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Sephora & supply chain...

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Sephora: Dominique Mandonnaud

Dominique Mandonnaud opened Shop 8, his first perfumery in 1969 located in France. He expanded his perfumery and bought Sephora in 1993. Mandonnaud acquired 38 Sephora stores and revoluntionized their way of doing business. Mandonnaud revolutionized the idea of “buy and then try” rather than the norm “try before you buy” as most perfumery shop owners kept their inventory behind cash registers. This change was successful and upon the establishment of Sephora, customers are now able to swatch, smell and feel the products as well as take home samples. Sales representatives were replaced by Beauty Advisors who are trained and have the specific knowledge of the cosmetics industry. Consumers are able to choose from a variety of products that suit their beauty needs, including skin care, hair care, nail care, makeup etc. Sephora currently has more than 2,000 retail stores worldwide in 33 countries, while 300 of the stores being in France alone. Sephora employees over 25,000 Beauty Advisors and offer over 17,000 products on their shelves including their own brand. Sephora’s first tactic was to expand nation and global wide. Mandonnaud opened his first flag ship store in Paris in an upcoming luxury area in 1996. A year later, LVMH, a luxury conglomerate purchases Sephora and soon after their international launch produces stores in four European countries. The first shop in the U.S was opened in 1999. Mandonnaud then proceeded to expand into Greece and Romania. In 2003, he decided to launch his loyalty program for customers. This created a huge boom in his sales as consumers were awarded for their purchases. This was a great strategy which continues throughout his stores and online. After this loyalty program, exclusive brand names were then being offered at Sephora locations. This is when Mandonnaud

decided to open Beauty Bars and Sephora studios for customers who would like to have the full experience of the product instead of testing the product on their hands or in the form of take home samples. Blogs were also introduced as a way for customers who like to shop online and have the testing experience through an online portal by reviewing the experiences by other Sephora customers. Several members adhere for Sephora’s team; however, Sephora’s supply chain management is quite important as it is to any other retailer. From order placement, packaging, transportation, and consumers. Sephora takes pride in improving and perfecting any issues with its suppliers and customers. While customers are able to purchase in store and online, Sephora’s website was launched 20 years ago, reinforcing the importance of IT logistics to cater to their online customers. As being an early competitor in supply chain, logistics and e-commerce, Mandonnaud’s push to optimize customer experience has led to Sephora becoming a worldwide multibillion company offering exclusive brands and maintaining a title of one of the world’s most innovative companies....