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Natural Beauty Operator LF-KY Sees Growth in Single-Store Productivity
Consumer Services · Other Consumer Services · economic_daily · 2026-10-20
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LF-KY has shifted its strategy in China from rapid expansion to improving store efficiency, resulting in a nearly 10% year-over-year increase in store productivity.
What Happened
Strategic Shift: LF-KY has pivoted its business strategy in China, moving away from aggressive store expansion toward enhancing the operational efficiency and productivity of existing locations. This shift has resulted in a nearly 10% year-over-year increase in average store productivity across its nearly 4,000 outlets.
Digital Transformation: The company is leveraging online retail, private domain live streaming, and CRM systems to help franchisees expand their sales channels. These digital initiatives have successfully increased average transaction values and customer retention rates, strengthening the overall franchise network.
Expansion Model: LF-KY is employing a dual-track strategy featuring both standard and light-format stores. Furthermore, the company has introduced an employee-led expansion policy to encourage talent to become franchisees, with over 77% of its stores having been in operation for more than five years.
Market Outlook: As the company enters the peak consumption season in Q4, it plans to combine online promotions with offline services to capture year-end demand. Management remains focused on optimizing profitability through continuous training and digital integration to navigate the evolving market landscape.