Dive Brief:
- More than 40 years after its founding, MAC Cosmetics is entering Sephora’s U.S. stores, Sephora at Kohl’s and Sephora online, according to a company press release.
- Beginning March 2, MAC will be available online at Sephora and at 105 “top-performing” Sephora stores with plans to grow that over the course of the year. The makeup brand will also have curated products at all 855 Sephora at Kohl’s stores.
- As part of the launch, MAC is featuring celebrities Chappell Roan, Gabbriette and Quenlin Blackwell in a marketing campaign, using side-by-side imagery to showcase the versatility of its products in creating both understated and bold looks.
Dive Insight:
MAC’s move into Sephora reflects parent company Estée Lauder’s broader Beauty Reimagined strategy, a consumer-centric plan it hopes will turn around a corporate business that has struggled the past few years.
Toward that end, Estée Lauder has expanded distribution channels for several of its brands, including deals with Amazon Premium Beauty to sell its Origins, Estée Lauder, Clinique, The Ordinary and Too Faced brands.
“The reality is we didn’t move to new channels fast enough in some geographies where the consumers were shopping,” Estée Lauder President and CEO Stéphane de La Faverie said last year in a video announcement of the new strategy. “Moving forward, I want us to be the first to capture where consumers are. We cannot afford to focus on too few critical markets, channels, products and consumers.”
When asked if MAC might be the next Estée Lauder brand to join the Amazon beauty space, a spokesperson told Retail Dive that the company is “always evaluating opportunities that align with our consumers and our brand strategy.”
The initial move into Sephora is bolstering MAC’s results. Estée Lauder reported that MAC net sales increased for the second quarter ending on Dec. 31, thanks largely to the brand’s initial shipment of products for the March launch into Sephora and Sephora at Kohl’s. The increase helped offset Estée Lauder’s total makeup business, which was essentially flat year over year.
With its launch at Sephora, MAC is also looking to show that its products can create a variety of looks, from the theatrical to the everyday.
“We've long been known for bold makeup, but that's only part of the story,” MAC Global Creative Director Nicola Formichetti said in a statement. “This campaign reveals the full spectrum of who we are.”
The U.S. prestige beauty market has become increasingly competitive and entering Sephora could give it an edge.
“While MAC remains a popular brand with pulling power, the cosmetics market has become significantly more competitive, and it is highly saturated with brands,” GlobalData Managing Director Neil Saunders said in an email. “MAC cannot risk being squeezed out so it is looking to bolster its presence in the market. As a go-to destination for all things beauty, Sephora helps MAC to do that.”
