, including its official website and WeChat mini-program, but faced challenges such as low product turnover and long delivery times compared to competitors [6][7]. - The company has struggled with brand recognition for its exclusive products, leading to poor sales performance, with some products recording zero sales on platforms like Douyin [6][7]. Group 4: Industry Trends and Expert Opinions - The beauty retail sector is witnessing a trend of offline store closures, with other brands like Olive Young and Watsons also reducing their physical presence [8][9]. - Experts suggest that the beauty collection store model is becoming obsolete, emphasizing the need for Sasa to focus on high-end products and digital transformation to enhance customer experience and operational efficiency [9].