Per industry sources, this is a pretty common arrangement. They can vary in size from a small box on a shelf to an aisle-long behemoth. A representative for Sephora sent the following statement to Racked: “Per company policy, we do not comment on pending litigation.” The terms of a Sephora contractĪccording to the 2016 order, OCC and Sephora signed a contract in 2012 stating that the retailer would sell the brand’s products and that OCC would be 100 percent responsible for the costs of the fixtures, which is the system of shelving and pigeonholes where testers and products for sale are displayed in the store. But what is clear is that retailers hold a lot of the cards and OCC probably lost a lot of money.
#DOES SEPHORA CONCEALER HAVE FLASH BACK FULL#
These provide an incomplete record of the full proceedings, and it’s unclear if Sephora and OCC settled this case or what the final outcome was. There are two legal documents publicly accessible, one from 2015, first published by blogger Zadidoll, and one from 2016. Truth: Sometimes our product shoots turn into impromptu swatching sessions But with ultra-pigmented, maximum-payoff, and *natural* beauty picks this good, can you even blame us? ✨.
It also sheds some light on things like who actually is responsible for building and filling the product testing fixtures you find in stores, what large markdowns mean for a brand, and how store exclusivity works. If this is the case, what happened? The only person who knows for sure at this point is the founder of OCC, but a lawsuit with Sephora dating back to 2015, may provide some clues.
#DOES SEPHORA CONCEALER HAVE FLASH BACK UPDATE#
Founder David Klasfeld seems to have started a new Instagram account under the handle and notes in the bio: “I founded and ran the world’s first 100% Vegan & Cruelty-Free Cosmetics line from 2004-2018.” (Racked has reached out again to OCC and will update if we hear back.) While the brand has not made any official statement and none of its third-party retailers like Nordstrom and Urban Outfitters have confirmed anything, it’s widely assumed that the brand has gone out of business. The recent apparent shuttering of an indie beauty brand and its lawsuit against Sephora helps shed some light on how truly complex it is to sell beauty products - and the costs that get passed on to shoppers.Ī few weeks ago, the beloved indie makeup brand Obsessive Compulsive Cosmetics (OCC) abruptly shuttered its website, its New York City store, and all its social media accounts. But while newer brands like The Ordinary and Beauty Pie have started to offer a bit of transparency into pricing and how brands are ultimately made available to consumers, there is still a lot of mystery baked into the process. Sure, we know conceptually that beauty has high margins and a big markup. The process by which a lipstick goes from factory to store to you is pretty opaque. Customers don’t know very much about how beauty retailers sell them products.
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