In fact, Sephora has been critiqued for dedicating the majority of its store spaces to LVMH-owned brands over those of other beauty conglomerates like Estée Lauder and L’Oréal. Today, Sephora offers a distribution funnel for LVMH perfumes and cosmetics brands such as Givenchy, Yves Saint Laurent, Fresh, and Benefit Cosmetics, as well as for brands incubated in its beauty brand incubator Kendo (which we discuss further below). In terms of physical stores, it launched its first Germany-based store in 2017. The company also began expansion in India at the beginning of 2018, with plans to open 8 - 10 more stores in the country over the next 3 - 4 years. Sephora has also expressed interest in building out a location in New Zealand. According to a Q2’16 earnings call, Sephora represented about 45% of LVMH’s business in the United States. The conglomerate noted in its 2017 results that Sephora has continued to gain market share, with particularly strong growth in North America and Asia (partially enabled by LVMH’s acquisition of Singapore-based beauty e-commerce platform Luxola in 2015).Īdditionally, Sephora is pursuing expansion of its online presence in Scandinavia, Mexico, and the Middle East.
#Fostering apocalypse del driver#
Sephora is a strong revenue driver and a standout within the division. These segments focus on luxury products, in-store services, digitization, and personalization.
Sephora sits in LVMH’s Selective Retailing division, which aims to “transform shopping into a unique experience” across beauty retail (Sephora), travel retail (DFS and Starboard Cruise Services), and department stores and food concepts (Le Bon Marché Rive Gauche and La Grande Epicerie de Paris). Today, LVMH claims that the beauty giant has grown to approximately 2,300 retail stores with 30,000 employees, operating across 33 countries. Sephora had 54 retail stores with nearly 1,500 employees at the time of its acquisition, according to Business Wire. LVMH originally acquired Sephora in 1997 to enhance its distributorship of perfumes and beauty products.
It’s impossible to predict where Sephora is headed next without first looking at the relationship between Sephora and its parent company LVMH, a Paris-based luxury conglomerate. Sephora & LVMH: How Sephora boosts its parent company’s selective retailing strategy Content, online communities, & influencer marketing.Next iterations of Sephora’s in-store tech.
#Fostering apocalypse del Offline#
The offline experience: Sephora’s in-store retail tech.
How Sephora’s corporate structure supports digital.Sephora & LVMH: How Sephora boosts its parent company’s selective retailing strategy.Cultivate robust loyalty & rewards programs. Sephora aligns itself with customers’ values through benefits and rewards programs.īelow, we dive into these factors and others driving Sephora’s growth, the company’s new digital initiatives, the competition and challenges it faces, and where Sephora could go in the future.Build partnerships. Sephora leverages partnerships to support and cultivate smaller brands that could serve as future distribution partners or acquisition targets.Sephora uses personalization to attract and maintain loyal customers. Personalize product or service recommendations based on customer data. Localizing data is key for reaching global markets.Integrate in-store technologies to engage clients. Sephora helps clients solve for specific consumer pain points, leveraging augmented reality, facial scanning, and more.Today, retail is all about the “offline experience.” Sephora drives value from physical retail beyond sales per square foot. Below, we’ll unpack Sephora’s digital ambitions and how the company has worked to achieve them. Sephora’s story offers a number of key takeaways for retailers: How is this happening and what’s behind Sephora’s successful business model?
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