Content executive summary
6
company overview
20
22
target consumer
8
consumer - local
32
moodboard
54
planogram
64 REFERENCES
11
swot analysis
22 customer profile
pop up objectives
34
35
exterior
59
promotion
26 interior
12
competition
13
expenses
61 poster
19
indirect competiton
competitve shopping analysis
27
29
30
pop up location
40
16
direct competition
the city
41
mock up
52
assortment
assortment by category
62
FACEBOOK EVENT
63 INSTAGRAM
Executive Summary
Sephora is a global retailer revolutionary in the beauty world with a focus on creating an experience for consumers through customer service, entrepreneurial strategies and innovative. The one stop beauty store is owned by LVMH Moët Hennessy Louis Vuitton and their ethos is to provide the latest beauty selections and stay current with new products. Sephora has spread to over 33 countries with 2,300 stores offering makeup, skin care, body care , fragrances, colour and haircare, featuring over 300 renowned brands.
Fenty Beauty is beauty brand created by Rihanna and was launched on September 8th, 2017 with Sephora and Kendo, an LVMH group company focusing on beauty. The brand focuses on diversity, offering 40 different foundation shades. Rihanna stated that the brand, “focuses on a wide range of traditionally hard-to-match skin tones, creating formulas that work for all skin types, and pinpointin universal shades.” Fenty Beauty offers 91 products through Sephora and exclusively with Harvey Nichols. Fenty Beauty is currently only available online at Sephora Hong Kong. The beauty brand went viral worldwide and sold out in Asia physical stores. A pop-up collaboration with Sephora will allow consumers in Hong Kong to test the products and create awareness for both beauty brands; Sephora and Fenty Beauty.
Sephora International is available in North America, South America, Europe, Australia and Asia. In focus with Asia, Sephora has physical stores in China, Indonesia, Malaysia, Middle East, Philippines, Singapore and Thailand and launched an e-commerce to Hong Kong in 2016. There is potential to reopen a brick and mortar store with the increase in expats and women using international beauty brands. A pop-up Harbour city, Tsim Sha Tsui will allow Sephora to promote their e-commerce store and collect data about the Hong Kong consumer.
6
Company Overview
Sephora is a French beauty store that features over 300 beauty brands as well as their own private label. The company offers makeup, skincare, body, fragrance, nail colour and haircare. Sephora’s parent organisation is LVMH Moët Hennessy Louis Vuitton, “Offering a unique shopping experience at the forefront of the latest trends, Sephora has made a great impact with its revolutionary concept of cosmetic and fragrance retail throughout the world.”. Through Chairman and CEO Christopher de Lapuente, Sephora has ensures an experience when shopping at the store. The brand relies strongly on customer wservice and satisfaction through professional training and knowledge on the products. Sephora offers over 15,000 products over five continents. Fenty Beauty is a beauty concept created by Rihanna to promote diversity and celebrate women of all skins tones. The brand is sold exclusively at Sephora
“Fenty Beauty was created for everyone: for women of all shades, personalities, attitudes, cultures and races. I wanted everyone to feel included that’s the real reason I made this line.” - Rihanna
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Swot Analysis Strengths
Weaknesses
-Recognition from Sephora and Fenty Beauty
-No physical store in Hong Kong
-Exclusive collection that is not available in
-Lack of understanding from consumers
Hong Kong
-Price point is more than other beauty brands
-Sephora’s renowned customer service
available in Hong Kong
-Fenty Beauty’s value for diversity
-Willingness to try new brands
Opportunities -Customers will go online to review products -Potential to open in Hong Kong again
Threats -Competitors: Asian beauty retailers, make up departments
-Exposure in Asia
-Lack of interest from Asian consumer
-Raise awareness
-Diversity of products due to recent launch
-Build customer loyalty
-Culture barrier
11
Competition
direct competiTon Lane Crawford Facesss
indirect competion Bonjour Sasa
12
Direct Competition
The direct competitors for Fenty Beauty x Sephora are Lane Crawford and Facesss. Both of the chosen competitors offer luxury makeup products similar to Sephora and reach the same target market. Some key competitive aspects are:
- - -
Brand value Price range Target Consumer
13
Lane Crawford
Lane Crawford is a luxury fashion, beauty and lifestyle retailer. The company focuses on providing luxury high end brands and offers products, service and experiences. Lane Crawford Beauty provides skincare, sun care, tanning, makeup, nails, fragrance, bath & body, hair care, accessories, dental care, grooming and well being. Similar to Sephora, LC Beauty offers makeup tutorials, events, offers and services. Lane Crawford Beauty provides free shipping on their e-commerce website. Hong Kong Locations: International Finance Center Mall (IFC) Pacific Place, Admiralty Canton Road, Tsim Sha Tsui Times Square, Causeway Bay
14
Facesss
Facesss, created by Lab Concept is a beauty retailer. The beauty retailer offered makeup, skincare, body, hair and fragrance. Similar to Lane Crawford and Sephora, Facesss offers over 90 international brands including Asian brands like Innisfree. Facesss is known as a contemporary makeup destination with beauty services by Clarins, Clinique and Biotherm. At Facesss, customers have the opportunity to join their loyalty program and accumulate points for future purposes. Hong Kong Locations: Ocean Terminal, Tsim Sha Tsui Queensway Plaza, Admiralty
15
Indirect Competitors
The indirect competitors for Fenty Beauty x Sephora are Sasa and Bonjour. Both of the chosen competitors offer makeup products similar to Sephora and provide affordable alternatives. Similar factors are that indirectly affect Fenty Beauty are:
-
- -
Numerous brick and mortar stores in Hong Kong Known by locals Tourist attraction
16
Bonjour
Bonjour is a beauty retailer that affordable and luxury brands in Hong Kong. The company offers skincare, makeup, body, health, fragrance, personal care and snacks. Bonjour distributes over 25,000 products with exclusive distribution and international brands. They offer free shipping with minimum spending of $99 HKD. Hong Kong Locations: 43 retail stores
17
Sasa
Sasa is a Hong Kong based beauty chain retailing cosmetics, personal care, skin care and baby care products. The company offers high end brands with discounted prices and provide affordable Asian alternatives such as Japanese and Korean products. Sasa offers student discounts and loyalty programs similar to Facesss. It is also a popular tourist destination due to variety of products. Sasa offers free shipping when spending over $300 HKD.
Hong Kong Locations: Sasa Supreme, Causeway Bay
HK Island 23 stores
Kowloon 47 Stores
18
Competitive Shopping Analysis
Competitor
Strength
Lane crawford
-Beauty concept store in Hong Kong -High end make up brands -Located in popular shopping districts -Brand awareness
-Only two locations -Mainly targeted to Asians -Lack of diversity within collections -Diversity of employees
-Location (TST, Admiralty) -Loyalty program -Exclusive collections -In store experience - service -Popularity in Hong Kong -Cheaper price point -Local brands -Asian product friendly -Physical Store -Loyalty Program
-Lack of local brands -High price point -Diversity of employees
FACESSS
SASA
Weaknesses
-Lack of luxury products -95% Asian products -Customer service -Language barrier -Diversity of employees
19
Target Consumer
The Fenty Beauty x Sephora pop-up box targets primarily female customers but is open to male consumers that wish to purchase the Fenty Beauty products. The target age range is from 18-35 years old also categorised as a millennial.
The two main categories for the pop-up customers are:
- -
Hong Kong based local Hong Kong based expats
20
Hong Kong Based Consumer Local
KRISTEN LAM Age 18 HK Student Middle Class Kristen Lam is a Hong Kong born student that recently graduated from Diocesan Girls’ school. She was accepted at the Hong Kong Polytechnic University for Tourism and Hospitality. When not studying, Kristen spends her weekends with her high school friends in Mong Kok and enjoys taking food pictures for Instagram. She stays in tune with pop culture through Facebook and Instagram. Kristen aspires to be a flight attendant for Cathay Pacific. Her dream is to travel to the United States and purchase American products. She follows Hong Kong Youtubers and has a passion for makeup.
22
Hong Kong Based Consumer Expat
GRACE CHAN Age 24 NY/HK Public Relations and Communication Manager
Grace Chan grew up in Los Angeles with her family and got her bachelors degree at New York University. Her family primarily speaks English but also communicates in Cantonese with friends. She worked in the states for 2 years before moving back to Hong Kong as a luxury Public Relations manager at Buzz Agency. As a city girl, she explores new restaurants and bars weekly. She is conscious towards her health and hikes regularly with her poodle, Oreo. Grace follows the latest fashion trends and buys her clothes at Lane Crawford. She enjoys pampering herself with manicures, eyelash extensions and purchasing luxury beauty products. 23
Customer Profile Demographic -Female majority with the exception of men -Age range: 18-35 years old - millennial -Student/Working class -Targeting Chinese locals and expats -Educated - Local Chinese schools/Expats -Middle social status -Resides in suburban and urban areas -Aware of pop culture -Millennials are tech savvy and socially active (Inside Retail)
Psychographic -Millennials spending more time and money on experiences (Eventbrite) -Women aged 18-34 is the largest buyers in beauty products (Emarketer, 2016) -Sephora takes up of 35% of beauty purchases online (The Harris Poll, 2016)
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InFlUencers -47% of millennial are influenced by social media when making purchasing decisions (Forbes, 2017) - Rihanna is the fourth on Forbes Top 100 Celebrity List -Fenty Beauty Instagram has attracted 2.1 million followers -Millennials value authenticity and empowerment (Deloitte) -Omni-channels is the new way of story telling for luxury brands (SCMP, 2016)
Geographic -17% of Hong Kong Millennials value recommendations for profits and services -21% value communication tone and manner when engaging with a brand (ICLP) -Millennials prefer purchasing luxury goods in-store than online - 43% (Insider Retail) -Image consciousness among Hong Kong shoppers (PWCCN, 2016)
25
Pop Up Objectives
- Create brand awareness of Sephora - Promote free shipping to Hong Kong - Increase diversity options in Hong Kong - Provide to millennials that want the exclusive collection - Limited Time - 5 days - Wednesday to Friday - Increase foot traffic - Social media attraction - Time limit (millennial attention)
26
Pop Up Location Harbour City, Tsim Sha Tsui
- High-traffic shopping, entertainment, dining, office buildings and hotels surrounding the mall - The mall is split into five sections: Marco Polo Hong Kong Hotel, Ocean Terminal, Ocean Centre, the Gateway and the Pacific Club Kowloon - Is a “two million square feet of contiguous mall space with a 550-yard retail frontage on Canton Road in Tsim Sha Tsui.” - “Upscale shopping streets including Queen’s Road and Canton Road, each of which is lined with luxury retail out lets at street level, most of which have extravagant and flashy storefront designs.” (Euromonitor, 2017) - The space is close to Ocean Terminal the only international cruise terminal in Hong Kong - Property value of 172,110 HK$ Million (Wharf Holdings, 2016) - Gross Revenue of 6,207 HK$ Million for Retail (Wharf Holdings, 2016)
27
Location Justification
In 2008, Sephora opened their first brick and mortar store in Hong Kong which closed two years later. The main purpose for the drawback was “strategic decisions from France”. (Butterboom, 2010). Since then, Sephora has opened stores in China, Indonesia, Malaysia, Middle East, Philippines, Singapore and Thailand within Asia. However Sephora recently launched their e-commerce website in 2016. Fenty Beauty launched in September 2017 and is sold exclusively in Sephora. Hong Kong citizen’s can purchase Fenty Beauty through Sephora’s e-commerce website. Rihanna, the creator of FB has launched her line with MAC in Hong Kong which cements her value in Hong Kong. Tsim She Tsui is in-between Kowloon and Hong Kong Island with New Territories close by. From competition, city attractions and public transport, Harbour City is an ideal location for the Fenty Beauty x Sephora pop-up store. “Hong Kong’s retail landscape includes a high penetration of luxury goods brands and international retail brands with physical retail stores located in premium shopping malls centres ” (Euromonitor, 2017). Harbour City is a two million square foot mall with an 550 yard extension to Canton Road. According to Wharf Holdings, Harbour City increased their retail revenue by 4% in 2016 to HK$6,207 million. The business strategy focuses on adding more desired brands and bringing in experiences for visitors. A new extension to Ocean Terminal recently opened in 2017 with additional appealing attractions such as the Cheesecake Factory. Focusing on the Fenty Beauty x Sephora pop-up, Harbour City has Lane Crawford and Facesss opposite the location area. This allows the millennial audience to be directly targeted.
28
The City Competition • • • • •
Lane Crawford Facesss Sasa Bonjour Local boutiques in TST
Attractions • Hotels: Marco Polo Hotel Mira Hotel The Peninsula Intercontinental Hotel Kowloon Shang-ri La • Museums: Hong Kong Space Museum Hong Kong Museum of Art Hong Kong Science Museum • Hong Kong Skyline • Shopping Centres: iSquare The ONE K11 Mira Mall Sogo T Galleria by DFS
Public Transport • • • • •
MTR (Hong Kong train system Minibuses KMB Bus Star Ferry China Ferr
Factors • Tuesday-Sunday • 11AM-8PM
Human Resources The pop-up store will include one Fenty Beauty manager and two managers from Sephora. Ten sales associates from Sephora will be brought to Hong Kong due to their experience and training at Sephora retail outlets in the United States. An additional five associates will be locally hired and trained to offer Sephora’s renowned customer service. The managers will be given $15 USD per hour at the pop-up store. Sales associates will receive $500 USD for the 6 days and all oversea workers will be provided with accommodation. Hong Kong workers will be given $100 HKD per hour.
• Knutsford Terrace • Granville Road • Canton Road
29
Mock up
30
Pop Up Moodboard
Pop Up Colour Story
Pop Up Exterior
DESIGNS BY STEPHANIE FELLAS
Pop Up Interior
Floor Plan
38
Photobooth
Tinted wall
Seating area Light stands x2
Beauty Studio area
Galaxy wall
Make up chairs x3
Instagram DNA wall
Interactive mirror for ordering
Fenty Beauty collection
Entrance
Expenses
Expenses (Est) Design of Space: Exterior Fixtures Interior Fixtures Technology Shipping Cost Wages Rent and Utilities Marketing
HKD$ HKD$ HKD$ HKD$ HKD$ HKD$ HKD$
150,000 70,000 150,000 110,000 164,000 250,000 145,000
Total Expenses
HKD$ 1,039,000
40
Assortment
Fenty Beauty is a make up line created by Rihanna and incubated by Kendo. The make up brands sells exclusively in Sephora with partnerships in worldwide Harvey Nichols locations. The collection focuses on targeting the mass consumer with strong values in diversity. The new line includes forty foundation shades to complement all skin tones. Other products such as the lip luminizer is created to match all skin tones. The originally collections comes with majority face products from primer to contour. One of the main highlights of the collection is ‘Trophy Wife’, a highlighter that Rihanna has won on red carpets. As the collection was released in September, the entire collection will be featured in the pop up store in Hong Kong to allow consumers to test before purchasing online. The Galaxy collection followed the next month of the launch which will also be featured in the pop up.
Assortment plans reasoning -Hong Kong events happening in March (Rugby 7’s) -Increase in travelling due to Easter holiday -Wedding season begins -Spring season to release new make-up products -Targets Hong Kong consumers that are on holiday Product Categories -Face -Lips -Eyes -Tools -Skincare
41
Assortment Plan FACE
PRO FILT’R instant retouch primer x1
KILLAWATT FREESTYLE HIGHLIGHTER 6 SHADES X3
MATCH STIX SHIMMER SKINSTICK 10 SHADES X10
MATCH STIX TRIO CONCEAL, CONTOUR, HIGHLIGHT 4 SHADES X4
PRO FILT’R SOFT MATTE LONGWEAR FOUNDATION 40 SHADES x40
portable contour & concealer brush
invisimatte blotting powder
portable touch up brush
invismatte blotting paper
invismatte blotting paper refill
PRECISION MAKE UP SPONGE
portable highlighter brush
cheek hugging highlight brush
GALAXY 2-WAY EYESHADOW BRUSH
LIP
GLOSS BOMB UNIVERSAL LIP LUMINIZER
STARLIT HYPER-GLITZ LIPSTICK 4 SHADES
eyes
ECLIPSE 2-IN-1 GLITTER EYELINER 3 SHADES
ECLIPSE galaxy eyeshadow palette
COSMIC GLOSS LIP GLITTER 4 shades
Assortment By Product Category Category
Product
Quantity
Total
% of Total
Face
Powder Contour Face Primer Highlighter/Illuminator Foundation
x1 x20 x1 x20 x40
82
80%
Lips
Lipstick Lipgloss
x4 X5
9
9%
Eyes
Eye Palette Eyeliner
x1 x3
4
4%
Tools
Sponge Brushes
x1 x5
6
6%
Skincare
Cleanser
x2
2
1%
Total
13
103
103
100%
Face Products Assortment Category
Product
Price
Quantity
Total Needed
Powder
Invisimatte - Blotting Powder
HK$ 250
x 1 Product
50
Conceal and Contour
MatteStix - Matte Skinstick
HKD$ 210 x20 Shades
1000
Face Primer
Pro Filt'r - Instant Retouch Primer
HKD$ 270 x1
50
Highlighter/Illuminator Killawatt - Freestyle Highlighter HKD$ 280 x 6 Shades MatchStix - Shimmer Sticks HKD$ 210 x 10 Shades Match Stix Trio - Conceal, Contour, Highlight HKD$ 450 x 4 Shades
300 500 200
Foundation
20,000
Pro Filt'r - Longwear Foundation
HKD$ 280 x 40 Shades
Brush Assortment Category
Product
Price
Quantity
Total Needed
Brushes
Full-bodied Foundation Brush =Check Hugging Highlight Brush
HKD$ 280 x 1 Product HKD$ 270 x 1 Product
100 100 100
Sponge
Precision Makeup Sponge
HKD$ 150 x 1 Product
100
Lip Product Assortment Category
Product
Price
Quantity
Total Needed
Lipstick
Starlit - Hyper-Glitz
HKD$ 160
x 4 Shades
40
Lipgloss
Gloss Bomb - Universal Lip Luminizer Cosmic Gloss Lip Glitter
HKD$ 180 HKD$ 160
x 1 Product x 4 Shades
100 200
Eye Products Assortment Category
Product
Price
Quantity
Total Needed
Eyeshadow Palette
Galaxy - Eyeshadow Palette
HKD$ 460 x 1 Product
100
Eyeliner
Eclipse - 2-in-1 Glitter Release Eyeliner
HKD$ 160 x 4 Shades
200
Blotting Assortment Category
Product
Price
Quantity
Blotting
Invisimatte - Blotting Paper Invisimatte - Blotting Paper Refill
HKD$ 150 x 1 Product HKD$ 80 x 1 Product
Total Needed 100 100
53
Planogram
54
Promotion
Fenty Beauty primarily uses social media to promote the release of new products and target their market of millennial that are tech savvy. - Interactive mirror in store - Poster - mock up - Facebook event page - Instagram posts (Sephora Hong Kong, Fenty Beauty) - Media invite
59
Promotion - Poster
Promotion - Social Media
HONG KONG FENTY BEAUTY POP UP
References Bach , N. (2017, September 8). Rihanna's New Fenty Beauty Line at Sephora Expands Her Business Empire. Retrieved November 14, 2017, from http://fortune.com/2017/09/08/rihanna-makeup-fenty-beauty-launch/ Berset-Price, V. (2015, December 09). From Pop Culture to Global Culture: How Millennials and Technology Are Influencing Our World. Retrieved November 14, 2017, from https://www.huffingtonpost.com/valeriebersetprice/from-pop-culture-to-globa_b_8765928.html Borovic, K. (2017, September 14). Fenty Beauty Sales Prove Its The New Standard For Celebrity-Backed Makeup Brands. Retrieved November 14, 2017, from https://www.bustle.com/p/fenty-beauty-sales-proveits-thenew-standard-for-celebrity-backed-makeup-brands-2348205 Carlson, K. (2017, March 20). Millennials and Their Power to Influence. Retrieved November 14, 2017, from https://www.experticity.com/millennials-and-their-power-to-socially-influence/ Faw, L. (2012, June 27). The Millennials Who Rule Twitter: How Bieber, Rihanna and Gaga Turn Followers Into Fortunes. Retrieved November 14, 2017, from https://www.forbes.com/sites/larissafaw/2012/05/17/celebrity-millennials-flex-social-media-muscle-formoney-and-power/#174c0fdf77e8 Millennials Dominate US Beauty Market. (2016, December 14). Retrieved November 14, 2017, from https:// www.emarketer.com/Article/Millennials-Dominate-US-Beauty-Market/1014857 Millennials' Cautious Approach to Spending Limits Marketers' Influence. (2017, November 09). Retrieved November 14, 2017, from https://www.emarketer.com/Article/Millennials-Cautious-Approach-SpendingLimits-Marketers-Influence/1016729 Pasquarelli., A., & Adrianne Pasquarelli View all articles by this author. (2017, September 22). Rihanna's Fenty Line is a Wake-Up Call for the Retail Industry. Retrieved November 14, 2017, from http://adage.com/ article/cmostrategy/rihanna-s-fenty-paves-diversity-retail/310562/ Pina, T. (2017, September 12). Fenty Beauty Should Make the Rest of the Industry Want to Do Better. Retrieved November 14, 2017, from https://www.racked.com/2017/9/12/16290458/fenty-beauty-industry-inclusivity Rohampton, J. (2017, May 3). How Does Social Media Influence Millenial's Shopping Decisions? Retrieved November 14, 2017, from https://www.forbes.com/forbes/welcome/? toURL=https%3A%2F%2Fwww.forbes.com%2Fsites%2Fjimmyrohampton%2F2017%2F05%2F03%2Fdoessocial-media-influence-millennials-shopping-decisions%2F&refURL=&referrer=#4500b2b44cf3 Strugratz, R. (2016, April 13). Blogging Beauty: Aimee Song Signs With Laura Mercier. Retrieved November 14, 2017, from http://wwd.com/beauty-industry-news/beauty-features/aimee-song-kristina-bazan-loreal-hit-it- big-with-beauty-10408596/ Strugratz, R. (2016, April 13). Blogging Beauty: Aimee Song Signs With Laura Mercier. Retrieved November 14,2017, from http://wwd.com/beauty-industry-news/beauty-features/aimee-song-kristina-bazan-loreal-hit-itbig-with-beauty-10408596/ The Millennials Series: Millennials And Beauty. (n.d.). Retrieved November 14, 2017, from https://www.fungglobalretailtech.com/research/millennials-series-millennials-beauty-pokemon-goinvasionunstoppable/ The radical transformation of diversity and inclusion | Deloitte US | Inclusion. (2017, July 03). Retrieved November 14, 2017, from https://www2.deloitte.com/us/en/pages/about-deloitte/articles/radical-transformation-ofdiversity-and-inclusion.html What Hong Kong millennials want. (2015, September 22). Retrieved November 14, 2017, from https://insideretail.hk/2015/09/23/what-hong-kong-millennials-want/
Augustina Leung FASM 410: Retail Management Fall 2017 66