Shawn Lumaban’s Post

A interesting study I reed today #Data Strategic Moves in the #Beauty #Industry 🌟 As the tides of #War and #Recession , #LVMH cosmetic jewel, #Sephora, has carved out an enviable position. With an astute understanding of consumer behavior, Sephora rode the "lipstick effect" to an impressive $15.4 billion revenue, as shared by CEO Guillaume Motte with The Financial Times. Amidst economic fluctuations, this phenomenon – where consumers indulge in affordable luxuries – has propelled Sephora to become LVMH’s third-largest brand, trailing only the iconic #LouisVuitton and #ChristianDior This success story isn't just about beauty products; it's a masterclass in agility and market acumen. In the world of luxury and cosmetics, while one beauty giant takes a bold step forward, another adjusts its strategy, leading to a fascinating dance of business maneuvers. Sephora’s trajectory is a testament to that, showing that with the right insight and innovation, targets aren’t just met; they’re exceeded ahead of time. As professionals, let's take note of Sephora's strategy. Whether it’s the allure of a lipstick or the promise of a skincare routine, understanding customer inclinations can lead to substantial growth, even in times when purse strings tighten. Keep an eye on the beauty sector; there’s much to learn about the art of resilience and the science of consumer delight. #BeautyIndustry #BusinessStrategy #LVMH #Sephora #ConsumerBehavior #LipstickEffect #Innovation #LuxuryBrands #Startup #India, #asia #singapore #Innovation, #Management, #HumanResources, #DigitalMarketing, #Technology, and #creativity

The boundaries between digital and physical spaces are becoming increasingly blurred, and Fenty Beauty is at the forefront this SZN. To launch its Fenty Holiday collection, the brand has teased a digitally conceived bodega, the FENTY FRESH MARKET. Marketed as being 'Open 24/7', it seamlessly links to Fenty Beauty's own online presence, as well as it's partnerships with SEPHORA and Ulta Beauty. For me this innovative approach highlights how brands are really beginning to think physically when crafting their overarching narratives. But the big question remains: will we be able to 'checkout' this concept in real life anytime soon? Given the brand's recent pop-up space at Selfridges Corner Shop, it most definitely could be on the shopping list. What brands have caught your attention with how they are 'Reinventing Retail'? #BrandExperience #BrandActivation #RetailInnovation #FentyBeauty IPOS IGNITE Shop Drop Daily

Getting into a retailer like SEPHORA is a huge accomplishment. Once small brands get that initial yes they quickly get hit with the reality that they are in direct competition with 100s of other companies. Some of that competition is going to be multi-national companies that spend hundreds of thousands of dollars to support their brand’s success in Sephora alone. Indie brands cannot compete with that kind of financial power. It’s one of the reasons I support the merchandising effort this retailer has done under The Next Big Thing. The section highlights many of the new entries coming into the retailer. It gives a collective nod to the underdogs. It also becomes a pivotal benchmark for how much product will be sold from those shelves. Products that do well in this section...stay in the store. Products that do not sell well in this section....get discontinued from the store. I encourage customers to seek out The Next Big Thing sections in Sephora. There are separate sections for skin care and hair care in each store nationwide. Black and brown founded brands are being highlighted here. They must be supported to survive. #IndieBeauty #BlackBeautyBrands #Sephora

When budgets get tight, there’s nothing a tube of lipstick can’t solve. Or at least, that’s what economists seem to believe. bit.ly/3Iq6ljY Even when people are scrambling to save every last penny, the “lipstick effect” has proved time and again that shoppers will indulge in small luxuries as a compromise since they can’t spend on big ones. And cosmetics giant SEPHORA couldn’t be happier about it. The LVMH-owned chain, which performed “exceptionally” in 2023, was the French conglomerate’s fastest growing segment by sales at a time when luxury spending has been on a rollercoaster ride. Sephora contributed to a 76% profit rise in the selective retailing segment, which includes Duty Free shops and raked in €17.9 billion ($19.4 billion) in sales last year.

SEPHORA TALES FROM THE CRYPT. EP 2. THE COMPETITION RAP.  I got to SEPHORA Aug 2000. From day 1 we were at war. First for financial survival. Why? 50 stores in the first 18 mo’s is a LOT of infrastructure. Rockefeller- oy! Separate country. We had opened…Japan. Japan? AND above all we were basically selling only fragrance and private label. Easy fix right?  So we slowed down store openings; sold Rock; closed Japan. AND. Brought in a s***LOAD of makeup. Then skincare. Business catapulted! We made our first dollar profit (OK. Maybe $3) in 2003. The ongoing war was against the decades-old dept store establishment. Those brands were not happy. Not at all. They did what they could to slow us down. So we became insurgents. Beauty revolutionaries. Freedom fighters. I loved our positioning. The ultimate challenge! What happened? Our combo of cool stores, great people, and deluge of new brands had attracted a rabid young consumer. They just wanted more. Not a counter or a commissioned BA to be seen. By the SDC in 2008 we were several yrs into a serious roll. I always had fun in my SDC speeches, particularly with this huge tailwind. The following was part of that speech. The foto above was the first part of the rap. I put on some serious chain hardware to get into character. Vendors were present so I kicked it off with..."WARNING TO VENDORS. Some of what follows COULD be viewed as offensive. NONE OF IT represents the true views of Sephora management nor their families.  MOST IMPORTANT: what happens in Scottsdale STAYS in Scottsdale." SO WHO IS DIS’NG (DISHING TO) US? Take Blue Mercury They’re in a hurry We shouldn’t worry Their comet is makin’ a fuss But it’s too small to hurt... US! BBW That name trouble U? The name, the strategy it ain’t open and shut Hey, how about… But But now What? Macy’s is sure big But Macy’s is sure bad The last time they had an innovation Well, it was before the dawn of creation   Victoria Secret, Beauty.com, and even Bigelow They’re all run by people you know Some times when you are a Sephora alum You can actually be quite…       Man, we are doing some kickin’ The competition is takin’ a lickin’ But wait there’s one more comin’ And it’s one we ain’t luvin CVsssssS What is it? Can you guesssss? How about a drugstore with…Finessssse But wait- maybe one should hear The one about ya can’t mixup silk with a sows ear   In the end its all fun we elect Our competition we do respect We put it all in rap Because in the end they are a bunch of CRAP

𝗦𝗲𝗽𝗵𝗼𝗿𝗮 𝘃𝘀. 𝗨𝗹𝘁𝗮: 𝗔 𝗧𝗮𝗹𝗲 𝗼𝗳 𝗧𝘄𝗼 𝗔𝘀𝘀𝗼𝗿𝘁𝗺𝗲𝗻𝘁 𝗦𝘁𝗿𝗮𝘁𝗲𝗴𝗶𝗲𝘀 𝗶𝗻 𝘁𝗵𝗲 𝗠𝗮𝗸𝗲𝘂𝗽 𝗖𝗮𝘁𝗲𝗴𝗼𝗿𝘆 When comparing the brand assortment strategies of Sephora and Ulta in the makeup category, some fascinating contrasts emerge. Ulta carries a staggering 224 makeup brands, while Sephora offers 147. Despite this difference, both retailers feature 48 brands in common, including popular names like Fenty and Nudestix. Ulta’s assortment tends to be broader, with 6 brands offering over 100 products (excluding shades) and 41 brands with more than 50 products. By contrast, Sephora only has 1 brand with over 100 products and 13 brands with more than 50. Interestingly, for the brands they have in common, Ulta generally offers a wider selection of products. However, Sephora provides a broader range for luxury brands like NARS, Pat McGrath, and Dior. Ulta’s broader assortment reflects its approach as a masstige retailer, catering to a diverse customer base across various price points. It prioritizes variety, making it a one-stop shop for consumers seeking both luxury and affordable options. On the other hand, Sephora’s focus on curating a more premium and luxury-focused selection allows them to offer a deeper range for high-end brands. This strategy highlights depth over breadth, positioning Sephora as the go-to destination for beauty enthusiasts seeking exclusive or premium product lines. #beauty #retailstrategy #brandassortment #Sephora #Ulta #makeup source: ulta.com and sephora.com

🌟 Have you heard of the "Lipstick Index" coined by Leonard Lauder? 🌟 Despite economic uncertainties, the beauty industry continues to show impressive resilience. Sephora recently announced a record sales year, reporting an astounding €86.2 billion in revenue and €22.8 billion in profit. This success is attributed to strong organic growth across the majority of its business units. Prestige beauty sales outpaced mass-market beauty sales in Q1 2024. Prestige beauty sales grew by 9%, compared to a modest 2% growth in the mass-market segment. This shift suggests that even in challenging economic times, consumers are gravitating towards luxury beauty products. The beauty industry remains vibrant and adaptable, reflecting a deeper consumer preference for high-quality and premium experiences. 🌹💄✨

Sephora, the beauty maestro, unveiled a game-changing strategy: the 'Beauty Insider' loyalty program! With meticulously crafted tiers based on annual spending, Sephora turned shopping into a rewarding journey. Diamond Divas, VIB Royalty, and Beauty Insiders - welcome to a world where every purchase takes you one step closer to exclusive perks and fabulous discounts!   Why does it work? Because who can resist the allure of prestige rewards? The higher your spend, the more glamorous your perks! 💰🌟 Sephora turned loyalty into a lifestyle, and now every beauty aficionado can experience the VIP treatment. Top-tier rewards, VIP exclusives, and unmatched discounts – that's the Sephora secret sauce! 🤫✨ This ingenious marketing move transformed Sephora into the beauty haven it is today. #SawahMarketing #DubaiMarketing #SocialMediaAnalytics #DataDrivenDecisions #GrowthStrategy #MarketingMagic #ConnectionsThatSell

Everyone, from celebrities and influencers to multinational conglomerates and smaller businesses want you to buy their beauty product. But does star power still reign? Rihanna made us believe in Fenty Beauty - the brand bleeds her personality but especially makes yours shine when you wear it. Selena Gomez is so honest and candid, and that's quite Rare, isn't it? But simply seeing a celebrity's name and face on a product certainly isn't enough today. What, about a celebrity beauty brand, would make you want to purchase their product? #beautyindustry #beautynews #celebritybeauty

While Ulta Beauty has grown revenue and store count exponentially since the company was founded in 1990, investors think the company is reaching a point of saturation sending its stock trading at new 52-week lows, which prices in potential lower store count growth in the foreseeable future. The chain operates nearly 1,400 namesake big-box beauty stores in primarily open-air community and power centers and more than 500 shop-in-shop locations of roughly 1,000 square feet inside Target stores. Annual sales are $11.3 billion, about 10% market share of the U.S.’s $112B beauty products market. Only one fifth of Ulta’s sales come from online sources; the rest of the revenue is achieved through its vast brick-and-mortar presence. Amazon, SEPHORA and department stores remain fierce competitors given that unlike luxury brands that tend to be more resilient to economic pressures, Ulta Beauty's customers purchase from all price points, so it does have significant exposure to the current U.S. softening economy.