LVMH’s Sephora Needs a New Partner in China

Sephora entered China at a time when consumers were snapping up all manner of luxe foreign products. The retail landscape has undergone a profound shift in the ensuing two decades — to the point that the French beauty emporium should get a new collaborator to remain relevant in its most important market after the US.

The retailer backed by luxury conglomerate LVMH Moet Hennessy Louis Vuitton SE has had the same joint-venture partner, legacy skincare manufacturer Shanghai Jahwa United Co., since its 2005 arrival. But with Sephora China posting four consecutive years of losses, it’s time to turn over the reins to a more engaged ally adept at converting consumer trends into product design, marketing and effective pricing at a speed consistent with local competitors.