Sephora Amazon pricing tension is now being called out by its parent company, LVMH. The French luxury group acknowledged this week that Sephora’s sales growth in the U.S. has slowed — and pointed to Amazon’s pricing strategy as a key reason.
“They are very aggressive,” said LVMH CFO Jean-Jacques Guiony during the group’s earnings call. “And we try to avoid this technique.” The comments offer rare insight into how a global luxury leader views its rivalry with the world’s largest e-commerce platform.
As seen in Millionaire MNL, LVMH has long resisted deep discounting. Instead, it prioritizes brand equity, in-store experience, and exclusivity. That strategy has helped Sephora thrive globally. But in the fiercely competitive U.S. beauty market, it may be creating new challenges.
Why pricing strategy matters in beauty
The U.S. beauty sector is evolving quickly. Consumers are increasingly price-sensitive, even in premium categories. Meanwhile, Amazon has doubled down on beauty, offering top brands at competitive prices and investing in fast shipping, loyalty perks, and targeted promotions.
Sephora Amazon pricing pressure is especially visible during seasonal sales. Where Amazon slashes prices with limited-time deals, Sephora often holds back — maintaining a more curated and controlled environment.
That difference is philosophical. But it’s also financial. As LVMH reported modest U.S. sales this quarter, Amazon’s beauty category continued to expand.
Guiony emphasized that LVMH isn’t interested in racing to the bottom. “Our goal is not to match discounts,” he said. “It’s to deliver value.”
The balancing act: Prestige vs. accessibility
Sephora sits at a unique intersection. It is both a premium brand and a mass-market retailer. It partners with luxury labels like Dior and YSL while also carrying indie startups and viral TikTok sensations.
Sephora Amazon pricing comparisons put pressure on how the company positions its assortment. If customers can find similar products for less — and faster — elsewhere, loyalty is at risk.
Still, LVMH remains confident in Sephora’s positioning. As mentioned by Millionaire MNL, the company is expanding globally and investing in services that Amazon can’t replicate, including in-store consultations and exclusive product drops.
What’s next for Sephora?
While LVMH acknowledges a slowdown in the U.S., it remains bullish on long-term growth. International markets — especially Asia and the Middle East — are seeing strong momentum. The brand is also leaning into experiential retail, with new flagship stores and personalized services.
The big question: how long can Sephora maintain its premium pricing model while Amazon accelerates in the beauty space?
Sephora Amazon pricing tension may continue to define strategy discussions at LVMH. For now, the luxury giant is choosing brand strength over short-term volume — even if that means conceding some U.S. market share in the near term.
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