E-commerce has created tremendous challenges for companies whose core business revolves around retail stores.
Online consumers struggle to make informed decisions with the deluge of choices online.
It used to be that when you needed a tube of lipstick, you went to the store to test out a few shades. But as social media has taken over the beauty space, we’ve grown accustomed to trusting an influencer to tell us what to buy online. Sephora, with its vast network of approximately 2,700 points of sales across 35 markets globally, wanted to bring customers a more meaningful and personal beauty experience. To realize that vision, Sephora Asia partnered with IDEO to build a “Store of the Future” featuring a suite of blended digital-physical displays designed to help customers discover a more inspiring and personalized beauty journey. Together, we set out to strengthen Sephora’s position as a trusted partner in finding the perfect match for today’s shopper and their evolving beauty needs.
Progress
2
“Stores of the future” launched
107%
traffic increase within four months of Shanghai store launch
The CHallenge
The Impact
The Outcome
Finding the right beauty product online isn’t easy, as shoppers are deluged with choices. On top of information overload, our research unearthed varying emotional and functional needs among shoppers exploring beauty products.
When looking for makeup, for example, shoppers are interested in self-expression and open to exploration. But when buying skincare products to fix an acne problem, say, people feel a bit more vulnerable. That insight led to rethinking the retail environment as a space that offers both free range exploration and trial spaces along with engagements that address the individualized needs of customers at different life stages.
Acknowledging that entering a new phase of life can make people feel insecure about their looks, we asked research participants, What does “beauty power” mean to you? Responses suggested a lack of trust in unbiased voices online about how to look and feel powerful. Digital shoppers are continuously bombarded by ads and influencers who are incentivized to push brands who hire them. Shoppers love Sephora for being a neutral space that showcases multiple brands, so we leaned into that strength, designing displays that offer product reviews and details that enable consumers to make informed decisions.
Those displays started as prototypes in a Sephora concept store that filled an entire floor of IDEO’s Shanghai office. In our bright, modern space, consumers of all demographics explored a self-led experience designed to delight. A “Play Table” allowed visitors to freely explore products, using digital platforms to access product details and reviews. Beauty consultants were close at hand to offer assistance.
At another pitstop, the “Sephora Beauty School” offered a spectrum of classes and community activities, providing hands-on guidance and enabling participants to test out beauty bloggers’ techniques. The “Care Table” addressed more personal skincare needs, providing a semi-private setting for individuals to remove makeup, try out products, and consult with experts. Here, digital tools helped consumers understand their skin type, facilitating personalized consultations akin to professional medical care. These innovative features aimed to create a unique, exploratory experience, blending digital convenience with concierge in-store service.
The feedback on the prototype helped the team iterate quickly and gave Sephora the confidence to launch its first “Asia Store of the Future” in Singapore in 2022, followed by a second store in Shanghai in 2023. The Singapore store, situated in Raffles City, offered consumers a free-flowing, interactive beauty playground with a blend of digital and personal services, much like our early prototype.
The success of these two shops validated Sephora’s “Store of the Future” strategy. But experiences must evolve to stay fresh, so the team set up an “engagement indicator,” tracking customers’ interaction with digital touchpoints to provide Sephora with valuable insights. Based on those insights, Sephora can continue to iterate its in-store experience and foster loyalty as its customers’ preferences shift.
By getting close to its customers, building early prototypes, and learning as it goes, Sephora has redefined the in-store experience, ensuring its relevance and appeal in a rapidly transforming retail landscape.
