No Successor has Been Named to Continue the Beauty Retailer’s Push Into the Competitive Chinese Market
Maggie Chan, the Chief Executive Officer of Sephora Greater China, has resigned from her position after a five-year tenure with the company. The LVMH-owned beauty retailer has yet to name her successor for the leadership position in the Chinese market, a sector which, amidst fierce competition and a challenging economic climate, has posed difficulties for Sephora as it strives to establish itself as a dominant player.
Reports from as early as July indicated that LVMH was contemplating an overhaul of its operations in China, where it initially launched 18 years ago. The Chinese market is crucial for Sephora’s ambitious goal of achieving €20 billion ($21.8 billion) in annual global sales within five years, a significant increase from the estimated €13 billion ($15 billion) in 2023.
Sephora faces strong competition from local beauty retailers such as Harmay, Wow Color, and The Colorist, while also dealing with a slower-than-expected recovery following the nation’s reopening after the Covid-19 pandemic. In May of the previous year, Sephora made the decision to exit the Taiwanese market after only one year of operating an ecommerce storefront in the region.
To attract more Chinese Gen Z customers and counter the rising competition, Sephora implemented strategic initiatives. This included the launch of a “store of the future” in Shanghai last summer, described as a concept boutique that promotes hands-on interaction with products and features dedicated spaces for makeup tutorials and skincare consultations. Additionally, Sephora introduced its festival, Sephoria, to the city in November, marking the first time the event was held outside the US and attracting over 3,000 shoppers to its interactive 3-day showcase.
Sephora’s exit from the Taiwanese market and its strategic initiatives in China occurred under the leadership of Alia Gogi, who oversees Sephora Asia. In the previous year, Jenny Cheah was appointed as the Managing Director of Sephora Southeast Asia, Oceania & Korea, underlining the company’s commitment to navigating and adapting to the dynamic Asian beauty market.
