FOREIGNCORRESPONDENTS
BRIEF
by Fernanda Bonifacio
Sephora Breaks Into the Brazilian Market With over 1,300 stores in 27 countries, there were several speculations on why Sephora had not entered Brazil, one of the fastest-growing beauty markets worldwide. In fact, the prestige beauty retailer was carefully preparing the ground for an audacious goal: to open 40 stores throughout the country in five years. Sephora’s strategy to enter Brazil started in 2008, when the company conducted a thorough study of the Brazilian cosmetics segment and confirmed what had been suspected—there was no rival to its position in the marketplace. “Brazil is the world’s third largest beauty market. Although customers are quite sophisticated, they did not have many options,” said David Suliteanu, President and CEO of Sephora Americas. “Sephora has changed that by bringing our unique store concept and a wide range of excellent brands to meet such great demand.” Sephora’s first Latin American store was inaugurated in 2009, in Mexico City, after the company inked a deal with Mexican distributor Groupo Axo. One year later, Sephora finally broke into the Brazilian market, with the acquisition of a 70% controlling stake in Brazil’s largest online beauty retailer, Sack’s, by the LVMH group.
into www.sephora.com.br and inaugurating its longawaited first physical store in Brazil. São Paulo’s JK Iguatemi Mall—home to the first Lanvin, Van Cleef & Arpels and Topshop stores in Latin America— was chosen as the site for the first location, followed by a second store in São Paulo and another two in Rio—all in shopping malls. By 2017, the LVMH group expects Brazil to be among the brand’s top 10 markets, with an additional 36 stores open throughout the country. “Our goal is to expand sales in Brazil to offset the downturn
Tattoo Artist Kat Von D at Sephora JK Iguatemi
Shopping at Sephora/JK Iguatemi Mall, São Paulo
The first step to develop a local platform was to integrate Sephora’s expertise and new products into the Sack’s website, which already carried 270 brands and had 4 million unique visitors each month. In July 2012, the company completed the migration, converting Sack’s formal website MA R C H 2 0 1 3 /
At Sephora/Morumbi Mall, São Paulo
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/ B E A U T Y FA S H I O N
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FOREIGNCORRESPONDENTS
BRAZIL BEAUTY