Coty on how Gen Z is reshaping TR strategy through layerable formats, sustainability innovation and retailtainment

Gen Z consumers are fundamentally changing how the fragrance industry approaches product development and retail experience design in travel retail, according to Mette Engell, Senior Vice President, Global Travel Retail at Coty. This generation’s preference for creating personalized “fragrance wardrobes” through layering and mixing different scents has prompted the P&C giant to rethink traditional fragrance formats and launch strategies.

“Consumers today want more than just a pleasing scent; they are looking for a full sensory experience that boosts their emotional wellbeing and empowers self-expression,” says Engell. “Younger consumers, especially Gen Z and millennials, are driving much of this demand, with 61% of Gen Z consumers in the U.S. now using fragrance three or more times a week.”

The launch of Calvin Klein’s Hair & Body Perfume Mists and adidas Vibes’ Hair & Body Mists in travel retail demonstrate this approach, with each scent in the collection designed for solo wear or layering to create emotion-led scent experiences and signature combinations.

Sustainable innovation

Younger travelers also demand eco-conscious options without compromising on product efficacy or travel practicality. “We are always looking for ways to create new, different and exciting fragrance innovations that embody both desirability and sustainability,” Engell adds.

Refillable and reusable packaging options, particularly refillable travel sprays, support circularity while addressing travel retail’s portability requirements. For example, CK One Essence features upcycled turpentine from paper industry by-products that are extracted through fractionation processes to create modern scents, and the recent relaunch of Boss the Scent uses 17% less glass and a refillable design that reduces waste while modernizing the product.

Digital engagement

The evolution of fragrance discovery has shifted dramatically as younger consumers increasingly turn to digital platforms before making purchasing decisions. This behavioral change has prompted Coty to rethink how it approaches influencer partnerships and technology integration in travel retail environments.

“Social media is playing an increasingly important role in the fragrance discovery process; it is now the third-leading source of influence on fragrance purchasing decisions among younger consumers,” Engell remarks. “Yet, this is part of a much larger equation; younger consumers increasingly crave authenticity in their shopping experiences, whether online or offline. We are seeing greater demand for seamless omnichannel experiences that encourage this emotional connection, whether that is initial discovery online or point-of-purchase in physical stores.”

Coty’s response centers on co-creation partnerships that begin earlier in the development process rather than traditional endorsements. “Advocacy is a key pillar of our strategy. We work very closely with our retailers and partners to develop dynamic experiences in travel retail, constantly exploring and enhancing how travelers discover and engage with our products through digital storytelling and cutting-edge technology,” Engell explains.

The exclusive Kylie Cosmetics pop-up experience at Incheon Airport marked the brand’s Korea debut while generating significant organic social media traction from beauty influencers and creators across multiple platforms, and the debut of Marc Jacobs Daisy Wild Eau So Intense in global travel retail earlier this year was a standout. “To commemorate the launch, we unveiled Marc Jacobs’ first-ever cross-category pop-up experience at Sydney Airport, Australia, in April, inviting visitors to immerse themselves in the iconic Daisy Marc Jacobs universe,” says Engell.        

This digital-first approach extends to Coty’s broader technology strategy, with AI-powered makeup try-on tools from brands including Burberry, Kylie Cosmetics and Gucci representing investments that enhance discovery while creating consumer preference data.

Retailtainment experiences

Travel retail environments are being redesigned to create immersive brand experiences that transform shopping into entertainment while accommodating Gen Z’s expectation for personalized interactions.

“In travel retail, we are focused on creating highly exclusive, bespoke experiences that generate intrigue and excitement among travelers,” Engell states. “Our omnichannel strategy is designed to engage visitors at every touchpoint of their journey, fusing innovative digital activations with dynamic in-store features to bring our brands’ values and stories to life.”

The avant-première launch of BOSS Bottled Beyond Eau De Parfum brought this comprehensive approach to life. “We wanted to create a premium fragrance experience that not only commemorated the launch of BOSS Bottled Beyond Eau De Parfum but also took travelers on an unforgettable journey into the BOSS universe,” Engell explains. “To achieve this, we delivered one of our most comprehensive global travel retail campaigns to date, ranging from multi-sensory fragrance mixology bars, themed photobooths, interactive digital games and photo filters to cross-category installations showcasing BOSS fragrances, fashion and eyewear.”

Cross-category activations have expanded beyond single-brand experiences. “Another great example is our partnership with The Shilla Duty Free Singapore and Changi Airport Group to launch an exclusive Burberry cross-category activation at Singapore Changi Airport in May, bringing the brand’s heritage to life through curated selections of Burberry clothing, accessories, eyewear, fragrances and make-up,” Engell concludes.