Sephora’s Fragrance War: Price, Platform, and the Power of Exclusivity
Sephora is intensifying its focus on fragrance, positioning mid-tier, exclusive brands like Kayali, Glossier, Boy Smells, and Phlur at the center of its strategy to grow market share and compete with both Ulta and TikTok Shop. The LVMH-owned retailer is emphasizing accessible pricing (under $100) and the rise of travel sprays (around $30) to drive impulse purchases, especially online.
TikTok Shop has quickly become a dominant beauty commerce platform, now threatening Sephora’s online business. In response, Sephora is reportedly restricting certain brands from selling on TikTok Shop to maintain exclusivity. The success of affordable, aesthetically branded fragrances—particularly in mini formats—reflects shifting consumer behavior and presents a missed opportunity for traditional luxury fragrance brands that still resist smaller formats.
If TikTok were to be acquired by Amazon or another U.S. entity, the competitive pressure on Sephora could further escalate.
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The Global Surge of K-Beauty
Korean beauty, or K-beauty, is experiencing a powerful resurgence, nearly a decade after its global emergence. It's redefining the beauty landscape with an array of both legacy and new indie brands that are capturing the attention of diverse global consumers. Powered by digital platforms like TikTok, these brands showcase innovative products with unique textures and ingredients, effectively broadening their market reach. Moreover, the influence of the broader Korean culture, including K-pop and cuisine, has bolstered K-beauty's appeal, making it a significant force in the evolving global beauty industry.
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