Lady LUX

Sephora has big plans for Latin America, intending to open 10 to 12 new stores in the region in an attempt to take advantage of the quickly expanding beauty market, declared Paula Larroque, Latin America senior vice president of the French brand, reported WWD.

Having unveiled its first store in Mexico in October, the beauty retailer aims to open its first location in São Paulo, Brazil, come April. The 4,300 to 5,300 square feet space will be situated inside the city’s new high-end mall, Centro Comercial Iguatemi. Sephora also launched a second store in Mexico City on Dec. 15, located in the growing Paseo Interlomas mall.

Larroque is pleased with the success of the two Mexican ventures thus far, which have whetted Sephora’s appetite for further expansion into Latin America.

“So far, our sales have been extraordinary, so we are feeling very positive about expanding in Latin America and about consumers’ high interest in our brand,” she said to WWD.

Long term, Sephora is eyeing a presence in major urban areas in Mexico and Brazil, although Larroque did not mention specific cities or timeframes.

In 2012, the beauty giant will launch more locations in Mexico City, subsequently tackling Puebla and Guadalajara, Mexico’s second largest city. Its plans for Brazil include more São Paulo shops, followed by entering Rio de Janeiro and Brasilia. The majority of new stores will be headquarter stores, encompassing 400 to 500 square meters.

The Latin American growth will follow through till 2013, when the company will possibly ramp up its presence in Brazil and assess critical hot markets such as Argentina, Chile and Colombia.

“After 2013, we will start looking at other South American markets,” she said. “We know the demand [for a selective perfumery chain like Sephora] is definitely there.”

Larroque believes that as Sephora is the first international multicategory selective perfumery to be introduced in the region, it has an edge over competitors such as Germany’s Douglas or France’s Marionnaud. Together with other differentiating advantages, the beauty brand is poised to become a leader in the market, which is presently led by department stores, multiretailers and supermarkets.

Sephora aims to surpass department stores such as El Palacio de Hierro and Liverpool, which dominate the Mexican beauty market, by creating a unique, enjoyable experience without the pushy tactics often witnessed in department stores.

“Our approach is totally noninvasive,” Larroque maintained. “Consumers can touch and try everything and entertain themselves in our stores without anyone hassling them. This shopping experience is unique in Latin America.”

The beauty retailer will sell a number of brands not currently offered in Latin America in a strategy to entice customers to forego the competition. More than 100 brands will be available in each store, with 7,000 stockkeeping stations across fragrance, makeup, skin care and accessories.

The store design will be modeled off the newcomer shops in Latin America, with makeup spread throughout the location to allow for visibility.

“Makeup is a very important category and one that attracts a lot of people,” Larroque said. “Women like to touch and experiment with it, so we want it to be easily accessible and visible from all of the store’s areas.”

As Latin America’s beauty market continues to rapidly expand, the time is ripe for high-end beauty retailers to make their mark. The region’s luxury clothing and accessories market is predicted to rise steeply. In 2011, Brazil is projected to post growth of 20 percent, Mexico 22 percent and Argentina 30 percent, said consultancy Bain & Co.

“Right now we are concentrating in two markets, but we think Latin America will be a very interesting market for us in the long term,” Larroque explained. “Latin American consumers love beauty. They are, in fact, beauty junkies interested in trying out all the new brands in all the categories.”

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