Sephora entered the Mexican market in the fall of 2011, opening a 5,400-sq-ft store in Antara Fashion Hall in the Polanco section of Mexico City, and currently has an 11-store footprint. According to Forbes Mexico, Sephora will invest more than 150 million pesos ($7.5 million) in opening five new stores in Mexico by 2022 and boosting its e-commerce operations in the region.
The Mexican beauty and personal care market was valued at $9.46 billion in 2020 and is projected to reach $19.48 billion by 2028, growing at a CAGR of 7.5% from 2021 to 2028. While the market is quite strong, it is small relative to the country's total population, representing a tremendous opportunity.
Darío Aguilar, Sephora Mexico's Chief Executive, said of the market, "We are estimating the closing of 2021 at the levels of 2019, for the last quarter of 2021 we would close the gap that we bring but what does continue to grow is e-commerce, it fell by 30% because it was conditioned by the closing of stores. Right now e-commerce is representing 25% and it is still a very high number because we are gaining new consumers and we are recovering traffic and normality in stores."
“We not only want to continue entering physical stores but also e-commerce where we have investment plans of 70 million pesos [$3.5 million]. We have already invested a lot in our platform and what we are doing is promoting updates and in the future we will be incorporating new features such as augmented reality to test the virtual training products and we launched our app a week ago in Mexico.”
Sephora has identified Tijuana as well as 20 other cities across Mexico for expansion with physical locations.
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