The face of beauty is shifting, with younger generations leading a step change in the way the industry approaches marketing and retail. Rather than advertising products in the pages of beauty magazines or TV commercials, Gen Z is increasingly learning about and buying their cosmetics through social media and influencers – specifically, on TikTok. Gen Z currently makes up around 18 per cent of Australia’s population, making them an increasingly important market for savvy businesses, as
as they age through adolescence and begin earning money.
Discount department store Kmart has seen this, and following a refocus of its beauty categories over the last 18 months, it has relaunched its house brand Oxx Cosmetics as a ‘luxe for less’ option targeted directly at Gen Z.
“[They’re] the ones driving change across the industry,” Kmart’s beauty buyer Nicola Farrell told Inside Retail.
“This customer group is price sensitive, and although they’re high spenders across beauty, they’re also driven by value. We’ve focused on the Gen Z customer across some key categories – they demand more of us, and really push the team in terms of innovation.”
The Oxx range includes items ranging from lipsticks and blush, to watermelon-styled nail kits and Halloween-themed temporary tattoos.
Kmart saw the power Gen Z held when one of its products, a $4.50 heatless hair roller, went viral on TikTok and began selling through the roof.
“The power and influence of this social-savvy generation is really remarkable… we have so much exciting newness in the pipeline that will really capture this audience,” Farrell said.
Members of Gen Z tend to fall between 10 and 24 years of age, putting the youngest of their generation within the tween category, and many of them within their teenage years.
“Incredibly smart”
Retail Oasis co-director Trent Rigby told Inside Retail that Kmart’s move is “incredibly smart”, as few department stores in Australia offer beauty products for teens and tweens. The only ones currently doing so are specialty beauty retailers, such as Sephora and Mecca.
“Department stores in Australia have traditionally played around teen and tween clothing, but not beauty or cosmetics,” Rigby said.
“Kmart’s entry here really talks to the growing size of the market opportunity, and how attractive this teen and tween market is for retailers locally. We’ve seen department stores in the US begin to bet heavily on [this market], particularly Target US, with their partnership with Ulta Beauty.”
Kmart’s focus on Gen Z is also smart on the grounds that, despite the fact people in their age bracket tend to crave independence, most of their purchases are coming by way of their parents.
“Secondly, Kmart have already established themselves and are generally known by Australian consumers for providing accessibility and affordability, something which is keen for [younger] consumers and their parents,” Rigby said.
Queensland University of Technology’s Professor Gary Mortimer agrees, noting that creating a range of beauty products that sell for ‘pocket money’ is a smart way to target younger and more financially-constrained customers.
“The next generation retailers will target is Gen Alpha, those born from 2010, currently aged up to 12 years – there are 3 million in Australia, now populating our primary schools,” Mortimer said.
“They’ll be vital consumers for brands to target. They’re digital natives, are the most materially and fashion focused generation, as well as the most technologically literate generation.
“However, they’re also financially constrained, with many too young to work, so the launch of Kmart’s new cosmetics and skincare ranges is a smart move to capture these emerging groups of important future loyal consumers.”