Sephora, the 56 year old French beauty powerhouse under LVMH, has unveiled the core strategy that continues to set it apart in an increasingly crowded beauty market. Despite rapid innovation across the industry, Sephora’s lasting advantage stems from something far more fundamental: an uncompromising focus on customer experience.
What’s Happening
With 3,400 stores worldwide and 600 of them in the US alone, Sephora sells more than 300 premium beauty brands and remains a standout performer in the LVMH portfolio. The company recently reported revenue of $18.5 billion, supported by several strategic initiatives highlighted in the Wall Street Journal.
- A deep emphasis on in store experience, where two thirds of its sales occur. “Every square inch of this place has to be productive,” said Deborah Yeh, Global CMO, referring to the brand’s newly redesigned Paris flagship.
- A long form content partnership with Hulu for Faces of Music, featuring Becky G, Victoria Monét and Chappell Roan.
- A collaboration with the WNBA to deliver exclusive content and beauty focused fan activations, including on site kiosks in US stadiums.
- A new US program enabling Sephora to generate revenue directly from influencer recommendations.
- Increased investment in high growth categories such as fragrance, an area the company says is especially popular among teen boys.
Why Customer Experience Still Wins
The global beauty market is estimated at $450 billion, with Amazon controlling 47 percent of the online beauty and personal care segment. Sephora, in comparison, holds just 9 percent. This competitive imbalance makes the customer experience a critical differentiator.
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While Amazon can provide convenience and competitive pricing, the emotional connection is limited. Industry analysts warn that many brands today are facing “enshittification,” the decline in quality and trust caused by diminishing product and service standards. WARC research suggests that brands must bridge the gap between what they promise and what customers actually experience, emphasizing signals like trust, care, reassurance and respect.
Sephora’s strategy directly addresses these challenges by prioritizing meaningful, memorable interactions both online and in stores.
Key Quote
“Gen Z love stores, they love the experience. Boring retail is dead, attractive retail is alive, and that’s our business.”
Guillaume Motte, Global President and CEO, Sephora
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Sources: Wall Street Journal, WARC
