Experiential marketing—such as a pop-up event or an immersive experience—has become the beauty industry's blueprint for success. From NARS Cosmetics’ life-sized complexion chessboard to Chanel Beauty’s giant skateboard ramp featuring pros applying lipstick mid-trick, the boundaries of the marketing strategy seem almost limitless. To keep up with the competition, 84% of beauty brands have increased their experiential marketing budgets (38% significantly and 46% slightly) in the past three years, with 10% to 30% of overall company spending now attributed to events and immersive activities that enhance customer experiences.

Typically, pop-ups have been one-brand specific, executed to meet consumers where they are while hoping to impress with unique, experiential activations. As a result, beauty enthusiasts have become accustomed to this new marketing era, and 71% now expect personalized experiences from brands to be the standard, according to McKinsey & Company.

Retail's New Reality 

Despite frequently being a stand-alone concept for individual brands, retailers have also successfully utilized experiential marketing, uniting multiple beauty brands to engage with both new and loyal shoppers.

Sephora's event, Sephoria (which began in 2018), has become a yearly expectation among beauty consumers and is growing bigger every year. The event commonly includes expert-led masterclasses, live demonstrations, and multisensory experiences from a selection of over 50 brand partners, which have previously included K18, Supergoop!, Dr. Dennis Gross Skincare, and Fenty Beauty.

After a move to a virtual event during the pandemic, Sephoria physically returned in 2023, taking place in a hybrid format in NYC, with its live-ticketed event amassing over 4,200 attendees, as well as several attending international online events in select markets.

Following Sephoria's (virtual) international success in previous years, the retailer expanded the event to physical locations across the globe in 2024, visiting the US, Paris, Shanghai, Brazil, and the UAE. The event's first stop (Atlanta) sold out within three weeks of being announced, breaking the record for the largest number of Sephoria tickets ever sold at 8,000 tickets. Xia Ding, Managing Director of Sephora Greater China, shared her thoughts last year on Sephoria's expansion. "Seeing this vibrant convergence of beauty enthusiasts and brand partners is truly inspiring. We remain dedicated to innovating and curating exclusive beauty experiences synonymous with the Sephora brand of magic as we strategically broaden our brand visibility and deepen our reach."

The Ultimate Experience

Ulta Beauty is set to explore experiential marketing this year through its upcoming event, Ulta Beauty World. The activation, predicted to host more than 1,500 attendees, will take place in San Antonio on April 26, aligning with the retailer's Field Leadership Conference.

"Ulta Beauty World will allow us to deepen our connection with beauty enthusiasts, providing an in-person touchpoint to our beloved brands, experts, and latest innovations," Kelly Mahoney, Chief Marketing Officer at Ulta Beauty, told BeautyMatter. "We're opening up exclusive access for guests to peek behind the curtain and step into our world to truly discover the best in beauty."

For $160 a ticket, consumers will be able to engage with 195+ big brands in beauty, from YSL Beauty to Dyson, CoverGirl, Neutrogena, and more. Beauty influencers will also be on-site for live tutorials and meet-and-greets. Additionally, attendees will each receive a Beis Weekender Bag filled with over $1,000 worth of SKUs from the impressive roster of participating brands.

"Collaboration is at the heart of everything we do, and Ulta Beauty World is a prime example of how we bring our brand partners, experts, and guests together in fresh, immersive ways," said Mahoney. "The brands, trends, and viral moments that consumers see daily on social media—often through their favorite influencers—will now be at their fingertips."

The event will tap the recent viral beauty merch craze (successfully executed by brands such as e.l.f and Bubble) through the Interactive Signature Studio. From designing friendship bracelets and keychains to personalizing tote bags and cowboy hats, Mahoney believes that the event will "help drive loyalty by fostering unforgettable moments that go far beyond a beauty purchase" while allowing Ulta Beauty customers to "connect with fellow beauty lovers in a way that digital interactions alone can't replicate." 

Ulta Beauty World comes after Ulta Beauty lost market share for the first time in 2024, delivering weaker-than-expected earnings guidance for 2025. The earnings report was the first since recently appointed Kecia Steelman took up the CEO role. "The beauty landscape has fundamentally changed," Steelman said during an analyst's call. "Guest expectations continue to rise, and the pace of change is accelerating."

The activation presents an opportunity for Ulta Beauty to grow. "We will continue to fuel brand affinity and drive ongoing engagement, ensuring Ulta Beauty remains at the forefront of the beauty conversation," Mahoney added. "We're proud to showcase our commitment to serving as the premier beauty retailer and discovery playground for beauty lovers nationwide."

Concept to Connection

Anthony Coppers, founder and Head of Innovation at experiential marketing agency Gradient, believes the best way for retailers to engage with experiential marketing is to follow what he calls the “IMPACT model.”

"Retailers stepping into experiential for the first time must go beyond spectacle and create IMPACTful experiences—those that are integrated, measurable, participatory, a(e)ffective, community-building, and true-to-brand," Coppers told BeautyMatter. "When these six principles align, retailers guarantee their event becomes a lasting brand-building moment."

Coppers explained that retailers must think of their event "not as an island, but rather an ecosystem" for the best integration. The event should be tied seamlessly into existing marketing, social, e-commerce, and loyalty programs. The key to success is to create a journey where digital and physical experiences reinforce each other.

Mahoney reiterated this message. "Today's consumers shop across channels; Ulta Beauty World strengthens our omnichannel environment, seamlessly bridging physical and digital by inspiring in-store visits, social sharing, and fueling conversation through Ulta Beauty's app and loyalty program."

Retailers should also correctly measure their events. "Good vibes aren't a KPI [key performance indicator]," affirmed Coppers. "Additionally, ROI isn't just who shows up—it's what they do next." Retailers should track engagement through QR codes, CRM [customer management relationship] growth, social engagement, and post-event content longevity. "Consumers are your best content creators. Design activations that encourage organic sharing and will reduce paid media spend," Coppers said. "Encourage sign-ups for exclusive post-event content, special offers, or VIP loyalty perks. Data capture increases your chances of turning attendees into long-term customers."

Events should encourage participation as much as possible. "Consumers don't want to watch; they want to do. Retailers should aim to make the event hands-on, interactive, and co-created by attendees," explained Coppers. Whether product customization, AI-driven beauty consultations, or live tutorials, the best events turn consumers into active participants. "If attendees feel like extras in your brand's production rather than active participants, you've lost them," he adds.

Retailer activations should be effective by going beyond entertaining people; they should also move them. "Emotional resonance creates brand affinity. Sensory design (scent, sound, texture) and nostalgic or aspirational storytelling deepen engagement beyond a fleeting moment," said Coppers.

Community-building is at the core of a successful experiential event. "Events should spark ongoing conversations and connections rather than being just a one-and-done," explained Coppers. Post-event digital communities, loyalty program tie-ins, and ambassador programs turn attendees into long-term brand advocates.

Finally, activations must be true-to-brand. "If any competitor could have created your event, it's not unique enough. Lean into your brand's DNA," said Coppers. For example, "a minimalist, clean beauty brand wouldn't host a neon rave. A brand known for sustainability shouldn't hand out plastic swag bags," he added.

The Future of Retail Is an Experience

As the beauty industry rapidly evolves, experiential marketing will continue to prove itself as more than a trend but a necessary concept for brands and retailers looking to create deeper connections with consumers. From Sephora's retail event pushing geographical boundaries to Ulta's sure-to-impress Ulta Beauty World, it's clear that the future of retail is increasingly centered around interactive experiences that transcend traditional marketing. In an era where consumers crave connection, retailers who come out on top will be those who turn beauty shopping into an unforgettable experience.

"When experiential marketing is done right, it isn't only about creating moments; it should also create movements. Brands that embrace the IMPACT framework will have a real impact and the power to even shape culture," Coppers concluded.