SEPHORA

A Brand Case Study

Nikki Kerber
PBDS 705 November 21, 2011

Nikki Kerber PBDS 705 The Design/Business Link

History of SEPHORA: The Foundations of Modern Design

Founded in late 1969 as Shop 8, Dominique Mondonnaud opened a speciality

perfumery retail store in Frances Haute Vienne region that was revolutionary for its time
due to the way the store was operated and designed (Sephora holdings s.a, 2011, p.
1). While department stores heavily relied on the tried and true commission-based model
to sell perfume and essential perfume oils, Dominique Mondonnaud set out to create an
innovative and unique way to sell perfume and cologne. In 1979, Mondonnaud created a
cutting-edge retail model that dramatically changed the way customers shopped.
Marketed and designed as a self-service retail model, Shop 8 featured a large and open
floor plan in order for customers to roam the store and touch, feel, and try all products.
(Sephora holdings s.a, 2011, p. 2) This self-service retail model was revolutionary
because, even today, most department stores place products out of reach of potential
buyers, within glass cases, making the selling process less streamlined and frustrating
for some individuals. Another way Mondonnaud upgraded the traditional selling process
of perfume was by grouping products and brands in unique ways. For example, not only
did Shop 8 offer a more extensive perfume line than any other department store in 1979,
but products were grouped by perfume notes and scents, rather than just by brand.
(Sephora holdings s.a, 2011, p. 2) Interestingly enough, most department stores today
primarily still group fragrances only by brand. With the success of the new business

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model, Mondonnaud had opened a total of four Shop 8 stores by 1984 (Sephora
holdings s.a, 2011, p. 2).

Although Shop 8 was successful with how it marketed and sold products,

Dominique Mondonnaud faced financial problems due to his over enthusiasm to expand
the store in new regions of France. As a result, on Mondonnauds 50th birthday in 1993
he decided to retire and by 1997 all Shop 8 stores were sold to one of the most
prestigious luxury goods group in the world, Louis Vuitton Moet Hennessy (LVMH). After
LVMH took ownership of Sephora, which was rebranded in September 1993 by another
group, they had acquired approximately 129 stores and continued Mondonnauds unique
selling vision by adding additional elements to each retail store and the overall brand.
(Sephora holdings s.a, 2011, p. 3-4). Primarily, LVMH expanded its product base to
include cosmetics and, By end of 1997, Sephoras sales had already topped the FRF 2
billion [mark] (Sephora holdings s.a, 2011, p. 4). Additionally, LVMH expanded into
new territory such as Spain, the United Kingdom, the United States, and Czech
Republic. Moreover, the first United States flagship store was opened in New York City in
1998. Finally, the LVMH group created a private label product brand under the Sephora
name and to this day includes accessories, skin care, hair care, and makeup products,
including their most coveted anti-wrinkle cream StriVectin-SD which is an international
award wining skin care product (Sephora holdings s.a, 2011, p. 4-5).

According to Sephoras website, Sephora is highly regarded as a beauty

trailblazer, thanks to its unparalleled assortment of prestige products, unbiased service

from experts, interactive shopping environment, and innovation (About Sephora,
2011). Where it was once a dream to break away from the traditional retail model,
Sephora dominates the beauty industry thanks to its self-service model that sells a wide

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range of products to women and men between the ages of 15 and 70 (Sephora:
Liberating beauty, 2006). Now in its peak, Sephora is the leading retail chain of beauty
products. Here is a snap shot of Sephoras operating power around the world:

Operates in 24 countries

280 Sephora stores in the U.S and Canada, including 270 mini-stores in
JcPenny

Carries over 11,000 products and 250 brands

(About Sephora, 2011).

Sephora: The Brand

As a brand, Sephora is the strongest competitor in the beauty industry. When

individuals think of the Sephora brand the overall feeling is that Sephora is the leader in
perfume, skin care, and cosmetics due to the way the company is marketed, advertised,
and designed. When customers were polled on their overall feeling of the Sephora
brand, nearly all customers replied that Sephora is modern, innovative, fun,
knowledgeable, professional, friendly, and trend-setting. These positive attributes echo
what Dominique Mondonnaud set out to do from the beginning when he opened his first
Shop 8 store. Building upon Mondonnauds unique views, LVHM was able to further his
vision and create the beauty empire Sephora is today.

Without the ownership and support from LVHM, Sephora might not be the

recognized leader in the industry today. Since Sephora is owned and operated out of
France, which is the fashion capital of the world, and LVHM is owned and operated out
of France, the Sephora brand is automatically granted a certain level of credibility in the
beauty industry. Additionally, its credibility also stems from the knowledgeable sales
associates and make-up artists who have undergone Sephoras extensive proprietary
training program called the Science of Sephora. This program was developed by
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Sephora in conjunction with the top beauty consultants in order to give the best advice to
customers wanting information on skin types, the history of makeup, application
techniques, and the science of creating fragrances (About Sephora, 2011).

With such a deep understanding and extensive knowledge of the beauty industry,

Sephora ensures that its reputation as a leader is maintained and upheld in every aspect
of their business. As such, the company is able to tap into a broad customer base while
also targeting specific age groups. For example, they are able to target men by offering
mens cologne and skin care within an easy to navigate store layout. They are able to
target women of all ages by offering high-end traditional brand names such as Clinique
and Channel, as well as teenagers and the budget conscious consumer by offering them
unique products from startup companies and Sephoras own private label.

As previously mentioned, Sephora prides itself on its self-service model. This is

perhaps the most important design concept of the Sephora brand as the design of the
store largely contributes to Sephoras success. For example, by designating the left and
right walls of the store to mens cologne and womens perfume, clearly identifying the top
10 fragrances amongst buyers and allowing customers to sample every fragrance, new
and returning customers are able to shop in a hassle-free environment that allows them
to try new scents while getting educated on their fragrance selection. Similarly, products
are grouped according to color like Sephoras lip bar which promotes approximately 365
lipstick and lipgloss colors. Just like the fragrance walls, the lipstick bar contributes to the
hands-on approach to selling beauty products.

Barbara Emerson, Sephoras vice president of store planning and design, argues

that Design is one of the most important elements in our U.S rollout [and] its integral to
the function and appeal of our stores (as cited in Sephora: Liberating beauty, 2006).
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Thus, another important design concept of the Sephora brand is the carefully selected
color scheme of red, black, and white. The main aisles of the store are covered in plush
red carpet, echoing the idea of walking down the red carpet during a Hollywood event.
Black and white tiles cover the remainder of the floor which are architecturally striped
columns [that] punctuate the interiors [of the store] (Sephora: Liberating beauty, 2006).
Furthermore, all sales associates dress in black and are supposed to wear red lipstick
with clear or red nail polish. With this color scheme in place, all products are able to
clearly stand out on the shelves, free of background distraction, and enhances the
feeling of organization and modern style (Sephora: Liberating beauty, 2006).
Additionally, the color scheme embodies an old-Hollywood feel as red, black, and white
are representative of Hollywood glamour.

In the article Sephora Celebrates 10 Years of Beauty, Allison Slater, Sephoras

vice president of retail marketing, commented that Over the past decade, Sephora has
revolutionized the cosmetics industry and the way people shop for their beauty
products. (as cited in Cosgrove, 2008). Slate further notes that, Clients view our stores
as the ultimate beauty playground and choose to shop at Sephora because of our
unique approach to retailing, unparalleled brand selection, distinctive store layout, opensell philosophy, stress-free environment and the expertise of our cast
members [Sephoras term for sales associates] (as cited in Cosgrove, 2008). Clearly,
the Sephora brand exceeds customer expectations as a leader in the industry and to this
day continues to push boundaries by expanding the brand to include new products,
brands and services.

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Logotype, Symbol, and Brand Mark

The name Sephora, which was coined in 1993, is a result of merging the biblical

name, Zipporah, Moses beautiful wife with the Greek word for pretty or sephos (About
Sephora, 2011). As a result, Sephora represents modern-day beauty within a diverse
culture of individuals. Sephora knows that because there isnt a clear definition of
beauty, they want their customers to think of them as a brand who understands diverse
trends, ideas, and people.

The Sephora logotype, which looks like it might be designed using the Gill Sans

typeface, further promotes the idea of modernism as the logotype is distinguishable from
any angle and size. Additionally, the name
works well in any color combination.
During special occasions and holidays for
instance, the logotype is used in teal or
gold. Since the logotype is designed using
a modern looking typeface, presenting it in any color does not take away from what the
name or brands represents.

Sephoras symbol, which is present on their private

label products, gift bags, shopping bags, in-store shopping

totes, the Sephora website, and other advertising elements,
stands as a single elongated S. Referred to as the Sephora
Flame, the white S is stretched to look similar to a strand of
wavy hair or, as the name infers, a flickering flame that might
represent freedom of creativity and choice (Sephora: Wikipedia).

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Finally, Sephoras main brand mark includes a simple graphic design of short thin

black columns that are placed horizontally next to the logotype. The black columns
imitates the color theme of the black and white tiled columns designed on the floors of all
Sephora stores.
Designing Digital Shopping Experiences

Further expanding the Sephora experience, the Sephora North America brand

has recently started to leverage the power of the digital economy in order to accomplish
two goals. First, by claiming their digital space on various platforms, Sephora has hoped
to gain a larger fan base and customer base. Second, it further positions Sephora as the
leader and expert in beauty. Interestingly, by designing and strategically marketing
various new digital tools to their customers, Sephora has also positioned themselves to
be a leader in cutting-edge technology practices by using the digital economy to their
advantage. For instance, 2009-10 was the year when Sephora realized that smart
phones and other similar devices were here to stay. They also realized that customers
wanted product reviews and were spending more time online. Combining those three
elements, Sephora designed Sephora to Go, a mobile friendly website that can be
accessed by the majority of smart phones. Heavily accessed by thousands of
customers, Sephora to Go offers product reviews and ratings on all their products. As
senior vice president of Sephora Direct, Julie Borstein commented, Our first mobile
application was the mobile view of ratings and reviews thats very easy to use on your
phone. When youre walking around in our stores and trying to decide between two
products, and youre the type of person who likes to see what other people have to say,
then its very easy to access that [information] (Elkin, 2010). Julie Borstien also stated
that Sephora was one of the first businesses to create a mobile site for ratings and

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reviews (Elkin, 2010). Seeing the success of their mobile ratings website, Sephora
continued to harness the power of technology by creating a Sephora to Go iPhone
application in October 2010. Earning 4.5 stars by users on iTunes, the iPhone app
further expands the Sephora to Go mobile site by offering customers the ability to
purchase products, view and purchase new products, view special mobile offers, get
advice from other Sephora fans on Facebook, watch videos, access product ratings and
reviews, look up past purchases, create a gift registry, and scan product barcodes to
quickly pull up product information (iphone, 2011). Finally, in July 2011, Sephora
completed the design and distribution of their iPad application that lets consumers shop
its beauty products in a magazine-like format (Kats, 2011). The iPad app was a smart
decision on behalf of
Sephora because unlike
their mobile website or
iPhone app, it features upto-the minute beauty news
and information from
Sephoras Facebook and
Twitter feeds, its BeautyTalk
community, as well as the
companys revamped
YouTube channel (Kats, 2011). The actual design and layout of the app also expands
upon Sephoras business and general design philosophies as the layout of the
application updates each time a consumer accesses it and can be tailored to only show
the content users want (Kats, 2011). By leveraging the power of the digital platform and

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integrating their social media accounts with these new tools, Sephora has proven to be
leader in many different arenas outside of the beauty industry.
Competitors

Like all business and brands, Sephora faces competition from three arenas.

These arenas include department stores that have a perfume and cosmetic section,
perfume and cosmetic manufacturers, and online retailers that also sell multi-brand
perfume and cosmetic products. Department stores, most notably Macys, Nordstrom,
Saks Fifth Avenue, and Neiman Marcus, are direct competitors because they carry most
of the same brands Sephora offers their customers. Additionally, manufacturers websites
and retail shops compete with Sephora as some customers might be fan loyal and only
give their business directly to the manufacturer. Finally, websites such as Drugstore.com
and Ulta.com compete with Sephora for the simple reason that they also sell multibrands and offer discounts and speciality items. With all the direct and indirect
competition Sephora combats, however, they are still the leader in the industry due to
several reasons. The first is that Sephora carries niche brands such as Stila and NARS
that other retail stores do not and cannot carry due to contracts with the manufacturer.
Second, Sephora carries 250+ brands; that is a much larger selection of brands than
any department store, drugstore, or online retailer is willing and able to sell. Sephora
also has a very strong online presence that enables customers to access their inventory,
product information, and ratings and reviews 24 hours a day, 7 days a week. Along with
fast and courteous sales associates and customer service representatives, Sephora also
offers unique services within their stores. For example, three free samples accompany
every online order and in-store samples are also given free of charge. Furthermore,
Sephora has recently collaborated with several beauty manufacturers to offer in-store
beauty treatments. As of November 2011, for instance, 7 Sephora stores offer manicures
through XpressSpa, an airport business offering beauty treatments to travelers. Sharon

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Rothstein, senior vice president of marketing for Sephora, said that Sephora is more
than a traditional retail beauty experience for our clients ... With XpressSpa already
being a luxury spa destination for business and leisure travelers ... we know that with
them as our partners we would be able to execute nail services with the level of
expertise that would meet not just Sephoras expectations but also our clients (as cited
in Naughton, 2011). Sephora also partnered with JcPenny in October 2006 to expand
JcPennys younger cliental and literally bring Sephora to fans who previously did not
have access to the store or brands they offer. To date, there are Sephora locations in
approximately 270 JcPenny department stores (About Sephora, 2011). Now
celebrating its 18th year since the retail empire was rebranded as Sephora in 1993, the
Sephora brand is as strong as ever and continues to grow at an astonishing rate.

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References

About Sephora. (2011). Retrieved from http://sephora.com/help/about_sephora.jhtml

Cosgrove, J. (2008, September). Sephora celebrates 10 years of beauty. Retrieved from
http://www.beautypackaging.com/articles/2008/09/online-exclusive-sephora-celebrates-1
0-years-of-be
Elkin, T. (2010, May 28). Case study: Sephora offers ratings and reviews via mobile
[Web log message]. Retrieved from
http://www.emarketer.com/blog/index.php/case-study-sephora-offers-ratings-reviews-mo
bile/
iphone. (2011). Retrieved from http://sephora.com/go/iPhone/
Kats, R. (2011, July 25). Sephora boosts mcommerce strategy via integrated digital
beauty experience. Retrieved from
http://www.mobilecommercedaily.com/2011/07/25/sephora-boosts-mcommerce-strategyvia-integrated-digital-beauty-experience
Naughton, J. (2011). Sephora to offer in-store manis. womens Wear Daily, 202(10), 6.
Retrieved from http://galenet.galegroup.com/proxy-ub.researchport.edu/servlet/BCRC
(2007). Sephora holdings s.a. International Directory of Company Histories, 82, Retrieved from http://galenet.galegroup.com.proxy-ub.researchport.umd.edu/servlet/BCRC
Sephora: Liberating beauty products. (2006, January 25). Bloomberg Businessweek,
Retrieved from
http://www.businessweek.com/innovate/content/jan2006/id20060125_183621.htm
Sephora: Wikipedia. (n.d.). Retrieved from http://en.wikipedia.org/wiki/Sephora

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