Yesterday, according to report, L’Oréal’s South Korean subsidiary Stylenanda, the company behind cult-favorite color cosmetics brand 3CE (3 Concept Eyes), is scaling back its domestic presence following years of declining performance. The French beauty giant, which acquired Stylenanda in 2018 for approximately 600 billion won (around $450 million), has begun offering voluntary retirement packages to employees, signaling potential strategic retrenchment in the Korean market.
The voluntary retirement program, reportedly introduced at the end of 2023, targets staff involved with 3CE. This move follows Stylenanda’s complete exit from the apparel business in 2024 and has fueled speculation that L’Oréal may be preparing for a broader withdrawal from South Korea’s saturated cosmetics market.
Once a K-beauty trailblazer popular with Millennial and Gen Z consumers, 3CE has seen its influence erode amid shifting market dynamics, including a post-pandemic downturn in color cosmetics, rising competition from nimble indie brands, and broader consumer behavior changes. Though L’Oréal initially positioned 3CE as a global youth-driven brand, the company has since struggled to maintain momentum.
Stylenanda’s operational footprint has shrunk considerably. The brand shuttered its membership programs in high-traffic districts like Hongdae and Myeong-dong in late 2024, citing “strategic adjustments,” though insiders interpret these changes as part of an impending domestic pullback. 3CE’s official online mall has also been closed, with product sales now limited to Naver’s Smart Store platform. Its offline presence has dwindled to just seven remaining stores across South Korea.
Financial results reflect the brand’s waning relevance. After peaking in 2019 with 269.5 billion won ($194.3 million) in revenue and 61.8 billion won ($44.5 million) in operating profit, Stylenanda’s performance has steadily declined. Despite a modest recovery in 2024—revenue rose to 224.9 billion won ($162.1 million) and operating profit to 39.6 billion won ($28.5 million)—the figures remain well below earlier highs.
The situation mirrors L’Oréal’s broader restructuring strategy in Asia, where it has already scaled back operations in China and shut down its Japanese unit. A spokesperson for L’Oréal noted that 3CE is “continuously reviewing its brand strategy” and emphasized recent efforts to realign fashion as a complementary asset to its core beauty business, alongside logistical consolidation for overseas growth.
