“We want Sephora to be Australia’s destination for discovering what’s next in beauty,” George Tsoukalas, general manager of Sephora ANZ told Inside Retail. For the LVMH-backed beauty retailer, that ambition is also a competitive challenge. Its locally developed Only at Sephora campaign puts its exclusive range at the centre of a broader investment in brands, stores and customer experiences designed to strengthen its position in a market where Mecca remains the dominant rival.

Since entering Australia in 2014, Sephora has struggled to translate its international scale into local dominance. In August, the Australian Financial Review reported seven consecutive years of losses and a network of 37 stores across Australia and New Zealand, compared with Mecca’s 110. Plans for nine additional stores over three years signal continued investment, but a larger footprint is only part of the task. Sephora also needs compelling reasons for shoppers to switch.

Its evolving range provides one. Earlier this year, Hourglass joined Sephora after 16 years of exclusivity with Mecca, giving the challenger a brand long associated with its rival. The addition illustrates why assortment matters competitively. Securing sought-after names can change where customers shop, while a campaign highlighting those brands can help turn individual product demand into broader consideration of the retailer carrying them.

“While the seal is globally recognised, we localised the campaign to resonate with Australian consumers and spotlight our exclusive makeup assortment,” Tsoukalas said. That assortment also includes Haus Labs, Tarte, One/Size, Makeup by Mario, Patrick Ta Beauty and Sephora Collection.

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