Sephora is a personal attention and beauty chain store which offers beauty products like makeup, hair care, nail color, fragrance, skincare, body products, and beauty tools and therefore, has a lot of competitors.
Additionally to its own label, Sephora includes over 300 brands of beauty products including Bobbi Brown Cosmetics, YSL Beauty by Yves Saint Laurent, Atelier Cologne, Calvin Klein, Dior, Fenty Beauty by Rihanna, and Prada. The company was founded in 1970 by Dominique Mandonnaud. In 1997, it became a subsidiary firm of Moë, t Hennessy Louis Vuitton SE. Headquartered at Paris, France, Sephora operates over 2, 600 stores in 34 countries around the world. It’d 11, 000 employees and $16.6 billion in revenues.
HOW SEPHORA MAKES MONEY WHILE IT FACES COMPETITON
Sephora is a superior makeup retailer and one of the leading beauty chain stores in the entire world. It functions as a subsidiary company of LVMH. The company sells a number of top end and designer beauty products in its stores though several stores also stock medication store. , Sephora makes its money out of purchasing these products in an average of 50% of the brands retail and sell them to consumers in the initial cost. While beauty companies earn fewer gain margins on sale to Sephora in a lower cost, they make up for it by gaining from Sephora’s traffic.
The company also partnered with and opened stores in JCPenney locations hence increasing visibility. It allows clients to sample its products on their very own in its stores. Sephora has also invested in educational videos for various products on its website. Additionally to this, the company has a monthly subscription box which permits customers to find new products. Most clients return to make full size purchases because of the samples tried. Being a top class brand, Sephora has many competitors
Ulta Beauty was founded in1990 by Richard E. George under the name Ulta Salon, Cosmetics & Fragrance. It rebranded to its present name in 1999. The company operates a chain of beauty shops that provide hair care products, body and bath products, nail products, men’s and women’s fragrances, skin care brands, makeup, and beauty tools.
Additionally, it supplies salon services. Additionally to its own Ulta Beauty Collection label, Ulta Beauty stocks around 500 beauty brands and more than 25, 000 products. Headquartered in Bolingbrook, Illinois, the Business operates about 1, 174 stores around the US. In 2019, it’d $6.71 billion in revenues and 45, 000 employees. The two Ulta Beauty and Sephora are exceptional brands in the beauty retail industry. They’re nearly at par with regards to the number of US stores under their name. Ulta Beauty has 1, 174 shops while Sephora has 1, 100 stores in the US.
However, Sephora also has international operations. Another significant distinction between the two is that Sephora concentrates on high finish and designer products Ulta Beauty appeals to ordinary shoppers by stocking mainly non luxurious brands.
Nordstrom was founded in 1901 as a shoe store by John Nordstrom and Carl F. Wallin. It later grew to a complete line retailer stocking makeup, perfumes, accessories, jewellery, handbags, shoes, and clothing. Some of its shops also feature wedding products, home furnishings, espresso bars, restaurants, and at house cafes. The business has stores in the usa and Canada while its on-line store is available in 96 others nations. Its brands include Nordstrom Rack and HauteLook, the latter a members only online store. Headquartered in Seattle Washington, Nordstrom had 71, 000 employees and a sales turnover of $15.86 billion in 2019.
Nordstrom offers a wide selection of products which have beauty products, garments, and shoes. But with regards to beauty products, consumers heading to Sephora. This is principally because Sephora provides a considerably better in store experience when compared to the prior. Despite its wide range of product portfolio, Nordstrom remains slightly behind Sephora with regards to earnings. However this could be because Sephora has bodily stores in over 30 nations while Nordstrom only operates an internet store beyond the US and Canada.
Macy’s is among largest fashion retailers in america. Headquartered at NY, the Business owns 3 retail brands- Macy’s, Bluemercury, and Bloomingdale’s, also operates around 775 stores in the United States, Puerto Rico, and Guam.
Its Macy’s brand accounts for about ninety percent of the company’s earnings. Macy’s Inc. Was founded in 1929 by Xavier Warren under the name Federated Department Stores, Inc. It was renamed Macy’s in the year 2007. As of 2019, the firm had 125, 000 employees and a sales turnover of $24.56 billion. While Macy’s is a general department store chain and has more earnings than Sephora, the latter remains way ahead of it in beauty retail.
However, Macy’s is attempting to correct that. It began offering Macy’s Beauty Box, a $15 a month beauty subscription service comparable to Sephora’s subscription box to get new products every month. Macy’s also brought in brand employed experts to advise clients across a number of brands and products.
Headquartered in Denton, Texas, Sally Beauty is a retail chain with a presence in 12 nations across North America, Europe, and South America. It operates over 5, 000 stores through its Sally Beauty Supply and Beauty Systems Group divisions. Sally Beauty provides up to 10, 500 beauty products from brands like Silk Elements, Ion, Clairol, Wella, and Beyond the Zone.
Sally Beauty’s earnings for 2019 was $3.87 billion. It’d 27, 000 employees. Sally Beauty was established in 1964. Sephora made about 5 times what Sally Beauty made in 2019. However, Sally isn’t giving up without a fight. In 2018, it established its own Sally Beauty Rewards to reward clients with improved offers and valuable certificates that they can use like money on products in its stores. It also fostered its marketing plan to be competitive from established competitors like Sephora and Ulta Beauty.
Birchbox is a monthly subscription service which offers clients a box of up to five pick beauty product samples. These include makeup, organic based products, perfumes, and skin care products. It’s a lot more than a million subscribers and over 2.5 million active customers. More than 50 percent Of Birchbox subscribers go on to create complete size purchases of the samples they enjoyed from the box. The business also enables clients to make a beauty profile so the goods are customized to their tastes. As of 2019, Birchbox had 230 employees and a revenue turnover of $199.9 million. Katia Beauchamp and Hayley Barna established Birchbox at 2010.
It’s headquartered in New York. Birchbox is strictly an on-line subscription service with no physical stores. It’s bring a brand new dimension in beauty retail. It disrupted the business by allowing clients to try beauty goods from the comfort of their homes and only purchase product that worked for them. Sephora responded by bring its electronic commerce operations in house and pay more attention to it. While Birchbox’s revenue is only a fraction of Sephora’s, its entrance into the beauty business can’t be ignored.
THE ESTEE LAUDER COMPANIES INC.
The Estee Lauder Companies Inc. Is among the leading producers of beauty products which have hair care, fragrance, make-up, and skincare products.
The company sells its goods in around 150 nations in the Americas, Europe, Asia Pacific, Africa, and the Middle East. Some of its brands include Esté, e Lauder, Tommy Hilfiger, Origins, Lab Series, Prescriptives, Aramis, and Clinique.
Estee Lauder Companies Inc. Was founded in 1946 by Estee Lauder and her partner Joseph. In 2019, the business made $14.86 billion in revenue and had 48, 000. Even though Sephora is a beauty merchandise merchant, Estee Lauder produces beauty solutions. Sephora even stocks its products. Estee Lauder also sells its own products directly to consumers. Nonetheless, it stands to benefit more from Sephora’s traffic.
It’s more of a symbiotic relationship.
THE BODY SHOP.
Headquartered in London, UK, The Body Shop sells beauty items like makeup, scents, and skincare products. The business was established by Dame Anita Roddick at 1976. Natura, a Brazilian cosmetics firm, purchased it in 2017. The Body Shop runs on 3, 000 stores in more than 65 nations around the globe offering over 1, 000 beauty solutions.
As of 2019, The Body Shop had 10, 000 employees and a revenue turnover of $994.48 million. The Body Shop operates more shops than Sephora. Additionally, it has a presence in more nations than Sephora- 65 against 34. But its revenue is still a fraction of what Sephora made in 2019. Following a decade at the dark, The Body Shop was eventually sold to Natura at 2017 and is currently looking to recover its lost glory.
L’Occitane manufactures and retails natural makeup and well-being products. These include scents, face, body, and home goods. Olivier Baussan established the company in 1976. It is its headquarters in Geneva, Switzerland. L’Occitane owns six pure beauty brands, namely L’Occitane en Provence, L’Occitane au Bresil, Melvita, Erborian, LimeLife, and Elemis. The company operates 3420 retail locations in 90 nations around the globe. As of 2019, L’Occitane had 8,630 employees and a sales turnover of $1.48 billion.
Purplle was set in the year 2011 by Rahul Dash and Manish Taneja in Mumbai, India. It is headquartered in Ghatkopar West, Mumbai. The company is an on-line retailer of beauty products in India. It offers brands like A Fragrance Story, Aloe Veda, Born Pretty, Calvin Klein, DeBelle, and Gilette Venus. Purplle also sells beauty tools. In 2019, the firm had 85 employees and a sales turnover of $13.41 million.
Purplle is the new kid on the bloc. It still operates inside the regional Indian market and is yet to venture into the international markets. It’s therefore understandable that its revenue is just a fraction of what Sephora made and it can’t level up to the latter. Hopefully, Purplle will be competitive in the upcoming few decades than it currently. However it may first wish to put its foot beyond its borders. Though not as well recognized as some of the other competitors Sephora has, Purplle still has a large following in India, which is why it made the list.
Oriflame was set in 1967 by Bengst Hellsten, Jonas af Jochnick, and Robert af Jochnick. It is headquartered in Schaffhausen, Switzerland and the company has about 3 million product distributors found in over 60 nations in Latin America, Europe, and Africa. However, it sells a diverse number of nature-inspired beauty and health products. Its revenue for 2019 was $1.45 billion. The company has 6,143 employees.
Rather than operating physical stores, Swedish Oriflame prefers to market its goods through distribution networks. Whether that’s working for it or not can be difficult to tell. But its revenue is just a fraction that of Sephora will it has got a presence in more nations than the latter. It might have to pull its weight in the market. Oriflame also mainly sells its own goods while Sephora operates as a retailer for unique brands besides its own.
The top 10 Sephora competitors include: Ulta Beauty, Nordstrom, Macy’therefore, Sally Beauty, Birchbox, The Estee Lauder Companies Inc, The Body Shop, L’Occitane, Purplle, and Oriflame. And therefore together, they’d a total of 334,860 employees among them. Their combined revenue for 2019 was $69.996 billion. Out of all the competitors Ulta Beauty gives Sephora the largest competition in the beauty retail section.
SEPHORA COMPETITORS STATS
|Ulta Beauty,||1990||Bolingbrook, Illinois||45000|
|Macy’s||1929||New York City, New York||125000|
|Sally Beauty||1964||Denton, Texas||27000|
|Birchbox||2010||New York City, New York||230|
|The Estee Lauder Companies||1946||New York City, New York||48000|
|The Body Shop||1976||London, UK||10000|
|Purplle||2011||Ghatkopar West, Mumbai||85|