Store of the Future

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 when 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’s 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 garnered from that 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.

As hoped, Sephora’s revitalized storefront blends digital and physical experiences in a way that gives every person who enters the store the feeling that they are stepping into their own “beauty power”.  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.