A drop in demand for beauty products in Thailand following the pandemic has prompted NYX, a make-up brand under French cosmetics company L'Oreal, to close its offline and online shops in Thailand after five years here.
Yesterday, the company announced on Facebook NYX would close all shops across the country by the end of this month.
NYX makeup will be sold only via online channels including e-marketplaces and NYX's Instagram account, @nyxcosmetics.
L'Oreal Thailand launched the NYX brand in Thailand in 2016.
"The decision to withdraw the brand was made by looking at the whole business. We reviewed our medium- to long-term brand portfolio," said a source from the company who requested anonymity.
In late May, Ines Caldeira, the company's managing director, said make-up sales may be affected by people wearing face masks. She forecast the make-up market would rebound in the second half this year if the pandemic ends.
The source said despite the prolonged pandemic, Thai consumers are believed to have a strong appetite for beauty and enjoy beauty exploration.
"Thai consumers are more mindful and choose brands or products that they trust," she said.
In 2019, Thailand's beauty market was valued at 218 billion baht. Of the total, 42% was skincare market, with hair products making up 15%, hygiene at 14%, oral cosmetics at 12%, and the make-up product category at 12%.
In 2019, Thailand's make-up market was worth 24.9 billion baht, 26% of which was for lips, 56% for face, 17% on eyes and 1% on nails.
The source said the company will continue to expand in Thailand, which it considers one of the more promising markets for L'Oreal.
Following the pandemic, she said the company will focus on offering quality, safety and effective beauty products.
L'Oreal's brands are diverse and can answer to the various beauty needs of all consumers. The company will also accelerate beauty tech initiatives and digital transformation to enhance consumers' experience and connect with consumers more closely, said the source.