Japanese Beauty Group Pola Orbis to Dissolve Chinese Subsidiary

Japanese beauty company Pola Orbis Holdings decided to close Orbis Beijing Inc. It is a group of a group in China responsible for its commercial brand.

The company will also close the online retail for the brand. The official TMAL and Douyin store will stop taking requests by June 30, according to Orbis customer service.

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The company said in a press release: “With the stagnation of the Chinese economy and the competition in the e -commerce market in an increasingly, it is difficult to predict an immediate improvement in profitability, and the group was forced to reduce the volume of business.”

Pola Orbis did not specify after the date of the solution and will work with the local authority to complete the necessary legal procedures, according to the press statement.

As a result, the company will record an extraordinary loss of about 1.3 billion yen, or 8.9 million dollars, in its unified financial statements for the fiscal year ending in December 2025.

The loss will be compensated by 1.6 billion yen, or 11 million dollars, in the corporate tax deduction, leaving the company’s total profits expectations, which were published in February.

Beijing, which was established in 2008, is responsible for operating the Orbis brand in China. The company has suffered a three -year loss, from 2022 to 2024, leaving the company with the net obligations of 3.33 billion yen, or $ 22.9 million.

Pola Orbis entered the Chinese market in 2004 by establishing a Pola brand in Shanghai.

In November, the company established a new subsidiary, based in Japan, to supervise its Chinese business.

Reorganization comes at a time when the company is moving towards its “Vision 2029” strategy to “developing cosmetics work worldwide; repairing and enhancing the brand portfolio”, “creating a new value and expanding the scope of business”, and “strengthening strategy and technology”, as the press statement pointed out.

The J-PEAUTY giant is not only trouble in China, but it is also undergoing a reorganization to enhance the brand’s value. In recent years, the cosmetic brands group such as H2O+, APLITUDE and ITRIM have focused on its leading brands, including Pola, Orbis and Jurlique, as well as newly advanced brands such as Three, Decency, Fujima and Vilemis X Three.

During the three months ending March 31, the company reported a 1 percent increase in net sales, but the profit attributed to the owners decreased by 58.1 percent.