![](https://www.thestreet.com/.image/c_fit%2Ch_800%2Cw_1200/MTk1NDQxNzk5MzQxMjg2OTgx/the-entrance-to-a-sephora-store.jpg)
If you paused to consider some of the fastest growing sectors of the modern economy right now, you might venture a guess that it's artificial intelligence, the health care space, or wearable tech.
And while all of those are certainly expanding at a rapid clip, almost nothing has seen the degree of zeal or profit that the beauty industry has in the past several years.
Consider that in 2015, the beauty industry (which is comprised of four main components: fragrance, hair, skin, and cosmetics) was worth approximately $300 billion, according to McKinsey, a data and consulting firm.
In 2027, McKinsey projects the industry will have doubled in size, worth around $600 billion. The firm foresees premium beauty at the head of the charge, growing at an annual rate of 8%.
"E-commerce is expected to continue to be the fastest-growing sales channel, at 12 percent per year between 2022 and 2027," McKinsey notes, adding, "but growth in traditional channels — including specialty retail, grocery retail, and drugstores—is expected to pick up post pandemic, as consumers’ preference for omnichannel is partly driven by their continued desire for in-store discovery and trial of products."
Enter LVMH (LVMHF) -owned Sephora, which has mastered both the e-commerce and in-store premium beauty experience.
Sephora's allure may also get you banned
Sephora thrives because it offers quick shipping of usually-restricted items (like fragrance, which tends to contain a lot of alcohol) on most of its items. But it also offers a 'try it before you buy it' model, which enables customers to come into its store and swatch all sorts of test products before they make a purchase.
And, if you're considering buying a $46 Dior lipstick, swatching can make all the difference.
It's that tactile experience that draws more people in each day. Many folks may initially hear about new products or trends online, but what really convinces them to make the purchase is a sensory experience of that new item; smelling a new perfume, swatching a new lip oil, or finding their perfect color match with a new foundation. Consider it a test drive for your makeup.
Sephora is also beloved for its forgiving return policy, which stipulates that customers not satisfied "for any reason" are eligible to return it new or gently used within 30 days from its purchase date. Returns made 31-60 days receive an online credit to be used at Sephora. Prior to the pandemic, Sephora's return policy was even more lenient, allowing customers to return a purchase up to one year after they brought it home.
But as with many lenient policies, some people figure out how to bend the rules. And as trends in beauty come and go so quickly, Sephora has been forced to crack down on those who may take advantage of the system. A former Sephora manager explained on TikTok that some customers have even been banned for getting too return-happy.
"Hi, ex-Sephora manager here confirming yes, you can be banned from making returns at Sephora," TikTok user GreenEggsandGlam shared with her over 200,000 followers.
View the original article to see embedded media.
"It's not as simple as the ratio of returns to purchases," she explained. "What matters is the dollar amount of what you're returning."
She then explained she used to be a manager at Sephora but left in March 2023. As of then, she said the return policy was more money-based.
"If you returned more than $2,500 worth of products in the last calendar year, you will get banned. If you try to return over that, a little ticket's going to print out. It will say that it was denied. You can call customer service to inquire why. When you call that number, they will be like 'girl, you're done,' because you returned too much."
She then explained there's a very simple work around, whereby customers can set up a new account with a new email and return more products under that account.
"Just be responsible with how you're purchasing and how you're returning," she said. "Because all of that stuff goes into haz mat and all of that gets destroyed. Nothing gets donated, it literally gets destroyed and disposed of and it's super wasteful."
TheStreet has reached out to Sephora for comment.