How Sephora Revolutionized Makeup Consumption | WSJ The Economics Of

The makeup giant Sephora played an outsized role in creating the modern cosmetics industry.
WSJ reporter Khadeeja Safdar unpacks the unconventional business strategies that led to Sephora’s early success and the retailer’s more recent moves to adapt to the pandemic market.
Photo: Nina Westervelt/Bloomberg
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[@BasicallyLauralol]

They are not “brand agnostic”. Having worked for Sephora, I know that brand representatives go to stores every day, and the beauty advisors are forced to push products for the brands with reps in store that day. Always be wary of what a beauty advisor is trying to sell you.

[@Christian14789]

And now there’s a huge push for Sephora Collection brand. They even started “Sephora Collection Days” where all the push and convert people to the entire day is SC.

[@scarlettelisabeth5644]

As someone who worked at Sephora for about 4 years, In my experience we were never “forced” to push products, we were incentivized with rewards. So if you sold a certain number of products from a brand for each product you sold your name would be entered for a grand prize, or for every few products you sell you could redeem a free product the brand rep brought. Personally I would only recommend that brands product if it fits what they are looking for and would rather have a happy client than a ton of free products. but I knew a lot of cast members who would recommend a product that 1. isn’t really what they are looking for. 2. They will convince them that they need a different product instead of the one they were looking for. 3. Say they don’t have anything to match the product they are looking for (even when we do) and then suggest the brand that was there that day. The employees who did the latter were the ones who moved up to lead positions within the store.

[@BasicallyLauralol]

@@scarlettelisabeth5644 I am happy to hear that someone had a better experience as a Sephora employee. And I wish that my teammates and I had similar experiences to yours. Unfortunately, in our store, the managers would take all of the gratis that brands brought in, and would be very harsh to employees who didn’t push their clients to buy more than one product from a representative’s brand. It bordered harassment at times. So at least where I live, I know not to trust Sephora. But I’m glad to hear it is not the same where you are. 😊

[@tamarakhan5360]

I think at the end of the day, the one who makes decision and PAYS is the customer. Whatever the salesperson is suggesting to you, the buying power is still yours

[@flapjack4579]

lol it’s just like pharmaceuticals

[@dameazize]

I love the terms used in this: "Brand agnostic" = "We sell what will make the store the most money, because they are a business that does not care about you" "We respond to trends" = "Get ready to waste your money and the environment on make up that will look ridiculous 2 months from now!" "Market in a personalized way" = "we scrape your data to target products to you, because again we are a company and will do anything to get you to buy more" "Exclusive line of products= "we dominate a market so much and are part of a monopolistic conglomerate to the point we can create false scarcity and dictate prices" "We have diverse brands" = "Do you know how much money POC spend on make-up?! We would be idiots not to cater to that market" "A purpose-driven brand" = "The purpose is to make money by encouraging our costumers to over consume!"

[@aseguradojaicel]

HAHAHA LOVE THIS! TRUE!

[@aerojetrocketdyners-2538]

Exactly inclusive marketing BS lol

[@theoutlook55]

👏🏿😄

[@laurel1865]

Genius

[@Emma-dh7by]

Well said

[@xKimiCHILDx]

I had better experiences going to department stores' beauty counters than going to Sephora. Most of the sales associates in Sephora will not assist you unless you look like a certain type of client. As someone who normally doesn't wear makeup except for special occasions (other words, won't wear makeup while shopping), I am ignored and often disregarded when looking for help. The beauty counters go above and beyond providing you with helps and tips when they aren't flooded with customers. I also found it easier to get skincare samples at beauty counters too.

[@arlene5990]

this !!

[@leila_de_hautjardin]

I have heard about that but it's stupid. I mean it should be normal to go to Sephora with a bare face since you're gonna test make up products...

[@madeleine6749]

I often times get the opposite response - I'm the same where I don't wear makeup or even a nice outfit most days but when I go into Sephora like that, they hound me nonstop as if _clearly_ I need help with looking nicer when in reality, I know way more than them and their help is horrible lol like let me shop in peace ugh

[@someonesomewhere22]

Try speaking a different language with a friend and you’ll definitely get 3 reps trailing you for the rest of your stay. Bonus points if theres a security guard that can’t keep their eyes off of you. So I shop at Ulta now

[@satyamgaba]

the difference is one is run by empolyees who get paid by hours and other an is run by the owner who makes the profir off the sale

[@TheStitchWitchPodcast]

As someone in the makeup community it’s always interesting to see these mainstream tales on what is everyday life in my niche. Actually in the beauty enthusiast world, Sephora is dying a bit compared to what seemed its peak, 4-6 years ago.

[@donatkentang4235]

Makeup sales peaked when the beauty community in youtube boomed, people wanted to look like all those beauty youtubers, having that much make up that they have, over consuming in the hope of achieving 'filtered look', buying makeup that dont even suit their own skintone. And after all that, people finally realize, they dont need that much makeup, makeup content amd products becomes repetitive and boring. All one need is just 1 pouch of makeup, not an entire wardrobe.

[@zaria5785]

100%

[@zaria5785]

@@donatkentang4235 the trend is changing currently so the opinions are as well...if heavy matte makeup for stage and camera is out then natural glam is in. If Sephora stays afloat for another 5 yrs then it’s because of all the pre-teens they’ve been marketing to from brands like Too Faced.

[@amyc9155]

@@zaria5785 stays afloat?? They've been around for decades I'm sure they'll be here in five years lol

[@sea2sky]

I lost interest in Sephora several years ago when I realized just how their "trends" is just to get you to spend money on items that are expensive and not necessarily useful. I have found doing my own research and trying makeup from around the world so much more efficient than walking into a Sephora.

[@andreahuh5574]

Sephora was a must-go in my 20s. Nowadays the store is way too crowded with people, overwhelming with staff offering to help, and feels like make-up Costco Warehouse rather than a well-curated shop that I felt it used to be. I’ve also plateaued on most tools and palettes so I would not go into a store unless it was an emergency.

[@slimtodress]

I have been Rouge for a few years (don't judge me please 🥺) until a couple of years ago when I realized I own so much makeup that I can't possibly use it up in a lifetime. Also a lot of products seem repetitive. Since then, I haven't purchased a single product except for mascara (which has to be replaced more often). I stopped using foundation all together and focused on skincare more to make sure my skin actually doesn't need any foundation. I don't buy skincare at Sephora because I prefer more niche, professional brands which are not focused on marketing but actually on creating formulas that work efficiently and safe on skin. I had a major clean up of my makeup collection, purging a looot of it (didn't even want to count how much money I spent on all that) and now my makeup collection is much more focused on what I will actually use vs what Sephora and KZbin tells me I need.

[@busra-eb6up]

🙏💫

[@alexiarondeau]

By curiosity, what are the more professional makeup brands you buy from? I am really into skincare, but I only start to learn about makeup, that would helpful 🤗 thanks!!

[@jacquelinelugo5518]

Honestly makeup is shifting so much right now. I see a lot of people not buying super heavy makeup anymore and going for a more natural look. People are also not buying as much high end makeup but more drug store and indie brands. Also skincare is more of the heavy focus now since the start of the pandemic

[@ramirenriquez6795]

The whole consumption industry is producing more products we don't need much of. I know that cosmetic products enhance people's looks or moods which boost confidence and all, but with the vast options we have nowadays, we don't need them.

[@incresearch2317]

Well, yup, regardless of what is being said in the comments section (which I don't doubt), they have certainly done well in terms of having built a profitable biz.

[@majd_shoots]

There's no way they can afford all that marketing budget if people didn't buy these things with a ridiculous profit margins When that Asian guy said "42 dollars" for that bottle, I was like 😧

[@iloveprivacy8167]

And then used so much - he must go through two bottles a month!

[@jennid1573]

Went to Sephora in Paris and after about 45 minutes, spent £400+ on stuff for me and my daughter. Afterwards we went for drinks. I opened one of the eye pencil boxes I’d just bought and the box was empty. The eye pencil was £23 so we went back to the store. The assistant was highly suspicious when I told her. She said she needed authorisation from her manager to give me a refund or replace it. She then disappeared for around 30 minutes. Eventually she came back down with the manager, and they replaced it. They 100% had watched security footage. I was furious. Particularly after spending over £400. I’ve never been back and will never buy from them again.

[@RachelJayne92]

I’m in Australia, and even though I have access to Sephora, I rarely if ever shop there because everything about there store is awful. If you walk in bare faced you won’t be able to get help, but if you walk in with a full face of makeup on they won’t leave you alone. The store is super loud (music) and brighter than the sun, and when you make the effort to go into the store - they pretty much never have the stock of whatever it is you want. Plus, their point system is a joke. Mecca is by far superior, and I shop there very consistently. Better in store experience, better service no matter what you look like, and they basically always have stock! 💕

[@PriusRaj]

I try to buy direct from the makeup brand because I'm not a huge fan of Sephora, or any "middle" market tbh. I do buy some things at Sephora tho because lots of brands don't ship to Alaska while Sephora does.

[@christytan5614]

Sephora owned by lvmh anyway

[@thefocusedlife497]

The sad part is they could earn so much more if their associates weren't so rude, same with Ulta. When you go in Sephora you know they don't wanna be bothered.

[@LilyLovecraft]

curbside pickup is the best way ngl, just skip that mess

[@srijabhattacharya5271]

Really? It's the opposite for the locations I've been to, they keep asking us if we need help

[@2Sweet2Mistreat]

Pat McGrath's line should have been featured as prominently if not more than Fenty given that Pat is an actual high fashion makeup artist with a brand doing very well

[@laurel1865]

Didn't they say that Sephora owns Fenty? That might be the reason why they push Fenty so much.

[@annamokrushina9228]

And the point of this video is - what precisely? Feels like an ad to me

[@estebanod]

Explaining how they revolutionized the make-up industry, it's in the title.

[@youngaries8]

Sephora is a company that promotes bullying and exclusivity. I worked there as a teenager. The manager, a woman in her 30s, would call me "pizza face" for my acne and told me that I shouldn't stand at the front of the store because I'd scare customers away. Other associates would make racial jokes and say awful things about customers. I became passionate about skincare to clear up my acne. I can tell you that 90% of their skincare products are expensive gimmicks. Even today, when I go to one of their stores, I always leave feeling worse.

[@scarlettelisabeth5644]

If you are a teen you can’t work at Sephora

[@youngaries8]

@@scarlettelisabeth5644 I was 18. That's still a teenager.

[@runawayshay6409]

If you remember that managers name find out where they work now and let their employer know. She was in her 30s. They should know and her career needs to be destroyed. Esp if that manager still works there. They should have been reported to HR at that time.

[@oatwolf7012]

I'll never forget how Sephora did 180 on their employees at the beginning of panini - first PR emails about how they're going to take care of their employees and then laid off said employees during a Zoom call 🙄

[@aryannuccia]

q1

[@estebanod]

Panini?

[@oatwolf7012]

@@estebanod pandemic 😅

[@vivsevs1087]

omg the panini of 2020, thank you for the lol

[@megnelli]

Where is the economics? Misleading thumbnail! Shame

[@ladykadiijha]

The downside is the sephora reps are not very knowledgeable about the in depth specifics of products. They have so much and it seems like they have a general knowledge but not in depth so it's actually better to speak with a company rep from that specific makeup brand to get the best information.

[@Karideplov]

Anyone remember the first time ever going into a Sephora? I do. It was Stone Ridge Mall in Dublin, California. It must have been the end of 1999 or 2000 because I remember I had purchased my first car a few months before and I felt so mature driving with my friends to a shopping mall with my friends, without parents, and I had my own money to buy my things. I was lost in the store and a, what did they call them, beauty associate? Well, they sat me down and did my make-up. I looked horrible and well above my 17 years of age. It took me years to go back..so many that the next Sephora I visited was when I had moved to Madrid, Spain, and I went to the store in Puerta de Sol. This must have been 2002. It then took me another 6-7 years to go back. I finally got hooked around 2012 and started an 8 year relationship with the company, brain washed to spend and spend every month. I have a collection now that will last me several years.

[@yassi8814]

I’ve been there many times ✨💯

[@natemarshall3016]

Idk why I read all this, but nice :) sounds like you’ve had an exciting life to move to Spain!

[@quiquichannel7260]

I love the idea of Sephora "market in a very personalized way to the customer."

[@ouihui]

idk... most sephora associates in sf/bay area struggle to match/get me to the right products I need. and tiktok influencers (including the ones shown in this video) has let me down in the past. Always do your own research.

[@runawayshay6409]

Sephora was ahead of the marketplace in terms of experiential retail. But they didn’t carry a lot of hair care so before 2020 they didn’t have as much emphasis on black-owned beauty brands. Also they’re in Kohl’s because of the JCPenney bankruptcy. I am a Sephora fan - you could have a stroke by the Revlon display in Ulta and no one will find you for 2 days. They actually have a lot of biz success that this video could have celebrated - but this is essentially a Sephora press release in video form. Is this an ad they paid for? If yes, WSJ you need to disclose that. There is nothing in this video that a beauty enthusiast wouldn’t have observed casually. This is not reporting, this is regurgitating the Wikipedia entry.

[@nusaibahibraheem8183]

Exactly, I thought I was going to learn something new🙄

[@giovannip8600]

So, giving up a sample to increase the probability that customers find what they want better increasing revenue is such a revolution???

[@paillette2010]

Actually, it is. 🙄

[@novueiro]

now that you know after the fact its easy to see the simplicity, try being the first to notice

[@HaiLe-wy7dd]

Yes, who would have thought that... in the first place

[@scarlettelisabeth5644]

At the time it kinda was

[@leonaparic2089]

In America maybe, in europe this is old old old news

[@brittanyfriedman5118]

if giving out free samples is "revolutionary" then my colon is che guevara

[@roc2588]

But are they brand agnostic? I feel like they are encouraged to push certain brands.

[@scarlettelisabeth5644]

Yes, if there is a brand ambassador there that day or a contest going on they will most definitely push certain brands

[@LiLiBi01]

This was more ad than journalism. Blergh.

[@Critical-Thinker895]

Wait for the smash and grabbers show up. 100% discount.

[@karakol86]

Sephora had shops in jcpenney as well. That didn’t work out well...

[@AlexVoxel]

This feels like an ad

[@vanessacolina]

Sales associate are brand agnostic? No sr. They are always pushing a particular brand. Seems like they get commissions on selling a set of specific brands.

[@scarlettelisabeth5644]

There are no commissions, what it often is, is if a brand ambassador is there that day then employees will get free products from the brand for selling a certain amount of products.

[@graphenebusinesslaw]

the sales associates being brand agnostic makes for a much better customer experience!

[@MichaelKudra]

i was very excited for this video but left this site feeling like i learned next to nothing on this topic.

[@1Wendy_Woo]

I heard angels sing the first time I walked into Sephora, across the street from St. Patrick's Cathedral, in NYC. I had never heard of them prior. The concept was mind-blowing and so much fun. Decades later I still shop Sephora, but online only. So not nearly as much fun. Now with so many "influencers" and biased opinions, and influencers FREE merch from cosmetic companies, it has lost its status for me. Still, it's nice to think of its earlier days and how special Sephora was, decades ago.

[@StanislavMironov-md2qx]

Pocket Option seems interesting! Can you share more details about your experience?

[@Thebreakdownshow1]

I got married and learned everything about Sephora. It’s legit fun 🤩 for so many people when they go in. It’s like me going to home depot or apple store.

[@lucia7234]

Beauty advisors are so annoying, but when it comes to it much arent that good or knowledgeable especially about ingredients.

[@AngelicVirgo]

This shop needs to open in Ireland.

[@PC-so4lg]

A welcome for Sephora in IKEA in India!!! Lets give Sephora a shot... Their products are a class in themselves!!!!

[@FineNaturalHairROCKS]

As a human rights lawyer looking at Sephora from the outside, I can confidently say that they take inclusion seriously. It's a wonderful thing to see!

[@EllenNguyen]

This feels like an ad!

[@sanderstar1000]

I love Sephora, their rewards and offers are the best part because getting little mini samples and stuff is so useful and fun!

[@CallieMasters5000]

The Paris store on the Champs Elysees was always a good tourist attraction if nothing else.

[@gigis4221]

They have a similar experience to apple where you can test the product before buying. Having that allows the customer to feel/envision the product is theirs. Both also have the sense of being exclusive while still being attainable to many. For example Sephora holding products from $15-300, and Apple having mini vs standard vs pro versions.

[@motorvatin]

Wish you would’ve profiled Ulta instead they’re so much better

[@sll255]

How is ulta better?

[@motorvatin]

@@sll255 better selection, sales that aren’t a slap in the face, no ridiculous vib rankings

[@pterodactylpie8825]

Yeah I’ve never felt Sephora values their customers as much as ulta does with their point system. The Sephora free samples they give you if you’ve purchased enough are meh, I’d rather have a cash discount.

[@motorvatin]

@@pterodactylpie8825 the point system is what made me finally break up with Sephora permanently it’s a joke.

[@Daria-bg3ds]

@@motorvatin Same. Now I use Beautylish, Ulta, or shop from the brand directly.

[@GreeeenT]

Also unlike ulta, sephora is global!

[@klaudiajanikova]

I'm actually glad that I dont have Sephora in my country 😅

[@abhishekdev258]

Love this series

[@paillette2010]

It would have been better journalism to mention the influence and affect by Ulta.

[@joeeichinger]

This was an ad for Sephora. They using all the video time to promote themselves lol

[@jennifersun2638]

Ulta is trashy

[@shalaywashington6326]

@@jennifersun2638 Not mine. Maybe it’s trashy where you live

[@paillette2010]

@@jennifersun2638 but they have an excellent market share

[@laurel1865]

I thought Sephora owned Ulta?

[@BlackTealways]

Interesting how there is no mention to Sephora’s partnership with JCPenney before Kohl’s happen 🤔🤔.

[@marafdez]

This is all great and fascinating. I’m a Rouge and Sephora obsessed but WHYYYYY is the lighting always so bad?!😅

[@Kiyonce.Kartier]

I love Sephora. It’s a one stop shop for everything beauty ❤️ I’m Rouge ❤️❤️

[@AskMiko]

I converted to shopping yearly because if I buy gifts and personal items all at one time, I remain rouge without going in incrementally. Christmas season allows me to buy gifts for others and not have a bunch of products I wouldn’t use lingering all year long. I still check out what’s new and on sale, etc. but only shop yearly and have saved $$$

[@miraggg]

such a waste of money... but i guess good for the people who buy into this, they are the ones who keep the economy going

[@geegeelast7597]

LVMH is why Sephora is now soulless.

[@michepriest]

I’d love a fragrance-free Sephora. As someone who experiences severe reactions to fragrances, I have no way of testing or buying fragrance-free makeup other than online or in a grocery store like whole foods

[@kienang9148]

the video image is too poor, you need to fix it more

[@hannahgregor7260]

coming from germany having DM und Rossmann :))

[@ilovethe70ss]

Keep your stores stocked

[@H_LINH94]

I do not really understand the advantages from S. To belong to LVMH. Could someone help me? Explain in another way?

[@estebanod]

LVMH is one of the two most important groups in the luxury industry! They control almost EVERYTHING: clothes, make-up, skincare, perfumes, etc. They own Louis Vuitton, Sephora, Dior, Givenchy, Make-up forever, Hermès (kinda not so much anymore), Off-white, Bvlgari, Fendi, Kenzo, etc... If it isn't controlled by LVMH then it's controlled by Kering (Gucci, YSL, Balenciaga, etc..) They are THE two pillars, not only of French luxury, but also of worldwide luxury. Being owned by any of those two group means not only that your brand will always stay relevant when it comes to fashion trends, but also (in the case or Sephora for this example) having access to very exclusive deals with partner brands!

[@worldview730]

How does one go about picking a lipstick from a million or more available?

[@kimjohnson8471]

Lord, please let me die inside of a Sephora!

[@tylerhysko7108]

Omg those are my TikToks! 😍

[@elizawynne3080]

So interesting!

[@Bill0102]

This content is a trove of groundbreaking ideas. I read a book with akin subjects that transformed my approach to life. "The Art of Meaningful Relationships in the 21st Century" by Leo Flint

[@IsaacMuriel-t5g]

Fay Gateway

[@phucloinguyen7668]

Some segments in the video are stamped not adjacent to each other

[@dahasolomon7314]

Is this an ad? Because it feels like an ad.

[@seanwebb605]

Why do you keep referencing economics rather than a company's business model?

[@LilyLovecraft]

Sephora here is always so low on stock. It's been like 2 years since they've had a steady stock of *anything* and there's nothing really special about them that makes me keen to go out of my way to keep checking. On top of that, oddly enough, the name brands that tend to be out of stock all of the time seem to have Sephora branded dupes being sold allofasudden which are not comparable in quality AT ALL. The last time I went in person to a Sephora the sales lady demanded I get a skin tone test, like wouldn't sell me foundation unless I did it...which I sure as heck didn't need (I don't go for natural, I go for pale...) and sold me some awful greasy thick urban decay foundation that made my face look like I set my foundation with tumeric. The point is, Sephora actually kind of blows now.

[@elisehamelink3427]

If only there was a sephora in the Netherlands

[@firstname__lastname]

I spend wayyyyyyy tooo much money at Sephora. Plus their customers service is dynamite. Any time I've had an issue, especially when Im missing samples with an order, they've given me points, usually anywhere from 50 to 200 points. That's literally equivalent to a $200 purchase. Plus now that drug store makeup is stepping up their game... Sephora is expanding their beauty lines to feature products that won't break the bank.

[@igod8054]

sephora I love you

[@meghanaathalye1934]

I have used Sephora's eye-liner, mascara. Dior's lip gloss, Mac's lipstick, Channel and LANCOM's perfume - all are outstanding..! Worth it..! Not a makeup person and not promoting anything.. I read Laura's comment as well.. Marketing culture / strategies.. But just sharing my experience..

[@alparslankorkmaz2964]

Nice video.

[@kenny_ki]

everytime i go into sephora i test everything and buy noting

[@John-fr6wo]

For God so loved the world that he gave his one and Only Son that whoever believes in him shall not perish but have eternal life. (John 3:16)✝️

[@XPrincess30]

Bring back my ftigin coverfx primer

[@MichaelBravo-u9w]

Casey Crescent

[@yassi8814]

I will always love Sephora 💖

[@riddhimaansenapati5006]

Simp.

[@Commentator541]

Some of their things, yes never spent any money, but gifts are welcome, are amaziiiing. Their own branded products rock my world. But, not really affordable.

[@mylindacasbarro777]

Freelanced there for many years.

[@osvalyjimenez]

With covid it’s not that cool, to go store and start touching make up. They have forms for you to sanitize but unless it’s in a pump I’m not trying it 👀

[@Verbsdescribeus]

ABH, Too Faced, Urban Decay are cruelty free brands and I can find them at Sephora only :) I had no idea that they invented the assisted shopping method :D

[@iloveyoshi0xo]

Too Faced and Urban Decay have parent companies that test on animals.

[@studybuddy.]

All of those are also sold at Ulta. And their own websites.

[@worldview730]

4:26, could that be called industry stalking?

[@SaroyanGary-i2n]

Stracke Creek

[@Fellowtellurian]

I would still just go to the mall and go brand by brand until I found something I liked.

[@flufftronable]

Is it wrong that I don't think it's a lot to spend to be rouge.

[@estebanod]

Cool

[@studybuddy.]

I thought Ulta was on top?

[@damnmuggle]

Lol no

[@dianapearson1771]

I went in our JC PENNY store here in Tupelo, MS. I was told they couldn't carry the Best Skin Care foundation because we're too rural. Relly?!!! We gave the world Elvis Presley!!!!! So, I have to drive to Jackson, MS or Memphis, TN just to get the Best Skin. Please do what you can to correct this. I work in our hospital and the mask mandate has just been lifted, so I want a new makeup foundation to help my skin. I'm a white female, 73 years old. I need a dewy foundation. I've been told you have a great product and I want to use it, but I don't want to drive all the way to Jackson or Memphis every time I need foundation!!! Please help!!!!

[@JettaHasler-n5r]

Cristopher Vista

[@ixchel003]

This is literally an ad.

[@jennifersun2638]

Sephora has great customer service.

[@erindanelleavilaavilaguerr7251]

They said they would help them get their money free if extortion and prohan rings. They had stolen it by dropping it in the sea and parachuting down and stealing it while someone else took them fishing through the tribal circuit. They then, the ones that stole thee money inteled that the person whose money it was that went along with them helping them were illegal fishing.

[@CristinaNocera]

I wonder if she exercises at home to talk in this way or if she is actually able to talk like a normal person

[@stephaniestewart312]

I buy direct from brands better deals

[@DorseySanfiorenzo-m9s]

Hoeger Fields

[@leonaparic2089]

sephora?!? you mean youtubers... and trying out the make up in the store is old news for Europeans :/