Situation description

Beautify is a global prestige cosmetics company that sells its products mainly inside high-end department stores such as Harrods and Shanghai No. 1. It also has a presence online with specialty retailers like Sephora. Beautify produces a number of makeup, fragrance, and skin care products sold under several different brands.

In department stores, beauty consultants play a critical role with consumers:

• approaching “passive” customers
• demonstrating their knowledge of the products
• actively selling the products
• maintaining a loyal customer base of repeat buyers

These consultants are hired directly by Beautify or through specialist, third-party agencies that find new recruits for a fee. Beautify is then responsible for selecting, training, and paying the consultants. Within Beautify, beauty consultants are managed independently by each brand in each country. For example, this may mean a consultant might be part of the Chanel team in a store. However, consumers are shifting more to online shopping, and too many beauty consultants are left working in empty department stores.

McKinsey study

Beautify’s president and COO engaged McKinsey to help evaluate if training the majority of beauty consultants to use virtual channels to connect with customers could be profitable for the company.