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Sephora Builds Private Label Business

PARIS — Sephora is pumping up its private label offer. <br><br>At the end of November, the LVMH Moët Hennessy Louis Vuitton-owned perfumery chain will launch a 19 stockkeeping makeup line worldwide within its signature color cosmetics...

PARIS — Sephora is pumping up its private label offer.

At the end of November, the LVMH Moët Hennessy Louis Vuitton-owned perfumery chain will launch a 19 stockkeeping makeup line worldwide within its signature color cosmetics collection that includes 581 stockkeeping units of lip color, lip pencils and nail enamels.

“It’s really about the essentials of makeup,” said Thorsten Klug, group manager of makeup for the Sephora brand and the Sephora makeup creator, referring to the new collection. He added the line was a response to consumer demand.

“Our code name for it was ‘Sephora tools,’ ” continued Alexandre Rata, Sephora’s private label manager. In other words, the idea is to provide the essentials of makeup, generally with one color per product.

While Sephora executives would not divulge figures, industry sources estimate Sephora’s private label line generates 7 to 10 percent of the store’s sales in Europe, or approximately $46.9 million to $67 million. They project that the new makeup introduction could increase the store’s private label volume in Europe by 20 to 30 percent in its first three months on the market.

The new lineup includes four types of mascara, a product not yet sold in the Sephora private label line. In black, there’s a 0.4-fluid-ounce mascara for volume, a 0.26-fluid-ounce mascara for lengthening and a 0.26-fluid-ounce mascara for curving. Each will sell for $7.40. There’s also a 0.3-fluid-ounce transparent mascara for forming lashes that will retail for $5.80.

Other items in the collection include a 0.5-fluid-ounce tint embellisher, for $8.80, and a 0.13-fluid-ounce nail-polish corrector, for $5.45. Some of the products’ formulations include treatment.

All dollar prices are for France and are converted from the euro at current exchange rates.

Only two of the new makeup products that come in matte-silver or transparent packaging — the eyebrow pencil and corrector pencil — come in two shades; the rest are monochrome.

Next up for the line is a lip product, due out next year.

Upright merchandising for the new makeup has been developed to be user-friendly, explained Klug. Each product’s unit has an indication of where the product’s meant to be used, its name and function. Attached will also be a booklet informing the consumer about each item, including its “secret.”

An additional private label category due out mid-November here is a collection of pearl costume jewelry, including necklaces, bracelets and rings. Prices will range from $19.70 for a high-end bracelet to $3.85 for a ring.

Sephora Europe will also be launching a holiday campaign that involves selling a red teddy bear for $7.90, of which 99 cents will go to a children’s charity.

In other private label news, Sephora has recently introduced:

Six eaux de toilettes, meant to be an aromatherapy and colortherapy mix, called L’Eau Sephora. The 30-ml. sprays that retail for $14.80 each were launched this month in Europe. Industry sources estimate the line could ring up $10 million in retail volume during its first year.

The 12-reference Sephora Girls’ line of bath products was introduced in Europe in September, and is slated to hit U.S. doors next spring.

The three-sku line of Sun Gun sun treatment was debuted in Europe in April.