How Sephora Uses Digital Tech to Stay on Top of Its Game
Digital technology has gone from being an optional extra in retail, designed to provide customers with novelty experiences, to becoming the beating heart of the industry.
Even before COVID-19 was a household name, digital transformation was tearing through the retail industry, boosting customer experience, and causing brick-and-mortar stores to break into a cold sweat. Now, in the post-pandemic world, digital transformation is more important than ever and those brands with an elevated level of technological maturity are the ones shoppers are going to gravitate to in increasing numbers in 2022.
One brand which has been supercharging its digital offering is Sephora and the French multinational retailer of personal care and beauty products has been introducing all manner of next-gen technology into both its front- and backroom operations.
Sephora
We could spend acres of page space talking about all the ways Sephora has innovated in almost every corner of its business – and we did, in this case study published by our friends over at eTail West – but, like any good tech-savvy brand, the beauty brand doesn’t like to sit still for too long.
For example, Sephora recently upgraded its skin tone matching database, to include more than 10,000 varying skin tones.
Sephora’s Color IQ technology allows store associates to use a handheld device to scan the customer’s face and neck and find the best color match for their personal tone and complexion. This information can then be used by the customer when shopping in-store or online to find the products – including foundations, concealers, and moisturizers – to match their needs.
However, until recently, Sephora found it was limited in the skin tones in could successfully matched and knew it had to upgrade its database to include the entire spectrum – or as close to it as possible – of human skin tones and complexions. The innovative technology, which was launched in September 2021, is now able to collate a greater number of data points including depth, undertone, and saturation to create a far more detailed picture of the customer and therefore give even more personalized product recommendations.
The Color IQ data is tied to the customer’s loyalty card account profile and can be accessed through the Sephora website and its mobile app as well as in physical stores. The built in AI will also allow the technology to constantly learn and improve the more customers engage with it.
It took about nine months to build in-house its database of skin tones, said Sephora in a press release. "We also had our full US workforce involved – everyone had the opportunity to scan their skin tone to build up the database. We then conducted an internal analysis as it developed the database and tested the technology before going live. As a result, we created an unbiased machine-learning algorithm, which works on all skin tones."
Artificial Intelligence
It’s not only in the customer facing parts of its business where Sephora is innovating with digital technology – and AI in particular. It’s also deploying the technology to improve its ability to forecast demand and improve its stock replenishment operations.
Thorough a partnership with AI platform provider Relex Solutions, demand forecasting and automating replenishment will be boosted, which will allow Sephora to increase inventory turnover, while simultaneously reducing the risk of product obsolescence and increasing the overall availability of its products. The retailer also intends to utilize the Relex solution to upgrade its management of promotions, slow-moving products, new product introductions, and product ramp-downs.
"We are delighted to welcome Sephora, such a globally well-known and recognizable company, amongst our customers," said Senior Sales Account Executive at Relex Solutions, Bertrand Henry. "We are excited to start proving how the flexibility of our AI-based solution can help Sephora master optimization, even as they continue to expand."
These innovations will help Sephora’s backroom operations better support its stated goals of omnichannel fulfilment – evidenced by its recent introduction of innovations such as same day delivery.
"We are honored by the trust Sephora has placed in us as the chosen partner for their journey towards globally integrated and optimized supply chain management," added VP Sales for Southern Europe & MENA at Relex Solutions, Franck Westrelin. "We look forward to setting out on that journey together and helping them achieve their goals."
Final Thoughts
Sephora is a truly innovative brand and is constantly working to improve operation in all corners of its business with the very latest in digital technology. We are going to be keeping a close eye on this tech-savvy beauty retailer in 2022 and suggest you do as well.
Artificial intelligence is set to be a hot topic at eTail Connect taking place May 4-6, 2022 at The Westin Fort-Lauderdale Beach Resort, FL.
Download the agenda today for more information and insights.