Signaling the growing importance of data-driven strategies in beauty retail, NielsenIQ (NIQ) and Sephora have announced a strategic collaboration that will enhance visibility into the North American beauty landscape. The partnership marks a major expansion of NIQ’s prestige beauty data coverage, positioning Sephora to expand its consumer insight capabilities.
Sephora will contribute point-of-sale data from its omnichannel business (including physical retail and e-commerce) into NIQ’s platform. This will allow NIQ to provide comprehensive coverage of the beauty industry, improving insights for brands and retailer partners across the sector that are currently navigating an increasingly complex and competitive beauty environment.
In return, Sephora will become a Recommended Insights Partner and leverage NIQ’s suite of tools, including the recently expanded Omnishopper and Digital Purchases Solutions, which help to inform strategy across the organization. Currently, NIQ’s Omnishopper platform tracks the behavior of 250,000 engaged panelists, which the business says is the largest global consumer panel to date.
“This partnership with NielsenIQ is a strategic leap forward in how we listen to our beauty consumers, elevate insights across every touchpoint, and deliver on the future of beauty retail,” said Ryan Oto, Vice President of Business Intelligence and Analytics at Sephora, in a press release.
The move comes at a critical time for Sephora, which, despite its strong market position, is navigating challenges in the e-commerce space. During an April 2025 earnings call, Cécile Cabanis, Chief Financial Officer of Sephora parent LVMH Moët Hennessy Louis Vuitton, acknowledged increasing competition online.
“In the US, we have a bit less momentum when it comes to e-commerce, especially because Amazon is being very aggressive, and being aggressive is mostly regarding price. And we try to avoid this technique,” Cabanis said.
Sephora’s decision to double down on data appears to be a direct response to these dynamics. By partnering with NIQ, the beauty retailer arms itself with deeper, more actionable insights to drive smarter decision-making, particularly in digital merchandising, customer retention, and omnichannel optimization. With competitive pressure mounting from platforms such as Amazon Premium Beauty, the emphasis for Sephora is not on price wars, but on personalization, curation, and an elevated client experience.
The collaborative effort comes at a time when data granularity and cross-channel insights are becoming increasingly essential, and understanding consumer behavior across channels is critical to keeping pace. As the beauty industry continues to evolve with changing consumer expectations, increased DTC competition, and the rise of socially driven commerce.
“Beauty is one of the most dynamic and culturally relevant categories in retail today,” said Elizabeth Buchanan, President of North America at NIQ. “By combining Sephora’s leadership in the space with our unmatched measurement capabilities, we’re bringing new precision and visibility to the brands shaping the future of beauty.”
This partnership also enhances Sephora’s access to insight across mass, drug, specialty, e-commerce, and social channels, helping it to better understand and serve the evolving beauty consumer. For the broader industry, it represents a growing recognition that data is no longer just a support function; it’s a strategic asset.
As competition intensifies and consumer behavior becomes more fragmented, brands and retailers that can connect the dots across touchpoints will be best positioned to thrive. For Sephora and NIQ, this collaboration may be just the start of a new chapter in intelligent beauty retail.
