The beauty boom is here to stay as luxury brands lean in.
The popular “lipstick effect” theory—where sales of a less-costly luxury item soar during times of economic uncertainty compared to more expensive goods—has taken on a new meaning for brands.
According to consulting firm McKinsey, the beauty market is expected to reach $580 billion by 2027, so it’s no surprise that executives are betting big on cosmetics to catapult sales and gain recognition among a new audience, no matter the state of the economy.
Hubert de Givenchy originally launched Givenchy Parfums with Audrey Hepburn as his muse for the debut fragrance. Some 60 years later, the brand’s viral Prisme Libre brightening powder has become the star of the show—and the subject of 41 million posts on TikTok. This product, the top-selling loose powder in Asia, has also ensured the Givenchy name remains on consumers’ minds and wish lists, even when the fashion label has been without a creative director. In other words, this particular uncertainty hasn’t kept consumers from purchasing Givenchy beauty products.
Celine Beauté (Photo courtesy of Celine)
Similarly, heritage houses like CHANEL, Dior, and Saint Laurent have been parlaying their allure into prestige cosmetics for decades, highlighting the continual desire from consumers to purchase luxury beauty items. Despite the saturated category, it hasn’t deterred other luxury brands from following suit. In 2019, Gucci added a prettily packaged offering amid its Alessandro Michele-era maximalism, and in the spring of 2020, Hermés launched its own makeup line, starting with a selection of lipsticks, closely followed by blush and nail enamel. Following suit, Valentino then capitalized on its love affair with punchy colors to launch cosmetics in 2021. In recent months, we’ve seen rollouts from CELINE, Dolce&Gabbana, Prada, and Rabanne.
How does a brand ensure they make noise in the beauty arena, even in uncertain times?
By reinventing the wheel a little, says Rabanne Brand vice president Jerome Leloup. Especially when enticing a younger, cooler crowd.
“Most brands have a top-down approach. We said, ‘Let’s have a bottom-up approach’ like a collective hub or a creative lab,” Leloup explains. “For a younger consumer who thinks these couture brands are too ‘mum looking’ or too expensive, we thought, ‘let’s do a fashion approach with all the fun and honesty of an indie brand.'”
Left: Rabanne Eyephoria Mini Eyeshadow Palette Duo (Photo courtesy of Rabanne)
Right: Rabanne Eyephoria Famous Mascara (Photo courtesy of Rabanne)
Ensuring the offering is appealing and accessible while still feeling elevated is key. Rabanne Beauty exploded onto the scene with all products priced between $20 and $40, in conjunction with a rebrand (the word “Paco” was dropped from the brand name) and a buzzy H&M collaboration that piqued Gen Z’s interest.
“We wanted to be as welcoming as possible. In the campaign, there are many different styles of girls and guys,” Leloup says. “We tried to be that one brand that does what the cool brands do and what the super high-end brands do with clean, vegan, and cruelty–free products.”
For the launch, Rabanne Beauty street-cast new faces and invited them to share their thoughts on product development. “Our tribe is very much the TikTok kids who want to show their skills,” Leloup adds.
This in-depth knowledge of influencers and what entices them is imperative. Before his departure as the artistic, creative, and image director of CELINE Beauté, Hedi Slimane shared a teaser that the forthcoming CELINE Beauté—the first cosmetics line in CELINE’s nearly 80-year history—will be all about “high-end, luxurious objects” inspired by 18th-century French classicism, particularly Louis XVI’s gold jewelry and the minimalism of Art Deco. Slimane called it “couture products that serve all beauty rituals” and added that CELINE Beauté would speak to the French idea of femininity and allure, which continues to fascinate shoppers worldwide.
Rabanne Eyephoria Mini Eyeshadow Palette Duo (Photo courtesy of Rabanne)
Moving from French girl-approved effortlessness to easy Italian glamour, Dolce&Gabbana is renowned for the latter. Unveiled in April, the brand’s first beauty offering is brimming with ingredients native to Italy, such as a plumping lip oil with Italian mint extract and a primer boasting Italian bergamot and seawater. Further enticing consumers, the Eye Dare You eye shadow palette looks like a pocket-sized version of the $5,000 DG Logo Box Bag but with an $89 price tag. It’s no wonder the brand statement reads that this new focus is “an ode to beauty, fashion, and Italian style that now materializes in a completely new range of products that speaks to everyone, no one excluded.”
The expansion of existing fine beauty lines and the addition of high-end brands who have gotten into the cosmetics and perfume game serves to illustrate that there is a continual market for more affordable items from luxury brands. The lipstick effect is in full effect, providing brands with the confidence to keep innovating with their products.
