- Sephora.com
- Ulta.com
- Makeup.com
Done by Cindy Soh, Laura Wang & Maria
Saturday, October 11, 2008
Friday, October 10, 2008
Sephora.com
Introduction
Sephora is a member of Paris-based Louis Vuitton Moët Hennessy Group (LVMH). Sephora is currently the leading retailer of perfumes and cosmetics in the United States and the second largest in Europe, with over 91 stores in the U.S. and 400 in Europe. Its website, sephora.com, is one of the largest and most diverse online beauty Web site on the Internet, with over 265 brands and 14000 products in stock.
Design
All products are listed with a price and description. Users of the site are also permitted to leave a review of the product allowing potential users to judge for themselves whether the product is suitable for their means or not.
Features
Security
Sephora uses SSL (Secure Sockets Layer) to guarantee the confidentiality of online transactions on their site. SSL authenticates and encrypts the information sent by customers over the Internet preventing third party interception.
Business Model
Sephora uses a B2C virtual storefront" business model for its ecommerce website. Their website complements their physical business.
Sephora is a member of Paris-based Louis Vuitton Moët Hennessy Group (LVMH). Sephora is currently the leading retailer of perfumes and cosmetics in the United States and the second largest in Europe, with over 91 stores in the U.S. and 400 in Europe. Its website, sephora.com, is one of the largest and most diverse online beauty Web site on the Internet, with over 265 brands and 14000 products in stock.
Design
Sephora’s layout is plain and simple using colours like black and white so as not to detract shoppers from their colourful products.
Navigation is easy on this site, with the products being spilt into their various categories, for make up, skin care, fragrance, hair and more.
A search engine also allows user to search for what they want. It is able to search for items by product number or even a partial description of the product.
There is also a ‘Complete Brand List’ at the top of every page. The list stocks all the brands that Sephora.com carries, allowing users greater ease in searching for products.
Navigation is easy on this site, with the products being spilt into their various categories, for make up, skin care, fragrance, hair and more.
A search engine also allows user to search for what they want. It is able to search for items by product number or even a partial description of the product.
There is also a ‘Complete Brand List’ at the top of every page. The list stocks all the brands that Sephora.com carries, allowing users greater ease in searching for products.
All products are listed with a price and description. Users of the site are also permitted to leave a review of the product allowing potential users to judge for themselves whether the product is suitable for their means or not.
Features
Security
Sephora uses SSL (Secure Sockets Layer) to guarantee the confidentiality of online transactions on their site. SSL authenticates and encrypts the information sent by customers over the Internet preventing third party interception.
Business Model
Sephora uses a B2C virtual storefront" business model for its ecommerce website. Their website complements their physical business.
Payment Scheme
Sephora uses electronic-payment by electronic payment cards. This allows them to conduct business beyond their physical stores as anyone with an electronic payment card can shop without needing to be physically at the store.
They accept all major credit cards. Payment is only processed when the order is shipped. In order to protect the consumer, Sephora requires the 3-or-4-digit card identification number on transactions over $100.
Debit Cards are also allowed as a means of payment at Sephora.com. However, as debit cards are tied directly to bank accounts, process of payment will take longer than that of credit cards.
Strengths
-Sephora carries a wide range of products, from many different brands, which allows consumers to compare and choose, thus benefiting them. This is because the comparison allows consumers to pick products best suited to them, in terms of price, brand and quality.
-Sephora allows customers to review products, aiding other potential customers in their decision.
-Sephora provides a service where they are able to track customers' orders to assure their customers and retain their confidence when they shop at Sephora
-They do not only cater to women. Sephora.com has dedicated an entire section for men, which will increase their customer base and allows them to reach out to more consumers than their physical store.
-Good exchange policy, which refunds money back to the customer within 60 days. This would assure potential customers that the store is not out to cheat them, thus gaining their confidence.
-Site is secured with SSL. Another plus point, which gains consumer’s confidence in using the site. As this means, their confidential information is secure.
-Ease of use. The site’s layout is simple allowing for easy navigation. There is a comprehensive help section, that covers topics from ‘how to purchase’ to ‘returns’, should any problems occur.
Weakness
Payment is restricted only to US based credit and debit cards. This would pose a problem to potential international customers.
Critical Analysis
Sephora.com has clearly taken advantage of technology advancement and expanded their business beyond traditional means, so much so that their Web site’s business has even managed to out perform that of the physical stores.
This shows that Sephora has succeeded in their aims of becoming a ‘cross-channel shopping experience through stores, catalogs, Web, e-mail, and phone.’
Their website has also been well designed, being easy and simple to navigate. The headings are clear and comprehensive help sections are easy to understand. A plus to first time visitors of the website.
However, Sephora.com is under utilizing their web site by restricting their customer base only to U.S. based credit and debit cards. If they had allowed foreign payment means, they would have been able to maximize the use of the website and tremendously increased their customer base.
Ulta.com
Brief History:
www.ulta .com is created by Ulta, a chain of makeup and hair supply stores based in Bolingbrook Illinois and Salons in the United States, which serves a market similar to that of Sephora. ULTA is the largest beauty retailer that provides one-stop shopping for prestige, mass and salon products and salon services in the United States. We provide affordable indulgence to our customers by combining the product breadth, value and convenience of a beauty superstore with the distinctive environment and experience of a specialty retailer. We offer a unique combination of over 21,000 prestige and mass beauty products across the categories of cosmetics, fragrance, haircare, skincare, bath and body products and salon styling tools, as well as salon haircare products. We also offer a full-service salon in all of our stores. We are conveniently located in high-traffic, off-mall locations. As of August 2, 2008, we operate 283 stores in 34 states.
Website purpose:
Features:
Although it does have shops in various states in America, the website serves as a quick and easy way for people to shop eg. Cosmetics online. Thus, their website is basically a B2C model.
Key characteristics:
It allows people to buy things online through their online payment system. ULTA.com accepts American Express, Discover, MasterCard and Visa.
They too has a Bill Me Later® payment mode which is the quick, easy, secure way to shop without using your credit card at hundreds of great websites. Subject to credit approval. One can also utilize their ULTA Gift Card to make purchases from ULTA.com. They also allowed people to sign up online as a member to get the most recent updates on their products. At the same time, customers can apply for the Club at ULTA rewards program which is a FREE program that you can register for either in store or at www.ULTA.com.
Special highlights:
In terms of makeup products, though they sell various popular brands such as benefit, Elizabeth arden, red earth, lo’real, maybelline etc, they do have products of their own brand Ulta. Ulta makeup products are sold at a much cheaper price as compared to the other brands that they featured online.
Advantages:
They have a search engine on their website where shoppers can easily find the items they wanted witout having to search like in a store. They even separated such as the makeups to the various brands and type of makeup to make comparison of prices and suitability easier.
www.ulta .com is created by Ulta, a chain of makeup and hair supply stores based in Bolingbrook Illinois and Salons in the United States, which serves a market similar to that of Sephora. ULTA is the largest beauty retailer that provides one-stop shopping for prestige, mass and salon products and salon services in the United States. We provide affordable indulgence to our customers by combining the product breadth, value and convenience of a beauty superstore with the distinctive environment and experience of a specialty retailer. We offer a unique combination of over 21,000 prestige and mass beauty products across the categories of cosmetics, fragrance, haircare, skincare, bath and body products and salon styling tools, as well as salon haircare products. We also offer a full-service salon in all of our stores. We are conveniently located in high-traffic, off-mall locations. As of August 2, 2008, we operate 283 stores in 34 states.
Website purpose:
Features:
Although it does have shops in various states in America, the website serves as a quick and easy way for people to shop eg. Cosmetics online. Thus, their website is basically a B2C model.
Key characteristics:
It allows people to buy things online through their online payment system. ULTA.com accepts American Express, Discover, MasterCard and Visa.
They too has a Bill Me Later® payment mode which is the quick, easy, secure way to shop without using your credit card at hundreds of great websites. Subject to credit approval. One can also utilize their ULTA Gift Card to make purchases from ULTA.com. They also allowed people to sign up online as a member to get the most recent updates on their products. At the same time, customers can apply for the Club at ULTA rewards program which is a FREE program that you can register for either in store or at www.ULTA.com.
Special highlights:
In terms of makeup products, though they sell various popular brands such as benefit, Elizabeth arden, red earth, lo’real, maybelline etc, they do have products of their own brand Ulta. Ulta makeup products are sold at a much cheaper price as compared to the other brands that they featured online.
Advantages:
They have a search engine on their website where shoppers can easily find the items they wanted witout having to search like in a store. They even separated such as the makeups to the various brands and type of makeup to make comparison of prices and suitability easier.
Makeup.com
Introduction
Makeup.com is a retail website through which the publicly listed company, Makeup Incorporation, advertises and sells a wide variety of beauty products and brands. Makeup Incorporated is in turn a wholly owned subsidiary of Makeup.com Limited. Makeup.com Limited started out as a discount retailer in 2005 but changed its business focus on makeup and beauty products. Currently, the main objective of Makeup.com is to provide exclusive boutique make up and beauty products at competitive prices, along with premier customer service. In a highly competitive makeup industry, its generic name ‘makeup’ compliments its business strategy. A search on the word online usually produces Makeup.com as the first result. Competitors of Makeup.com include Ulta and Sephora, online companies against which Makeup.com will be compared.
History
· Started selling makeup in June 2005
· Owned and operated by makeup incorporated, wholly owned subsidiary of makeup.com.limited
o Website: http://www.makeupinvestor.com/
o CEO and President: Robert E Rook
o CFO and Treasurer: Munjit S. Johal
o Listed company(MKUP)
Aims
· To provide exclusive boutique makeup and beauty products
· To provide the highest quality of customer service
· To provide value and satisfaction to customers
Features
· E-commerce business model: The virtual mall
· B2C
· Payment: Visa, Mastercard, Amex, Paypal, Discover
· Services
o Beauty products (makeup, skincare, body bath, fragrance, men included too)
o Beauty tips (information on certain types of beauty products embedded in the beauty tips provided, covers a wide range of topics)
o Promotions (from beauty products such as make up to accessories, for example a makeup travel case)
o Gifts
o Shipping (only in the US)
§ Free shipping on orders above $60
§ Most packages will arrive 6 t0 10 days although a customer in the testimonial claimed that her product arrived after 4 days
§ Customers are able to track their orders through the provision of the UPS Tracking Code which are emailed to them once their orders leave the warehouse
§ Customers can also track information on their purchases through their account in Makeup.com
o Blog
§ Wide variety of categorised fashion related topics from product information or promotion to the latest trends or gossips in the fashion and celebrity industries
o Customer testimonials for new user
§ Comments include the efficiency and convenience of the website and the wide range of products offered
Characteristics
· Convenience
o Easy to navigate through
§ In terms of product information and payment
§ Customer testimonials and blogs are easy to find
§ Links to its head company’s website is available making it easy for shoppers who are also investors to access the appropriate website
o Provides a tracking system for products purchased from the website
o Payment can be done electronically through VISA, MasterCard, AMEX, PayPal and Discover
· Online safety/security
o Geotrust is the second largest digital certificate provider in the world
§ It secures online transactions and conduct business over the internet
§ Handles orders placed on Makeup.com and ensures that each transaction is handled efficiently and securely
o VeriSign is a provider of internet infrastructure services
§ Facilitates Domain Name System (DNS)
§ Issues VeriSign Identity Protection (VIP)
· Coordination
o Newsletter available via email
o Investor information is one of the services provided
o Uses advanced data to create an ideal server environment
§ Significant network connectivity and knowledgeable staff
o Outsourced its technical requirements such marketing and technical support
o Uses Navision, an integrated accounting software system for online transactions and inventory management
o 5 key measures to monitor website performance: speed, navigation, appearance, reliability and information
Design
· Data
o Product images are displayed clearly and descriptions although in small characters are legible
o Product descriptions include a brief histories and uses
· Decision making
o Aesthetically, the website is feminine and thus seems to cater to female clients only. Male clients might be put off and decide not to use the website assuming that the website is not relevant to them
o Due to the various products and their corresponding decisions, customers have plenty to choose from depending on their needs and desires.
· Transaction costs
o Payment: Visa, MasterCard, PayPal, Discover
§ Payment is secured by GeoTrust and VeriSign.
o Information, be it with regards to beauty products or investor information, is easily obtainable from Makeup.com. Transaction cost with this respect is relatively low.
Strength
· Its wide range of beauty products are listed on the website allowing new or existing customers to view the brands and items on sale.
· Brief description and history are provided for each brand and the corresponding beauty items making it easier for consumers to find the beauty products that best suit their needs
· As one satisfied customer put it in the testimonial, Makeup.com is a good alternative to shopping malls especially in areas lacking them
· Customers are able to become members of Makeup.com which forms a loyalty base for Makeup.com
· Customers are able to track their orders from Makeup.com through either the UPS Tracking Code sent to them via email or their account with Makeup.com. If the Tracking Code is not received, clients are able to contact a toll free customer service hotline
· Consumers as well as investors have access to Makeup corporation’s website enabling them to stay informed of the company’s latest and current affairs
· A link to the head company’s website does exude some form of transparency as Real Time SEC Filing and Corporate Code of Ethics are available online
· For security purposes, it uses Geotrust, a leading online security company
· The Return Policy is fairly easy to comprehend and follow
Weaknesses
· Shipping is restricted to the United States. International consumers interested in the products provided are disadvantaged.
· Its feminine design may discourage potential male consumers from endorsing the website assuming that it only caters to female clients when in fact men products do exist
· Most of the products are not well known, at least in Asia, compared to cosmetic brands such as Clinique, Nars and M.A.C for example. Sceptical consumers may choose not to purchase the items on sale at Makeup.com
· Exchanges are not allowed. New items are purchased through new transactions.
Special highlights
· Makeup.com is connected to the website of its parent company, Makeup Corporation, http://www.makeupinvestor.com/
· Such a feature allows both a consumer and an investor of Makeup corporation to easily access the relevant websites and get the information he or she needs
· http://www.makeupinvestor.com/ provides quotes and filings for its stakeholders
Critical analysis of the site
· Makeup.com is fairly easy to use.
o Their products on sale are categorised by brands, promotions, makeup, skincare and men’s products for example
o There are links to blogs and even customer testimonials. Although the testimonials are one sided, in favour of Makeup.com, it could be a valuable source of information to new and potential clients.
o There are links to the parent company’s website making it easier to obtain information on the company and its affairs.
· One disadvantage is that shipment is restricted to the United States, thereby, neglecting global clients. This violates the convenience that ecommerce is suppose to bring to consumers. However, the company does have plans to go global in the future. Not only will an international expansion create a bigger customer base for the company, but customers too are able to benefit from the wide selection of beauty products provided by Makeup.com.
· Despite having a wide variety of products available online, a number of customers may not be familiar with them. This may discourage some from purchasing products online since the endorsement of products does require consumer trust and loyalty. A solution to this, however, may be already put in place at Makeup.com through the provision of brand and product history and description.
Makeup.com is a retail website through which the publicly listed company, Makeup Incorporation, advertises and sells a wide variety of beauty products and brands. Makeup Incorporated is in turn a wholly owned subsidiary of Makeup.com Limited. Makeup.com Limited started out as a discount retailer in 2005 but changed its business focus on makeup and beauty products. Currently, the main objective of Makeup.com is to provide exclusive boutique make up and beauty products at competitive prices, along with premier customer service. In a highly competitive makeup industry, its generic name ‘makeup’ compliments its business strategy. A search on the word online usually produces Makeup.com as the first result. Competitors of Makeup.com include Ulta and Sephora, online companies against which Makeup.com will be compared.
History
· Started selling makeup in June 2005
· Owned and operated by makeup incorporated, wholly owned subsidiary of makeup.com.limited
o Website: http://www.makeupinvestor.com/
o CEO and President: Robert E Rook
o CFO and Treasurer: Munjit S. Johal
o Listed company(MKUP)
Aims
· To provide exclusive boutique makeup and beauty products
· To provide the highest quality of customer service
· To provide value and satisfaction to customers
Features
· E-commerce business model: The virtual mall
· B2C
· Payment: Visa, Mastercard, Amex, Paypal, Discover
· Services
o Beauty products (makeup, skincare, body bath, fragrance, men included too)
o Beauty tips (information on certain types of beauty products embedded in the beauty tips provided, covers a wide range of topics)
o Promotions (from beauty products such as make up to accessories, for example a makeup travel case)
o Gifts
o Shipping (only in the US)
§ Free shipping on orders above $60
§ Most packages will arrive 6 t0 10 days although a customer in the testimonial claimed that her product arrived after 4 days
§ Customers are able to track their orders through the provision of the UPS Tracking Code which are emailed to them once their orders leave the warehouse
§ Customers can also track information on their purchases through their account in Makeup.com
o Blog
§ Wide variety of categorised fashion related topics from product information or promotion to the latest trends or gossips in the fashion and celebrity industries
o Customer testimonials for new user
§ Comments include the efficiency and convenience of the website and the wide range of products offered
Characteristics
· Convenience
o Easy to navigate through
§ In terms of product information and payment
§ Customer testimonials and blogs are easy to find
§ Links to its head company’s website is available making it easy for shoppers who are also investors to access the appropriate website
o Provides a tracking system for products purchased from the website
o Payment can be done electronically through VISA, MasterCard, AMEX, PayPal and Discover
· Online safety/security
o Geotrust is the second largest digital certificate provider in the world
§ It secures online transactions and conduct business over the internet
§ Handles orders placed on Makeup.com and ensures that each transaction is handled efficiently and securely
o VeriSign is a provider of internet infrastructure services
§ Facilitates Domain Name System (DNS)
§ Issues VeriSign Identity Protection (VIP)
· Coordination
o Newsletter available via email
o Investor information is one of the services provided
o Uses advanced data to create an ideal server environment
§ Significant network connectivity and knowledgeable staff
o Outsourced its technical requirements such marketing and technical support
o Uses Navision, an integrated accounting software system for online transactions and inventory management
o 5 key measures to monitor website performance: speed, navigation, appearance, reliability and information
Design
· Data
o Product images are displayed clearly and descriptions although in small characters are legible
o Product descriptions include a brief histories and uses
· Decision making
o Aesthetically, the website is feminine and thus seems to cater to female clients only. Male clients might be put off and decide not to use the website assuming that the website is not relevant to them
o Due to the various products and their corresponding decisions, customers have plenty to choose from depending on their needs and desires.
· Transaction costs
o Payment: Visa, MasterCard, PayPal, Discover
§ Payment is secured by GeoTrust and VeriSign.
o Information, be it with regards to beauty products or investor information, is easily obtainable from Makeup.com. Transaction cost with this respect is relatively low.
Strength
· Its wide range of beauty products are listed on the website allowing new or existing customers to view the brands and items on sale.
· Brief description and history are provided for each brand and the corresponding beauty items making it easier for consumers to find the beauty products that best suit their needs
· As one satisfied customer put it in the testimonial, Makeup.com is a good alternative to shopping malls especially in areas lacking them
· Customers are able to become members of Makeup.com which forms a loyalty base for Makeup.com
· Customers are able to track their orders from Makeup.com through either the UPS Tracking Code sent to them via email or their account with Makeup.com. If the Tracking Code is not received, clients are able to contact a toll free customer service hotline
· Consumers as well as investors have access to Makeup corporation’s website enabling them to stay informed of the company’s latest and current affairs
· A link to the head company’s website does exude some form of transparency as Real Time SEC Filing and Corporate Code of Ethics are available online
· For security purposes, it uses Geotrust, a leading online security company
· The Return Policy is fairly easy to comprehend and follow
Weaknesses
· Shipping is restricted to the United States. International consumers interested in the products provided are disadvantaged.
· Its feminine design may discourage potential male consumers from endorsing the website assuming that it only caters to female clients when in fact men products do exist
· Most of the products are not well known, at least in Asia, compared to cosmetic brands such as Clinique, Nars and M.A.C for example. Sceptical consumers may choose not to purchase the items on sale at Makeup.com
· Exchanges are not allowed. New items are purchased through new transactions.
Special highlights
· Makeup.com is connected to the website of its parent company, Makeup Corporation, http://www.makeupinvestor.com/
· Such a feature allows both a consumer and an investor of Makeup corporation to easily access the relevant websites and get the information he or she needs
· http://www.makeupinvestor.com/ provides quotes and filings for its stakeholders
Critical analysis of the site
· Makeup.com is fairly easy to use.
o Their products on sale are categorised by brands, promotions, makeup, skincare and men’s products for example
o There are links to blogs and even customer testimonials. Although the testimonials are one sided, in favour of Makeup.com, it could be a valuable source of information to new and potential clients.
o There are links to the parent company’s website making it easier to obtain information on the company and its affairs.
· One disadvantage is that shipment is restricted to the United States, thereby, neglecting global clients. This violates the convenience that ecommerce is suppose to bring to consumers. However, the company does have plans to go global in the future. Not only will an international expansion create a bigger customer base for the company, but customers too are able to benefit from the wide selection of beauty products provided by Makeup.com.
· Despite having a wide variety of products available online, a number of customers may not be familiar with them. This may discourage some from purchasing products online since the endorsement of products does require consumer trust and loyalty. A solution to this, however, may be already put in place at Makeup.com through the provision of brand and product history and description.
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