Should We Avoid Aesop’s Mistake in China?

When Aesop closed its first flagship store in China, which opened in November 2022 on Dongping Road in Shanghai’s former French Concession, it sparked heated discussions. At the heart of these conversations was a familiar tension: how to balance commercial success, driven by high foot traffic, with the uniqueness carefully curated through brand aesthetics and aspirational image.

This closure comes amid turbulence in the fragrance and cosmetics market, as new, disruptive brands continue to reshape the landscape. Some observers now wonder whether Aesop’s strategy in China failed. According to Jing Daily, brands should avoid “Aesop’s mistake” and remain relevant. But is that truly the case? Did Aesop do anything wrong? And was it really a mistake to open a store in such an elegant, tastefully chosen location—one that so perfectly echoed the brand’s discreet and refined identity?

As a city observer, I visited Aesop’s Dongping Road store the day before its official closure on May 10. The street was quiet; hardly any customers came by. It was difficult to reconcile this with the long queues I once witnessed when the store had just opened. Inside, only one or two customers chatted with sales staff—so different from the full house it used to attract. Yet one thing remained: the welcoming ritual of freshly brewed herbal tea offered to every visitor. This dignified gesture, I believe, is the mark of a respectful brand making a graceful farewell to its fans.

Not far from Dongping Road, on similarly tranquil and tasteful Baoqing Road, another brand—Chillmore, a niche home-grown fragrance and lifestyle label, has just opened its first store. As one brand bids farewell, another says hello. Will Chillmore face the same fate as Aesop in two or three years? Or will it manage to convert this elegant launch into lasting online and offline traffic? I’ll be watching closely.

Here are a few takeaways from this observation to spark further reflection:

First, choosing a location that aligns with your brand’s aesthetic and emotional values is never a mistake. Aesop’s Dongping Road store, with its refined design and thoughtful presence, quickly helped the brand build a desirable image - aloof, yet tasteful. Now that Aesop has cultivated a solid fan base and expanded to over 20 stores across China, the mission of this first flagship, to serve as a brand window, has been accomplished.

Second, striking the delicate balance between commercial success (driven by traffic) and brand-building (through positioning and personal, in-store experiences) is key. It’s a trade-off between short-term gains and long-term investment. Chasing immediate returns at the expense of brand identity is often a costly mistake. The closure of Aesop’s first store does not indicate a branding failure. On the contrary, it reminds us that if you don’t invest in brand-building, your competitors will.