When I wrote about this in 2022 for Future Commerce, one thing I wanted to hit home was that vending machines should be a larger part of a scaling DTC brand’s omni-channel strategy. It costs a lot less than people realize, and having a tactile way to engage with your brand pays dividends beyond the money generated by the machines themselves.
In fact, I would even argue that the money from the machine isn’t the greatest strategic benefit—it’s the increased brand and purchase value you can drive by embedding an IRL touchpoint within an otherwise fully digital customer journey. The core strategy I outlined in 2022 remains relevant, but with important updates for the modern retail landscape.
The Two Paths: Brand Building vs. Revenue Generation With Vending Machines
As originally outlined, vending machines serve two primary purposes: customer acquisition/brand awareness or revenue generation. In 2025, this dichotomy has become even more pronounced, with smart vending machines enabling sophisticated data collection and customer engagement that blurs the lines between online and offline in the modern ecommerce conversion funnel .
Brand Building Strategy
The success of brands like Kylie Cosmetics demonstrates the power of physical touchpoints for digital-first brands. Kylie's strategic use of pop-up experiences and retail presence helped establish brand legitimacy and created powerful social media moments. Modern vending machines can serve a similar purpose, offering a physical brand presence without the overhead of traditional retail.
Revenue Generation Approach
For EBITDA-focused deployments, smart vending machines now offer enhanced capabilities for contextual placement and real-time inventory management. The key remains placing machines where your product provides immediate utility, such as airports or high-traffic venues.
Implementation Of Vending Machines For Omni-Channel Marketing In 2025
Machine Acquisition
While my original experience of purchasing a basic vending machine from China for $2,800 demonstrated the low barrier to entry, today's smart vending machines require more significant investment. Modern units with AI capabilities and interactive displays typically range from $15,000-$20,000.
Technology Integration
Modern vending machines now feature:
- AI-powered recommendation engines
- Augmented reality displays
- Mobile payment integration
- Real-time data collection capabilities
Location Strategy
High-traffic venues remain crucial but are increasingly competitive. The focus should be on:
- Areas with 24/7 access needs
- Locations with high digital payment adoption
- Spaces where traditional retail is impractical
Leveraging Vending Machines For Digital-First Brands: Kylie Cosmetics And Benefit Cosmetics
Kylie Cosmetics Airport Deployment
Kylie Cosmetics launched their first vending machines at McCarran International Airport in Las Vegas in 2019, strategically placing units in terminals D (gate D18) and E (gate E9). The machines featured illuminated displays of products, including the signature Lip Kits and pressed powder palettes. The brand has since expanded to other locations including JFK Terminal 8 and Savannah/Hilton Head International Airport, where travelers can purchase seasonal items and special edition products.
Benefit Cosmetics' Early Innovation
Benefit Cosmetics pioneered the luxury beauty vending concept with their "Glam Up & Away!" initiative in 2013. They initially deployed 25 kiosks across major US airports including:
- New York JFK
- Austin-Bergstrom International
- Las Vegas McCarran International
Key Implementation Differences
In terms of design, Kylie Cosmetics took a very name brand focused approach with sleek, branded displays of Kylie's image, whereas Benefit relied on a vintage pink beauty bus design. Kylie Cosmetics sold a range of products, including lip kits, seasonal items, and pressed powders in their vending machines, while Benefit offered their 30 best selling products including mascara and primers.
Finally, Benefit took a more high-tech approach to the user experience of their vending machines, featuring an interactive touchscreen with beauty tips and tutorials. In comparison, Kylie Cosmetics did not.
Performance Indicators
Benefit's airport kiosks proved particularly successful, with travelers consistently engaging with the machines. Reports indicate that "almost every woman who walked by did a double take" at these installations. The machines served not just as point-of-sale devices but as powerful brand awareness tools, creating social media moments and earned media coverage.
With vending machines, cosmetics brands were able to effectively leverage automated retail to:
- Capture impulse purchases in high-traffic locations
- Create Instagram-worthy brand moments
- Provide convenience for traveling consumers
- Establish physical presence without traditional retail overhead
Modern Considerations For The Vending Machine To Digital Purchase Conversion Funnel
In-Person Payment Processing
Digital payments have become essential, with 54% of consumers more likely to purchase from machines that accept mobile payments. This represents a significant shift from the payment processing challenges I encountered in 2022.
Data Collection and Digital Remarketing
Modern vending machines serve as data collection points, gathering valuable insights about customer preferences, geographic habits, and purchase patterns. This information can inform broader marketing and product development strategies.
For example, many of the smart vending machines today can capture email and SMS. This allows you to build lists and tailor digital content to the people that engage with your vending machines, creating an organic retention funnel for buyers who’ve had first-time in-real-life interactions with your brand.
You’re now able to measure the performance of that cohort on the vending machine channel, as well as tying their purchase patterns back to your DTC store.
Offline has finally gone online.
Updated Recommendations: Vending Machines As Part of Omni-Channel Marketing
1. Machine Selection
Instead of my original recommendation to purchase basic machines, consider leasing smart vending machines with full technical capabilities. This approach provides flexibility and reduces initial capital requirements.
2. Location Strategy
Focus on locations where your target demographic is already present and engaged. The machine should serve as both a convenience point and a brand billboard.
3. Integration with Digital Strategy
Ensure your vending machine strategy aligns with your broader digital presence. Modern machines can integrate with your existing e-commerce platform and customer loyalty programs.
Run specific ad campaigns geofenced around your machines. Even if a customer doesn’t buy directly from your machine at the moment, you’re able to bring them back to an owned channel, run paid media targeted to them, convert that cohort through landing pages.
The vending machine has become true brand awareness and lead generation.
Future Outlook: Vending Machines As Interactive Brand Experiences
The vending machine industry continues to evolve, with projected growth at a CAGR of 9.4% through 2025. For e-commerce brands, vending machines represent an increasingly sophisticated tool for market expansion and customer acquisition.
Smart vending machines are becoming more than just point-of-sale devices; they're evolving into interactive brand experiences that can collect data, engage customers, and drive both immediate sales and long-term brand loyalty. For brands, this means expanding our definition of what a modern conversion funnel looks like.
The strategy I outlined in 2022 remains fundamentally sound, but today's implementation requires greater technological sophistication and integration with broader digital commerce strategies. The key is to view vending machines not as standalone units but as part of an data-driven omnichannel retail strategy that bridges the physical and digital worlds.