Sephora Considers Electing New China Head This Year

The global revenue of Sephora is said to be expected to reach 13 billion euros ($15 billion) this year.

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In order to achieve its sales targets in the next few years, Sephora, the cosmetics retailer owned by LVMH Group, is considering reforming its China business, with plans to select a new head of its China operations as early as this year and to consider improving its services to high-end customers, according to people familiar with the matter, Bloomberg news said.

Sephora is said to be on track for global revenue of 13 billion euros ($15 billion) this year. However, the company's business in China has been sluggish due to fierce competition in the country's cosmetics industry, and executives are looking to appoint a new manager to lead the next phase of growth. Sephora sees the business potential of the Chinese market as central to its goal of achieving €20 billion in annual global sales within five years.

According to public information, the current president of Sephora Asia is Alia Gogi, who took office in 2020, and the general manager of Sephora China is Maggie Chan (Chen Bing).

According to LVMH's Q1 2023 financial report, the group's sales rose 17% year-on-year to €21 billion in the three months ended March 31, with organic revenue posting a 17% increase. Notably, the selective retail division, in which cosmetics retail brand Sephora is based, was the strongest performer, with sales rising 30 percent to 3.961 billion euros.

Sephora China's revenue in 2020 and 2021 will be $9.264 billion and $10.877 billion, respectively, and its profit will be $432 million and $431 million, respectively, according to the earnings report.

A Sephora representative had no comment, and parent company LVMH did not respond to a request for comment.