Sephora 'not moving forward' with Sephora Studio concept
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Graphics, promotions, and featured products are aligned on all customer interfaces, allowing for seamless browsing and purchasing regardless of format. Those displays started as prototypes in a Sephora concept store that filled an entire floor of IDEO’s Shanghai office. In our bright, modern space, consumers of all demographics explored a self-led experience designed to delight. A “Play Table” allowed visitors to freely explore products, using digital platforms to access product details and reviews. At another pitstop, the “Sephora Beauty School”, offered a spectrum of classes and community activities, providing hands-on guidance and enabling participants to test out beauty bloggers’ techniques. The “Care Table” addressed more personal skincare needs, providing a semi-private setting for individuals to remove makeup, try out products, and consult with experts.
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As part of the expansion, the retailer announced a new store format — a 4,000-square-foot design that's meant to better fit the outside-the-mall locations it's moving into. That format will effectively replace the role Sephora Studio had played in the retailer's portfolio, according to Gaul, though the existing Sephora Studio stores will remain open. A bit further in, guests will find a list of the store’s services, like makeup, skin care, hair, fragrance discovery, brows, face glow and personalized engraving.
Featured products in this project 1
It all adds up to a dynamic landscape that is helping to fuel Sephora and beauty overall, one of the few categories in the U.S. that is growing thanks to unit sales increases rather than price increases. There’s lash applications, Hydrafacials for the face, lips and hands, and brow waxing. Sephora North America was a first-mover in digital, for example, launching its e-commerce site in 1999. That meant executives had to forge a completely new strategy, one built around small emerging brands that few had ever heard of. If necessity is the mother of invention, Sephora U.S. is the godparent of the modern-day beauty industry.
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Sephora's newest concept, the Sephora Studio, takes these concepts even further by focusing on the fostering of long-term customer relationships and consultation services, from skincare all the way through makeup. Although the store has only been open since July, Sephora said they have already received positive responses from their customers and they plan to expand the concept to more locations in the future. Retailers have been opening new store concepts at a furious pace as they strive to make brick-and-mortar fun again. From Nordstrom's merchandise-free experiment to Target's small-format stores aimed at winning over the college market with convenience and localized offerings, retailers are jumping at the chance to offer differentiated in-store experiences. Unlike its competitors, the digital and traditional marketing efforts at Sephora are organized under the same department, fueling collaborative decision making(3). Sephora’s competitive advantage in the prestige beauty space stems from integrated business and operating models that support the company’s broader objective to enhance the customer experience at every touchpoint.
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Services like express makeup bars and interactive menus address customer desires around personalisation and expert advice. A new category, the parapharmacy, completes Sephora’s skincare and wellness offerings. Implemented in over a hundred locations in Europe, the concept can scale to different formats, like a new shop-in-shop layout. The Beauty Hubs are a new innovative tool that gives the opportunity to buy products in-store or online, providing several purchasing options to clients, but also a fun and engaging experience. The Beauty Hubs show that Sephora has acted on the fact that consumers want to do more than just buy products in stores in an expert way.
Customers are encouraged to join Sephora’s free loyalty program, Beauty Insider, to easily track and sign up for classes and services at their local Sephora store, where a Beauty Advisor can assist them. Centered around Sephora’s DNA and branding principles, the new store formats go beyond trying and purchasing products. Another key to growth will be to continue to broaden Sephora’s consumer base, primarily through external partnerships.
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While Sephora’s flagship location is in Plaza de Catalunya, Barcelona’s commercial and cultural center, it saw modest levels of foot traffic and in-store sales. We needed to shape a new experience around Sephora’s core values of discovery, fun, and fearless experimentation to reignite the spark for beauty lovers and engage curious newcomers. With this new platform, Sephora has positioned itself as a pioneer in the beauty sector.
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Sephora's West Coast flagship store was designed by FeeMunsonEbert, San Francisco, in the style of the Paris flagship. Freestanding space features all-glass exposures on Stockton and Ellis Streets, with an animated display on the second floor of the Ellis Street exposure. A 19-ft.-high drywall barrel vault ceiling, visible from the entryway, spans the entire second floor, acting as a conduit to lead customers through the store.
This flagship also sells the wide range of prestige fragrance — for women and for men — and color cosmetics found at other Sephoras. There is an area showcasing which brands are hot on social media, plus The Next Big Thing gondola and the Gift Hub. Francis Kurkdjian will be sold in the section devoted to high-premium fragrance brands. An example of a label found in no other Sephoras is Maison Francis Kurkdjian, a fragrance brand that shares the retailer’s parent company, LVMH Moët Hennessy Louis Vuitton. The flagship’s design nods vigorously to the Avenue des Champs-Élysées, on which it stands, at numbers 70 to 72, with a 2.6-foot-wide path of hand-set snow white marble paving running straight through the store. Sephora’s signature black-and-white stripes appear on some columns flanking that.
Its highly curated menu will be available in an adjacent location connected to Sephora stores in San Diego and Los Angeles. Sephora leverages its strong reputation to attract new brand partners, control its competitive environment and gain product exclusivity rights to offer best-in-class product curation for consumers. Given demand for shelf space, Sephora is discerning regarding brand expansion and ruthless in discontinuing underperforming products. Protective of its image, Sephora dictates to whom its brand partners can sell to avoid association with lower-end stores. The company negotiates for exclusive “made for Sephora” products and exclusive “early rollout rights” for new brand product launches. Few do it better than Sephora — a company at the forefront of experiential retail for some time now.
Industry sources estimate that Sephora North America has the potential to drive $10 billion in sales. A handful of brands — a.k.a. the big three — ruled the roost, and as for newcomers hoping to break through? Good luck trying to afford the astronomical costs affiliated with doing business in a full-service environment. E-commerce has created tremendous challenges to companies whose core business revolves around retail stores. Using the smaller Sephora Studio format also meant relying more on localizing the assortment, which sometimes meant stores would "miss the mark," Gaul noted. The retailer’s signature collection has its own department, and there’s an area for hair care.
Together we created a storefront and flagship store experience that was scaled to retail locations throughout Europe. The Sephora at Kohl’s store-in-store concept will be prominently located in about 2,500 square feet ... Sephora invested in technological solutions to address customer demands for targeted product recommendations to drive sales. Partnering with Pantone, Sephora developed Color IQ, an in-store interface that scans skin pigmentation to identify precise color matches across makeup brands(6).
People will go directly to the platform to find inspiration and recommendations. Thanks to this new community initiative, Sephora will build trust and have an even more solid customer base. Sephora can monitor which items and topics are trending and create strategies accordingly. In a statement released in May with Kohl’s first-quarter numbers, CEO Tom Kingsbury said that comp-store growth was in the mid-teens for the first tranche of stores, and that the 2022 openings were exceeding expectations. The partners also introduced a smaller-format store, measuring about 750 square feet, with 50 planned for the end of this year and a chain-wide rollout to be completed by 2025.
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