How Sephora

Views the
Future of Mobile
Retail

Mobile FirstLook: Strategy 2013

Sephora
The Worlds Largest Retailer of Fragrances &
Beauty

Sephora.com is the #1 Prestige

Beauty Store in the world
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Sephora
The Worlds Largest Retailer of Fragrances & Beauty

Approved Store(s) Images

Over 300 stores in North America

and over 1,300 stores worldwide
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Sephora
The Worlds Largest Retailer of Fragrances &
Beauty
m.sephora.com Sephora to Go for iPhone

Full shopping & For our most dedicated

Beauty Insider customers product scan
for all devices & Passbook integration
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Sephora
The Worlds Largest Retailer of Fragrances & Beauty
Sephora for iPad

Shop & explore content

like: The Sephora Glossy,
Video & Social Media 5
Sephora Shoppers are Mobile Shoppers
Meet a Few

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SEPHORAS FOCUS ON
MOBILE

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Sephoras Focus on Mobile
its what our customers want & how
they want to shop with us.
Sephora.com Traffic
Typical Email Open
Device

Mobile

PC Mobil
e PC

Over +50% of Sephora 1/3 of all Sephora.com

emails are opened on traffic is from mobile &
mobile or tablet tablet devices
devices 8
Sephoras Focus on Mobile

Women have always been early adopters

of technology, especially when it is social
and relevant to their everyday lives

Sephora has the advantage of being

able to test new capabilities & move
quickly because are customers are
willing to jump with us

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Sephoras Focus on Mobile

Dont think of apps, mobile & tablet.

Think of the customer experience & what
supports that experience.

Typical Sephora Customer Experiences

Researching a Inspired to
Product Shop
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Focus on Mobile | Researching a Product

Your phone is likely always at your side, so its

the natural choice for many shoppers when
researching before, during & after purchase.

This is Katie She wants to find out more

about BB Creams, which shes
read about in several
magazines.
She uses Sephora to Go
for iPhone to search for
BBs and saves one to her
Shopping List to come
back to when shes in-
store next.

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Focus on Mobile | Researching a Product

So many to choose from! Katie Scans

the Barcode of several products to
read reviews & select her favorite.

Happy with her decision, Katie

uses her Beauty Insider card
in Passbook at the Cash
Wrap to be recognized & earn
reward points with her
purchase. 12
Focus on Mobile | Researching a Product

Katie loves her new BB Cream!

- After a few weeks, Katie
looks up her Past
Purchases in Sephora
to Go for iPhone & links
to the Product Details
and Ratings & Reviews
to read more. And she
decided to write her own
5-Star review!

60% of facial skin cream consumers do

# online research on the product after

purchase. If they enjoy the product, theyll
advocate it to others.
Social Commerce Today, Speed Summary | HBR on Social Media & New
Rules of Branding December 2010
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Focus on Mobile | Inspired to Shop

Customers dont view Mobile, Tablet, Web &

Stores separately - they are just tools to
shop when & where she wants.

This is Honore she wants to find a

Sapphire look for Spring
after reading that
Sapphire is the Color of
the Year on The
Sephora Glossy,
Sephoras Tumblr.

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Focus on Mobile | Inspired to Shop
In the end, she
purchased online
Purchase with her cross-
channel basket.

Consideration

Awareness

Honore reads about

Sapphire, the Color
of the Year on
Tumblr

She browses
products on
m.sephora.com
Consideration & saves to her
basket
Social Media informs her thought process Awareness &
& a quick stop in store on the way home Inspiration
lets her see & try on the product. 15
Focus on Mobile | Inspired to Shop

Honores purchase decision is

anything but linear, moving in
and out of devices based on
whats most convenient for her
at the time. Beauty Insider
works as the glue so she
can move between channels
seamlessly.

85% of people shop for a gift on one

# device and then make their purchase on

another. To do so:
45% will leave an item in the virtual shopping cart
45% will send themselves an email or link, and
32% will conduct a new search on a new device.
Google, Holiday Consumer Intentions 2012 November 2010
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MOBILE STRATEGY FOR THE
YEAR AHEAD

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Mobile Strategy for the Year Ahead
Sephoras priority for 2013 is to
continue to evolve our mobile
capabilities to enhance our client
experience, areas like:
Passbook
Mobile gifts
Our apps
New Innovations

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Mobile Strategy for the Year Ahead
Holiday 2012 featured many hallmarks
of this strategy

Holiday Mobile Gifts App Pioneering

Results Mobile with
Push Endless
Messaging Aisle

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Mobile Strategy | Holiday Results
According
At Sephora:
to WWD:
Google:
This
Sephora year online
customers
The andmore offline
were shopping
widespread - and
use of
shopping
convertingexperiences the goare
onbroadband more
thisInternet
December connections,
seamless
Mobile than everup167%
orders
combined beforewith - to
across
last year
smartphones and
pricing,
Trafficfunctionality,
75% and
up tablets, is allowing shopping to take
promotions - making place earlierthis thethan firstever even on
"Nonline" holiday season. days before Cyber
Thanksgiving,
- Google - Holiday Consumer Intentions 2012, November 2012.
Monday.
- WWD - Digitals Big Trends: Mobile, Localization, Jan 7, 2013.

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Mobile Strategy | Mobile Gifts
eGift Cards make the perfect gift for
every Sephora fan

Multitude
Never
eGiftReceived
forget
Cards
of faceplates
a available
plastic
an eGift?
gift
&cross
custom
card at
home
One
greeting
-channel
step
with Plastic
to
tofor
add
fitinstant
alltoto
occasions
Passbook
Passbook
gifting
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Mobile Strategy | App Push Messaging
Push Messaging to Sephora for
iPhone users alerted Sephora
customers about Holiday shopping
events & product launches

Reminders
Alerting users
Announcing for last
to
Sale
minute
newSale
on gift
mobile ideas
annuall
features
event
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Mobile Strategy | Piloting Endless Aisle
Endless Aisle in stores:
11 perfect gifts for hassle-free holiday
gifting
Scan QR with Sephora to Go for
iPhone to purchase
Ship directly to recipient

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MOBILE WALLETS

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Mobile Wallets | Industry & Buzz

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Mobile Wallets | Sephora + Passbook
From a gift card standpoint its
very seamless, Julie Bornstein,
senior vice president of Sephora
Digital, told Wired. You can send
a gift card to a friend, they accept
it, hit a link to add to their
Passbook, and then they have
their gift card right there.
Customers also can scan a code
on their conventional gift cards
so they can add them to
Passbook.
- Wired, Apples Passbook Is a Surprise Success for
Developers, 12/20/2012

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 Mobile Wallet | Sephoras + Passbook
No more hunting through your wallet for gift cards, coupons,
passes, or tickets. Passbook keeps everything organized
and handy. Apple iOS 6
First to market on 9/19
with iOS 6 launch
Sephora customers
can import two types
of passes:
o Beauty Insider card
o Sephora gift card

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Mobile Wallet | Beauty Insider in Passbook
For Sephora Customers:
Beauty Insider card in Passbook displays her
current Beauty Insider points and makes earning &
redeeming fast & easy

1) Download 2) Sign In to 3) Add to Access

Sephora to Beauty Passbook anytime 28

Go Insider
Mobile Wallet | Gift Card in Passbook
For Sephora Customers:
Sephora Gift Card in Passbook keeps
your gift cards handy so you never
forget a gift card again.

Easily store all of your gift cards, eGifts

and Plastic cards can be imported.

Handy, real-time balance updates.

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Mobile Wallet - Beauty Insider in Passbook
Passbook adoption
o +1.1M app downloads since Passbook launch
o Major impact to iTunes rankings due to featured
placements for Passbook apps
o +400K Beauty Insider Passes created in first 90
days
o Significant increase in Beauty Insiders signing up
via Mobile app

Mobile Payments are still in very early days.

Ultimately, Customers must realize a benefit
from any new technology, then they will
adopt & define who the front runners will be.
MOBILE AS THE ULTIMATE
PERSONAL SHOPPER

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Mobile as Personal Shopper
Regardless of what retailers do, your
customers have smartphones & they
are using them in store

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Mobile Personal Shopper
Smart phones will become more
important in customer decision
process

L2s Predictions for

2013 hypothesize
that Mobile will
become more
important than sales
associates in store

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Mobile Personal Shopper | Mobile + Local
Sephora is making Mobile the
Ultimate Personal Shopper in stores
by addressing 3 common challenges:

1. Cant find whats New in store

2. Store employees dont know me
3. Want to research while I shop

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Mobile Personal Shopper | Mobile + Local

Whats New?
Physical stores cant possibly
re-arrange daily to feature all
new products

Whats
Sephora New Hot Now
Easily sort picks
Sephoras new products to
on the best
view the latest
new and products
classic productsbyfor
category
the season.& see store
-availability
The Ultimate
Personal
Shopper 35
Mobile Personal Shopper | Mobile + Local

Dont you know me?

Using rich CRM data real-time,
in store is cumbersome &
typically unrealistic

Shopping History
Purchase List & Basket
Easily view
Beauty Insider
all of
provides
my pastthe
purchases
glue to keep Lists & Basket
items across all channels for
What
easy shade do Iinwear
reference storein&my
favorite
online foundation?
The Ultimate
Personal
Shopper 36
Mobile Personal Shopper | Mobile + Local

This vs. that?

Customers want to compare
products, read ratings &
reviews and research in store
with the same tools they use at
home.
Scan and Ratings & Reviews
Scan any barcode in store to
view ratings & reviews,
product information
Which is better - this eye cream
The Ultimate is $130; this one is $30?
Personal
Shopper 37
 Check it out yourself.
See how Sephora mobile works for
You

Sephora for iPad

m.sephora.com Sephora to Go
for iPhone

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How Sephora Views the Future of Mobile Retail
Its still the Wild West of Mobile and
we Retailers, Customers,
Developers all have a lot to figure
out in the next few years. It should be
a great adventure!

Thank you!
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