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Sephora Bets Big On Digital Growth With Disruptive 'Experiences'

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Beauty chain Sephora, widely viewed as a disruptor when it comes to digital retailing, has launched the Sephora Innovation Lab, a digital think tank of sorts that’s also designed to groom digital leaders within the company’s ranks.

At the same time, the retailer unveiled four new mobile initiatives, including a “virtual beauty makeover” and an augmented-reality app.

But digital technology for Sephora isn't just about being ahead of the technology curve. It's driven sales big time for the retailer. "Our penetration of digital to physical retail sales is double that of the prestige [beauty] industry," said Bridget Dolan, vice president of Innovation Labs.

Indeed, Sephora, has turned the prestige beauty business — long dominated by department stores and their glossy cosmetics counters — on its head. With an open-sell model that lets shoppers handle prestige beauty brands without the mediation of a salesperson, the retailer, which launched in Paris in the 1970s, has swelled to 360 North American stores and 420 Sephora shops in J.C. Penney since launching stateside in 1998, and 1,780 locations in 29 countries.

The Innovation Lab will cull the “collective creativity” of Sephora’s 14,000 employees nationwide in a bid to enhance Sephora’s digital future, said Calvin McDonald, president and CEO for Sephora Americas, in a statement.

At the lab in the Dogpatch neighborhood of San Francisco, the team “can ideate, test, dream, experiment and learn,” the company said.

As new ideas emerge, the Lab team will be charged with sourcing, developing, evaluating, testing and eventually launching new offerings and technologies for shopping in the store and on the go.

Sephora has previously partnered with tech giants like Google and Apple , and plans to evaluate additional strategic alliances through the Lab program.

Via the Lab’s “Think Tank” program, Sephora’s Innovation Lab is betting on this next generation of leaders to develop the “next big idea” in retail. The Think Tank team will meet monthly, working on how consumers will shop five years from now.

The Lab will also spearhead “Idea Central,” a program designed to source and deliver on ideas from employees nationwide – regardless of position within the company.

“We’re completely focused on making shopping more efficient, intelligent and fun for our clients,” said Julie Bornstein, chief marketing and digital officer for Sephora, in a statement.

At the same time, Sephora unveiled four new digital “experiences.”

 Beacons 

The retailer will use Beacons in stores nationwide to deliver timely, personalized alerts to shoppers who opt-in for offers like birthday alerts, loyalty program updates and notifications when new beauty training events are happening in-store.

 Pocket Contour 

In partnership with Map My Beauty, Sephora will debut what it’s calling the first-of-its-kind, cross-platform personal virtual make-up artist application that demystifies contouring, a growing beauty trend. By analyzing a mobile photo, Sephora can help consumers identify their face shape and offer personalized step-by-step guidance on how to apply make-up for the contoured look they want to achieve at m.sephora.com/pocketcontour

Augmented Reality 

 Next month, the retailer will launch its first augmented reality experience for shoppers via the Sephora-To-Go mobile app for iPhone. Consumers can interact with custom content by hovering over the faces of nine beauty brand founders such as Josie Maran, Laura Mercier and others, that are featured in Sephora windows and display cases. Scanning each image will bring up content options such as brand founder interviews, product videos, YouTube playlists and product pages on Sephora.com.

Sephora Flash

Frequent shoppers who want Sephora products quicker can sign-up for Sephora Flash, which offers free two-day shipping on all products. Flash is free for Rouge Beauty Insider members, and $10 a year for non-Rouge members.

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