Sephora tested Taiwan with an online-only launch — 18 months later it shut down

Sephora, the French beauty retailer owned by LVMH, is one of the world's largest cosmetics chains with about 3,000 stores in 35 countries. In October 2021, it entered the Taiwan market. But unlike its global format of large, experiential stores, Sephora Taiwan was an online-only operation — a website and a mobile app, with no physical counters.

The gamble did not last. On May 3, 2023, Sephora posted a notice on its Taiwan website and app: operations were ceasing. By May 11, the site and app were shut down. Orders placed before the closure were still processed, and returns were accepted until May 25. The company gave no public explanation, but media reports noted that the brand 'had not been as successful as it hoped' in Taiwan. The withdrawal came just over a year after Sephora's similar exit from Vietnam.

LVMH framed the Taiwan experiment as part of a 'test and learn' approach — entering a market to test viability and withdrawing quickly if results were unsatisfactory. The group stated it had learned from the Taiwanese beauty sector and would use that knowledge to improve its offering across Asia. Sephora continued to operate in 11 other Asian markets with nearly 400 stores.

The Taiwan beauty market is among the most competitive in Asia. Japanese brands (Shiseido, SK-II, Kosé, Kanebo) and Korean brands (Amorepacific, LG Household & Health) dominate department-store beauty halls. Online-only beauty retailers face the additional challenge of building trust and brand awareness without the in-store experience that Sephora's global reputation is built on. Sephora was not alone in struggling — Valentino Beauty exited Taiwan in 2025 after only two and a half years, and several other international brands had reduced their Taiwan presence.