Generation Z and Millennials already account for more than 60% of global spending and are transforming retail. To win them over, brands are betting on retailtainment: immersive, phygital and emotional experiences that combine technology, narrative and community.

According to Infobip, a global leader in omnichannel communications, and according to one of its studies on retail and generations, the future of retail depends on brands' ability to turn each touch point into an emotional and personalized experience, both in the physical and digital world.

The power of the new generations
Each generation consumes differently, but the youngest ones are setting the pace:

Generation Z (1997–2009): seeks authenticity, interaction and “shareable” experiences on social networks. Prefer Instagrammable spaces, pop-ups or live broadcasts that generate FOMO (fear of missing out).

Millennials (1981–1996): They value personalization, sustainability and spaces designed to stay: cafes, lounge areas and sensory experiences that integrate digital with in-person.

Generation Alpha (2010–2024): Digital natives, they are attracted to augmented reality, interactive games and gamified experiences.

Generation X and Baby Boomers: They prioritize comfort, personalized attention, and educational or social experiences.

The common denominator: active participation, emotion and connection. It is no longer enough to sell; you have to inspire.

The brands leading the change

The sociologist George Ritzer defined the retailtainment as “the use of sound, ambiance, emotion and activity to arouse customer interest and put them in the mood to buy.” But today the concept goes much further: brands like Nike, Sephora and IKEA are turning each visit into a multi-sensory adventure.

Nike, for example, turns its House of Innovation store in New York into a creativity laboratory, where customers customize their shoes, try products in interactive zones and participate in gamified sports challenges.

For its part, Sephora, with its Beauty Hub, combines workshops, live tutorials and augmented reality tools such as Virtual Artist, which allows you to digitally test products and receive personalized recommendations.

IKEA transforms its stores into living showrooms: adults design real spaces while children play, generating a family experience that combines exploration and entertainment.

These strategies achieve concrete results: lActively engaged customers stay in the store 40% longer and are 30% more likely to return, according to market studies. Furthermore, they not only entertain: they increase length of stay, boost loyalty and encourage conversation on social networks, creating emotional bonds that transform the customer into a brand ambassador.

Emotion as a driver of consumption
“Brands that combine digital intelligence with human emotion will lead the next era of retail,” he explains. Fabiola Jiménez, Country Manager of Infobip Mexico. “At Infobip we help companies integrate conversational technology—from WhatsApp to AI assistants—to extend the shopping experience beyond the physical store and maintain a constant emotional connection.”

The phygital era: where the physical and the digital meet
He retailtainment It finds its peak in the phygital concept, where the physical and digital worlds are integrated. Augmented reality, interactive screens and live broadcasts allow the online experience to be transferred to the real environment.

Cases such as Alibaba's “See Now, Buy Now” fashion show, which allowed clothing seen on the catwalk to be purchased in real time, or Tiffany & Co.'s Blue Box Café, where visitors can experience their own “Breakfast at Tiffany's”, show how technology and storytelling come together to generate community, desire and belonging.