DoorDash Increases Its On-Demand Beauty Selection with Sally Beauty and M·A·C Cosmetics
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Insights
DoorDash's expansion into the beauty sector through partnerships with Sally Beauty and M·A·C Cosmetics, along with an expanded offering with Sephora, marks a significant strategic move. This diversification signifies the company's response to consumer behavior shifts, where convenience and rapid delivery are prioritized. By integrating a wide array of beauty products into its delivery portfolio, DoorDash taps into the lucrative beauty industry which is valued at billions of dollars and is forecasted to grow steadily.
From a market perspective, this can potentially increase the average order value and frequency as beauty products often command a higher price point and can encourage repeat purchases. Moreover, the $0 delivery fee promotion with Sally Beauty could boost user acquisition and retention, leading to increased revenue streams. However, this strategy also requires careful navigation of logistics and inventory management to ensure swift and accurate deliveries. The long-term sustainability of this venture hinges on DoorDash's ability to maintain service quality while scaling up its offerings.
Investors should note DoorDash's proactive approach to capitalizing on cross-category demand, which can diversify its revenue base and reduce reliance on restaurant deliveries. The partnerships with established beauty brands could enhance DoorDash's competitive edge in the local commerce platform space. However, investors must watch for the impact of these partnerships on the company's margins, considering the costs associated with expanding delivery options and the implications of promotional offers like waived delivery fees.
Furthermore, the success of these initiatives could reflect in DoorDash's quarterly earnings, potentially influencing the stock's performance. It is essential to monitor consumer adoption rates and the operational efficiency of integrating these new retail categories. Any signs of strong consumer uptake could make DoorDash an attractive stock for those betting on the growth of on-demand delivery services beyond food.
The inclusion of non-restaurant stores like Sally Beauty and M·A·C Cosmetics into DoorDash's network presents a new set of challenges and opportunities in supply chain management. The beauty sector demands meticulous attention to product handling and storage conditions, which may differ from the food delivery model DoorDash is accustomed to. Efficiently managing these new product flows is key to ensuring customer satisfaction and repeat business.
DoorDash will need to adapt its logistics infrastructure to accommodate a broader range of products with varying shelf lives and storage needs. The company's ability to execute this could set a precedent for other delivery platforms eyeing similar expansions. Success in this area could also lead to improved bargaining power with other potential retail partners, further solidifying DoorDash's position in the market.
DoorDash has more retail stores than any other marketplace in
DoorDash Increases Its On-Demand Beauty Selection with Sally Beauty and M·A·C Cosmetics (Photo: Business Wire)
“We see consumers ordering from retail categories more than ever before and trying out new categories earlier in their DoorDash journey,” said Shanna Prevé, Vice President, Partnerships at DoorDash. “As consumers have higher demand and expectations for convenience and selection, we’re thrilled to connect merchant partners, like Sally Beauty and M·A·C, with people in new ways and unlock potential additional revenue. For consumers, we remain hyper-focused on providing unparalleled speed and service to meet their everyday needs whether it’s the last-minute beauty essentials or the viral must-have new products.”
Continuing the swift acceleration in the beauty category, new partners and expanded offerings on DoorDash include:
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Sally Beauty, the leading omni-channel retailer for hair color and care, is the ultimate destination for affordable, professional-quality products. As the one-stop shop for hair, skin, and nail products, consumers can access all their beauty needs from over 2,000 Sally Beauty stores across the US on DoorDash. To celebrate this new partnership, consumers can enjoy a
$0 - M·A·C Cosmetics, a pioneering makeup authority and beauty trendsetter since 1984, offers high-performance, high-quality products that turn makeup into art for all. The brand joins DoorDash to offer on-demand makeup products, skincare, and more from all M·A·C stores across the US.
- Building on our current partnership with Sephora, Beauty Insider members will soon be able to access Sephora’s bi-annual, members-only sale events.
Since launching beauty on-demand in 2021, DoorDash has added more than 400K beauty and personal care products. Consumers look to DoorDash as the new way to run errands, saving them from the hassle of driving or commuting to stores, waiting in line, and checking out. Whether they’re running low, can’t make it to the stores, or are traveling, consumers rely on DoorDash to stock up on daily staples, trending products, and gifts from lipsticks to face masks and more.
All Sally Beauty and M·A·C Cosmetics stores will be available on DashPass, DoorDash’s membership program that offers members
Our mission is to grow and empower local economies, enabling merchants with world-class tools and services to drive omnichannel growth while providing consumers with great selection, quality, and service. As consumers’ favorite local commerce platform, DoorDash connects them to restaurants, grocery and retail stores, pet and beauty supplies, and more in their neighborhood. Our platform helps merchant partners compete and operate in a digital world with world-class tools and services. In our recently published Community Impact Report,
About DoorDash:
DoorDash (NASDAQ: DASH) is a technology company that connects consumers with their favorite local businesses in more than 30 countries across the globe. Founded in 2013, DoorDash builds products and services to help businesses innovate, grow, and reach more customers. DoorDash is your door to more: the local commerce platform dedicated to enabling merchants to thrive in the convenience economy, giving consumers access to more of their communities, and providing work that empowers.
About Sally Beauty Holdings, Inc.:
Sally Beauty Holdings, Inc. (NYSE: SBH), as the leader in professional hair color, sells and distributes professional beauty supplies globally through its Sally Beauty Supply and Beauty Systems Group businesses. Sally Beauty Supply stores offer up to 7,000 products for hair color, hair care, nails, and skin care through proprietary brands such as Ion®, Bondbar®, Strawberry Leopard®, Generic Value Products®, Inspired by Nature® and Silk Elements® as well as professional lines such as Wella®, Clairol®, OPI®, L’Oreal®, Wahl® and BaBylissPRO®. Beauty Systems Group stores, branded as CosmoProf® or Armstrong McCall® stores, along with its outside sales consultants, sell up to 8,000 professionally branded products including Paul Mitchell®, Wella®, Matrix®, Schwarzkopf®, Kenra®, Goldwell®, Joico®, Amika® and Moroccanoil®, intended for use in salons and for resale by salons to retail consumers. For more information about Sally Beauty Holdings, Inc., please visit https://www.sallybeautyholdings.com/.
About M·A·C COSMETICS:
M·A·C (Make-Up Art Cosmetics) is a leading brand of professional cosmetics and part of The Estée Lauder Companies Inc. Since its creation in
About Sephora:
Since its debut in
Sephora has been an industry-leading champion of diversity, inclusivity, and empowerment, guided by our longstanding company values. In 2019, Sephora announced a new tagline and manifesto, “We Belong to Something Beautiful,” to reinforce its dedication to fostering belonging amongst all customers and employees and to publicly strive for a more inclusive vision for retail in the
For more information, visit: https://www.sephora.com/about-us and @Sephora on social media. For media inquiries, please visit our Sephora Newsroom or email ExternalComms@sephora.com.
* Based on average delivery time. Delivery times may vary and are not guaranteed.
** Offer valid through 03/13/2024 on orders placed at Sally Beauty. Limit one per person. Other fees (including service fee), taxes, and gratuity still apply. Qualifying orders containing alcohol will be charged a
*** DashPass benefits apply only to eligible orders that meet the minimum subtotal requirement listed on DoorDash for each participating merchant. Other fees (including service fee), taxes, and gratuity still apply. After signing up for DashPass, you will be charged the then-current renewal price (plus applicable taxes) automatically on a recurring basis until you cancel. DashPass terms (including how to cancel) here.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240318359119/en/
Source: DoorDash
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