Bruised by recent challenges in travel retail, beauty brands are looking to Gen Z for growth. This generation is projected to account for 30 per cent of all travellers by 2030, despite comprising only 20 per cent of the global population. However, while previous generations flocked to duty-free for exclusive deals, Gen Zs are more interested in sharing their ‘airport tray aesthetic’ on TikTok than snapping up the latest beauty bargains when heading abroad.
“This generation has a fantastic appetite for travel. They’ll be a key consumer group of tomorrow, and they’re looking for something very different from previous travellers,” notes L’Oréal travel retail president Emmanuel Goulin.
Despite a post-pandemic recovery, last year’s travel retail sales growth of 18 per cent lagged significantly behind the 30 per cent rise in passenger numbers — the first time this disparity has been observed, finds new research by global management consultancy Kearney. Historically, growth in travel retail has mirrored that of air passenger numbers. Against this backdrop, this year’s TFWA World Exhibition and Conference, the travel retail industry’s largest annual gathering, unfolded in Cannes in September. There, beauty brands highlighted the need to transform traditional retail experiences into tech-driven, engaging and value-aligned interactions that speak directly to Gen Z’s distinct preferences.
Traditional travel retail beauty offerings often fail to resonate with Gen Z. Current marketing and merchandising strategies focus on competitive pricing and discount-driven promotions, which don’t speak to a generation raised with ubiquitous access to e-commerce, as outlined in Kearney’s ‘Travel Retail’s Next Chapter’ report, released 1 October.
“Price isn’t necessarily a barrier when they’re excited about a product. Gen Z consumers buy luxury items when they’re connected to the brand,” Goulin points out. For Gen Z, value means experiences, exclusivity and authenticity — rather than price cuts.
Unlike Gen X and boomers, who prize brand loyalty and value-driven purchases, Gen Z is influenced by social media, seeking unique, experiential shopping moments that reflect their individuality, says Linda Lee, senior director of corporate communications at Shiseido Travel Retail, which caters to the demographic specifically through its Drunk Elephant skincare label.
Known for its ingredient transparency, the brand’s “playful, transparent and Instagrammable pop-ups” aim to reinforce authenticity, speaking directly to Gen Z values, says Lee. For instance, its latest travel-exclusive campaign, which is anchored on the Mile High-dration Club and Non-stop Glow Kit duty-free exclusives, is designed to meet the specific skin, beauty and wellness needs of young travellers. The activation featured shareable photo ops, a ‘Drunk Ball Game’ to educate consumers on the causes of common skin concerns, and personalised consultations.
It is one of several brands making a strategic play for Gen Z in travel retail. From makeup to skincare, labels like Charlotte Tilbury, Benefit, Sol de Janeiro, Pat McGrath Labs and most recently Fenty Beauty are making waves in airports worldwide. Meanwhile, Nyx Professional Makeup is also expanding its travel retail footprint.
“Over the past two years, we have had great success with the introduction of brands such as Charlotte Tilbury and Sol de Janeiro, which created their cult-beauty demand for products through social media. These brands have done a superb job attracting a new generation of shoppers to travel retail by leveraging social media and creating unique in-store experiences,” says Deirdre Devaney, global head of beauty at travel retailer ARI, which has stores in airports from Dublin to Abu Dhabi. “As retailers, it’s important that we are always diversifying our offering with ‘trending’ brands and products, otherwise we’re simply not catering to ever-changing passengers’ needs.”
How heritage brands can also win
How are heritage brands adapting to this new consumer profile? Partnering with Gen Z-favoured influencers and ambassadors has become a key strategy to build trust and relevance. Brands such as YSL Beauty enlist figures like Dua Lipa, whose connections with Gen Z can amplify a brand’s appeal. “These ambassadors allow brands to engage young consumers with an authentic message,” explains Goulin.
In travel retail, YSL Beauty’s Light Club pop-ups mark a departure from traditional YSL Beauty counters. Designed for Gen Z travellers, these immersive, Instagrammable spaces channel the spirit of club culture, complete with DJs, dance floors and “vinyl cover-inspired” makeup selections.
Beauty tech is becoming essential for engaging Gen Z, particularly for heritage brands, notes Goulin. “Brands like Nyx, with their cool, trendy appeal and accessible price points, don’t necessarily need beauty tech. But anything we do to make the experience both physically exciting and digitally relevant strengthens our connection with Gen Z.”
Augmented reality and artificial intelligence-enhanced experiences offer an opportunity for brands to engage these tech-savvy travellers in a way that feels familiar and engaging. Tools like virtual try-on, for instance, create an interactive, personalised experience.
L’Oréal’s investment in beauty tech is focused on AI innovations tailored to travel retail and adapted to meet the specific needs of travellers. At the Lancôme Génifique Ultimate Travellers’ Repair Clinic in Singapore Changi Airport, shoppers can share their travel plans and receive insights into potential skin concerns.
“It’s no secret that gamification is one of the most effective engagement tools in the channel,” says Leanne Nutter, head of travel retail at airport promotions agency Blackjack. “It has appeal across both gender and generations and we have found it to be particularly effective in the beauty arena.”
Nutter outlines a recent activation for a major brand’s first fragrance launch, where augmented reality was used to create a digital treasure hunt at London’s Stansted Airport. Shoppers scanned a bespoke QR code, guiding them through the store and into the international departure lounge, where image-recognition technology unlocked immersive worlds for each fragrance. The experience concluded at the counter, where customers received a complimentary gift — bringing a sense of play to the fragrance category and driving strong engagement, especially among Gen Z.
This consumer cohort also holds brands to account on sustainable and ethical practices. “Sustainability is a priority, and many Gen Z travellers are willing to pay more for products with strong eco-credentials,” explains ARI’s Devaney. “Recyclable packaging, alcohol-free formulas and refillable products are key criteria within beauty.”
This eco-conscious group wants to see their strong commitment to ethical practices reflected in the brands they support at airports, says Mona L’Hostis, director of global travel retail marketing at L’Occitane Group. L’Occitane launched Sol de Janeiro in travel retail just over a year ago. At London Heathrow, the Sol de Janeiro Sol-cial Club pop-up aimed to make clients feel as though they’re part of a brand community. “This all has to be part of the mix, and it must be genuine as this unique audience is astute and wary of fakery,” L’Hostis says.
Transactional to experiential
The travel retail sector must move beyond transactional relationships to create memorable, meaningful experiences that align with Gen Z’s distinct values, experts conclude. “Experience is essential for Gen Z travellers — pre-travel across digital and social media, as well as in-store and post-travel,” says Devaney.
By embracing a multi-faceted approach — focusing on diverse brands, experiential retail, digital integration and sustainability — beauty travel retail can turn its Gen Z engagement challenge into a substantial growth opportunity. This means investing in both digital and physical realms, creating spaces that excite, engage and inspire Gen Z travellers to linger, explore and ultimately, buy.
Goulin highlights the path forward: “Everything we can do to bring a differentiating experience, an element of surprise, something unexpected and engaging, is absolutely critical if we want to attract these consumers tomorrow.”
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