How to keep up with success.

This time I want to focus on the strategies employed by big cosmetics industries to face the current economical crisis. How to keep up with success? What are the right business strategies to highlight? What development plans do managing directors suggest to make their industries successful again?

I think it is important to understand how make-up products reach us, in the way they are assumed to be marketed on large-scale. When something is addressed to thousands potential consumers, marketing strategies become a necessary priority. In the very moment there are thousands of similar products available in the market, you have to convince people your products are simply the best. How?

This time again I’ll focus my example on Sephora chain. I had suspected for a long time Sephora was one of the most interesting developing industries in the make-up field. A few hours ago I realized it was actually true. Surfing on the Internet I found out a very illuminating interview to the managing director of Sephora Italia, Roberto Forcherio. The full interview (in italian) is available on the “Sole24Ore” web-site, if you wish: http://www.gdoweek.it/articoli/0,1254,44_ART_997,00.html.

Even if it is not very recent, I think it is interesting because it speaks about 2009 Sephora’s main goals. In 2010, after a year and a half from the following interview, it is possible to observe if they actually took full existence or not.

December 17, 2008

The real atout of Sephora is made up of a non-segmentation of its customers. As if it was Disney, Sephora addresses to everyone, men and women, who simply take care of their body and their appearance. Getting over age, incomes and social status Sephora reaches potentially everyone, provided that an attention to self-appearance actually exist. In this way, I would become like Sephora France, which I’d like to approach in the matter of shops’ dimension, market share, more beguiling product assortments and sales, both overall and single shop ones. It is an issue concerning mentality and culture as well. And french people usually defeat us in this particular field.

Then he speaks about Sephora’s hopeful goals for 2009:

2009 is going to be a busy and complicated year, because double scissors are going to express. From one side there is going to be a remarkable decrease in all customer belts’ consumes, even in the most well-heeled ones. On the other side there is going to be a credit freeze, even if Sephora group doesn’t have to worry about that, because we are endowed with a considerable financial solidity, which allows us to look to the next future with more optimism.

Also for the next year Sephora is going to focus on the three same words: innovativity, esclusivity and novelty. Concerning the format we are continuing in finding solutions, which could offer more clareness in tracks, in visual merchandising and in reading-shelf among thousands of referencies. Our concept fully shows consistency with a freedom-oriented customer, which wants free access and possibility to determine whether ask for assistance or not. No substancial modifies then, but we want to refine some aspects through some focused intervents. We are putting some black crystal wall-affixed shelfs in order to make the atmosphere more elegant. Besides that we are also focusing on a process of lighting optimization under an energetical saving key. They are all possible solutions we are already testing in some of our flagships, like Singapore, Paris and Rome as well.

As an international cosmetics chain, we have to smell the emerging trends in the market. By this moment the key-word is naturality above all, accompanied with a strong attention to the bio element, like the cosmetics chain signed by Stella McCartney with bio-certificated products. In the make-up segment this trend is characterized with Bare Minerals products’ line, based on very minerals. A particular attention is paid to the price/quality relationship, which is considered a fundamental pre-requisite to operate in the market.

Then he speaks about Sephora’s strategical targets:

Among Sephora’s core targets there are the girls, whose age is included between 15 and 25 years old. They are seen as our key consumers of tomorrow, who we teach the first steps about cosmetics and make-up with our brands. There is an increase in the man area, which is not worth 10% of the market yet. The common thing is the desire to get glamour products, with an accessible price and which can answer to specific necessities. It is strictly essentioal he presence of a well-prepared staff, who could convey important information about the offer present in store.

He speaks about Sephora’s fidelity cards as well.

Our fidelity card is fundamental as well. It was launched in 2006 and already with 500 000 holders. We don’t offer only economical advantages, but information about products and events as well, like for example special store closings in order to permit our card holders to do a dedicated shopping or try a product in preview. We are not a city spa and we don’t want to become one as well. We are an innovative make-up chain, with a broad product and service offer, whose key- word is quick. Every session dedicated to make-up, manicure or eyebrows lasts only 15 min (maximum 30 min) and a previous appointment is not required: everything is played around impulse acting. Our main aim is to spread beauty: this is the purpose we want to keep pursuiting.

 

 

 

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~ by makeupyourlife on May 14, 2010.

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