INTHEBLACK November 2026 - Magazine - Page 25
“Beauty now intersects with the broader wellness market, and
consumers are much more knowledgeable about ingredients
and the products they want to buy. This is largely because of
social media and digital discovery, as products can be easily
demonstrated, reviewed and discussed online.”
KYLIE ARCHER FCPA, ADORE BEAUTY
While online channels take the biggest
share of beauty sales, research from Deloitte
shows a rise in experiential retail — physical
stores that seek to engage customers
beyond transactions.
Louise Heath, partner and consumer products
and retail sector lead at Deloitte Australia,
says beauty is particularly well suited to this
experiential model.
“In beauty specifically, we are seeing growing
demand for in-store experiences where
customers can touch and sample products,”
she says. “Given the sheer volume of choice
available online, the ability to go into a store
and have a one-on-one experience has become
increasingly valuable.
“There is also an important human
element,” Heath continues. “Customers can
have a conversation with a team member or
expert who can respond immediately, offer
advice and help them try products. That brings
products to life in a way that a static website
or piece of content cannot.”
K-Beauty giant Olive Young’s flagship
store, which opened in Seoul’s Seongsu-dong
neighbourhood in 2024, goes well beyond
retail. Spanning five storeys and 4620 square
metres, the store surpassed 2.5 million
cumulative visitors in its first year. More than
30,000 customers have used its beauty
consultation services, and more than half
were international visitors.
Leading prestige beauty retailer Sephora
recently reopened its flagship store at
Singapore shopping destination ION
Orchard. One of the busiest stores for Sephora
worldwide, its experiential offering extends to
skincare services and AI-powered make-up
colour matching.
In Melbourne, beauty retail giant Mecca
opened its 4000 sqm flagship store in 2025.
In addition to product offerings from more
than 200 brands, it offers more than
80 services across a range of categories.
Meanwhile, Adore Beauty recently
expanded into physical stores after more
than two decades as an e-commerce platform.
“We felt we were under-represented in the
beauty market as a whole,” explains Archer.
“Some research suggests about 80 per cent
of the addressable beauty market is in the
offline environment, so we simply were not
showing up where the customers were.”
The retailer now has 21 stores across
Adore Beauty and its IKOU private label
brand, with five more due to open by the
end of 2026. Archer says physical stores
enable services to be added to its existing
digital capabilities. “It also extends the
customer experience. We have built in-store
treatment rooms with experienced dermal
therapists into most of our stores. That serves
as a continuation of the expert beauty advice
we already provide online.”
Archer adds that there is value in customers
using multiple channels to purchase.
“Omnichannel customers have 2.5 times
the lifetime value of online-only customers,”
she says.
While platforms like TikTok and Instagram
are important discovery channels for beauty
brands and retailers, Archer says they also
accelerate the life cycle of products and trends.
“They change so quickly now,” she says.
“The ability for a customer to stay up to
date with beauty trends and what is available
is facilitated by digital discovery engines.
We are continually reviewing and refining
our brand offerings and ranges to meet
customer needs.
“Over the last financial year, we brought in
16 new brands and discontinued 48, so there is
quite a significant pace of change,” adds Archer.
“The beauty industry is moving so fast.” ■
READ
an article on a former
Adore Beauty CFO
UPSKILL
with CPA Australia’s
Innovation
and Creativity
short course
intheblack.cpaaustralia.com.au
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