Photos: Glossier
What will Glossier look like after a makeover with Sephora?
Glossier, the disruptive beauty upstart, has reached a deal for Sephora stores and Sephora.com to start selling its products in North America in early 2023, marking its first wholesale partnership.
Sephora, which is owned by LVMH, has thousands of shops across the U.S. and Canada, including locations inside Kohl’s.
Founded in 2014, Glossier was heralded as a beauty trailblazer for tapping social media buzz to break out without department store distribution. Millennials and Gen-Zers flocked to its Millennial-pink aesthetic and accessible and affordable products.
The pandemic necessitated the closing of Glossier’s three stores as demand for makeup cratered amid social distancing restrictions. Glossier nevertheless earned a $1.8 billion valuation in a funding round in July 2021.
In January of this year, however, Glossier laid off a third of its corporate workforce after admitting to challenges scaling the business. In May, founder Emily Weiss stepped down as CEO and handed the reins over to Kyle Leahy, who joined Glossier as chief commercial officer in 2021. Glossier has also faced soaring online customer acquisition costs.
The move to Sephora comes as the makeup category has rebounded. In May, Glossier hired pop star Olivia Rodrigo as its first brand ambassador. The wholesale entry complements a renewed brick and mortar push. Stores are now open in Seattle, Los Angeles, Miami, London and Washington, D.C. with three more planned before the end of the year.
Glossier said it is one of the most searched for brands on Sephora’s website that’s not currently available at the chain.
“[Sephora is] an iconic, international retailer with an extremely loyal community and we know our customers want to find us there,” said Ms. Leahy in a statement. “We share the same customer-centric values and are both deeply grounded in the ever-evolving notion of beauty discovery. This marks a new chapter in our omnichannel strategy and we can’t wait for all that’s ahead in 2023.”
“All brands need to have some mix of DTC, wholesale and marketplace strategies,” Sucharita Kodali, VP and principal analyst at Forrester, told Glossy. “Very few brands can get away with just one because so much retail happens in other channels.”
- Glossier Inks Deal to Sell Its Products at Sephora – The Wall Street Journal
- Makeup company Glossier to sell its products at Sephora as new CEO pushes to expand reach – CNBC
- Glossier Is Heading to Sephora – WWD
- Glossier goes full omnichannel with Sephora partnership – Glossy
- Glossier seeks to recapture its shine after a tough 2021 – RetailWire
Discussion Questions
DISCUSSION QUESTIONS: Do you see more upside than downside to Glossier’s plans to open up distribution to Sephora? How can Glossier best retain the benefits of being a pure-DTC brand, including having more control over content, consumer connections and brand identity?
Poll
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Mark Ryski
Founder, CEO & Author, HeadCount Corporation
Brandon Rael
Strategy & Operations Transformation Leader
I see big time upside for Glossier. Tying their already popular DTC brand to arguably the hottest cosmetics retailer in the world can only be good for Glossier. Tapping the vast distribution and exposure that Sephora offers is priceless and will have a significant impact on their business. But as part of this relationship, Glossier will need to continue to build their brand following and focus on new, exciting products, and not become completely consumed by Sephora.
Collaboration models are crucial for DTC brands to drive scale, reach, increased awareness, and profitability. A pureplay DTC model has enabled Glossier to own its brand narrative, customer experience, and messaging across all channels. However for Glossier to achieve true scale, a strong partnership with Sephora is the path to significant growth.
This new collaboration model is a win-win for both Sephora and Glossier, with a significant upside for the DTC brand. Glossier has the opportunity to capitalize on the distribution channels, scale, store exposure, and cross promotions with Sephora. Exclusive new product offerings and limited product drops will drive some excitement with Sephora in both the in-store and digital channels. In addition, a solid and authentic social media presence full of storytelling is a winning formula.
The first thing that came to my mind after reading this article is that Glossier just found an incredible retail partner in the U.S. And Sephora just picked up a popular line that will bring in more customers and allow for additional/ancillary sales.
No question this was a smart and totally necessary move for Glossier and a reflection of Kyle stepping up as CEO. Emily and the Glossier team and community built a great brand but it was never going to scale in its prior model. Confidence and attitude alone do not make a great business and good for Kyle for this move.