Sephora: Transforming the Beauty Experience through Technology

The case explores the strategic challenges faced by Sephora, a leader in integrating technology into the beauty shopping experience, in maintaining its technological leadership amidst rapidly evolving competition and advances in generative AI in 2024. Zena Srivatsa Arnold, Sephora's CMO, must decide how to allocate resources between emerging genAI technologies and the refinement of existing AI and AR tools, balancing digital-first experiences with investments in physical retail stores. With its successful use of AI, AR, and a robust loyalty program, Sephora is recognized as an industry leader in technology-powered customer engagement. However, the company must navigate the tension between embracing futuristic digital innovations and investing in enhancing its in-store experience. The company must also decide how to balance its AI investments between current AI initiatives and newer possibilities enabled by genAI.