SEPHORA IN MIDDLE EAST

Published: 2021-07-06 06:26:30
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Category: Business and Finance

Type of paper: Essay

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 Introduction Sephora a multinational beauty brand first time established in France in 1969. It has its branches and franchises in all over the world. It launched its first store in the Middle East in 2007. By offering unique services and friendly environment for women and men this organization has become leader of all other organization of this domain. It offers services like most advanced skincare, make-up and fragrances from around the world. Sephora Middle East has grown-up exponentially in to 31 total stores in 5 markets of United Arab Emirates, Saudi Arbia, Kuwait , Qatar and Bahrain along with its main store in UAE (Dubai Mall) considered as number 2 in ranking in all beauty stores worldwide. I choose this organization because this is one of the organization which best meet the standard retail in market, It attracts customers and clients through their good quality of products and best marketing strategies. This well reputed organization has earned its repute as beauty pioneer with its expertise, modernism, and commercial spirit.Dependencies of Sephora Middle EastSephora as organization possesses dependencies which can be defined as sephora relationship of separate but mutually dependent organizational units. The dependencies of Sephora lie between its capacities required by the roles and services that comprehend them. It includes resources and capacities of Sephora. By representing a large variety of products and brands, one can found exclusively at Sephora. Sephora also possess its own brand: It offers a variety of beauty products and accessories related to it.Supply And Chain Issues of Sephora Slim stock As biggest challengeSephora faced one of the unique challenges in supply and chain issues when they approached Slimstock. It rapid growth had put its Middle East franchise under great pressure. Head of supply and chain Sandeep Walia stated that dubai Mall flagship alone sees 5 times more products retail than Sephora European market.Launch of Omni channelWhen sephora launched Omni channel retail operations, with its online stores in the region this company has faced another tough phase for its supply and chain. It was not only from its logistics operations but also made company chain and supply more proactive then reactive. Head of chain and supply said that Sephora required new state of art demand planning.Challenge of GlobalizationBeside other impacts of globalization, its effect on market and multinational organization is obvious. Globalization brought few critical issue related to supply and chain like to reduce costs across the supply chain in result of it organizations offer lower labour costs, lower taxes and lower raw materials. Same issue is with Sephora, this organization facing this issue with different parts of their product. Another supply and chain issue of sephora is facing that its expand its sales in to international market, due to it local products requires huge changes in supply and chain as company has to adapt their products to different culture and preferences.Quality and ComplianceOne of the challenges Sephora has faced when they tried to meet local and international regularity standard in compiling and manufacturing and packaging of their products. Beside that preparation of compliance documents including licenses and permits is another issue for supply and chain management of Sephora.Strategies for ImprovementManagement of supply and chain of Sephora Middle east need to handle and must bring such technology for their company to meet all form of communication which create due to globalization.Sephora Middle east need to address issues created due to fast-changing markets. For that company should be asking if they have proper data which needed to make for planning decisions. For example Omnichannel retail has reacted silos of sales data which have to be coordinated to detect demand signals and process.Manger of Sephora supply and chain department should consider from where investments make sense. If business is consuming based on mirco services or heavy data lifting requirements.ConclusionSephora as one of the well reputed and largest company in Middle East possess few supply and chain issues as well. Slimstock was one the major issue that company has faced. Head of supply and chain of Sephora himself agrees that prices are high due to hit in oil prices and this fact has put effect on company but company is seriously looking at optimization. He further accept slow growth and cash flow problem and give optimization as a solution for it.

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