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  • Sephoraand Sephora.com

    EEP 142 Group ProjectSpring 2008

    Gloria See Wan SungMadeline Yin Hung Yau

  • Introduction Overview of Cosmetics Industry New Generation of Shopping Sephora.com Interview Types of Competitors Sephoras Business Strategies Future Q & A

  • Sephora History A concept from France in 1993 Acquired by Louis Vuitton Moet Hennessey

    (LVMH) in 1997 Over 250 brands from skincare, color, fragrance,

    makeup, bath & body to haircare, in addition to Sephora's own private label

    515 stores in 14 countries worldwide:126 stores across North America. Sephora opened its first U.S. store in New York in 1998, and its first Canadian store in Toronto in 2004

    First U.S. store in New York in 1998, and first Canadian store in Toronto in 2004

  • Target Customers

    Women ranging from their teens to their thirties

  • Brands include:

  • Overview of Cosmetics Industry

    Department Store: Macys Bloomingdale, Saks Fifth Avenue

    Drugstore: Longs, Walgreen Online Cosmetics Boutique

    http://images.google.com/imgres?imgurl=http://www.bgca.org/images/partner_logos/Macys2-LOGO.JPG&imgrefurl=http://www.bgca.org/partners/macys.asp&h=292&w=1093&sz=103&hl=en&start=1&sig2=e-jOX-Cgt8FQ8vY_SakNNA&tbnid=Nn0OsnRdNkB70M:&tbnh=40&tbnw=150&ei=bggISPvHLo3OwQG3j6mhDA&prev=/images?q=macy%27s&gbv=2&hl=enhttp://images.google.com/imgres?imgurl=http://www.truckhobby.com/trucks/Walgreen%20'95-T3548.jpg&imgrefurl=http://www.truckhobby.com/winross.php3&h=533&w=531&sz=78&hl=en&start=51&sig2=ZbCI4TCS4jDmAFW5UMMBMg&tbnid=um_EDmzJy6_YBM:&tbnh=132&tbnw=132&ei=dQkISOjVAo6MwAGdxtiODA&prev=/images?q=walgreen&start=40&gbv=2&ndsp=20&hl=en&sa=Nhttp://images.google.com/imgres?imgurl=http://www.smalltown.com/image/00/09/longs_drug_stores_burlingame-941-1155512551290.jpg&imgrefurl=http://www.smalltown.com/burlingame/card/941&h=300&w=400&sz=186&hl=en&start=1&sig2=vsr3T33SaaRSSB2aUcVpxQ&tbnid=HVCUk_3oFdZg_M:&tbnh=93&tbnw=124&ei=tgkISIjaKIXIwQHJs7GhDA&prev=/images?q=longs&gbv=2&hl=enhttp://images.google.com/imgres?imgurl=http://cancer.ucsd.edu/aboutus/news/archive/Saks_Logo.gif&imgrefurl=http://cancer.ucsd.edu/aboutus/news/archive/archive2.asp?articleID=215&h=100&w=138&sz=3&hl=en&start=7&sig2=y9Kw2R4LOsQI3L8ZyuV4xA&tbnid=o1Uq0Ceq0Ll_lM:&tbnh=67&tbnw=93&ei=4QkISKm9FZOWxAGD8PSpDA&prev=/images?q=saks+fifth+avenue+logo&gbv=2&hl=en&sa=Xhttp://images.google.com/imgres?imgurl=http://www.vogue.com.au/var/vogue/storage/images/fashion_central/companies/beauty/lancome/12831-1-eng-GB/lancome_fashionlabelLogo.gif&imgrefurl=http://www.vogue.com.au/fashion_central/companies/beauty/lancome&h=85&w=300&sz=6&hl=en&start=38&sig2=t_88Ybs90YIOe1J3IQs09A&tbnid=cs9DDKgKRh3e1M:&tbnh=33&tbnw=116&ei=CwoISPfBC4mcwwHTquypDA&prev=/images?q=lancome.com&start=20&gbv=2&ndsp=20&hl=en&sa=Nhttp://images.google.com/imgres?imgurl=http://www.floridancsy.org/www2/auction/images/prizesSmall/F1sephora.jpg&imgrefurl=http://www.floridancsy.org/www2/auction/10.html&h=219&w=219&sz=6&hl=en&start=2&sig2=IhOrf5e2ET6MEHJwgW3iIQ&tbnid=JUIKr8C8Evv8qM:&tbnh=107&tbnw=107&ei=LgoISNDvDI6MwAGdxtiODA&prev=/images?q=sephora&gbv=2&hl=enhttp://images.google.com/imgres?imgurl=http://www.vogue.com.au/var/vogue/storage/images/fashion_central/companies/beauty/clinique/8161-2-eng-GB/clinique_fashionlabelLogo.gif&imgrefurl=http://www.vogue.com.au/fashion_central/companies/beauty/clinique&h=75&w=300&sz=4&hl=en&start=50&sig2=Yltyl7b-EChVwosCrOMvIQ&tbnid=7q2Cx_D4McOsUM:&tbnh=29&tbnw=116&ei=2gcISKOZFYXIwQGys7GhDA&prev=/images?q=clinique.com&start=40&gbv=2&ndsp=20&hl=en&sa=N

  • Industry Statistics Sampler NAICS 446120 Cosmetics, beauty supplies, and perfume stores

  • Geographic Distribution --Cosmetics, beauty supplies, and perfume stores: 2002 Data

  • Main Factors on purchase of Cosmetics Products

  • New Generation of Shopping

    Transition from physical stores to online shopping

  • For the full year, 2006 online retail spending reached $102.1 billion, according to comScore, a 24% increase on 2005.

  • Have you even made a

    purchase online?

  • Trend in Online Shopping

    (Source: Nielson Consumer Report Feb. 2008)

  • Trend in Online Shopping

  • Trend in Online Shopping

    (Source: Nielson Consumer Report Feb. 2008)

  • Video

  • Sephora.com Launched in October

    1999 3 Free Samples with

    Every Order Free Shipping (over

    $50) Free Return Free Gift Packaging

  • InterviewDate:

    16th March, 2008Time:

    3-4 pmLocation:

    Sephora Store in San FranciscoInterviewers: Madeline and GloriaInterviewees: Amy and Lucy

  • Interview 1 Where do you usually buy your cosmetic product?

    Sephora

    What makes you shop in Sephora?I can try different testers.Assist from professional make-up stylistWide selection of brands

    Have you ever heard of Sephora.com?Yes

    What makes you shop in Sephora.com?I can shop in Sephora.com whenever, wherever I want.Fast shipping

    What do you think Sephora.com better than other online cosmetics sites, Why?They carry wide selection of brands

    How much is your monthly spend on cosmetic product? ~$200

  • Interview 2 Where do you usually buy your cosmetic product?

    Mostly Department stores

    What makes you shop in Department store?Department stores always have promotion and discount after purchase certain amount.

    What makes you shop in Sephora today? I can try different brands and testers.

    Have you ever heard of Sephora.com? No.

    After you are noticed there is a Sephora.com, will you shop on sephora.com in the future? Yes.

    How much is your monthly spend on cosmetic product? ~$100

  • Competition from online Competitors

    Variety of Sources:1. All Internet Sites2. Department Store sites with a

    cosmetics section3. Manufacturers Own Sites 4. Pure Internet Multi-Brand Cosmetics

    sites

  • All internet Sites

    Easy and Simple 24-7 No Pressure Reach People Who Live in Remote

    Locations

    http://images.google.com/imgres?imgurl=http://wirelessdigest.typepad.com/photos/uncategorized/2007/05/24/ebay.gif&imgrefurl=http://www.bayraider.tv/ebay_news/index.html&h=538&w=538&sz=8&hl=en&start=2&sig2=NagT9yIDqPFdie0OblxiMw&tbnid=h-8e8IGPfhZnhM:&tbnh=132&tbnw=132&ei=cgcISOmSD4mcwwHfquypDA&prev=/images?q=ebay&gbv=2&hl=en

  • Manufacturer Sites

    Builds a relationship through recalling previous buys

    offering suggestions appropriately Special store-style offers not

    available

    http://images.google.com/imgres?imgurl=http://www.vogue.com.au/var/vogue/storage/images/fashion_central/companies/beauty/clinique/8161-2-eng-GB/clinique_fashionlabelLogo.gif&imgrefurl=http://www.vogue.com.au/fashion_central/companies/beauty/clinique&h=75&w=300&sz=4&hl=en&start=50&sig2=Yltyl7b-EChVwosCrOMvIQ&tbnid=7q2Cx_D4McOsUM:&tbnh=29&tbnw=116&ei=2gcISKOZFYXIwQGys7GhDA&prev=/images?q=clinique.com&start=40&gbv=2&ndsp=20&hl=en&sa=N

  • Internet Multi-Brand Fun sites with lots of new idea Lots of different stores to find a

    product Can access anyway in U.S Special offers and promotion

    http://images.google.com/imgres?imgurl=https://vshop.paydollar.com/images/sasa_logo.jpg&imgrefurl=https://vshop.paydollar.com/startshopping?mpage=sasa.jsp&h=64&w=142&sz=7&hl=en&start=37&sig2=PSEXI6IgwZBu8DhPAuENVQ&tbnid=QDI3qSA0CQpfpM:&tbnh=42&tbnw=94&ei=CxMISJ30B5XWgQKGp-nSDQ&prev=/images?q=sasa.com&start=20&gbv=2&ndsp=20&hl=en&sa=N

  • Department Store Sites

    Can purchase cosmetics along with other products

    Major brand missing because they have their own sites

    http://www.bgca.org/images/partner_logos/Macys2-LOGO.JPG

  • Sephora.com Differs from its Main Competitors:Having both a strong online and physical presence

    The policy of allowing customers to return any product that they are unhappy with

  • Sephora.com Business Strategy

    1. Customer Service: customers look-in

    2. Creating Content: Providing customers favorite hard-to-find

    products online

    3. Strong Staying Power Snatched up most of Eve.coms assets,

    including the web address and customer database

    4. Back Up by Physical Boutique Business Sephora Shops

  • Prospects for the Future

    Eventual success or failure of Sephora.com the success or failure of e-commerce

    Young generation nowadays either embrace or reject the Internet as a mode of retailing

    Consumers are more and more technology savvy learning curve decreases making purchasing online more natural

  • Q & AQ & A

    1. Name Four Types of SephorasOnline Competitors.

    i. All Internet Sitesii. Department Store sites with a

    cosmetics sectioniii. Manufacturers Own Sites iv. Pure Internet Multi-Brand

    Cosmetics sites

  • Q & AQ & A

    2. What makes Sephora.comdifferent from its main competitors?

    i. Having both a strong online and physical presence.

    ii. The policy of allowing customers to return any product that they are unhappy with.