Cosmetics chain Sephora has expanded its range of brands to include Inkey List, a low-cost cosmetics brand.
Beneath it, a young British company, Be for Beauty, produces affordable skin care products. Such as all kinds of moisturizing lotions, priced under $$15. Sephora's Inkey List merchandise is due to start selling online on April 19th, followed by offline sales on April 26th.
By doing so, Sephora shows its commitment to increasing the number of buyers by expanding the range of more affordable products. So, the company has already introduced The Ordinary brand, under which products such as face masks and cleansing wipes are produced.
Earlier, the American chain of cosmetics stores ULTA Beauty followed this path, focusing on promoting both prestigious and mass brands at the same time. The experience turned out to be good, with the retailer reporting fourth-quarter sales growth of 9.4% in a report this month from 8.8% a year earlier. Online sales also increased, and immediately by 35.4%. From 6% to 7%, Ulta products are exclusive, and the company's management is working to increase the number of such offers.
It's unclear if Inkey List will be exclusive to Sephora in the US, but connecting young brands could attract new niche buyers. Which then can become regular visitors to the chain stores.
At the same time, Sephora also relies on its most loyal customers. So, last week the retailer announced the launch of a new loyalty program that will allow regular customers to receive more pleasant bonuses and rewards. This is in addition to steps taken in January and August last year when new perks were added to the Beauty Insider loyalty program.
