Sephora HistoryTarget CustomersBrands include:Overview of Cosmetics IndustryIndustry Statistics Sampler NAICS 446120 Cosmetics, beauty supplies, and perfume stores Geographic Distribution -- Cosmetics, beauty supplies, and perfume stores: 2002 Data Main Factors on purchase of Cosmetics ProductsNew Generation of ShoppingFor the full year, 2006 online retail spending reached $102.1 billion, according to comScore, a 24% increase on 2005. Trend in Online ShoppingTrend in Online ShoppingTrend in Online ShoppingVideoSephora.comInterviewInterview 1 Interview 2 Competition from online CompetitorsAll internet SitesManufacturer SitesInternet Multi-BrandDepartment Store SitesSephora.com Differs from its Main Competitors: Having both a strong online and physical presence Sephora.com Business StrategyProspects for the FutureQ & AQ & AQ & ASephoraand Sephora.comEEP 142 Group ProjectSpring 2008Gloria See Wan SungMadeline Yin Hung Yau• Introduction• Overview of Cosmetics Industry• New Generation of Shopping• Sephora.com• Interview• Types of Competitors• Sephora’s Business Strategies• Future •Q & ASephora History• A concept from France in 1993• Acquired by Louis Vuitton Moet Hennessey (LVMH) in 1997• Over 250 brands from skincare, color, fragrance, makeup, bath & body to haircare, in addition to Sephora's own private label • 515 stores in 14 countries worldwide:126 stores across North America. Sephora opened its first U.S. store in New York in 1998, and its first Canadian store in Toronto in 2004• First U.S. store in New York in 1998, and first Canadian store in Toronto in 2004Target Customers• Women ranging from their teens to their thirtiesBrands include:Overview of Cosmetics Industry• Department Store: Macy’s Bloomingdale, Saks Fifth Avenue • Drugstore: Longs, Walgreen• Online Cosmetics BoutiqueIndustry Statistics Sampler NAICS 446120 Cosmetics, beauty supplies, and perfume storesGeographic Distribution --Cosmetics, beauty supplies, and perfume stores: 2002 DataMain Factors on purchase of Cosmetics ProductsNew Generation of Shopping• Transition from physical stores to online shoppingFor the full year, 2006 online retail spending reached $102.1 billion, according to comScore, a 24% increase on 2005.Have you even made a purchase online?Trend in Online Shopping(Source: Nielson Consumer Report Feb. 2008)Trend in Online ShoppingTrend in Online Shopping(Source: Nielson Consumer Report Feb. 2008)VideoSephora.com• Launched in October 1999• 3 Free Samples with Every Order• Free Shipping (over $50)• Free Return• Free Gift PackagingInterviewDate: 16thMarch, 2008Time: 3-4 pmLocation:Sephora Store in San FranciscoInterviewers: Madeline and GloriaInterviewees: Amy and LucyInterview 1 Where do you usually buy your cosmetic product? SephoraWhat makes you shop in Sephora?I can try different testers.Assist from professional make-up stylistWide selection of brandsHave you ever heard of Sephora.com?YesWhat makes you shop in Sephora.com?I can shop in Sephora.com whenever, wherever I want.Fast shippingWhat do you think Sephora.com better than other online cosmetics sites, Why?They carry wide selection of brandsHow much is your monthly spend on cosmetic product? ~$200Interview 2 Where do you usually buy your cosmetic product? Mostly Department storesWhat makes you shop in Department store?Department stores always have promotion and discount after purchase certain amount. What makes you shop in Sephora today? I can try different brands and testers.Have you ever heard of Sephora.com? No.After you are noticed there is a Sephora.com, will you shop on sephora.com in the future? Yes. How much is your monthly spend on cosmetic product? ~$100Competition from online CompetitorsVariety of Sources:1. All Internet Sites2. Department Store sites with a cosmetics section3. Manufacturers’ Own Sites 4. Pure Internet Multi-Brand Cosmetics sitesAll internet Sites• Easy and Simple • 24-7• No Pressure• Reach People Who Live in Remote LocationsManufacturer Sites• Builds a relationship through recalling previous buys• offering suggestions appropriately• Special store-style offers not availableInternet Multi-Brand• Fun sites with lots of new idea• Lots of different stores to find a product• Can access anyway in U.S• Special offers and promotionDepartment Store Sites• Can purchase cosmetics along with other products• Major brand missing because they have their own sitesSephora.com Differs from its Main Competitors:Having both a strong online and physical presenceThe policy of allowing customers to return any product that they are unhappy withSephora.com Business Strategy1. Customer Service: – customers look-in 2. Creating Content: – Providing customers’ favorite hard-to-find products online3. Strong Staying Power– Snatched up most of Eve.com’s assets, including the web address and customer database 4. Back Up by Physical Boutique Business – Sephora ShopsProspects for the Future• Eventual success or failure of Sephora.com – the success or failure of e-commerce • Young generation nowadays – either embrace or reject the Internet as a mode of retailing• Consumers are more and more technology savvy learning curve decreases making purchasing online more naturalQ & AQ & A1. Name Four Types of Sephora’sOnline Competitors. i. All Internet Sitesii. Department Store sites with a cosmetics sectioniii. Manufacturers’ Own Sites iv. Pure Internet Multi-Brand Cosmetics sitesQ & AQ & A2. What makes Sephora.comdifferent from its main competitors?i. Having both a strong online and physical presence. ii. The policy of allowing customers to return any product that they are unhappy with.Q & AQ & A3. Name any Sephora.com Business Strategy. i. Customer Service: ii. Creating Content: iii. Strong Staying Poweriv. Back Up by Physical Boutique