Cosmetics exports from Korea surged 15% in 2020, thanks to growing demand from the US and other Asian countries, per the Korea Customs Service and the Korea Cosmetic Association. Ingredient transparency and nontoxic options will be crucial for this category to see sustained growth. 25 2022. References. Following 2020s spotlight on racial justice and equity, a newfound focus on funding diverse brands has emerged as well. Posted by ; new businesses coming to republic, mo; LOral-owned ModiFace also allows customers to try on makeup virtually. Beauty brands are continuing to connect with consumers by employing varied pricing strategies that appeal to wider swaths of shoppers. Ultimately, targeting new continents or even country-specific markets requires hyperlocalization, especially as the global beauty markets further develop and new heritage-inspired trends take off. In doing so, the incumbent is diversifying its product portfolio and catering to new segments of shoppers whether they are seeking more affordable product lines, like The Ordinary, or more expensive ones, such as La Mer skincare, also owned by Este Lauder. The heavy Midwest presence of Kohl's will allow Sephora to grow into a new market with limited real estate investment, allowing easy access to a new swathe of untapped shoppers. Sephora VIB Sale - 20% off for a limited time. Some beauty brands are exploring more creative solutions, using materials like mushrooms, wood pulp, or agar. Along these lines, sustainability and a focus on environmental impact has taken on urgency at major beauty players looking to appeal to an increasingly eco-conscious population: Some, like LOral and Este Lauder, have announced goals to reach carbon neutrality, while others have begun innovating in more specific areas, like reusable packaging and refillable business models. Company Description: Through over 500 stand-alone stores in North America and about 575 inside JC Penney department stores, Sephora USA takes a self-service approach to buying makeup, fragrances, and skin care products. Notably, virtual try-on can also help brands personalize the beauty shopping experience, enhancing product discovery and making tailored recommendations about foundation shades, skincare products, and more. Sephora is a California-based in-store and online retailer of cosmetic products such as moisturizers, shampoo, perfume oils and styling creams for men and women. Advertising Approach and Marketing Plan. According to DECA, 80% of female teens said they were willing to spend more for clean beauty. One of The Ordinarys peeling solutions racked up over 50,000 sales in the span of two weeks following a viral video featuring the serum. The beauty category, while not recession-proof, has fared better than many other discretionary categories in economic downturns, reflecting the relatively low price point and the connection with the product Engagement with the beauty category remains strong, despite the uncertainty many guests are experiencing today. Ulta CEO Mary Dillon, Q120 earnings call. Darker skin reacts differently to skin conditions like acne, eczema, and keloids, and is more susceptible to hyperpigmentation due to higher amounts of melanin. Best Working Place: Sephora has been introduced by Forbes as one of America's Best Employers almost at a line up of four years in a row, from 2018-to 2021. Sephora tries to appeal to women who value quality and are willing to pay for it. [Online]. K-beauty hit the United States in 2011 when Sephora began carrying Korean skincare brand Dr. Jart+. Meanwhile, Facebook-owned Instagram has become a strong retail force within the beauty industry. Source: Codex Beauty. You need at least a Starter Account to use this feature. A paid subscription is required for full access. You can only download this statistic as a Premium user. Demographics Note: 01/01/2020-12/31/2020. Shop today! By Kathryn Lundstrom. Consumers are continuing to realize that not all synthetic ingredients are detrimental, and that biosynthetic ingredients offer a viable, more sustainable alternative. It is highly pigmented and has a rich creamy formula that dries to give a smooth, long-lasting matte finish. Its becoming critical for beauty brands to incorporate sustainability into their business model and operations, and water-saving techniques are crucial to the process. China-based tech giant Alibaba offers livestreaming and AR features which it has used to attract luxury beauty brands to its e-commerce platform. These technologies have caught the eyes of top beauty investors. Tech is playing a bigger and bigger role in the beauty industry. This shift is accelerating as government regulation in the EU and select US states pushes CPG companies toward adopting more sustainable alternatives. But thanks to new on-demand technologies, beauty services are no longer tied to traditional locations. Already popular in Asia, the trend of food, supplements, or drinks promising beauty benefits has continued to pick up steam. Sephora is a popular brand and chain of cosmetics stores founded in Paris. Segmentation-Demographics etc Segmentation of the audiences by Sephora is done in whatever phase they are in their customers' lifecycle. Of course, to get into the hands of teens, parents must also be convinced that these products meet a real need and are safe for regular use. The least common salary at Sephora is $100k-200k. 5 Jun. Sally Beauty. Research Summary. It's rare for an employee to stay with Sephora for 8-10 years. Since then, Western shoppers have clamored for Korean beauty products, with items like sheet masks and snail cream becoming commonplace in beauty stores. In a recent survey by the Harvard Business Review, 77 percent of top executives mentioned that they consider adopting artificial intelligence (AI) or Big Data a major challenge. Companies like Deciem are using transparent pricing models and established, science-backed ingredients that are cheaper to manufacture ultimately driving the price of products down. The EU, for example, has a goal of becoming carbon neutral by 2050, and the European Green Deal aims to shift to completely reusable or recyclable packaging by 2030. The most common certification among Sephora employees is medical assistant. This inside-out approach emphasizes preventing issues that other beauty products may only be able to cover up. All data were based on Sephora.com's product information posted as of October 1, 2018. Only 5% of Sephora employees earn a salary of $100k-200k a year. In makeup, examples include Fenty and Milk Makeup, as well as indie startups like Fluide and Jecca Blac. You need a Statista Account for unlimited access. Ultimately, the ingredient transparency trend will likely go more mass market and global across all consumer products. Sephora is very dedicated to an interactive approach. to incorporate the statistic into your presentation at any time. hbspt.forms.create({ In almost all instances, sales used to rank companies are for retail activity in the United States only. Many beauty brands including Ulta Beauty, Bluemercury, and Sephora have begun offering curbside pickup to limit germ spread during the pandemic. Some companies are also introducing waterless or water-reduced initiatives to salons. Now, consumers can bring the spa directly to their homes. Meanwhile, Johnson & Johnson has developed a host of personalized skincare systems, ranging from skin-scanning devices such as the Neutrogena Skin360 to 3D-printed face masks through its Neutrogena MaskiD technology. In Asia, mens skincare and makeup has been a burgeoning trend for years now, with the US catching up only fairly recently, which some attribute to quarantine boldness.. With an annual growth rate of 4.75%, total revenue is expected to top $716 billion by 2025. Much of the beauty livestreaming activity in Asia has been driven by high-profile influencers known as KOLs (key opinion leaders) like Lipstick King Jiaqi Li, who reaches millions of viewers every month. These "inclusive consumers" want to purchase Black-owned brands but are often frustrated by their underrepresentation in stores: Despite 14.2% of the US population identifying as Black, Black-owned brands accounted for only 1.5% of total retail spending in 2020, generating $83 billion in sales. The rankings eliminate fuel sales at locations designated as having a gasoline/fueling station as its primary business. The beauty and personal care industry generates nearly 120B packaging units every year, and nearly 91% of these fossil fuel-based bottles, wrappers, and other plastic waste are never recycled, accumulating in the ocean and landfills. Going forward, the beauty industry will continue moving beyond empty buzzwords like clean and natural and instead get down to the nitty-gritty of specific ingredients and their effects. statistic alerts) please log in with your personal account. Among its alumni are gender-neutral makeup line, Inter Parfums subsidiary bought a 25% stake in France-based fragrance company. Aug 4, 2022. Your favorite bad girl Rihanna has teamed up with Sephora to offer a brand new line of makeup for all skin colors and undertones, from all countries. Like many other categories, the pandemic has accelerated the beauty industrys shift to e-commerce as brick-and-mortar locations have had to close. Several brands are experimenting with biosynthetic ingredients: Beauty conglomerates have been active in developing biotechnology partnerships as well. dollars)." The approach is already popular in Asia, but it has started to make inroads in markets like the US. Sephora is planning its biggest expansion to date, opening 100 stores in the US. Learn more about Sephora and find answers to your questions regarding Company leadership, stores and the Beauty Insider program. LOral is looking to bring it to 10,000 salons in coming years and says it can save up to 80% of water used in rinsings. Voice assistants like Amazons Alexa and Apples Siri present partnership opportunities for big tech and beauty. For instance, they understand what works best for Asian skin. Competitors and similar companies. The retailer, which is owned by luxury goods group LVMH Mot Hennessy Louis Vuitton, was founded in France in 1970 and today operates more than 2,700 stores in 35 countries . Sephora is a French multinational retailer of personal care and beauty products. Total Starbucks locations globally 2003-2022, U.S. beer market: leading domestic beer brands 2017, based on sales, Revenue and financial key figures of Coca-Cola 2009-2021, Research lead covering Non-food CG & Retail, Profit from additional features with an Employee Account. Retail - Public. As the emphasis on ingredient education grows, brands are also shifting toward ingredients backed by scientific methods or endorsed by doctors and clinical professionals to prove safety and efficacy. For brands, targeting multiple price points and diversifying product portfolios could help them weather periods of economic uncertainty. Between 2011 and 2020 Sephora opened an additional 1000 stores and expanded into 12 new countries. Sephora, for instance, partnered with Google to offer its own Google Assistant app that allows users to order products, access skincare advice, and view Sephoras YouTube videos. Amazon, Apple, and Google all offer voice-enabled smart speakers and have designs on deeply integrating their virtual assistants into peoples home lives. Total global cosmetic sales in 2020 was a whopping $483 billion. Figures prior to 2019 were taken from previous editions of the publication. Biotech ingredients-as-a-service company. Urban which connects users with skincare professionals, nail specialists, and more is headquartered in England. MAC Shanghai custom 3D prints eyeshadow palettes for customers, for example, while Shespoke has developed software that allows it to manufacture custom-mixed lipsticks at scale. 54% of employees at Sephora are White. Customer journeys that combine the online world with the offline are here to stay. Quizzes are pervasive in the burgeoning direct-to-consumer (D2C) personalized haircare market, which has seen companies emerge across geographies like the US (. An absolutely horrible company with poor business ethics. Perfect Diary uses the same production factories as large, reputable luxury brands like YSL and Dior. by Reilly Roberts. Amazon runs a dedicated beauty supply store that sells salon products and equipment to businesses. }); More than a year later, Covid-19 continues to shape the space, but brands are now better equipped to deal with the seismic shift in consumer values and expectations. At the same time, beauty companies are looking to master voice-based shopping to ensure their brands remain top of mind for consumers. Sephora's general target market is higher-income women, but the stores are cleverly designed to break down the target market into smaller segments. Gender-neutral makeup lines are the next step in inclusive beauty, as younger generations erode traditional gender norms and stigmas. The cross-shop analysis would also seem to favor Kohl's, but it does indicate a two-way affinity between the two brands. The employee data is based on information from people who have self-reported their past or current employments at Sephora. Next Up Sephora Sales: Sephora Spring SaleApril 2023. Share 14 Trends Changing The Face Of The Beauty Industry In 2021 on Facebook, Share 14 Trends Changing The Face Of The Beauty Industry In 2021 on Twitter, Share 14 Trends Changing The Face Of The Beauty Industry In 2021 on LinkedIn, Share 14 Trends Changing The Face Of The Beauty Industry In 2021 via Email, produce a sustainable alternative for palm oil, adopted biodegradable and recycled plastics more broadly, conditions of the pandemic drove them toward product categories like skincare, Perfect Diary has become one of the countrys most talked-about beauty brands, approach is already popular in Asia, but it has started to make inroads, virtual Shiseido store uses virtual reality (VR) technology, 217 companies building the new e-commerce tech stack, What LOral, Nike, and LVMH are doing in Web3, 13 tech solutions to help recession-proof retail businesses, Big beauty incubates its own disruptors, ramps up acquisitions, Inclusive beauty becomes table stakes and new niches create huge opportunities, Synthetic beauty gains traction, riding sustainability and supply chain tailwinds, New sustainable packaging prototypes and business models take off, Waterless beauty as the next big eco trend, Beauty brands focus on value and varied pricing, Beauty further integrates with the wellness economy, Virtual try-on enables product discovery and engagement, Ingredient transparency trumps clean beauty, New approaches to omnichannel for beauty take hold, Quizzes, which address customer-specific preferences and customize products according to the results. For three years in a row, from 2019-2021, Sephora scored 100% on the Human Rights Campaign's Corporate Equality Index . Beauty sales declined as much as 30% in the first half of the year, according to McKinsey. September 27, 2021. Below is an overview of the profiles of the customers. Another important factor in a successful omnichannel experience is the ability for store associates to connect with customers online. Sephora launched a Teen Makeup Class in September 2016 that helps teenagers find products that best fit their needs. Chile-based Algramo, which expanded to New York in August 2020, also offers opportunities for refilling household products, though beauty and personal care is likely a future opportunity thanks to its partnerships with Unilever and Nestl. Vegan skincare brand Biossance creates its own eco-friendly squalene, an ingredient typically taken from shark livers. (For more on the future of the smart home, clients can check out this report.). The beauty company opened its flagship store in July 2020 and launched a new virtual store on its website at the same time. Ceremonia launched in October 2020 with a mission to celebrate the richness of Latinx culture through clean, sustainable hair products powered by natural ingredients, and the power of strong . In November 2020, Unilever-owned Vaseline launched the Equitable Skincare for All program in conjunction with actress Regina King and startup Hued to offer more training for dermatologists and resources for people of color. 2. The ultimate beauty destination. It even opened a brick-and-mortar hair salon to showcase its tech. Original review: Feb. 16, 2022. The most common major among Sephora employees is business. (September 27, 2021). Male grooming has expanded beyond face washes, moisturizers, and basic hygiene products to include eye creams, face masks, sunscreen, makeup, and more over the past few decades. Warren, NJ. 23% of Sephora employees are Hispanic or Latino. On average, employees at Sephora stay with the company for 3.3 years. Perfect Diary dropped an eyeshadow collaboration with the Metropolitan Museum of Art in 2019 and signed Australian singer Troye Sivan as an ambassador. According to a Research and Markets forecast, Singapore's cosmetics market can see a CAGR growth of about 5% between 2016 and 2020. If you are an admin, please authenticate by logging in again. 2020 was a redefining year for every industry including beauty. TikTok especially is gaining traction as a beauty product education and exploration platform, boosting sales when products go viral. Chart. Sephora is an innovative skincare, beauty, and fragrance retailer catering to customers who want quality, freedom, and a positive shopping experience. The Perso app crunches data on a users skin condition via an uploaded selfie, environmental conditions via location data, and user-inputted skincare concerns to dispense custom formulas through the device. Ulta Beauty also pledged to double the number of Black-owned brands carried by the retailer by the end of 2021, committing more than $25M to the push for greater diversity. Similarly, India-based CureSkin provides dermatological assessments alongside broader health advice on diet and lifestyle. After extensive research and analysis, Zippia's data science team found that: 77% of Sephora employees are women, while 23% are men. News from California, the nation and world - Los Angeles Times Virtual try-on is also available on the Kiko Milano website. This place is a dream come true for anyone who loves to sample or purchase good quality makeup, perfume, skincare or a gift. A plurality of of employees at Sephora earn $25k-40k. In January 2021, Hims & Hers which launched as a holistic male wellness brand through its suite of haircare, skincare, and supplement products but has since expanded to womens wellness went public in a $1.6B SPAC deal. Gen Z-focused brands such as UK-based Plenaire and Bubble have also been on the rise. Furthermore, indie brands often succeed in the areas beauty corporates dont, namely niche categories, targeted distribution, and social media prowess. To tap into this massive market, among others, grants and accelerators for founders of color have emerged over the past year, including Glossiers and LOrals grants to Black-owned businesses and Sephoras recent accelerator cohort, which included only founders of color. 2022 Beauty Industry Trends & Cosmetics Marketing: Statistics and Strategies for Your Ecommerce Growth. Sephora has positioned itself as a store that can provide an enormous variety of mainstream and boutique skin care . ( Statista) The company sells products under the hair color, skincare, sun protection, make-up, perfumes, and hair care categories. The surge of consumers focusing on self-care amid the pandemic has only accelerated the emergence of wellness as a holistic trend extending to traditional beauty areas like skincare. Sephora has started to segment customers belonging to the Beauty Insider program, which has proven to be effective. Accessed March 04, 2023. https://www.statista.com/statistics/1139843/retail-sales-of-sephora-us/, National Retail Federation. As more consumers link beauty to general well-being, some healthcare companies are positioning their products to grab a slice of the beauty market while leaning on their science-based authority. A February report from the NPD Group found that . This includes Asian beauty markets like China, which is a hotbed for virtual beauty thanks to its advanced mobile technologies and tech giants. Big beauty corporates are also attempting to penetrate new markets, especially in South Asia and Africa. So let us first start by looking at the strengths of Sephora from the SWOT analysis of Sephora. There are currently 10 remote jobs available at Sephora, compared to 1,394 traditional jobs. Also look for on-demand wellness services to become more frequent offerings in the office as employee well-being becomes a top priority for bringing people back to the office following Covid-19. In 2020, Deciem nearly doubled sales to $460M, primarily through its skincare brand The Ordinary, which has developed a strong cult following. 66% of employees earn a salary of $25k-40k a year. Quality online customer service can help shoppers feel more comfortable buying new products online. Black dermatologists make up just 3% of the field in the US, which has marked effects on beauty product development. Get free shipping . For example, in April 2021, private equity giant Carlyle Group took a majority stake in cosmetics company Beautycounter in a deal valued at $1B. Some companies are simply revamping their labels to highlight clinical results. As a result, brands are shifting focus away from highlighting natural ingredients and toward transparency and educating consumers on the ingredients they include or leave out. Companies like OmeCares OmeSkin, Alll, Skinshift, and others are offering beauty-focused DNA testing kits, which can curate product recommendations or branded, personalized products based on users genomic skin traits. Social media has become a critical way for teenagers to find the trendiest products in line with their clean beauty needs and beyond edutainment for beauty and skincare products. Google works with brands to use its search data to better understand beauty shoppers preferences. Omnichannel retailer Sephora's purpose is simple but compelling: to create a welcoming beauty experience and inspire fearlessness in the company's communities. Since Fenty Beautys launch in 2017, inclusive beauty has become an industry buzzword, encompassing new demographic markets that are becoming increasingly important for the beauty industry to target. Our estimates are verified against BLS, Census, and current job openings data for accuracy. In-house incubators offer a way for conglomerates to build relationships or even gain equity stakes in these companies paving the way for future acquisitions as it becomes clear which early-stage brands will mature and which will fizzle out. Signup for our newsletter to get notified about our next ride. Sephora has been testing a pilot recycling program in Utah and Colorado since 2019; no expansion plans have been announced. The company invested in Curie Co, a startup that makes biomaterials to replace preservatives in everyday beauty and personal care products, through its JLABS incubator. As consumer values and expectations shifted, big beauty corporates and startups alike have been forced to adapt. In beauty retail, virtual try-on tech serves a dual purpose: combining both augmented reality and computer vision, it allows shoppers to virtually test out different looks, while simultaneously collecting behavioral data for brands. formId: "6249b226-16fe-449e-89bb-234c2fdc506f" Already, the countrys male skincare market was more than twice the size of South Koreas and more than three times the size of the US market as of last year, per Euromonitor. Learn more about how Statista can support your business. Featuring nearly 340 brands, [3] along with its own private label, Sephora Collection, Sephora offers beauty products including cosmetics, skincare, body, fragrance, nail color, beauty tools, body lotions and haircare . Sephora chain includes more than 2000 stores in over 30 countries having over 3000 different brands.