On April 16th, according to media reports, SK-II, a high-end skincare brand under Procter & Gamble, has frequently withdrawn from counters in Shanghai, including those in core commercial areas of the city.
The report states that SK-II counters have been closed in several Shanghai shopping malls over the past year, including the Printemps counter, Wujiaochang counter, Pacific Department Store counter, and Isetan. A staff member at an SK-II counter in Shanghai also confirmed that counters at Meilong Town Isetan and Jing’an Temple Jiuguang Department Store have been withdrawn.
A staff member at an SK-II counter in a Shanghai mall stated, “The removal of some SK-II counters may not be due to issues with the brand itself, but possibly due to the need for renovation and reorganization in malls that have been open for a long time. For example, at Printemps counter, all frontline cosmetics counters were removed due to poor business.”
Regarding this, customer service at SK-II’s Consumer Service Department stated, “We are not very clear about the situation of counter withdrawals, which may be related to the company’s operating conditions. In addition, online channels are very convenient now, and consumers may prefer to purchase online.”
According to the official SK-II WeChat account, there are currently 10 counters in Shanghai and a total of 150 counters in mainland China. It was previously reported that there were 18 SK-II counters in Shanghai.
P&G responded to the rumors of frequent SK-II counter withdrawals that the claims regarding frequent counter withdrawals, nationwide withdrawals, and one-third of recent counter withdrawals are all false information.
P&G stated that China remains a very important market for SK-II, and the company is dedicated to delivering top-notch products and consumer satisfaction. Over the past three years, SK-II’s retail presence has remained stable, with ongoing enhancements in both online and offline omnichannel experiences. SK-II consistently updates its stores and counter designs to ensure that Chinese consumers receive an unparalleled skincare shopping experience. Ultimately, SK-II’s primary focus remains on delivering superior products and experiences to Chinese consumers.
According to disclosed financial reports, Procter & Gamble’s net earnings for the second quarter of the 2024 fiscal year was $3.493 billion, a year-on-year decrease of 11.8%. This marks the group’s first double-digit decline in net profit in five years. Among Procter & Gamble’s five business segments, the beauty segment, which includes SK-II, had the slowest growth rate, with sales totaling $3.849 billion, a growth rate of only 1%. Additionally, SK-II’s sales in the Greater China region decreased by 34% in the second quarter of the 2024 fiscal year.
