SKINFOOD had 40 stores in Taiwan — then the franchise model collapsed

SKINFOOD, a Korean budget beauty brand known for its food-ingredient concept, entered Taiwan in 2005 through a franchise model. At its peak, the brand operated more than 40 stores across the island, riding the early wave of K-beauty popularity. Taiwanese consumers knew the brand from Korean dramas and celebrity endorsements, and the stores performed well in the early years.

The franchise model had a structural flaw: the Taiwan headquarters provided little to no marketing support to individual franchisees. As K-beauty competition intensified — Etude House, Innisfree and The Face Shop all invested heavily in Taiwanese promotions, influencer campaigns and in-store events — SKINFOOD's franchisees were left to fend for themselves. Without central marketing backing, their sales declined and most became unprofitable.

Franchisees began refusing to renew their contracts as soon as the terms allowed. Store by store, the network contracted. By June 2016, only the Ximending flagship in Taipei remained open — and it closed on 26 June 2016, marking SKINFOOD's complete exit from Taiwan. The brand continued to operate in other markets, and its Korean parent would file for court receivership two years later over a separate embezzlement scandal.