NEW YORK (TheStreet) -- Sephora, the beauty line owned by luxury goods powerhouse LVMH Moet Hennessy (LVMUY) is playing its own game of social media in the style of Pinterest and Tumblr to bolster sales of its popular fragrances and skin cares.
Launching in March, Sephora's Beauty Board will allow users to tag beauty products in photos. These tags will link directly to Sephora's e-commerce website. The new platform will also combine existing Sephora online communities Beauty Talk, The Glossy, and Sephora TV together.
LVMH, which trades in New York as an American Depositary Receipt, was falling o.3% to $37.20 in mid-day trading Friday.
Sephora has been one of the most successful beauty product companies of the last five years in part because of its attractive platform online. Paris-based Louis Vuitton
is so convinced that it can power through with the added online sales that customers can now showroom its products at retail. The new Beauty Insider loyalty program has also helped boost sales both in physical stores and online.
Sephora's site won't attract the millions of users Pinterest did in such a short time. However, it appears Sephora has figured out the way to make money from "pinning" and sharing ideas online, at least for make-up. If consumers like a particular photo shared by others, they are now going to have a direct opportunity to buy the products necessary to get the look. Chalk this one up as a winner for Sephora in its continued online sales dominance.
Another potential growth opportunity for Sephora, which should see strong social media cross-promotional support, is the company's new "Divergent" themed makeup collection."Divergent", set to be released in March, is the first of three potential movies based on the bestselling book trilogy. The potential for more movies sets Sephora up well for future "Divergent" movies from Lions Gate Entertainment (LGF). The move is also similar to one that CoverGirl did with "The Hunger Games", another Lions Gate property. This is Sephora's first movie collaboration and could be a potential source of growth for sales and foot traffic inside stores.