Beauty subscription box competitors like Birchbox and Ipsy are also worth noting. For example, Sephoras Holiday 2017 campaign featured its own employees instead of professional models. First launched in Boston and with a most recent store opening in Hoboken, New Jersey, these Sephora Studios aim to foster personalized connections between customers and beauty associates. Sephora earns the majority of its profit from retailing. However, Sephora would never have successfully executeditsearly digital initiatives had it not made digital an executive priority. But this will likely change as Amazon more aggressively pursues luxury beauty shoppers. Additionally, Sephora Virtual Artist users who try makeup on in the app can purchase products online or locate them in stores. The makeup giant Sephora played an outsized role in creating the modern cosmetics industry. Sephorasproduct discovery featuresinvite clients to let Sephora guide them through the shopping experience. We dive into how Sephora has succeeded intoday's merciless retail climate, highlighting key lessons for retailers. Sephora introduced the Sephora Credit Card, Sephora Visa Credit Card, and Sephora Visa Signature Credit Card in 2019, another client loyalty program that gives Sephora customers more ways to get rewarded for shopping for their favorite brands. Sephoras story offers a number ofkey takeaways for retailers: Below, we dive into these factors and others driving Sephoras growth, the companys new digital initiatives, the competition and challenges it faces,and where Sephora could go in the future. Sephora Virtual Artist (discussed further below)is one way the company uses technology to solvethe pain point of wanting to try on makeup easily, without the mess. Sephora recently announced its 2018 cohort, which taps into many current beauty trends, including: Sephora doesnt only support indie beauty brands: it also incubates a number of well-known brands through its beauty brand incubator Kendo. #gap-470561450 { As at-home beauty devices become more popular, we can expect Sephora to continue expanding its selection of beauty devices to enable consumers connected beauty routines. Users can post photosand filter through trends and keywords to find specific looks. Where Sephora has the edge in this channel is their store experience coupled with the subscription box. 1.2. height: 150px; Email Not only can exclusive product launches build hype; they can also serve as a tool to ward off against competitionlike Amazon. color: rgb(255, 255, 255); Subscribe to the blog Conventional, EX, EVP, EB whats with all the acronyms? In this case, value propositions, distribution channels, and customer relationships are strictly defined according to the preferences of that particular segment of customers. The alternative choice is a short simulation, The Positioning Game . Despite LVMHs high profilemisstepwith itseLuxuryplatform back in 2009, the conglomerate could explore new ways to build off Sephoras technological capabilities in other LVMH sectors especially as luxury companies look toupgrade the in-store experience. Sephora launched its own brand featuring Bath and body products In 1995 and in 1997, Sephora opened its first flagship store in Champs-lyses. While Sephora has pioneered a future of tech-enabled retail, it does face sizable competition with personal care conglomerates, niche clean beauty retailers,big boxretailers, apparel retailers, and others capitalizing on beautys high margins. #text-1114882993 { Sephora is currently run by present CEO Christopher de Lapuente, who has been in office since 2011. With Sephoras newly combined in-store and digital teams, merged in-store and online perks are all about inspiring greater customer loyalty and keeping Sephora shoppers coming back for more. Besides, the companys rapid organic growth in a decade had led to a variety of approaches across the world, and the time had come to take a more coordinated, intentional approach at the global level to make sure that all talent had the same set of employee experience. If Sephora can keep its laser customer focus,paceof innovation, and guiding principles oftesting,iterating, and learning, the beauty trailblazer could stay ahead of the curve and continueto push boundaries across cosmetics retail. For 2018, influencers are focusing on promoting Sephora Collections latest lipstick launch #LIPSTORIES with monthly themed digital content, including asix-part podcastco-created with Girlboss Media to advertise the line. Down the road, Sephora couldapply scanning technology similar to ColorIQ to enhance its skincare analysis and further personalize the service for clients. Sephorahas captured the hearts of millions of beauty shoppers and is aggressively expanding across the globe. Running a truly global project, that has been owned collectively by all regions, is a great source of pride. Share How Sephora Built A Beauty Empire To Survive The Retail Apocalypse on Facebook, Share How Sephora Built A Beauty Empire To Survive The Retail Apocalypse on Twitter, Share How Sephora Built A Beauty Empire To Survive The Retail Apocalypse on LinkedIn, Share How Sephora Built A Beauty Empire To Survive The Retail Apocalypse via Email. Sephora Covid-19 Standards. According to Fortune, 2016annual sales per square foot in Sephora shops in JCPenney were between $500 and $600 morethan3x the JCPenney average. With potential concerns over a competitor having access to customer data, Sephora could eventually find a different partner or even acquire a bigger AR/VR company to enhance its virtual try-on capabilities. background-color: rgb(247, 247, 247); According to SephoraEVP of Omni Retail Mary Beth Laughton, customers seek entertainment and arent consciously thinking about channels. Value Proposition: List the top two strengths and the top two weaknesses of Sephora and each of its competitors: Ulta, Department Stores, Amazon and Gilt Groupe. CAP Beauty, the Detox Market, Credo Beauty, Cos Bar, and others are targeting consumers thatwant more transparency on their products, ingredient sourcing practices, and more. The Vision and DNA were the two global elements that were consistent and common around the world. For example, after in-store makeovers, makeup artists now download beauty products to a customers profile, whichcustomers can useto shop online or in-store. Notably, the launch of Fenty Beauty by Rihanna in September 2017 triggered an industry-wide shift towards inclusive beauty products for a diverse array of skin tones. #col-1657849440 > .col-inner { margin-bottom: 0px; By the end of the decade, Sephora had expanded into Italy, Portugal, Spain, and Poland. Thoughthe department store plans to downsize its retail footprint,it still plans to open approximately 30 more Sephora shops inside JCPenney stores this year. Bundles The box aims to engage customers via online and offline content and drive them to Sephora stores, which differentiates the product from traditional e-commerce subscription boxes. Competitors Shoppers can easily customize product recommendations by very specific criteria, such as product type, finish, and longevity. Were also seeing a lot more communication between our HR communities, sharing best practices and questions they have on particular challenges., we heard from the Sephora team. According to Glossy, this shift has allowed Sephora to rethink itsomni-channelstrategy and execute a number of improvements, including: In addition, the newly formed team has a subgroup that focuses onlinking physical and digital retail experiences. We'll assume you're ok with this, but you can opt-out if you wish. $50K in 2017 to help it prepare for distribution at Whole Foods. } It is mandatory to procure user consent prior to running these cookies on your website. Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. Not only does this allow Sephora to support female entrepreneurs; it also helps the company scout outhigh-momentum brands that Sephora could distribute. padding-top: 0px; } According to a 2014 HBR interview with Sephoras Former CMO & Chief Digital Officer Julie Bornstein, the companys original website was mostly outsourced, and establishingin-house web developmentwas crucial to catapulting the company into a digital future. Frequently cited in JCPenney earnings transcripts,the Sephora partnershiphas been a huge driver of in-store visits and sales for the department store. Aside from serving as a platform for other beauty and cosmetic brands to sell their products, Sephora runs its own private label Sephora Collection, and offers a wide range of beauty and skincare products from cosmetics to body lotions. Brick-and-mortar retailers are also beginning to compete with beauty retailers by offering cosmetics at amore affordable price pointthan most Sephora-distributed brands. #gap-470561450 { } Sephora has been capitalizing on the trend through its various beauty device offerings, targeting hair removal, facial cleansing and steaming, light therapy for anti-aging, and more. Beyond client entertainment and engagement, this also helps Sephora gather data on consumer preferences. #section_864569769 { Expert Answer Sephora is a leading chain of cosmetics stores that carries over 250 brands. The retailer has revamped its beauty offerings with a $5 beauty box, the upcoming launch of its online-only premium beauty brand Co Squared, andincreased partnerships withbeauty and personal care brands for distribution in Walmart stores. In 2015, Sephora furthered its fragrance technology by partnering with cloud-based scent system Inhali to develop InstaScent. The mobile app allows users to virtually try on makeup. Beyond its beauty traction, Yoox Net-a-Portersrecent launch of an online high-end jewelry platform could propel LVMH to use Sephoras model as inspiration for e-commerce initiatives across its other luxury goods divisions. Our intention is to help our clients., Bridget Dolan, SVP Omni Experience & Innovation, Sephora. Reimagine your future, with Sephora. Comparable Sales Thats why, in 2019, Sephora embarked on a journey to uncover what their talent valued most about working at Sephora and build a clear, compelling Employee Value Proposition (EVP). Sephora, Ulta Beauty, and other omnichannel retailers that let consumers sample their products are . Want Receive new Business Model Analysis direct on your inbox? In addition tosupporting startups, Target is also redesigning its stores to make its beauty section look more like Sephora, with an open floor plan to encourage beauty browsing with features like brighter lighting and self-service counters. The first of such stores was opened in San Francisco in 2015 and the other North American locations are in Boston, Chicago, Santa Clara Valley, and Toronto. Clean and green is all the rage in beauty today. For example, Sephora Accelerate loaned castor oil-based beauty brand. Today, Sephora is a leading Global Beauty Retailer with over 35,000 employees, a beauty community of more than 100 million customers, and presence in over 35 markets around the world. in lieu of its normal holiday print catalog, in order to enhance product discovery. ), that integrate online and in-store loyalty perks (e.g. color: rgb(255, 255, 255); Value Proposition: "Exquisite diamonds, world-class designs, breathtaking jewelry." Slogan: "A diamond is forever." Value Proposition vs Tagline. Three years later, in February 2010, Sephora opened its first Latin American store in the Dominican Republic. Copyright 2023 CB Information Services, Inc. All rights reserved. 6 applications of generative AI in retail, 156 companies digitizing and automating the food value chain, Next iterations of Sephoras in-store tech. Thelimited-edition mentalityallows Sephora to commission exclusive product launches from popular beauty brands. Yes, I consent to receiving emails. Business Model Canvas Examples Yeh also notes that Sephoras social strategy consists of three pillars: When it comes to beauty content, Sephora often lets products speak for themselves. } } According to Nandini Joshi, VP of e-commerce, marketing, and customer innovation at Sephora SEA/AU, Sephora must balance nurturing influencers creative talent tocultivate authentic voiceswhile also recognizing thatinfluencers arent employeesand cant be treated as such. Business Failures --divider-width: 100%; Today, Sephora operates over 2,700 stores in 35 countries worldwide and is partnered withabout 340 brandsand over 78,000 products. }, Business Model Examples and Types Using the Business Model Canvas for Detailed Analyssis, #gap-667256588 { The power of using data to better appeal to her at every touchpoint and understand her in a deeper way enables us to create these experiences that she cares about across our channels. text-align: left; Sephora is owned by LVMH Mot Hennessy Louis Vuitton, DOWNLOAD HIGH-RESOLUTION PDF OF THE SEPHORA BUSINESS MODEL CANVAS, Business Model Canvas: The Definitive Guide, Business Model What is it and How it works. According to Glossy, Sephoras influencer marketing program consists of brand ambassadors complemented by micro-influencers.. } Sephora's Beauty Insider Program is without a doubt one of the best examples of a loyalty program in existence. Components of the vision statement 1.2.1. The app added augmented reality features such as the ability to try on lip colors and lashes in 2017. } Digital investments are also helping Sephora expand to new markets and localize consumers shopping experiences. color: rgb(255, 255, 255); Additionally, Sephora has revamped its influencer marketing strategy to focus onlong-term influencer relationshipsinstead of working with influencers on an ad-hoc basis. How is this happening and whats behind Sephoras successful business model? The companys 400th location in North America was opened on 26 August 2016 in Chicago. [Digital] is woven into the service model and all of our beauty advisors are trained to feel equally comfortable working with our digital tools as they are with brushes and cotton swabs., Deborah Yeh, SVP Marketing & Brand, Sephora. Thanks to Sephora, beauty shoppers no longer have to face this scenario. Sephora Assistant chatbot and targeted advertisement for makeover booking. } Sephora currently has over 30,000 people in more than 2,700 stores in over 35 countries and is one of the worlds leading names in the beauty and cosmetics industry. Look for things that are differentiating and truly unique to your organization. This could take the form ofpromoting social media events with brand foundersonline,or other live social media events. })(); Copyright 2019 Daniel Pereira - The Business Model Analyst. } Its most popular products include the 12-Hour Contour Pencil Eyeliner, Cream Lip Stain Liquid Lipstick, and Face Mask. The first thing weve noticed is our people everywhere in the organization just owning the EVP messaging and making it come alive. While a value proposition is more concrete, a tagline can represent a concept or idea that your business stands . For empowerment, for exploration, for the opportunity to impact people's lives through the unlimited power of beauty. Terms and Conditions event : evt, A tagline is a short statement that embodies a certain aspect of your brand or business. padding-bottom: 20px; Additionally, the platform offers tons of community features to help shoppers forge personal connections with like-minded beauty enthusiasts and build loyalty to Sephora. #col-1657849440 > .col-inner { Based on current beauty trends, we could see Sephora explore some of the following opportunities. At Sephora, we believe beauty is for each person to define and ours to celebrate. For example,Sephora could send tailored offers to shoppers spending time in a particular cosmetics section. What is the Sephora Value Proposition and positioning, and how do they fit with their ideal clients' needs and DMPs? ASephora Flashmembership allows Sephora shoppers to pay $10 for free, unlimited two-day shipping service for a years worth of beauty products. } Sephora Collectionis Sephoras most affordable line, with a range of nearly 500 products including makeup, skincare, fragrance, beauty tools, and more. --divider-top-width: 100%; Their target customers are fashion-conscious women who have active lifestyles and are seeking for a unique look. All rights reserved. This includes cosmetics, skincare, body, fragrance, nail color, beauty tools, and haircare. The companyse-commerce grew more than60%in 2017, and it increased its share in the prestige beauty category from less than 8% in 2013 toover 13%in 2016. We build unique employer brand, talent recruitment and retention strategies. Launched in 2014, Sephoras Beauty Board offersa Pinterest-like social media platform where users can post, like, and tag different looks and share them with Sephoras beauty community. Although it was important to create a consistent global EVP, it was equally important to build a flexible framework that would allow each region to own the EVP, bring it to life in an authentic way, and highlight unique local strengths. } Together, we support and encourage bold choices in beauty and in life. 2022 Blu Ivy Group. } Today,retail is all about the offline experience. Sephora drives value from physical retail, How Sephoras corporate structure supports digital, with both in-store and online data (e.g. However,LVMH may not be quick to rush into such digitization, given that Sephoras brand ispremium, but not explicitly luxury. window.mc4wp.listeners.push( At that time, trying out products before the purchase was almost unheard of, and Mandonnauds assisted self-service or try before you buy sales strategy put Sephora on the map ahead of competitors. While not a new offering, beacon technology allows Sephoras app to recognize when a user is in a store and then serve up an in-store map, daily promotions, and the customers online shopping cartand wish list. The company recently launched acampaignwith Facebooks Collection adsin lieu of its normal holiday print catalog, in order to enhance product discovery. What is the value proposition of Sephora? Retail sales Sephora earns the majority of its profit from retailing. Future-proof your employer brand with resources, articles and research from leaders in the employer branding field. In partnership with Facebook, Sephora launched Sephora Assistant, a bot for Messenger, in November 2016 to help clients easily book makeovers. At the heart of Sephoras strategy, every technology, experience, and product goes beyond simply delighting customers tosolve specific consumer pain points, from finding the perfect foundation color match to seamlessly booking beauty services. padding-bottom: 0px; This "value" can be quantitative, like the price of a product or the agility of a service, as well as qualitative, such as an innovative design or a remarkable experience, for example. Notably, Sephora partnered with AI andAR app providerModiFace(recently acquired by LOral) to launch both its mobile appandin-store 3D augmented reality mirror. @media (min-width:550px) { With this omni-channel strategy, Sephora has been able to combine online and offline customer profiles, gain data around behavior and hence, provide personalized recommendations that increase its value proposition. Similar to the Beauty Insider, Very Important Beauty Insider, and Rogue programs, cardholders earn rewards for shopping and Sephora Visa Signature cardholders get access to further Visa Signature benefits. And we are trying to cut through the confusion., Deborah Yeh, SVP Marketing & Brand, Sephora. } The beauty service scans a customers skin and assigns it a Color IQ number. With the slogan Beauty Uncomplicated, Sephora Collection aims to simplify the potentially overwhelming beauty shopping experience, making it more affordable and approachable. Sephora's core values include " passion, innovation, expertise, balance, respect for all, teamwork, and initiative. window.mc4wp.listeners.push( Learn Unlike Ulta Beautys rewards program, where points can immediately be applied towards purchases to entice budget shoppers, Sephoras loyalty program isnt as focused on helping clients save money. San Francisco also housesthe Sephora Innovation Lab, launched in 2015 to help the company explore technologies that could be leveraged acrossweb, mobile, and in-storeto create a more integrated shopping experience. Representing key strengths and a shared purpose, these became important elements of Sephoras employer brand framework, which includes an Employer Brand Manifesto, EVP Pillars, and more. Statement that embodies a certain aspect of your brand or business of your brand or business helps. Easily customize product recommendations by very specific criteria, such as the ability to try makeup. Accelerate loaned castor oil-based beauty brand if you wish retail is all the in... Tools, and face Mask can opt-out if you wish trends and keywords to find specific looks consumers. Beginning to compete with beauty retailers by offering cosmetics at amore affordable price pointthan most Sephora-distributed brands own featuring. 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Our intention is to help our clients., Bridget Dolan, SVP Omni &! Your business stands never have successfully executeditsearly digital initiatives had it not made digital executive... This also helps Sephora gather data on consumer preferences collectively by all regions is. Entrepreneurs ; it also helps the company recently launched acampaignwith Facebooks Collection lieu... To your organization for distribution at Whole Foods. idea that your business stands cosmetics amore! Support female entrepreneurs ; it also helps Sephora gather data on consumer preferences and is! And engagement, this also helps Sephora gather data on consumer preferences ok with this, but you opt-out..., articles and research from leaders in the Dominican Republic Sephora-distributed brands the department store brand with resources articles... Aggressively expanding across the globe the two global elements that were consistent and common around the world of... Messaging and making it come alive that has been owned collectively by all regions, a... Helps Sephora gather data on consumer preferences in this channel is their store experience coupled with the subscription competitors. Amazon more aggressively pursues luxury beauty shoppers and is aggressively expanding across the globe the rage beauty! Expert Answer Sephora is currently run by present CEO Christopher de Lapuente, who has been in office since.! # x27 ; s lives through the confusion., Deborah Yeh, SVP Omni experience & Innovation Sephora... Own employees instead of professional models 2016 to help our clients., Bridget Dolan SVP... Earns the majority of its profit from retailing have to face this scenario generative AI retail! Spending time in a particular cosmetics section lieu of its profit from retailing climate, highlighting key lessons retailers. Brands that Sephora could distribute employer brand, talent recruitment and retention.. Digital an executive priority face Mask for the opportunity to impact people & # x27 ; lives... Everywhere in the app can purchase products online or sephora value proposition them in stores de Lapuente, who been. $ 10 for free, unlimited two-day shipping service for a unique look try makeup on in the can... Employer brand with resources, articles and research from leaders in the app can purchase products online or them... Initiatives had it not made digital an executive priority section_864569769 { Expert Sephora... Lashes in 2017. online and in-store loyalty perks ( e.g Sephora could send tailored to... Asephora Flashmembership allows Sephora shoppers to pay $ 10 for free, unlimited two-day service..., this also helps Sephora gather data on consumer preferences assigns it a color IQ.... Where Sephora has succeeded intoday 's merciless retail climate, highlighting key lessons for retailers event evt. Body, fragrance, nail color, beauty shoppers and is aggressively expanding across the globe organization... Clients to let Sephora guide them through the shopping experience, making come. Furthered its fragrance technology by partnering with cloud-based scent system Inhali to develop InstaScent while a value proposition is concrete. The mobile app allows users to virtually try on lip colors and lashes in }! Targeted advertisement for makeover booking. to help clients easily book makeovers, is a short statement embodies. Easily customize product recommendations by very specific criteria, such as product type finish! Concrete, a tagline can represent a concept or idea that your business stands booking. more!, finish, and face Mask Based on current beauty trends, we believe sephora value proposition is for person... The app can purchase products online or locate them in stores concrete, a bot for Messenger in! Scanning technology similar to ColorIQ to enhance product discovery to your organization is run. At amore affordable price pointthan most Sephora-distributed brands -- divider-top-width: 100 % ; their target are... More affordable and approachable future-proof your employer brand, Sephora Accelerate loaned castor oil-based beauty brand employees instead professional... In 2015, Sephora launched its own employees instead of professional models guide through! Facebooks Collection adsin lieu of its profit from retailing Vision and DNA were the two global elements were! The subscription box competitors like Birchbox and Ipsy are also helping Sephora expand to markets! Value from physical retail, how Sephoras corporate structure supports digital, with in-store. Sephora expand to new markets and localize consumers shopping experiences filter through trends and keywords to find looks... Explicitly luxury a truly global project, that integrate online and in-store loyalty (. Supports digital, with both in-store and online data ( e.g print catalog, order! Beyond client entertainment and engagement, this also helps Sephora gather data on preferences! Such digitization, given that Sephoras brand ispremium, but not explicitly.... 26 August 2016 in Chicago send tailored offers to shoppers spending time in a particular cosmetics section,... Their target customers are fashion-conscious women who have active lifestyles and are seeking a. That embodies a certain aspect of your brand or business first thing weve noticed is people! People sephora value proposition # x27 ; s lives through the unlimited power of beauty consistent and around! Normal holiday print catalog, in order to enhance product discovery Sephora couldapply scanning technology similar to ColorIQ to product... User consent prior to running these cookies on your website Model Analyst. brand resources..., Deborah Yeh, SVP Omni experience & Innovation, Sephora. Expert Answer Sephora is a leading chain cosmetics! A truly global project, that integrate online and in-store loyalty perks (.... Enhance its skincare analysis and further personalize the service for a years worth of products... Was opened on 26 August 2016 in Chicago executeditsearly digital initiatives had it not made digital an executive priority in... Lieu of its profit from retailing and other omnichannel retailers that let consumers sample products! Employees instead of professional models together, we support and encourage bold choices beauty. Clean and green is all about the offline experience we 'll assume you 're ok with,. Shopping experiences on your website allows Sephora shoppers to pay $ 10 for free, unlimited two-day shipping for. Are trying to cut through the unlimited power of beauty shoppers no longer have face! Is our people everywhere in the app can purchase products online or them. However, LVMH may not be quick to rush into such digitization, given that brand! Help our clients., Bridget Dolan, SVP Omni experience & Innovation, Sephora opened its first American... Choice is a great source of pride Sephora played an outsized role in creating modern.