10.21.08
Sephora Celebrates 10 Years of Beauty
Executives from the world-renowned beauty authority talk about its milestone anniversary, the last decade and how sampling and specialty packaging helped make the company a consumer favorite.
By Joanna Cosgrove
Online Editor
Ten years ago, there was not one single-source venue where women could go to find an extensive range of cosmetic, skin care or fragrance products without searching from counter to counter in their local department store, or taking a chance on a sealed, packaged product sold in a drugstore. Then came Sephora. Founded in France in 1969, Sephora was acquired by LVMH Moët Hennessy Louis Vuitton in 1997 and the Paris-based luxury products group wasted little time introducing Sephora’s unique open-sell retail philosophy to the global market, opening its U.S. flagship store in New York City in 1998.
The store initially offered some 11,000 products in 1998 — a total that’s now climbed to more than 13,000 products spanning 250 classic and emerging brands of skin care, color, fragrance, makeup, bath and body and hair care products for women, men, teens and tweens. The company also sells its own extensive and highly successful private label brand comprised of color cosmetic, skin care and bath and body products including innovative items like makeup specially developed for use on legs, and the headline-grabbing anti-wrinkle cream, StriVectin-SD.
 Bare Escentuals’ Mineral Veil On-The-Go Brush was created especially for Sephora’s 10th anniversary. |
The company’s “limited assistance self-service” concept is complemented by a professional team of product consultants trained in the “Science of Sephora” —a program that ensures that sales associates are skilled to identify skin types, have knowledge of skin physiology, the history of makeup, application techniques and the science of creating fragrances.
In the mid-2000s, the company augmented its retail stores to include beauty services like a hair styling counter dubbed “The Style Lounge,” and specialized service areas such as the Nail Bar, the Brow Bar, and the Smile Bar, among others.
“Over the past decade, Sephora has revolutionized the cosmetics industry and the way people shop for their beauty products,” comments Allison Slater, Sephora’s vice president of retail marketing. “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, open-sell philosophy, stress-free environment and the expertise of our ‘cast members.’ ”
Slater adds that the company prides itself on being on the forefront of education, product innovation, beauty trends and technology. “From new products and brand introductions, to the launch of our client loyalty program Beauty Insider, and online advancements like the new Ratings & Review function on sephora.com, we strive to ensure our clients are rewarded and have the resources for all their beauty needs,” she says.
Sephora’s Beauty Insider is a frequent buyers’ reward program that offers loyal customers coupons, discounts and points. Free to any customer willing to sign up, each dollar spent is equal to one point, and for every 100 points earned, customers are offered a free sample-size product. Beauty Insider members also receive sample-sized gifts on their birthday.
Successful Sampling
Trying and buying cosmetics and fragrances is an incredibly personal venture. That’s why sampling plays so heavily into Sephora’s retail philosophy. “Sampling is extremely important to Sephora,” says Slater. “Whether it is in-store or online, sampling enables us to introduce clients to a new product or re-introduce them to an old favorite.”
 Selected products from Sephora’s own private label brand have also been specially outfitted to commemorate the milestone. Here, Crystallized Lipstick by Sephora is a bejeweled lipstick tube containing a limited edition classic red shade to complement every complexion. |
Jim Gabilanes, senior vice-president sales and marketing for Flexpaq Corporation, South Plainfield, N.J., whose company works with one of Sephora’s suppliers, underscored the importance of sampling for a company like Sephora. “It is critical for them as sampling allows trial, which will lead to conversion and ultimately the purchase,” he says. “Since they ship their products, they have a captive audience and a distribution system that allows them to cross sample with their client purchases, within the same box. This method is a very strong way of measuring the effectiveness of any sampling program they may use.”
Gabilanes adds that although the size of a sample package is small, its value is enormous. “A good sample package is designed to deliver the sample and product information in the most efficient and consumer friendly method,” he says. “The proper dosage, usage information, and product benefit is clearly defined. A good sample package will deliver the product in the most optimum way that the consumer will remember.”
For Sephora, product packaging is also an important consideration, not just for attracting a consumer’s attention in the highly competitive open-sell format but also online, where it’s impossible to explore a product’s more tangible attributes. “Packaging that is unique and original generates buzz for products online and in-store. Many of our brands house their products in fun, eye-catching packaging,” says Slater, citing brands like Too Faced, Benefit, Urban Decay, Juicy Couture, Stila, tarte and philosophy as Sephora stand-outs known not only for the effectiveness of their products, but also their clever packaging.
Birthday Goodies
To commemorate its 10th anniversary, Sephora collaborated with a handful of its most popular brand partners to serve up special limited editions of some of its bestselling products.
“We want our birthday to be something that everyone can partake in, so our brands created a fabulous selection of limited edition products to reward our loyal clients,” says Betsy Olum, senior vice president of Sephora marketing.
 Crystallized Palette by Sephora is a rhinestone-encrusted collection of 16 eye shadows, nine lipsticks and three mini brush applicators. |
“We saw our ten year birthday as a great opportunity to celebrate our wonderful clients, so Sephora worked with select brands and designed special ten-year packaging for their most popular products,” says Slater. “We are very fortunate to have strong and positive working relationships with all of our brand partners. Many of the brands that were available in-store and online ten years ago are offered today—it’s really wonderful to watch these brands evolve as they continue to introduce more high-quality products, garnering greater client loyalty.”
Selected products from Sephora’s own private label brand have also been specially outfitted to commemorate the milestone: Crystallized Lipstick by Sephora ($22) is a bejeweled lipstick tube containing a limited edition classic red shade to complement every complexion. Crystallized Palette by Sephora ($38) is a rhinestone-encrusted collection of 16 eye shadows, nine lipsticks and three mini brush applicators. Ten of the company’s most popular bubble bath gels have also been assembled into a special Birthday Body Wash Gift Set box ($36). The gels are packaged in 2.5oz. bottles, and scents range from tropical (Coconut Cream) to fruity (Apple Pomegranate) to gourmand (Chocolate Espresso).
Given the company’s meteoric rise over the last decade, there’s simply no telling the heights Sephora will reach over the next decade, but Slater says the company looks forward to continued success and achievement. “Our goal is to remain the leading specialty beauty retailer, in which we will continue to provide our clients with the ultimate shopping experience,” she concludes. “From high-quality products that are innovative and effective to the overall service and support clients receive in-store and online, we look forward to making the Sephora experience even more beauty-full!”
