NYX on the verge of pulling out of Hong Kong and Macau as results plummet

NYX Professional Makeup (NYX), L'Oreal's professional beauty brand, recently announced that it will be pulling out of the Hong Kong and Macau markets in China, with no specific date yet announced.
 
The brand said on Facebook that customers are advised to redeem their remaining loyalty points in stores before Sept. 15.

It is reported that NYX currently has six retail stores in Hong Kong and Macau, namely three flagship stores in Shatin, Mong Kok and Tuen Mun, as well as three department store counters, the above stores will be closed month by month.
 

Only a month ago, the brand announced that it was withdrawing from the Malaysian market, and within a short period of time, it announced that it would again withdraw from the two major markets in Hong Kong and Macau, China. According to the brand, the withdrawal from the Hong Kong and Macao market is also part of the brand's business strategy adjustment.
 
The reason for this is that the main factor comes from the impact of the epidemic on the tourism economy of Hong Kong and Macau.
 
Hong Kong and Macao, as the two tourist-intensive tourist cities in China, should have been the peak season during the Spring Festival, but during this period, the average daily visitor arrivals in Hong Kong were only 27,500, and even fell below 20,000 once at the end of the month, far lower than the 200,000 in the same period in previous years.
 
According to the data released by Macau Government Tourist Office, the number of visitor arrivals from January 24-30 decreased to 261,000, a sharp drop of 78.3% year-on-year.
 
With the epidemic hitting the retail sector and the retail sector going into winter, NYX, one of the beauty industries, was also inevitably affected in a huge way. Coupled with the drop in demand for makeup due to the wearing of masks, NYX's situation has become increasingly difficult.
 
As a famous professional makeup product in the United States, NYX has been committed to creating new professional makeup products at affordable prices since its establishment in 1999. In June 2014, L'Oreal, the global cosmetics giant, announced its acquisition of NYX, with an estimated purchase price of $500 million.

The L'Oréal Group released on July 30 this year, the first half of 2020 financial results show that the group's mass cosmetics division fell 9.4% year-on-year, mainly due to the impact of the epidemic on the color cosmetics category, Maybelline, NYX makeup are serious decline.
 
Obviously, with the tourism economy and color cosmetics market demand not yet recovered, the Group urgently needs to make strategic adjustments to its market layout to cope with the impact of the epidemic.