Surprise-driven retail formats are shifting from novelty tactic to structured merchandising strategy in the US beauty market, with IPSY reporting accelerated year-over-year sell-through for its Mystery Bags and sustained engagement from Gen Z consumers.
IPSY’s January and February Mystery Bag drops outpaced prior-year sellout rates, with February reaching 30% sell-through in under a week, according to Stacey Politi, IPSY’s Chief Marketing Officer, told CosmeticsDesign. “The performance tells us consumers are continuing to prioritize value, newness, and play, and want their product from a curator that they can trust to deliver on all three,” she said.
The data suggests that, even while facing price sensitivity, consumers remain willing to purchase blind assortments when value perception and brand trust are established.
For beauty industry stakeholders, that distinction is critical. “Mystery only works when it is backed by trust,” Politi said, adding that the “reason IPSY’s format has endured is because members know the products are tested, curated, and worth their time and money.”
From novelty to infrastructure: ‘Mystery’ built into merchandising model
While blind-box culture has spread across retail categories in recent years, IPSY embedded surprise formats into its subscription ecosystem more than a decade ago.
“Surprise and delight is nothing new, but IPSY’s Mystery Bags are differentiated by our depth of expertise and quality of curation,” Politi said. “We’ve been doing this for over a decade, and our Mystery Bags are an extension of our goal to provide discovery, play, and savvy shopping — not just novelty for novelty’s sake.”
The company’s merchandising team tests more than 8,000 products annually, with Mystery Bag themes planned up to a year in advance and informed by user data, purchasing trends and forecasting, she explained.
That level of planning requires early collaboration on product assortment strategies and key performance indicators, she continued, which positions surprise formats closer to strategic channel planning than to opportunistic inventory clearance.
Gen Z reinforces experiential and shareable retail models
The acceleration in surprise-led shopping is closely tied to younger consumers, particularly Gen Z, who are blending commerce with entertainment and collective engagement. “What we consistently see, especially among younger beauty enthusiasts, is that they’re drawn to shopping that feels like an experience, not a transaction,” Politi said.
She linked the behavior to digital-native content habits. “Gen Z grew up watching unboxing videos on YouTube, where novelty cycles move fast and content is participatory,” she added. “Mystery formats tap into building that anticipation into a reveal, and that ‘what did you get?’ moment naturally fuels sharing, conversation, and community.”
However, she emphasized that unpredictability must still feel curated. “We find that the appeal goes even deeper, with Gen Z wanting discovery that still feels intentional and curated, and responding to formats that feel interactive and foster community and conversation,” Politi explained.
For brands targeting Gen Z, inclusion in curated surprise assortments can amplify visibility through organic unboxing and peer-driven recommendation loops.
UGC feedback loops influencing assortment decisions
Influencer and user-generated content play a crucial role in future merchandising decisions, including the curation and launch of mystery box format campaigns. Characterized as one of IPSY’s “greatest assets,” Politi shared that UGC is essential when analyzing member feedback and engagement.
“We have a network of more than 1,000 hand-vetted creators, and we actively use our native brand socials to spotlight their content and listen,” she said. Subsequently, insights from creators and member reviews feed back into product selection and experience refinement.
“The feedback informs future assortments and the overall IPSY experience,” Politi explained. “And it’s not just creators — member unboxings and product reviews through the IPSY Shop, our marketplace for our members, is a huge part of how discovery spreads, because people love seeing how others incorporate products into real routines.”
“That community energy helps us stay close to what’s resonating,” she added.
Experiential retail as a structural shift
Looking ahead, IPSY views surprise-driven formats as part of a broader shift toward experiential retail rather than a cyclical trend. Calling the trend a “lasting shift,” Politi shared that “as retail becomes more experiential, formats that combine entertainment, community, and value will continue to win.”
She added, “the opportunity is not just to surprise consumers, but to surprise them in ways that feel relevant and intentional,” she added.
If sustained, the model could reinforce curated discovery as a recurring component of US beauty retail strategy, with implications for product sampling, inventory planning, launch sequencing and brand exposure.
