2024-08-21 15:19:36
LVMH-owned Sephora China cosmetics chain is laying off employees in the face of a slowing market, with the brand telling us on Wednesday that “less than 3%” of its 4,000 employees in China will be laid off.
The spokesman said in a statement that the decision was made “in response to difficult market conditions and to ensure our future growth in China.”
“Sephora China is currently streamlining its headquarters organisational structure to ensure we have the capabilities we need for long-term sustainable growth,” she added.
The brand has 4,000 employees and 340 points of sale in China.
Sephora is one of LVMH’s 75 brands, along with Louis Vuitton, Dior and Celine, which, like its rivals, must face a slowdown in consumption in one of the main markets for luxury goods and cosmetics. The Asian giant’s massive real estate sector is facing an unprecedented crisis as consumption continues to slump.
Sephora is LVMH’s second-largest division in terms of turnover, after Louis Vuitton, with sales of 14.35 billion euros in 2023, according to a report from HSBC. LVMH does not disclose sales of individual brands.
The brand’s main market remains the United States, where it has 700 stores, in addition to 1,000 boutiques in partnership with the Kohl’s distribution chain.
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