- Università: EM Lyon Business School di Lione
Isis Rodriguez Suarez
Company description summary
The Beauty Complex is a connected and techy concept store dedicated to beauty. Because feeling good is not only a question of appearance, we help customers rediscover themselves from the inside, and offer the best beauty experiences, services, and product, fitting each of their needs. Because all of our customers are unique, we ambition to offer a real personalized beauty experience: more than just shopping, we will experiment with a new digital paradigm, helping them travel through the world of beauty. We are “advancing in the science of beauty”.
The company, missions, visions, values, products and services
The Beauty Complex is a revolutionary concept store revolving around beauty and well-being. We aim at uniting in one same place many different services and products linked to beauty and well-being, from make-up to do-it-yourself (DIY) perfumes, and yoga classes. The concept is not only innovative through this multiple offer, but also through the way we perceive shopping. Another mission is that in the Beauty Complex, customers should discover the meaning of experiential shopping: we guide them through the store via our tech tables, interactive mirrors, and beacons. Our vision is that beauty is not only about physical appearance but also about feeling beautiful from the inside, therefore promoting a healthy lifestyle. Values can be seen through the building of our brand identity: it is very pure; zen, and we want to differentiate from typical beauty stores that can become overwhelming. This image is also deployed through our advertisement campaigns, signature packaging, and of course, our logo.
The cosmetics and perfume market in France is dominated by perfumes (66%), and then goes to make-up and skin/hair care. The three main actors are Nocibé, Marionnaud and Sephora, and the three main distribution channels are specialized stores, retail stores, and pharmacies… It is a promising market, as it represents 8,25 billion euros of turnover in France in 2013, and France is the country in Europe where people consume most cosmetics. Based on the rising demand in France for cosmetics and perfume, and on the competition in the sector, we still believe that specialized stores such at The Beauty Complex can see its sales grow by 1,8% per year.
Although the market of cosmetics and perfume is thriving, there is a recurrent problem linked with beauty and well-being: the stores are quite dispatched. To take care of itself, a person must go to a hairdresser to get its haircut, to a beautician to get waxed, to a specialized store to buy its make-up and perfume, and then to another one for healthy supplements. This same person will then have to go to yet another place to attend his yoga class, and to a smoothie bar to meet friends.
To make up for this issue, and also, to take benefit of the opportunities the beauty industry bears in France, the Beauty Complex groups many different services and products in one same shop: retail activities for famous cosmetic brands, DIY beauty products and perfumes, hairdressers, beauticians, nail bar, yoga and meditation classes, healthy smoothie bar, food supplements. The techy and experiential shopping aspects add up to that: not only is our store practical because customers can find all they need in one same place, but it is also easy to discover, as visitors are completely guided in the store. Everything is made to make their life easier, make them feel privileged, and make their experience one to remember.
The shop, more concretely
The shop will be divided in different “stations”, representing each of our services and products. For the do it yourself products, large tech tables, that is to say tactile and interactive, connected tables, will be available to lead customers in the creation of their products. Throughout the shops, interactive mirrors using augmented reality will enable customers to test products virtually, and analyze their skin and hair types. Concerning busy parents, we have thought of everything: at special times, we take care of the children so that they have time to take care of themselves.
The store will be located in Saint Germain des Prés, in the 6th arrondissement of Paris. This neighborhood is perfectly in line with our target customers, inhabitants have a high purchasing power, and its central localization makes it easy for Parisians to reach the store in their free time. Finally, as business in this neighborhood is moving quite slowly, implanting an innovative concept store in this district will be disruptive and attract attention.
Now is a good time because concept stores are the trend, but there is none as extensive as ours in the beauty sector. We can therefore hope for our concept to be disruptive, which might not be the case in the future, as we never know what is ahead of us.
This concept store has a value-driven cost structure as we are focusing on the quality of the store environment and communication. Our main expenses are linked to renting the store, paying the staff, and also placing a large budget for communication. The initial costs linked with shop opening are quite important, as it includes buying the furniture, tech tables and iPads, developing the application and budgeting the grand opening party. Nonetheless, we believe that the revenue we will get from selling products with a high added value will balance these costs. The margin for beauty products will average 30%, and products of the smoothie/juice bar around 50%. Other revenues streams include the rent of parcels of the shop to hairdressers and beauticians, as well as weekly yoga classes. With no amortization, estimate a net income of around 35,000 euros in the first year. Revenues are then expected to grow at least 1,8% per year based on market trend, and also, with the increasing reputation and popularity of the shop.
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Group 4 - The Beauty Complex - Report