Sephora seeks new horizons in China

Sephora is the second driver of LVMH Group’s revenue after its fashion and leather goods sector, mainly due to outstanding results in North America, Europe, and the Middle East, The Chinese market has been stagnant for years.

Photo by Fan Jianlei

Photo by Fan Jianlei

By ZHOU Fangying

 

Sephora, the French retailer of personal care and beauty products, is seeking a new head of its China operations and is considering high-end services. 

Sephora has been in China for 18 years with a mature operation and access to the resources of parent company LVMH. The Chinese beauty market has changed a lot since 2005 and domestic beauty brands have driven changes in beauty retail. Stores such as The Colorist and Harmay have sidelined established retailers like Sephora.

Sephora is the second driver of LVMH Group’s revenue after its fashion and leather goods sector, mainly due to outstanding results in North America, Europe, and the Middle East, The Chinese market has been stagnant for years.

For Sephora to prevail, it needs better brand differentiation, which may be why it intends to focus on high-end services. 

Sephora has introduced high-end domestic brands such as Maogeping and overseas niche brands that are new to the Chinese market. The new head of China operations will have to establish an excellent in-store experience, which is crucial to attracting new customers.