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(upbeat music) - There really is a before and after Sephora, when it comes to the makeup industry. - [Narrator] Until about 20 years ago, this is how most Americans shopped for luxury makeup. A sales representative of the brand would stand behind the makeup counter and help customers make a purchase. - That completely changed with Sephora. Now its a free for all, people walk in the stores, they test whatever they want, nothing is behind the glass. - [Narrator] So, how did this French retailer come to dominate the global personal care and beauty product industry and what business practices helped make it the industry leader that it is today? This is the Economics of Sephora. Today, the beauty retailer employs over 36,000 people in more than 2,700 stores, in over 35 countries. Those stores carry over 250 beauty brands. - [Man] At this point, Sephoras like kind of my second home. - [Narrator] The Sephora that we know today has its roots in a small perfume shop that opened in 1969 in Li