Sephora Case Analysis

Background

Sephora is a successful chain of cosmetics stores founded in France in 1970. In 1997 the company was acquired by Paris-based conglomerate LVMH (Louis Vuitton and Moet Hennessy.) The name Sephora comes from a combination of "sephos", which is Greek for "beauty" and the name Zipporah, the exquisitely beautiful wife of Moses in the Book of Exodus. The Sephora chain includes nearly a 1,000 stores in 25 countries, which includes 250 stand-alone stores in the United Sates and another 155 locations inside JCPenney department stores. Carrying over 250 brands, including Sephora's own private label, the company offers cosmetic and beauty items that include, but are not limited to, makeup, skin care, fragrance, bath and body, hair product, and hair and make-up tools.

The first location the United States was opened in 1999 in New York’s famous Rockefeller center, a prime location for high end retailers. In April 2006, Sephora joined JCPenney to sell cosmetics in its stores. The JCPenney version of Sephora is a "store within a store" concept. The first five "Sephora inside JCPenney" stores opened in October 2006. These stores are smaller than the size of a normal Sephora store. Due to the size difference, these smaller stores carry a more limited selection.

Today, Sephora is the leading chain of perfume and cosmetics stores in France. Sephora also possesses the world's number one beauty website and acknowledged as a leading digital brand. The company has also taken a forward looking approach to finding other channels in which to make its presence felt through mobile and social media initiatives including the increasingly important Facebook page, BeautyTalk-its online beauty community, and mobile applications for instant access almost anywhere in the world.

Understanding the Case

Sephora has an extremely wide customer base. Their target market consists of; mostly women, with ages ranging from early teens to the elderly, middle to high income, fashion...