Client description

Sephora is an international beauty retailer with locations in 32 countries. Sephora specializes in a

wide variety of cosmetic brands featuring skincare, makeup, haircare, and fragrance products.
They have grown significantly since its initial launch in 1969 when the only products sold were
perfumes. Since then, Sephora has earned the reputation of being a beauty trailblazer company
with its diversity in beauty products, and the integration of its signature skincare and makeup
line.

Mission Statement:

“We believe beauty is for each person to define and ours to celebrate. Together, we support and
encourage bold choices in beauty—and in life. Our purpose is to inspire fearlessness.”

History

In 1969, Dominique Mandonnaud opened a perfumery in France with perfumes as the

main focus of the small business, while there were only a select few of makeup products.
However, in 1979 with 12 of his perfumeries open in France, Mandonnaud revolutionized the
business model for cosmetic retailers by opening a new store called Shop 8 in Limoges, France.
The common placement for products in cosmetic retail stores was behind the counter. However,
he placed products in the front and center of the store for the customers to be able to try the
products before buying them, introducing the “assisted self-service” model.

In 1993, Mandonnaud acquired a United Kingdom based company called the Boots
Company PLC, which had 38 Sephora stores, mostly running in the Parisian area. After the
purchase of U.K.’s Boots Company, Mandonnaud rebranded the name all of his obtained stores
to Sephora and the company expanded greatly into the mid-1990s.

In 1997, Mandonnaud and his investors sold the Sephora brand and its retail chains to the
luxury products group LVMH Moët Hennessy Louis Vuitton. Since then, Sephora has expanded
globally, beginning in 1998 when the brand began to open stores in Portugal, Italy, Poland and
Spain.
 The company made a big step in 1999 when its executives enacted a franchise expansion
plan into the United States of America starting in New York City. Sephora did not only build its
own retail stores, the company teamed up with other large department stores such as El Corte
Ingles in Spain, and Macy’s and JCPenney in the United States.

Headquarters address(es)

● 41 Rue Ybry, 92200, Neuilly-sur-Seine, France

● 525 Market St Fl 32 San Francisco, CA 94105, United States

Additional locations

Sephora has over 2,500 retail locations in 33 countries including:

● The United States, France, Canada, Spain, China, Sweden, Italy, Portugal, Turkey, and
many more countries in Europe, Asia and Latin America.

Phone number(s)
1-877-737-4672 customer services

Website URL

● https://www.sephora.com/

Social media platform URLs/handles

● Instagram: @sephora /
https://www.instagram.com/sephora/
● Twitter: @Sephora /
https://twitter.com/Sephora?lang=en
● Facebook: @Sephora /
https://www.facebook.com/sephora/?ref=br_rs
● LinkedIn: @SEPHORA /
https://www.linkedin.com/company/sephora/

Fig. 1. Sephora’s Instagram Feed

Industry

● Beauty/ Cosmetics

Relevant management team members

 ● Chris de Lapuente, global president & CEO of Sephora, member of the LVMH executive
committee.
● Jean-André Rougeot, president & CEO of Sephora Americas.
● Satish Malhotra, executive vice president, Chief Operating Officer of Sephora Americas.
● Deborah Yeh, Chief Marketing Officer.

Major market(s)

● The United States of America, Spain, the United Kingdom, France, China, Italy, and
many more major markets around the world.

Business/operating model

● Sephora uses a business to consumer business model.

Relevant financial information

● LVMH Moët Hennessy Louis Vuitton owns/ merged with Sephora and has placed the
company in its selective retailing division. It is a privately owned, operating subsidiary.
● Sephora has been placed as retail distributor in the industry sector.
● Revenue of LVMH: €46.826 million in 2018.
○ €6.092 million in 2018 from its acquired perfumes and cosmetic companies
including Sephora.
● The profit of LVMH in its perfumes and cosmetic sector was €600 million in 2018.
● Stock price of LVMH: €364.55
● Market cap of LVMH: €183.516 billion

Fig. 2. LVHM Stock Prices

Competitors

● Ulta
○ Ulta, a multimillion dollar company, was established in 1990 by Richard E.
George. The chain sells beauty products at an affordable price by providing a
variety of high-end and low-end cosmetic brands. They specialize in an in-store
brow bar and salon. Ulta has 1,213 retail locations in the United States and will be
expanding into Canada.

● Macy’s
○ Macy’s is a large department store chain located in the United States. Its brand
Macy’s Inc. owns more than 680 stores located in The United States, Puerto Rico
and Guam. Each location has a beauty department specializing in prestige
cosmetic brands.

SWOT (Market Industry)

● Strengths
○ Leading brand in the United States.
○ Good signature store brand.
○ Carries store exclusives.
○ Sephora Insider program gives customers great deals.
○ Partnership with JCPenney.
● Weaknesses
○ Mostly expensive products.
○ Mostly located in malls.

● Opportunities
○ Able to expand into other countries such as Mexico.
○ Possibility to expand outside of malls and make larger retail locations.
○ Partnerships with ethically responsible brands.
○ Innovating new Sephora Collection products with possible partnerships with other
brands.
● Threats
○ Huge competitors such as MAC, Ulta, Marionnaud, Lush, Kylie Cosmetics, etc.
○ Brands that are being sold in Sephora stores could gain bad reputations and reflect
badly on the company itself for selling the products.

Recent communications campaigns (traditional and social media)

● “Color Up Close” (2019)

○ Initiative to show that Sephora values equality.
 ○ Launched “color finder” to help customers of all complexions find their perfect
makeup match.
○ In 2019, Sephora is working to donate $1 million to organizations that fight racial
injustice.
○ Campaign features sponsored advertisements on our social media platforms.
● “We Belong to Something Beautiful” (2019)
○ Initiative to show that Sephora values diversity.
○ Launched during Pride Month.
○ US stores closed for inclusion classes on June 5th.
○ Sephora donated $1 each time a customer purchased an item from the “Sephora
Heart Pride” collection.

Recent major news about the organization and/or its competitors/market

● Brands are working to become more inclusive by expanding the shade ranges of their
complexion products.
● Ulta executives announced plans to expand to Canada.
● Sephora launched its first in-store credit card in 2019.
● Shopping malls are closing across the United States.

Three main research questions:

1) How do we differentiate our brand from others around the world?

2) How do we show our brand values as consumers are looking for cosmetic companies that
value inclusivity?
3) What keeps our customers coming back to our stores or ordering online?

Citation List

About Us. (n.d.). Retrieved from https://www.sephora.com/beauty/about-us

Complete Store List. (n.d.). Retrieved from https://www.sephora.com/happening/storelist

Hopp, D. (2019, July 10). 12 Weird (But True) Facts About Sephora. Retrieved from
https://www.byrdie.com/sephora-facts

How Sephora Built A Beauty Empire To Survive The Retail Apocalypse. (n.d.). Retrieved
from https://www.cbinsights.com/research/report/sephora-teardown/

LVMH (MC.PA) Stock Price, Quote, History & News. (2019, September 19). Retrieved from
https://finance.yahoo.com/quote/MC.PA/

Msa. (2019, August 5). Sephora Mission Statement 2019: Sephora Mission & Vision
Analysis. Retrieved from http://mission-statement.com/sephora/
Record results for LVMH in 2018. (n.d.). Retrieved from https://www.lvmh.com/news-
documents/press-releases/record-results-for-lvmh-in-2018/

Schwanke, C. (n.d.). What Is the History of Sephora? Retrieved from

https://makeup.lovetoknow.com/cosmetics-brands/what-is-history-sephora

Sephora. (n.d.). Retrieved from http://www.sephora-me.com/en/sephora-

international/pid55.html

Sephora Company Profile: Acquisition & Investors. (n.d.). Retrieved from

https://pitchbook.com/profiles/company/58669-93

Sephora Competitors, Revenue and Employees - Owler Company Profile. (n.d.). Retrieved
from https://www.owler.com/company/sephora

Sephora Holdings S.A. - Company Profile, Information, Business Description, History,

Background Information on Sephora Holdings S.A. (n.d.). Retrieved from
https://www.referenceforbusiness.com/history2/73/Sephora-Holdings-S-A.html

Store Count and Square Footage. (n.d.). Retrieved from

https://www.macysinc.com/about/store-count-and-square-footage

Prinzivalli, L. (2019, June 4). Sephora Wants to Celebrate Pride With You. Retrieved from
https://www.allure.com/story/sephora-pride-2019-identify-as-we-campaign

Ulta Beauty - Overview . (n.d.). Retrieved from

http://ir.ultabeauty.com/overview/default.aspx