What: Beauty brands are creating immersive, tech-driven retail experiences to capture the attention and spending of Gen Z travellers, who prioritise experiences, exclusivity, and sustainability over traditional duty-free discounts.

Why it is important: With Gen Z projected to account for 30% of all travellers by 2030, retailers and department stores must adapt by offering experiential and value-driven shopping moments, both in-store and through digital touchpoints, to engage this growing consumer base.

Gen Z travellers are redefining the travel retail landscape, shifting away from traditional discount-focused duty-free shopping to seek more immersive and value-driven experiences. Beauty brands like Drunk Elephant, YSL Beauty, and Fenty Beauty are leading the way by introducing tech-driven activations, such as AR mirrors and gamification, to create engaging shopping moments. These experiences resonate with Gen Z’s desire for authenticity, exclusivity, and sustainability. For instance, YSL Beauty’s "Light Club" pop-ups feature Instagrammable spaces inspired by club culture, while Shiseido’s pop-ups educate travellers on skincare through interactive games and personalised consultations.

For retailers and department stores, this trend highlights the need to transform traditional retail spaces into interactive environments that appeal to Gen Z. By incorporating digital and physical elements, they can create memorable experiences that attract and retain this demographic. This approach not only increases engagement but also leverages Gen Z's preference for unique, experiential shopping, turning these interactions into growth opportunities.

Engaging Gen Z travellers with experiential beauty retail