Sephora Case Study

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Impacts of external business environments on Sephora Sephora is a french-based beauty retail store that was founded by Dominique Mondonnaud in 1970. Originally known as Super 8, Dominique Mandonnaud was the first to introduce a self-service retail model into the beauty industry that allows customers to touch, feel and try all the perfumeries and beauty products around the store. In 1993, Dominique Mandonnaud faced some financial problems due to overexpanding his stores to other parts of the country and decided to retire. Super 8 was then purchased by Louis Vuitton and Moet Hennessy (LVMH) in 1997 and is currently known as Sephora. The name “Sephora” originated from the Greek Word “sephos”, which means beauty and merging with the biblical…show more content…
Under the ownership of LVMH, Sephora has successfully expanded over the years and it currently features 17,000 products and 250 brands including famous cosmetics retailer brands like Urban Decay, NARS, Dior and Lancôme. Sephora then created its own private label offering beauty products which includes their very own skincare, cosmetics, hair products, beauty tools and accessories. Generating over $4 billion in revenue as of 2013, Sephora currently have 300 stores in France and 1,700 stores in 30 countries worldwide including Australia, China, Italy, Brazil and Malaysia. Annually, Sephora has 6 million customers visiting the Champ-Élysées flagship store. Sephora’s ability to adapt to changes and develop in unique and innovative ways over time have made them one of the…show more content…
In 1999, Sephora.com was launched in the United States and it was the foremost beauty site on the Internet. Sephora realised that smart phone has now become an essential tool in everyone’s daily lives and customers were spending more time online. In order to expand their customer base and to satisfy the customers’ needs, Sephora has launched a “Sephora To Go” iPhone and iPad application in October 2010 which allows customers to have an in-store experience such as personal purchase histories, bar-code scanning, reviewing, rating and purchasing their products online. The application also provide customers with special offers and the lastest beauty news and updates from Sephora’s Facebook and Twitter feeds. Already hitting 3 million application downloads on the App Store, Sephora further expands their application by inventing an online beauty service called ‘ColorIQ”. This program attemps to scan customers’ skin tone and find their scientifically precise foundation match from over 1,500 options. To maintain the loyalty of the customers and making their lives more convenient, Sephora realise that instead of focusing on just the quality and the branding of the products, the company should serve as a resource and understand the needs of their customers by educating them and providing them with the latest beauty tips and video tutorials online. As a
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