The Economics of Sephora

Sephora revolutionized the makeup industry by introducing a self-service model, allowing customers to freely test products. This approach, along with strategic product displays and ownership by LVMH, helped Sephora become a global leader. The brand's success is also attributed to its exclusive product lines and strong customer loyalty programs. Sephora emphasizes inclusivity by featuring diverse brands and expanding its reach through partnerships, such as with Kohl's. The company aims to lead in the prestige beauty space while maintaining a purpose-driven approach.

How did Sephora change the way people shop for luxury makeup?

• By selling only one brand of makeup

• By offering online shopping

• By providing home delivery services

• By allowing customers to test products freely in stores

Where did Sephora originate?

• Limoges, France

• Paris, France

• London, UK

• New York, USA

What is the role of a beauty advisor in Sephora?

• To assist customers in a brand-agnostic manner

• To manage store inventory

• To promote a single brand

• To handle cash transactions

Which company acquired Sephora in 1997?

• Procter & Gamble

• Estee Lauder

• L'Oreal

• LVMH

What is one of the popular brands owned by LVMH and sold in Sephora?

• MAC

• Fenty Beauty by Rihanna

• Maybelline

• Revlon

What is the top tier of Sephora's Beauty Insider program called?

• Rouge

• Gold

• Platinum

• VIB

How does Sephora benefit from its Beauty Insider program?

• By offering discounts

• By collecting valuable customer data

• By reducing product prices

• By increasing store traffic

What technology did Sephora relaunch in 2021 to assist customers?

• Virtual try-on

• Color IQ

• Augmented reality mirrors

• Online skin analysis

Which department store chain did Sephora partner with in 2020?

• Kohl's

• JCPenney

• Nordstrom

• Macy's

What is one way Sephora promotes inclusivity?

• By featuring a larger number of brands, including black-owned brands

• By offering discounts to all customers

• By having a diverse staff

• By providing free samples