Sephora is part of the French LVMH Moet Hennessy Louis Vuitton SE group of luxury goods. (Photo : Beauty, Inc.)
Sephora will reach for the greater Chinese market straight by launching a flagship store on JD.com. The move was made in order to reassure Chinese customers of the authenticity of their purchases.
Sephora previously had no interest in expanding online in China, but even with 174 physical store locations in China, the international retailer Sephora had growing concerns regarding counterfeits. Sephora is part of the French LVMH Moet Hennessy Louis Vuitton SE group of luxury goods.
Counterfeit products and goods proliferate in China, and have flourished with the ease of e-commerce distribution. Sephora chose to sign with JD.com because of its commitment in fighting the counterfeit battle, albeit uphill.
JD.com is a cybermall that competes with Alibaba. Although all online stores are still criticized for selling counterfeit goods, unlike Alibaba, JD.com makes half of its sales from its own warehouses, which permits better regulation against fakes.
Sephora wants to reach their customers directly and give them more chances to purchase real quality makeup. Fake makeup may contain high levels of lead and mercury.
20 percent of cosmetics bought by Chinese citizens are counterfeit. They partnered with JD.com in order to keep control of their goods and stated that they want to collaborate with other e-commerce platforms in the future.
China's State Administration for Industry and Commerce plans increased penalties and fines against online shops that sell fakes, hoping to bankrupt them from continuing business.
China's consumers are moving more and more toward authenticity. The demand for real luxury goods is growing within the Chinese market, and Sephora will benefit together with other desirable brand names.
