Phygital retail: KATE’s first-ever flagship aims to entice digital natives with multi-sensory experience

The new flagship in Shibuya, Tokyo was unveiled on July 25. The space was conceived and designed to “to stimulate the senses and celebrate individuality” with immersive phygital experiences.

Before the launch of KATE Shibuya, the brand was primarily available in Japan’s drugstores and specialised cosmetic stores.

“We live in an age where the new coronavirus has transformed lifestyles, and the same traditional approach to products and services is no longer sufficient to meet the needs of these consumers. We believe it is important to upgrade the customer experience and create enthusiastic fans by understanding consumers best and providing an overwhelming experience,” said Arihiro Iwata, brand manager of KATE.

The flagship offers a range of phygital experiences such as the Kate iCON Box, a makeup vending machine that personalises eyeshadow palette quads from 26 options using a virtual try-on tool.

The store also brings first-hand experiences such as trying on makeup suggested generated by artificial intelligence (AI) analysis with the skilled help of in-store beauty advisors, known as KATE creators. Furthermore, customers can try out all KATE SKUs first-hand at the flagship store.

The launch of KATE Shibuya is the brand’s latest digitisation efforts, including the launch of KATE ZONE, a virtual e-commerce experience.

Through these initiatives, the brand hopes to attract more younger consumers.

“Visitors can experience a fusion of the virtual and the real that can only be had at this flagship store… We believe that successfully integrating the respective strengths of real and digital life to provide an even more KATE-like customer experience will lead to an increase in the number of young, digitally native fans,” said Iwata.

From Japan to the world​

Launched in 1997, KATE is one of Kao Corporation’s Global 11 (G11) brands and one Japan’s leading colour cosmetic brands. According to INTAGE SRI+, KATE was the top makeup brand in Japan from 2021 to 2023.

The launch of the global flagship in Shibuya, one of the most iconic districts in the world, will also serve to strengthen the brand’s presence globally.

“Taking advantage of the opening of this flagship store, we will use the global brand website as a platform to connect the brand with customers globally, especially in Asia, while utilising various digital contents such as the KATE ZONE,” said Iwata.

Iwata told CosmeticsDesign-Asia that the brand has yet to decide if they will expand this retail concept overseas.

However, the brand has planned a pop-up store in China to promote its best-selling lipstick, Lip Monster.

He added that Lip Monster promotion activities will be held across Asia.

Lip Monster debuted in the wake of the COVID-19 pandemic. Despite the timing, the product was a tremendous success and was also won several awards including the @cosme Best Cosmetics Award.

According to Iwata, demand for Lip Monster has not diminished.

“Lip Monster, which was created in the wake of the corona disaster and has led the struggling makeup market, continues to sell well. 22 million units were shipped between April 2021 and the end of June 2024, and the total number of units shipped exceeded 22 million. Sales continue to be strong. The brand's sales are also expected to continue to grow.”

In addition to Lip Monster, the brand will also promote its long-lasting makeup series, which spans across categories, as it looks to “further increase the number of fans among young people in Asia”, said Iwata.