Sephora could reach half billion dollars turnover in China
Sephora, the selective retailing company owned by giant LVMH celebrated earlier this month the opening of its 135th store in China, in Shanghai which is also the largest in China. Covering 54,000 square feet on five floors, the Shanghai Xiangyang flagship on Nanjing Road boasts two levels of retail space, a training academy, and two floors for Sephora China’s new corporate headquarters.
Sephora expects to keep pace with its 2012 store openings, continuing with about 25 per year in China, with many of them targeted at second- and third-tier cities to offset the minor slowdown in Shanghai and Beijing. Industry insiders estimate that Sephora sees $500 million annually pouring in from China.
The store on Nanjing Road stocks 17 Asian brands, 3 of which are Chinese. The most popular may be Shanghai Jahwa’s Herborist. In addition to being very popular among consumers, Herborist owns a 19 percent stake in Sephora’s China operations. Taiwan’s For Beloved One, Korea’s Erborian, and Japan’s Lunasol/SK-II are also on the shelves.
The Shanghai flagship is expected to be one of the top 10 Sephora stores worldwide, with the Champs-Elysées superstore in Paris leading the pack in terms of sales volume. Various locations in New York and the flagship in Brazil fill the rest of the ranks. Sephora also wants to grow its 30 percent market share in France, open more stores in the U.S., and consolidate strong growth in markets like Russia and the Middle East, where Sephora has been for more than five years.
adapted from WWD