Sephora will surpass the 15% Black-owned benchmark for prestige hair care products by the end of this year

Dive brief:

• Just over a year after signing the Fifteen Percent Pledge, Sephora is reporting progress on that commitment, and its other diversity, equity and inclusion initiatives. As announced in January, Sephora is on track to double the number of Black-owned brands in its assortment by the end of 2021.

• The retailer had just eight Black-owned brands a year ago, but the assortment has grown to include the likes of Briogeo, Bread Beauty Supply, Topicals and Danessa Myricks Beauty, according to the retailer's report. According to the retailer's report, they expect to achieve the 15% benchmark for prestige hair care in this year.

• Sephora has increased its marketing efforts around Black-owned brands. These companies now account for 15% of its digital and social content, up 11% from last year. Sephora has launched a webpage to promote Black-owned brands and is now running quarterly campaigns about Black-owned brands.

Dive Insight

Sephora launched a plan to combat racial bias in January. It covered everything, from marketing and merchandise to operations and in-store experience, talent, and inclusion. The retailer's progress report shows what it has achieved so far and where it needs to go.

The beauty company stated that it is making progress in increasing the number Black-owned brands it sells. It also plans to launch "several new Black-owned brands" this fall, such as Fashion Fair and Hyper Skin. Sephora began the year with eight brands, so by the end of the year, at least 16 Black-owned brands should be available. The retailer also noted in its report that the retailer expects to have more than twice that amount at the end.

The retailer has also been very focused on marketing. Sephora announced Wednesday that 79% of its influencers are people of color. This is an increase of 61% from 2019. Sephora is committed to reaching more Latinx customers. It doubles the number of YouTube videos in Spanish each month and includes more Spanish-speaking influencers into its program.

Sephora's last report focuses on employee diversity. Sephora reported an increase in people of color (64%) and women (83%) year-over-year, while Black or African American employees increased by two percentage points. Black or African American leadership in stores, distribution centers, and corporate offices increased from 6% a year ago to 9%. Black or African American representation in store directors rose from 6% a year ago to 11%. Leadership diversity has been particularly slow to improve in the retail industry over the years.

Sephora's pursuit of a more diverse merchandise selection and marketing strategy is similar to Ulta. Ulta announced in February that it would double the number of its Black-owned brands by the end the year. It also signed the Fifteen percent Pledge a little over a year later. Improving diversity at Ulta was a focus point of former Ulta CEO Mary Dillon, and will likely continue to be so under new CEO Dave Kimbell.