Sephora SWOT Analysis 2022 – LVMH

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SWOT Analysis Of Sephora analyzes, Sephora is an French cosmetics manufacturer that specializes in makeup. They also deal in products for personal care, skin care and other accessories. The company also offers products from other well-known cosmetics firms as their own brands.

Did you know?

Sephora name is a combination of the Greek word sephos, meaning beauty, and the name Zipporah, the exceptionally beautiful wife of Moses in the book of Exodus.

Sephora is a company is controlled by LVMH Moet Hennessy Louis Vuitton and aside from ensuring stores are always and well-stocked, Sephora also makes sure that its customers experience is unparalleled. Although it is located within Paris, Sephora has its operations across 180 countries around the globe and has a presence in many of the most prestigious cities.

More than 13,000 brand names in its portfolio and the company has around 300,000. Sephora brands, it’s one of the top brands in the personal care and cosmetics luxury sector in the present day on the world map.

Founded in 1970 by Frenchman Dominique Mandonnaud, Sephora pioneered the concept of try-before-you-buy for cosmetics, which has been widely replicated across beauty retail. And during a time where the retail sector is struggling — with almost 7,000 stores closing in the US in 2017 — Sephora is flourishing.    

This can only be achieved through a firm with extensive knowledge, experience and innovative strategies. To determine the strengths of the company potential, weaknesses, opportunities and threats, it is necessary to conduct an SWOT analysis by Sephora.

Sephora At A Glance – Sephora SWOT Analysis

Company: LVMH Moët Hennessy Louis Vuitton
Founders: Dominique Mandonnaud
Year of establishment: 1970, Paris, France
CEO: Jean-André Rougeot
Headquarters: Paris, France
Employees (Dec 2020): 20,000
Ticker Symbol: LVMH
Type: Subsidiary
Annual Revenue (Dec 2020): US$11 Billion
Profit net income (Dec 2020): US$4 Billion

Products & Services: Beauty products | Cosmetics | Skincare | BodyCare | fragrance | Nail color | Beauty tools | Body lotions | Haircare

Company Website: www.sephora.com

Top Sephora Competitors 

Competitors:  MAC Cosmetics | Urban Decay Cosmetics | Nordstrom | Ulta Beauty | Macy’s | Sally Beauty | Birchbox | The Estee Lauder Companies Inc |  The Body Shop | L’Occitane | Purplle | Chanel | Oriflame | Maybelline | Estee Lauder | Christian Dior | L’Oreal

Sephora SWOT Analysis – SWOT Analysis Of Sephora

SWOT Analysis Of Sephora analyzes the brand based on its strengths weak points, weaknesses, opportunities, and threats. With Sephora SWOT Analysis it is clear that the advantages and disadvantages are internal factors, while threats and opportunities are external elements. Here we are going to talk about Sephora SWOT Analysis. Below Is The Detailed SWOT Analysis Of Sephora.

Sephora Strengths – Sephora SWOT Analysis

1. Cohesive image of the brand: Sephora creates an extremely cohesive image across all their channels . they communicate consistent messages regarding their brand image across all channels of marketing including social and online media. In the stores as well as on the on their website, there are Sephora Beauty studios where they can create their own designs and try out makeup with tutorials.

2. Sensory experience inside the Sephora store: Sephora Stores offer an entire sensory experience for customers. The store is accompanied by music that plays softly. store is decorated in their distinctive gold and black shades and their staff are professional and well-dressed. Customers can try on their makeup with the help of a trained staff certified in various makeup dos and don’ts.

3. High level of customer engagement: The layout of Sephora stores is very accommodating to customers giving customers easy access to apply makeup. Sephora provides fragrance testers, color identifiers and a handheld device called ColorIQ that assists customers in identifying their preferred colors or provide facilities to determine their appearance, that are made easier by easy tutorials.

4. Excellent portfolio of products range: The company has diverse product offerings that includes private labels that are that are sold under the brand name of Sephora and also prominent brands like MAC, Estee Lauder, Kalvin Clein or L’Oreal. Sephora is also an exclusive supplier of top-quality cosmetics that are available exclusively through Sephora stores.

5. Excellent digital experience: Through an extremely interactive website that is simple to navigate, it offers a variety of alternatives. There is a Beauty Talk section connects the customers to one another and makeup experts. Sephora Virtual Artist is a virtual experience that allows users to make their preferred look by testing different cosmetic options. Sephora Beauty Board also has an area in which customers can upload photos that shows the latest cosmetics and makeup trends .

Sephora Weaknesses – Sephora SWOT Analysis

1. Pricey: Sephora is a company in the beauty sector that is extremely fragmented. Therefore, the number of companies and the price prices differ significantly. Sephora is a major player in the premium segment and therefore is priced extremely. This implies that the product is not affordable to the majority of people.

2. Channel Dilution: The beauty company is an exclusive retailer of several top cosmetic brands and makeup that are directly competing to their own brand Sephora. The company has been diluted by the Sephora brand, and affects sales as well as their image of the brand, as well as sending confused signals to customers.

3. Insufficient market penetration within Asia: The penetration of Sephora in emerging economies of Asia such as India as well as China are very low relative to its competitors as they sell only through their own channels. But, they also market rival brands that deal through distributors other than their own.

4. Focus too much on the experience: Sephora invests huge amounts of money in making sure they provide the best experience for their customers. They attempt to create identical experiences by connecting across channels, that, in turn, becomes difficult to achieve. Additionally, it hinders their main concept of selling their goods. Customers are enticed to walk into Sephora stores, trying out makeup, having makeovers and then leaving without purchasing any products.

Sephora Opportunities – Sephora SWOT Analysis

1. Potential growth for cosmetics: Cosmetics business is currently in the midst of rapid growth because more women are becoming conscious of how they appear. They are aware of the necessity for various makeup styles for different skin types or ethnicities. They also understand the reasons why different occasions require different types of makeup.

2. An equal opportunity employer: Sephora is an equal opportunity employer and values diversity at our company. We do not discriminate on the basis ofrace, religion, color, national origin, ancestry, citizenship, gender, gender identity, sexual orientation, age, marital status, military/veteran status, or disability status.

Sephora Threats – Sephora SWOT Analysis

1. Competition: The biggest competitors of Sephora include Estee Lauder, MAC, Calvin Klein, Versace, Clarins, Ales Group or Parfuma Lubin.

2. Hard to maintain low cost: Maintaining low cost is big concern due to high inflation raw material cost increases.

Sephora SWOT Analysis Overview Template

Sephora SWOT Analysis Overview Template

This is the SWOT report that Sephora has done. Please let us know if you have additional suggestions to add.


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