L’Oréal’s 3CE tightens domestic operations following sales decline

Key products from 3CE /Stylenanda

Stylenanda, the South Korean fashion and cosmetics company behind the color cosmetics label 3CE (3 Concept Eyes), which was acquired by France’s L’Oréal Group in 2018 for approximately 600 billion won (about $450 million), has begun offering voluntary retirement packages to employees. The move has sparked industry speculation that L’Oréal may be preparing to scale back, or potentially exit, 3CE’s domestic operations after years of underperformance.

According to the retail industry on May 20, Stylenanda implemented a voluntary retirement program targeting employees associated with the 3CE brand at the end of last year. Following the company’s withdrawal from the apparel business in 2024, signs now point to a broader pullback in its cosmetics division.

3CE previously operated membership programs at its flagship locations in major Seoul shopping districts such as Hongdae and Myeong-dong. However, those programs were discontinued in November 2024. While the company described the move as a “strategic adjustment in response to market changes,” retail insiders largely view it as part of a broader exit strategy from the South Korean market. The brand has already shuttered its official online mall and now sells exclusively through a Naver Smart Store. Its offline presence has also diminished, with just seven stores remaining nationwide, including both duty-free and directly operated locations.

Once considered a leading K-beauty color cosmetics brand across digital and brick-and-mortar channels, 3CE has seen its market presence fade in recent years. Stylenanda reached its peak in 2019—just a year after the L’Oréal acquisition—with 269.5 billion won in revenue and 61.8 billion won in operating profit. Its financial performance has declined steadily since: 256.3 billion won in revenue and 44.3 billion won in operating profit in 2020; 227.3 billion won and 32.6 billion won in 2021; and 218.5 billion won and 32.7 billion won in 2022. In 2024, the company posted a modest recovery, with revenue rising to 224.9 billion won and operating profit to 39.6 billion won.

L’Oréal originally positioned 3CE as a strategic brand to engage Generation Z and Millennial consumers worldwide. However, the fallout from the COVID-19 pandemic, stagnation in the color cosmetics sector, and the rapid ascent of agile K-beauty indie brands have all undermined its competitiveness. In response, L’Oréal has undertaken restructuring measures, including downsizing operations in China and shutting down its Japanese subsidiary.

“This goes beyond simple rebranding,” said one industry insider. “With layoffs, the closure of the online store, reductions in physical locations, and the discontinuation of the membership program, it appears that a full withdrawal from the Korean market may be under consideration at the corporate level.”

A L’Oréal spokesperson said, “3CE continuously reviews its brand strategy to align with the evolving market landscape and shifting consumer demands. Last year, we recalibrated our business direction to position fashion as a complement to our makeup division. We also consolidated our logistics infrastructure to support overseas expansion and deliver improved service to customers both in Korea and abroad.”