Estee Lauder Companies, the US cosmetics giant, is withdrawing its men’s skincare brand, Lab Series, from traditional retail outlets in South Korea. This decision comes after more than three decades in the market and signals a shift towards online and multi-brand retailers, according to industry insiders.
Lab Series is scheduled to leave all domestic department stores this year, including the Lotte Department Store Myeongdong by August. This departure concludes a significant chapter that began in 1991 when the brand first launched at the same retailer.
This move represents a strategic adjustment for a brand that was once a leader in the South Korean men’s skincare industry, having achieved top sales in department stores as recently as 2015.
Industry experts suggest this change reflects a wider trend of brands moving away from department stores due to high commission fees and declining customer traffic, which have impacted profitability. Lab Series is expected to maintain its presence in South Korea through duty-free shops and online platforms.
“Brands are reallocating to where their products generate better sales,” an industry source stated. “Estee Lauder’s decision aligns with this broader trend.”
This withdrawal also underscores the challenges Estee Lauder faces in its Korean operations. These challenges are mirrored in the struggles of Dr.Jart+, the Korean skincare brand acquired by Estee Lauder in 2019 for approximately $1.1 billion – marking their first major beauty acquisition in Asia.
Since the acquisition, Dr.Jart+ has experienced a significant downturn, largely attributed to a sharp decline in Asia’s duty-free sector and reduced demand from Chinese consumers. The brand’s revenue peaked at 634.6 billion won ($430 million) in 2019 before dropping to 178.8 billion won in 2025, with an operating loss of 23.1 billion won reported.
Dr.Jart+ exited domestic department stores in 2021 and withdrew from duty-free channels in 2024. Currently, CJ OliveYoung remains its sole offline retailer in South Korea.
Estee Lauder is reportedly considering selling Dr.Jart+ as part of a larger portfolio restructuring effort. Last year, the company announced plans to collaborate with external advisors to streamline its brand lineup and prioritize businesses with the highest potential for returns.
