Recently, CHAILEEDO learned that there are reports stating that the Japanese high-end cosmetics brand MENARD will completely withdraw its counters and may exit the Chinese market. In response to this news, CHAILEEDO immediately reached out to the brand for confirmation, and they confirmed that the report is true.
It is understood that the Menard brand entered the Chinese market in 1994 and, at its peak, had over 200 counters, claiming to be among the top 50 in the global cosmetics industry. So, why has Menard, which has been in China for 30 years, chosen not to exit the Chinese market?
After Thirty Years, Another Japanese Cosmetics Brand Withdraws from China?
Public records show that Menard was founded in 1959 in Nagoya, Japan. Its product offerings cover skincare, makeup, haircare, and health supplements, with prices ranging from hundreds to thousands of yuan. Overall, the brand is positioned as high-end, with products like the EMBELLIR night cream (35g) priced at nearly 2800 yuan.
It is understood that Menard’s product development has always focused on combining natural plant ingredients with advanced technology. For example, Menard was one of the first to apply stem cell technology to skincare products, developing the AUTHEN line. The brand also used natural ingredients such as hot spring water and ganoderma to create classic product lines like the Biyou Hot Spring Beauty Essence Water and Anbeliri Extreme Elixir.
As an old-established Japanese beauty brand, Menard set up a comprehensive research institute in Japan early on and used beauty salon channels to serve clients, emphasizing the brand’s high-end luxury. In overseas markets, Menard’s presence spans 22 countries and regions, including China, North America, and Europe, and the brand has established subsidiaries in eight countries and regions.
In 1994, Menard established a subsidiary in China, Suzhou Baimei Cosmetics Co., Ltd. (the majority shareholder being Japan’s Menard Cosmetics Co., Ltd.), officially entering the Chinese market and also setting up a factory in Suzhou. It is understood that Menard’s operations in China are divided into two lines: the China line and the import line, with counters as the primary channel, along with expansion into beauty salons, CS (customer service), supermarkets, and Sephora. At its peak, Menard had over 200 counters in China.
However, since mid-last year, there have been reports claiming that “Menard is gradually withdrawing from Sephora channels.” Today, CHAILEEDO searched for Menard on both the Sephora WeChat store and Tmall flagship store, but could not find any information about the brand.
At the beginning of this year, rumors about Menard’s nationwide counter withdrawal and exit from the Chinese market began circulating on social platforms. Recently, several sales associates claiming to work for Menard posted notes on social media stating, “Menard will withdraw from counters.” One sales associate told CHAILEEDO that the brand would withdraw after the contract expires at the end of March. However, a sales associate in Shaanxi stated, “Absolutely not (withdrawing), we’re still operating normally.” After consulting the brand’s Tmall flagship store customer service, CHAILEEDO was also told that “the rumor of withdrawing from the Chinese market is untrue.”
What is the truth behind these reports? In response, CHAILEEDO immediately contacted Menard’s brand representatives through publicly available channels for clarification.
CHAILEEDO noted that although Menard’s official WeChat account still shows nearly 100 counters nationwide, the “complete withdrawal” may have already begun. The brand’s official customer service told CHAILEEDO, “Currently, there are counters in Shanghai and Suzhou, but other cities are basically in the process of withdrawal.”
A staff member at Menard’s China headquarters confirmed the rumors about the brand’s exit from China, stating, “It will likely take about a year to fully withdraw.” She also mentioned that the Suzhou factory has already ceased operations, saying, “We are in the final days here.”
Regarding the reason for the withdrawal, she explained, “This decision came from the Japanese headquarters. The business is actually doing okay, but Japan’s headquarters feels that the Chinese market is difficult to navigate.”
“No Promotion, Lack of Innovation”
On social media, some users expressed regret over Menard’s withdrawal from the market, praising the brand’s imported products. However, many others were not surprised. “This is the first time I’ve heard of this brand—do they not run any ads?” “Their promotion is completely lagging behind, feels like they’re not really managing it well.” “I thought they had already exited.”
A seasoned industry professional with over 20 years of experience also praised Menard’s products, but was not surprised by the brand’s exit, saying, “It was inevitable that this brand wouldn’t grow bigger.”
The reasons behind this can be seen in Menard’s business strategy in the Chinese market. First, in an era where “good products still need to be advertised,” Menard has had almost no celebrity endorsements or KOL (Key Opinion Leader) promotions. Currently, the last post on the brand’s official WeChat account was in December 2024, and their Xiaohongshu account has less than 40 promotional posts.
As the largest agent for CS channels in Shaanxi, Xi’an Liaoyuan Daily Chemicals Co., Ltd. announced a partnership with Menard in early 2023. A regional manager from Xi’an Liaoyuan told CHAILEEDO, “Menard does no promotion at all; it’s all reliant on repeat customers. Last year, the brand’s sales in the CS channel were not much.”
When asked about the news of Menard’s exit from China, he said, “The brand has made adjustments in the China market, but they haven’t communicated the specifics to us.”
At the same time, in an era when online channels dominate, Menard’s official online presence is limited to just a Tmall flagship store and a WeChat store. The Tmall flagship has only 111,000 followers, and its product sales are unremarkable.
Secondly, it’s important to note that in China’s skincare market, the competition around “effectiveness, ingredients, and patented technologies” is fierce. In contrast, Menard, despite claiming 65 years of experience, having research institutes and a team of experienced developers, and owning over 700 patents and patented ingredients, has shown little product innovation targeted at the Chinese market.
CHAILEEDO further checked the National Medical Products Administration’s cosmetic registration platform and found that for Suzhou Baimei Cosmetics Co., Ltd., which handles domestic ordinary cosmetics, the last product registration date was July 2023. However, for Suzhou Menard Cosmetics Co., Ltd. (a wholly owned subsidiary of Japan’s Menard), the latest product registration was at the end of 2022.
Without promotion and a lack of innovative products, young consumers find it difficult to recognize and appreciate the brand’s differentiation. Let alone easily accepting an “unknown” high-end brand. For the brand, under the widely accepted notion that “whoever wins the young generation wins the market,” not being able to connect with young consumers inevitably leads to stagnation.
Chinese Brands Overtake as Imported Beauty Enters a Period of Transformation
Notably, on the last day of 2024, Menard’s official Xiaohongshu account posted the following message:
“In 2024, we experienced much hesitation and helplessness. Unprecedented fierce competition in the industry, immense challenges… In 2025, we will ‘return to professionalism and look back at ourselves.’”
It is difficult to say whether this was a subtle farewell from the brand, but the message reflects the competitive struggles that all brands are currently facing. In recent years, significant economic shifts have presented unprecedented challenges for many long-established international brands in the Chinese market, including Menard.
In fact, Japan’s “Big Four” beauty giants have also struggled in China. CHAILEEDO’s analysis of Shiseido’s China performance over the past five years shows that the company experienced declines in both 2022 and 2023, even recording an operating loss in 2022. It wasn’t until last year that Shiseido’s China business saw slight growth.
Another Japanese beauty giant, Kosé, stated in its 2024 financial report that sales in mainland China and China’s travel retail sector declined and fell short of growth targets. Reports have also surfaced recently that “Kosé is also withdrawing counters in China.”
Beyond Japanese brands, major global beauty groups like L’Oréal and Amorepacific have also made adjustments to their strategies in China, with some of their classic brands either restructuring or exiting the market entirely. For example, Maybelline and Innisfree have both undergone large-scale offline counter withdrawals.
According to CHAILEEDO’s 2024 China Cosmetics Yearbook, the total market size of China’s beauty industry in 2024 was 774.645 billion yuan, a 2.83% decline year-over-year. Online sales continued to outpace offline growth, with total online beauty sales reaching 405.527 billion yuan (a 0.4% increase year-over-year), while offline beauty sales totaled 369.117 billion yuan, marking a 6.1% decline.
At the same time, the market share of Chinese beauty brands increased by 12.06 percentage points compared to 2022 and 5.34 percentage points compared to 2023.
With the rise of online channels and the growing dominance of Chinese brands, China’s beauty market is undergoing a profound transformation. As consumers begin to “demystify” imported beauty brands, international companies must re-evaluate their positioning and craft new narratives. By refocusing on expertise, innovating brand storytelling, and adjusting their strategies, imported brands must find new ways to regain their competitive edge.
