{"id":19553,"date":"2016-11-18T16:50:19","date_gmt":"2016-11-18T21:50:19","guid":{"rendered":"https:\/\/digital.hbs.edu\/platform-rctom\/submission\/digital-beauty-how-sephora-leveraged-digital-to-overhaul-the-in-store-experience\/"},"modified":"2016-11-18T17:55:14","modified_gmt":"2016-11-18T22:55:14","slug":"digital-beauty-how-sephora-leveraged-digital-technology-to-overhaul-the-in-store-experience","status":"publish","type":"hck-submission","link":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/digital-beauty-how-sephora-leveraged-digital-technology-to-overhaul-the-in-store-experience\/","title":{"rendered":"Digital Beauty : How Sephora leveraged digital technology to overhaul the in-store experience."},"content":{"rendered":"

 <\/p>\n

\n

What was the opportunity?\u00a0<\/b><\/p>\n

In a world filled with uber-connected and hyper-informed consumers, expectations of what constitutes as a compelling retail experience is constantly being shifted. In its early years, Sephora differentiated itself by allowing consumers to try products in-store before purchasing, something unprecedented in the cosmetic retail models prevalent at the time [1]. Today, Sephora has embraced the full spectrum of retail digital technology available to continue to create disruptive and differentiated in-store experiences, delivered through an innovative operating model that creatively integrates physical and digital elements of the consumer journey.<\/p>\n

The new digital stores: <\/b>Sephora\u2019s brick and mortar stores are iconic and while it was an early adopter of e-commerce, Sephora insists that the physical store is still the nerve center of the company [2]. Digitizing the store became a priority and Sephora has unveiled its new range of stores that ingeniously combine offline and online components. A robot greets consumers at the entrance, giving them a card that serves as a virtual shopping basket [3]. These stores are smaller in size and carry limited physical products, generating significant cost efficiencies in inventory and rent but is complemented with a digital catalogue of over 14000 products that consumers can add to their digital basket right away in the store using the card [4]. Positioning the physical store as a doorway to the website is intriguing in its effort to bridge the online-offline gap while still prioritizing the brick-and-mortar stores.<\/p>\n

\"sephorarobot\"\u00a0 \u00a0\u00a0\"sephoracard\"<\/p>\n

Images – \u00a0[L] : Welcome robot at the new digital store in Paris, [R] : Digital tag cards to use in-store, Source : LVMH\u00a0<\/em><\/p>\n

NFC tags enable consumers to place products on connected screens and get all the information they need on it [5]. The stores also provide makeover workshops through video tutorials and a digital selfie mirror at the store allows consumers to take a photo of themselves\u00a0 trying on the products and then share via social media [6]. As they leave the store, consumers can go to the Mini-Beautic, a product sample vending machine and receive samples in real-time [7].<\/p>\n

\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0\"sephoramirror\"\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0\"sephoramini\"<\/b><\/p>\n

Images – [L] : Selfie-mirror at the Sephora digital store, [R]: Mini-Beautic sampling service, Source : LVMH<\/em><\/p>\n

Mobile and Augmented Reality: <\/b>Augmenting the offline-online philosophy, Sephora\u2019s app utilizes beacons to recognize when users are inside a store and notifies them with an in-store map, daily promotions, their online shopping cart and wish list [8]. The app also recently incorporated augmented reality by allowing consumers to scan images on Sephora store windows and product packaging to receive customized, interactive beauty content [9].<\/p>\n

\"sephoramobile\"<\/b><\/p>\n

\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 Image: Store-mode on the Sephora-To-Go mobile app.<\/em><\/p>\n

Virtual Person<\/b>alization <\/b>Digitizing Sephora\u2019s ethos\u00a0of allowing consumers to try on products pre-purchase, the Sephora Virtual Artist<\/i> is a personal, virtual make-up app that takes a photo of the consumer\u2019s face and lets users swipe through hundreds of lipstick colors to virtually test compatibility [10]. In like vein, Sephora also has an application called Pocket Contour<\/i> that\u00a0helps consumers identify their face shape and then offers tailored step-by-step guidance on how to use make-up to contour their faces [11]. At the store, Sephora employees use a hand-held device called ColorIQ <\/i>to scan your face and capture your exact skin shade which is matched to an extensive library to provide a unique 4-digit color code to each consumer. Using the code, you can then begin to identify the products that are most well-suited to your specific skin tone. Once you obtain a colorIQ, you can use it online and on mobile for a highly targeted product selection [12].<\/p>\n

\"sephoravirtualartist\"\u00a0\u00a0\"sephoracountur\"\"sephoracoloriq\"<\/p>\n

 <\/p>\n

Images – [L]: Sephora Virtual Artist Lipstick shade tester, [M] :Sephora Pocket Contour App, [R] : Sephora ColorIQ Device and Personalization\u00a0<\/em><\/p>\n

While Sephra\u2019s operating model that blurs digital and analogue interactions is praise-worthy, digital retailing is ripe with innovation and below are a few areas Sephora should continue to invest in to ensure that they push the envelope in digital beauty.<\/p>\n

Smart Cosmetics :<\/b> With Loreal, we have already seen that IoT has now infiltrated cosmetic products [13] and in the future, the Sephora branded products themselves may function as smart, connected cosmetic products that can measure and track data on the consumer and transmit back.<\/p>\n

3D Printed Cosmetics :<\/b> With Color IQ, Virtual Artist and Pocket-Contour, Sephora has already set the stage for consumers to tailor their make-up products based on skin tone and in the near future, could enable them to print out their customized shades right there in the store if needed, taking personalization to a whole new level.<\/p>\n

Data : <\/b>All of Sephora\u2019s personalization\u00a0initiatives generate a multitude of powerful data on their consumers\u2019 behaviors, preferences and lifestyles. This is data that can be incredibly useful, not just for Sephora but also for the other cosmetic brands that they carry. Monetizing on the consumer data generated with their supplier brands is one option but more importantly, Sephora needs to think through how to effectively utilize this data mine to extract valuable insights that can inform their product development, future marketing efforts and strategy more effectively.<\/p>\n

Word Count : 796<\/p>\n

APPENDIX:\u00a0<\/strong><\/span><\/p>\n

[1] J Bornstein, D McGinn, \u201cHow Sephora Reorganized to Become a More Digital Brand\u201d,\u00a0<\/i> 性视界\u00a0 Business Review, https:\/\/hbr.org\/2014\/06\/how-sephora-reorganized-to-become-a-more-digital-brand<\/a>, accessed on 16 November 2016<\/p>\n

[2] Ibid<\/p>\n

[3] The Star : \u201cSephora welcomes connected beauty with a new 3.0 store experience<\/i>\u201d, http:\/\/www.thestar.com.my\/tech\/tech-news\/2015\/10\/23\/sephora-welcomes-connected-beauty-with-a-new-30-store-experience\/<\/a>, accessed on 15 November 2016<\/p>\n

[4] LVMH : \u201cSephora Flash, the connected beauty store\u201d<\/i>, https:\/\/www.lvmh.com\/news-documents\/news\/sephora-flash-the-connected-beauty-store\/<\/a>, accessed on 16 November 2016<\/p>\n

[5] Ibid<\/p>\n

[6] The Star : \u201cSephora welcomes connected beauty with a new 3.0 store experience<\/i>\u201d, http:\/\/www.thestar.com.my\/tech\/tech-news\/2015\/10\/23\/sephora-welcomes-connected-beauty-with-a-new-30-store-experience\/<\/a>, accessed on 15 November 2016<\/p>\n

[7] Ibid<\/p>\n

[8] B.Thau, \u201cSephora Bets Big On Digital Growth With Disruptive \u2018Experiences\u2019<\/i>, Forbes, http:\/\/www.forbes.com\/sites\/barbarathau\/2015\/03\/06\/sephora-grooms-digital-leaders-with-innovation-lab-debuts-mobile-experiences\/#3ed98dc5553e<\/a>, accessed on 15 November 2016<\/p>\n

[9] Ibid<\/p>\n

[10] N.Creegan, \u201cHow Sephora is revealing the future of augmented reality in fashion\u201d<\/i>,\u00a0 https:\/\/centricdigital.com\/blog\/digital-trends\/how-sephora-is-revealing-the-future-of-augmented-reality-in-fashion\/<\/a>, accessed on 14 November 2016<\/p>\n

[11] C.Tode, \u201cSephora shapes mobile personalization with tailored, step-by-step experience\u201d, http:\/\/www.mobilecommercedaily.com\/sephora-shapes-mobile-personalization-with-tailored-step-by-step-app<\/a>, accessed on 15 November 2016<\/p>\n

[12] H.Milnes, \u201cHow Color IQ, Sephora’s shade-matching skin care tool, boosts brand loyalty\u201d, <\/i>http:\/\/digiday.com\/brands\/color-iq-sephoras-shade-matching-skin-care-tool-boosts-brand-loyalty\/<\/a>, accessed on 14 November 2016<\/p>\n

[13] S.Ghosh, \u201cConnected mascara? L’Oreal explores the Internet of Things\u201d,\u00a0http:\/\/www.campaignlive.com\/article\/connected-mascara-loreal-explores-internet-things\/1364406#tYBCoBLjgkRkwTla.99<\/a>, accessed on 16 November 2016<\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

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