Sephora, the LVMH Moët Hennessy Louis Vuitton-owned cosmetics retailer, is scouting for a recent leader for China to spur growth and higher serve well-heeled customers.

In accordance with Bloomberg sources, the management reshuffle will occur as soon as this yr. The corporate’s managing director for Great China has been Maggie Chan since 2018.

A spokesperson for Sephora declined to comment.

In accordance with industry sources, Sephora sped past the 12 billion-euro sales mark in 2022 and is on pace to realize its goal of 20 billion euros over the approaching years.

Sephora is well-positioned to capture growth opportunities within the China market as shoppers begin to prioritize in-store shopping experiences post-COVID-19.

In accordance with Euromonitor, in 2022, China’s beauty and private care market fell 6.4 percent to succeed in 532 billion renminbi, or $73.7 billion, but after COVID-19, China’s beauty market quickly resumed growth. In accordance with the National Bureau of Statistics, cosmetics retail sales totaled 207 billion renminbi, or $28.6 billion, recording a year-over-year growth of 8.6 percent.

Sephora’s Wechat Mini Program shows that the premium beauty retailer has 328 stores across 91 Chinese cities. Greater than 65 percent of Sephora shops are positioned in mid- to high-end shopping malls, in line with data from Win Shang Data, a third-party retail data agency.

Lately, Sephora has faced fierce competition from rising local players resembling Harmay, Haydon, Wow Color and The Colorist, which turbocharged growth in 2019, driven by a enterprise capital funding craze. But through the pandemic, these nascent players shuttered stores as quickly as they opened recent ones, which allowed Sephora to keep up its retail dominance within the multibrand beauty retailer space. Data from a Frost & Sullivan report published in 2021 revealed that Sephora accounts for two.5 percent of the wonder specialty retail market.

Last yr, in response to shifting consumer tastes, Sephora launched the “China Accelebrate” program, which can help select C-beauty brands generate annual sales of $14 million. Maogeping, the Wendy Yu-backed brand Yumee and native premium skincare brand Inoherb Tang are among the latest additions to the retailer’s top shelf.

Sephora also stays the go-to retail partner for global brands wanting to enter China. Grown Alchemist, an Australian skincare brand, recently signed an exclusive partnership with Sephora China to launch within the country. Last April, Courrèges‘ fragrance products launched exclusively in any respect Sephora retail channels.

In China, Sephora retains exclusive brick-and-mortar distribution rights for brands resembling Tatcha, Glam Glow and Peter Tomas Roth.

In June, Sephora began upgrading its retail experience by launching its first Store of the Future within the China market. Situated at East Nanjing Road, a tourist-driven retail district, Sephora’s outsized store features modern digital touchpoints resembling skin evaluation, AI-generated makeup suggestion and tutorial, mobile take a look at, in addition to in-depty beauty consultation. The shop also introduced a dedicated event space, Beauty Live Studio, which can host exclusive masterclasses and events.

“Aside from incorporating beauty tech, Sephora’s Store of the Future in Shanghai is an element of our ongoing commitment to deepen our engagement with the wonder community in China,” Chan said through the store opening.