SWOT Analysis of Sephora. Sephora is a beauty and personal care French multinational retail company. Dominique Mandonnaud laid the foundation of the cosmetic company in 1969. The headquarter of the company is in Neuilly-sur-Seine, France.
Some of the main products and services of Sephora are as follows;
- Body Lotion
- Beauty tools
- Nail color
More than 300 Brands that operate under Sephora, some of them are as follows;
- Coto Beauty
- Bobbie Brown
- Kat Von D
- Huda Beauty
Key statistical facts and figures about Sephora are as follows;
- The annual revenue of the cosmetic company in 2022 was 10.0 billion US dollars
- Approximately 28,540 employees are working for the company to manage its worldwide customers
- The brand awareness of Sephora in the US was 74%
Some of the top competitors of Sephora are as follows;
- Ultra Beauty
- MAC Cosmetics
- Urban Decay Cosmetics
- Avon Products
- Sally Beauty
- Florence By Mills
Today, we’ll discuss the swot analysis of Sephora. It is going to focus on the internal strengths and weaknesses; external opportunities and threats to the cosmetic company. Here’s the swot analysis of Sephora as follows.
Strengths of Sephora
Some of the main strengths in the swot analysis of Sephora are as follows;
The focus of Sephora’s e-commerce platform is to satisfy the needs and wishes of customers by offering them the best quality experience. The company has made strategic alliances with other tech companies to amplify the growth of its e-commerce platform, and offer the following services;
- Online pick-up in-store through Instagram
- On-time delivery
- Facebook live shopping
Sephora has a network of over 2000 retail stores, and more than 300 brands under its umbrella, and operates its business in over 30 countries across the world. Along with branding and marketing strategies, the cosmetic company owns private labels and they help the company to differentiate itself from other competitors in the industry.
According to the ranking Forbes, Sephora has fallen under the category of America’s Best Employer for 4 consecutive years. In fact, the cosmetic company 100% satisfies the criteria of the Human Rights Campaigns Corporate Equality Index.
Along with private labels, Sephora offers a wide range of brands under its portfolio for its customers to choose from in various categories like bath products in exciting texture and color, accessories, and makeup. Some of the brands that you can find under Sephora are Marc Jacob’s Beauty, Too Faced, Kat Von D, and Huda Beauty.
Weaknesses of Sephora
Some of the main weaknesses in the swot analysis of Sephora are as follows;
Expensive to keep Inventory
When the inventory level is high, then it compels the cosmetic company Sephora to fund more capital resources and spend it in the SC channel. It impacts the company’s growth in the long term because the brand has to allocate a significant amount of resources to inventory.
Overemphasis on Customer Experience
The focus of Sephora is always on providing the best quality experience to its customers. That’s why many customers often take advantage of the company’s overemphasis on customer experience. However, it negatively impacts the company’s sales and revenue stream.
Sale of Other Brands
The retail stores Sephora offer a wide range of brands and private labels under its portfolio; some of them are the direct competitors of the company. Increasing the sale and promotion of competitor brands under its portfolio jeopardizes the sale of the company and it confuses customers.
Sephora falls under the category of premium brand and the company charges premium prices for its products. Often, the price of a company’s product is high as compared to its subsidiary competitive brands, and it negatively impacts the sale of the parent company.
Sephora hasn’t achieved the status of becoming the customer’s choice or the popular brand. In some of the top developing markets like Russia, China, and India; the cosmetic brand has yet to expand its business operations there in those markets.
Opportunities for Sephora
Some of the main available opportunities in the swot analysis of Sephora are as follows;
The consumer market has become highly cautious about their looks and physical appearance. It amplifies the demand and sale of personal care and beauty products. However, it presents a great opportunity for the company to promote its product offers and increase its sales in various categories.
Often people remember Sephora as a lady’s brand, but there is a significant growth in men’s care and men’s beauty products in recent years. It presents a great opportunity for the cosmetic brand to expand its market and business in the men’s fashion category.
Sephora has been operating its business in the beauty and cosmetic industry for the past many decades. The company has survived various phases in history and is very well aware of changing customer market trends. Now, the company should effectively utilize its experienced insight for its growth and offer new products to customers.
Threats to Sephora
Some of the main potential threats in the swot analysis of Sephora are as follows;
The cosmetic industry has become highly competitive in recent years. There are various brands operating their business in the beauty and personal care market, and it has become highly difficult for Sephora to maintain its market position in the presence of top industry competitors.
Sephora has faced various controversies and lawsuits in recent years, and they have negatively impacted the reputation of the company. If it would happen again in the future, then it would jeopardize the company’s business.
Conclusion: Sephora SWOT Analysis
After an in-depth study of the swot analysis of Sephora; we have realized that Sephora is the world’s leading cosmetic industry brand. If you are learning about the business of the cosmetic and beauty product company, then you should keep in mind the abovementioned internal and external factors.
Ahsan Ali Shaw is an accomplished Business Writer, Analyst, and Public Speaker. Other than that, he’s a fun loving person.