Starting out as a perfume store in 1969, Sephora has transformed into one of the world’s strongest beauty retailers, employing around 20,000 people across 2,500 stores in more than 32 countries. Over 250 classic and new beauty brands in the segments of skincare, fragrance, cosmetics, bath, body, and haircare collectively take in over  $4 billion annually in revenue. The brand is now on a rapid worldwide expansion drive by becoming an omnichannel retailer on the back of the successful merger of its physical and digital retail network.

The origins of the company can be traced back to a small French perfumery called Shop 8 founded by Dominique Mandonnaud, who went on to build a chain of perfume and cosmetic stores before purchasing another chain in 1993 and merging them under a new brand name, Sephora. This is the Greek spelling of Zipporah, one of the wives of Moses who was famous for her enchanting beauty, which fit the image the brand sought to convey—beauty, class, and style. In 1997, Sephora was sold to LMVH Moët Hennessy Louis Vuitton, the global luxury conglomerate that also owns iconic brands such as Louis Vuitton, Givenchy, Marc Jacobs, Fendi, Dior, Bulgari, and Benefit Cosmetics. Just a year after it was acquired by LMVH, Sephora launched its global expansion drive by opening its first store in New York City........

Questions

1. Discuss the factors that have contributed to Sephora’s success over the years.

2. How viable is a standardized store across different markets around the world for a beauty brand like Sephora?

3. What marketing challenges does Sephora face in its global expansion?