Expensive Lipstick Line at €160 by Louis Vuitton: Promotion Urges Purchases Amidst Economic Uncertainty

Louis Vuitton, the iconic luxury fashion brand, has ventured into the beauty industry with a new line called "La Beauté." The creative director of the new cosmetics line has not been officially announced, but industry rumours suggest that Dame Pat McGrath, a renowned makeup artist and founder of Pat McGrath Labs, is at the helm.

The collection, which includes luxury lipsticks priced at $160 each and eyeshadow palettes for $250, stands out even in the luxury beauty world. This is particularly true when compared to competitors like Chanel and Dior, who offer lipsticks for around $50 and $81 respectively. However, a partner at Reavis Page Jump, Deena R. Merlen, emphasizes that the cosmetics line is more affordable than Louis Vuitton bags, potentially signifying optimism.

The collection also comprises accessories such as a mini trunk for $2,990 and a makeup case for $870. These novelty and playful designs, which can also be used as handbag charms, are big buying incentives for Generation Z.

Aspiring luxury consumers, a significant part of the market, are more discerning today. They think carefully about what's trending and what's worth splurging on. Tamara Charm, a partner at McKinsey, notes that consumer sentiment is complex, with people being cautious and price-sensitive, but also willing to spend on the right items at the right time.

Hannah Reed, analyst at Walnut Collective, sees consumers placing more value on skincare and cosmetics, willing to pay more for the right product or invest in beauty. This trend is reflected in the refillable lipsticks in Louis Vuitton's La Beauté line, which could turn into collector's items, as consumers can have something for life and repurchase when empty.

The success of Louis Vuitton's beauty strategy depends on whether they hit the zeitgeist, as value is subjective. Charm distinguishes between two types of luxury consumers: those who can easily afford high prices and "aspiring luxury consumers" for whom luxury is a stretch. The luxury market is currently experiencing a weak period, with LVMH, Louis Vuitton's parent company, reporting a 4% drop in revenue for the first half of 2022.

However, the launch of La Beauté could be a strategic move to cater to the aspirations of these consumers, who are a significant part of the market. It remains to be seen if this foray into the beauty industry will prove to be a success for Louis Vuitton.