I am an unabashed admirer of the French omni-retailer Sephora and the professional beauty supplies giant Sally Beauty, not just because I am one of their customers — but for how they have positioned their brands through diversification and advanced technology solutions. As both a CMO and a consumer, I have a unique view of how these two industry leaders have used constant innovation as the basis of their success.
Sephora has a history as a trailblazer. This was the brand that pioneered the try-before-you-buy phenomenon with sample-sized beauty products like lipsticks. It was also one of the first brands to build a website back in 1999. After launching its own Innovation Lab in 2015, Sephora even led the use of augmented reality and AI in providing virtual makeup and hairstyling. By Sephora's own definition, digital and innovation are part of its DNA.
Sephora figured out early that a physical retail store model is too easily disrupted, but an online-only focus is too narrow. By taking an omnichannel approach, they were not just selling products anymore but experiences. Sally Beauty has taken a similar approach, bringing the salon experience in-store alongside virtual colorist consultations, live streaming events and user-generated content campaigns.
However, beauty businesses do not necessarily need either of these companies'........