Adding Blush To the Digital World

Sephoras digital transformation

BY:LEA, MAIYA, LIZETT, AND BEN

• Sephora is a global beauty retailer owned by LVMH operating thousands of stores worldwide alongside a major e-commerce and mobile business
• Their brand promise is centered on discovery and experimentation by allowing users to try before their buy whether its online or in store
  • 3000 stores worldwide
  • 2017 digital and retail teams merged
  • 2018 won retailer of the year award

The Business Problem

Technology used

VIRTUAL ARTIST- face-mapping augmented reality that lets customers try on makeup through the app 

AI SHADE MATCH- built with modiface a phot based tool that recommends a foundation and color matches using AI

RFID AND SMART MIRRORS- in flagship locations, RFID sensors surface product info and review at shelf

MOBILE POINT OF SALE- allows employs to check out anywhere in store 

BEAUTY INSIDER PROFILES- merges retail teams to build one profile

What did they do?

Restructured the organization- merged its digital and retail teams so every channel worked from one customer profile

Build customer facing technology's- Rolled out AI facing, Virtual Artist, and smart mirrors 

Invest in digital marketing- 

Used social media, targeted online ads, and virtual campaigns to publizise products and research customers directly 

Unified and loyalty ecosystem- 

Connected purchases, preferences, and rewards through Beauty Insider across app, web, and in-store

TIMELINE

Emerging Technology

Generative AI

- Personalized beauty recommendations

- Conversational product discovery

- AI-powered shopping assistance

Augmented Reality

- Virtual makeup try ons

- More realistic Product Visualization

Connected Omnichannel

- Connects app, online, and in store shopping

- Personalized experiences using customer data

How did they do it?

1. Connected Physical + Digital:

- Combine online, mobile, and in-store experiences

2. Invested Innovation

- Virtual Assitant

- Mobile Technology

- Digital Tools

3. Unified the Organization

- Digital and Retail Teams Brought together

 VIDEO 

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Our Research

- Personalization: AI allows Sephora to tailor recommendations and experiences

- Omnichannel Integration: Digital and physical shopping work together rather than separately 

- Customer Experience: AR reduces uncertainty and makes online beauty shopping more interactive 

Research Metrics

- Sephora is leading the beauty industry in online AI-powered transactions

- Personalization and convenience has built brand loyalty and expanded their presence in the beauty industry

Success Story: Competition

Sephora AI technology surpasses competitors like Ulta by focusing on

• Personalization & diagnostics
• AI conversational experience

This creates the luxury experience Sephora markets on the app and in-person, keeping users in their premium ecosystem

Impact on their future

1. Lower return rates

2. Deeper customer engagement

3. Higher revenue

4. Optimized operation chains

• Conceptualization
• Product Design
• Development
• UI/UX Testing
• Branding
• Personalization

Takeaways

Thank You!

Questions?

About Us | Sephora

"Digital Transformation in Multinational Companies. – Sephora Case Study." ResearchGate.

Sources

- "We Are at home: How augmented reality shapes mobile marketing and consumer-brand relationships."  E ScienceDirect

Sabrina, M. (2026). The contribution of artificial intelligence in enhancing sensory marketing – A case study of Sephora –. Economics Financial Banking & Management Journal, 15(1), 157–176.