Mini Case Study (Blog, 3A)

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Sephora 

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The task for week 3 is to write a mini case study  highlighting superior innovation in the business model. Business. A business model captures the fundamental assumptions and any key learnings about a new venture. For example, it might enumerate the company’s core value proposition, targeting customers key resources, and assumed revenue streams which provides a framework for success and overcoming challenges for the company. (“What are some examples of a business model? | Aha!”, 2018)

Sephora is one of the  popular personal care/cosmetic brand, was founded in Paris in 1969 by Frenchman Dominique Mandonnaud. Sephora offers beauty products such as skin care, body fragrance, nail polishes, and variety of makeup products. let’s take a glance at how Spehora used business model in order to gain superior innovation in their business model, how Sephora creates its worth during this extremely competitive and saturated market, and the way its operational model supports this ongoing specialise in innovation through digital technology.  Sephora is one of the best example of adopting changes and walking with new revolution.

One of the reasons why their business model has proven to be so successful worldwide, is due to constantly evolving over time. Sephora created a unique shopping experience for customers by providing the facilities to touch and sample the products before buying which helps promoting strong relationships with the brand and its products. This alternative model of product discovery has been very popular and has allowed the brand to scale globally. (“Sephora, cosmetics, fragrances – Selective Retailing – LVMH”, 2018)

Continuously integrated online and offline shopping experience for the consumer. According to fast company 2018, Sephora has invested heavily in its website that contains educational videos that teach customers how to use different products. In response to these changes, Sephora’s marketing strategy has fully embraced the types of digital media that are already prevalent online. Sephora’s Youtube channel has 690,000 subscribers. Sephora was an early e-commerce player when it launched its first website in 1998. Launching Apps for android and IOS, youtube channels, existing on every social media and paying with advanced technology, The company has focused on a number of different digital initiatives to stay ahead of the competition. Sephora recently launched a  campaign with Facebook’s Collection ads of its normal holiday print catalog, in order to enhance product discovery. Based on user preferences, Facebook’s Collection ads serve variations of 70+ beauty products underneath a sponsored video. in addition, Sephora grasp augmented reality for both in-store and in-app makeup trials. The mobile app allows users to virtually try on makeup. The app added augmented reality features such as the ability to try on lip colors and lashes. (“How Sephora Built A Beauty Empire To Survive The Retail Apocalypse”, 2018)

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Furthermore,  In March 2018, Sephora launched a Europe-focused partnership with Salesforce to help personalise the shopping experience based on consumer preferences, using data on geographic regions, customers’ previous purchases, cosmetic preferences, and more. The partnership has also allowed Sephora to customise its site experience with different languages and currencies to enable a deeper level of personalisation. In November 2017, Sephora launched its app on Google Assistant with features to book beauty services, take quizzes, and listen to influencer-curated beauty podcasts. (“How Sephora Built A Beauty Empire To Survive The Retail Apocalypse”, 2018)

To sum up, surely Company is doing great in market by bringing new ideas and investing time/money in technology which are helping the brand expand to new markets and localise consumers’ shopping experiences. Sephora incorporates a commitment to innovation and excellence in order to sustain in their competitive environment. Sephora wouldn’t be successful if they  didn’t understand digital world.

 

 

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