Cosmetics have long been one of the “golden pillars” of revenue for department stores in Taiwan. With rows of beauty counters and a full lineup of brands, they once served as a powerful draw for customers. However, since last year, the halo surrounding the sector has begun to fade. It is not an isolated issue affecting one retailer — it is a widespread phenomenon across department stores in Taiwan.
Department store executives admit that business is tough, but they also stress that the root cause is not a drop in Taiwan’s spending power or a surge in outbound travel. Instead, a closer look at the performance of drugstores reveals a different picture: Mass-market, shelf-based cosmetics continue to thrive.
That shift reflects a broader structural transformation, driven by channel reconfiguration and evolving consumer behavior.
The core reason behind the decline of department store cosmetics counters is not the products, but rather the loss of focus of the purchasing environment. Traditional beauty counters emphasize brand image and personalized service, but to today’s consumers, the “being sold to” experience feels increasingly out of touch.
With greater information transparency and more robust review systems, shoppers are fully capable of making purchasing decisions independently, without relying on sales associates.
Furthermore, post-COVID-19 pandemic hygiene concerns have not fully subsided, making the self-serve, shelf-based purchasing model feel safer and more convenient.
The rise of social media and beauty influencers has also fueled the growth of drugstore brands, enabling them to rapidly build trust and break through traditional brand hierarchy through peer recommendations and social media influencer-driven marketing.
What appears to be a product-level sales fluctuation is a deeper issue involving channel strategy and business logic. Department stores are not merely facing a downturn in cosmetics counters — they are grappling with the breakdown of an entire business model based on “exclusive venues and high-contact service.”
As a new generation of consumers matures, their definition of “experience” is also evolving. No longer seeking personalized, face-to-face pampering, they prefer freedom of choice and a sense of control — shopping without interruption.
That necessitates a complete overhaul of the traditional department store design philosophy. Instead of clinging to high-priced counters, stores should consider creating more flexible beauty retail spaces, or even introducing drugstore-style concept stores to broaden their product range and pricing tiers to meet diverse consumer needs.
From an industry strategy perspective, if department stores hope to reclaim dominance in cosmetics retail, they must break free from the outdated model of “renting a place as a point of sale” and take a more active role in brand management, leveraging data to understand customer profiles, optimizing product assortment and display strategies.
In addition, more effort must be made in designing the customer’s “journey,” so that shoppers do not just enter department stores to buy things, but to experience, explore and even socialize.
Such a transformation is not merely a cosmetic department facelift — it is a crucial litmus test for the reinvention of department stores as a whole. In an era of fragmented sales channels and shifting consumption habits, those who pivot first might well emerge as leaders in the next commercial landscape.
Roger Lo is a freelancer.
Translated by Lin Lee-kai
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