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Luxury beauty gets a new heavyweight as Louis Vuitton unveils its cosmetics line—here’s what it means for LVMH’s dominance.
What You’ll Learn in This Piece:
- Why Louis Vuitton is entering cosmetics with Dame Pat McGrath—and how it positions the brand against Chanel and Hermès in luxury beauty.
- LVMH’s shift toward high-margin beauty as fashion sales soften—raising questions about internal competition with Dior Beauty.
- THE GOODS’ take on Louis Vuitton’s China strategy—what the brand should leverage in localised R&D, WeChat & Douyin marketing, and VIP distribution to win in the market.
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PARIS - Luxury brands don’t sell products—they sell ecosystems. And Louis Vuitton’s move into beauty isn’t about diversification, it’s about dominance. Launching this autumn, La Beauté Louis Vuitton, led by Dame Pat McGrath, is a direct challenge to Chanel and Hermès in ultra-premium cosmetics.
Why now? LVMH’s fashion division slipped 5% in Q3 2024. Beauty—high-margin, repeat-purchase, and resilient—is the natural hedge. Vuitton, already a force in fragrance, is expanding with 55 lipsticks, 10 lip balms, and 8 eyeshadows, backed by McGrath’s industry clout and China-first strategy.
This is a calculated expansion into one of luxury’s most profitable sectors. While handbags and ready-to-wear face softer demand, beauty is a repeat-purchase, high-margin category that has consistently outperformed. Louis Vuitton is late to the beauty party—but it’s arriving with power, positioning, and Pat McGrath.
LVMH’s Beauty Empire: A Stacked Portfolio
LVMH already owns an empire in fragrance, skincare, and makeup, spanning:
LVMH-Owned Beauty Brands (Fully or Majority-Owned)
- Parfums Christian Dior – The crown jewel, spanning fragrance, skincare, and makeup.
- Guerlain – Heritage fragrance, now a skincare and makeup player.
- Givenchy Beauty – High-end fragrance, makeup, and skincare.
- Acqua di Parma – Italian luxury fragrance and grooming.
- Fresh – Prestige skincare, best known for Sugar Lip Treatments.
- Make Up For Ever – Professional-grade artistry brand.
- Fenty Beauty (50% owned) – Rihanna’s blockbuster beauty empire.
- Fenty Skin (50% owned) – The skincare extension of Fenty Beauty.
- KVD Beauty, Benefit Cosmetics, Ole Henriksen – Rounding out the mid-to-premium range.
Luxury Fashion Fragrance Licenses:
Louis Vuitton Beauty: A Direct Challenge to Chanel & Hermès
Until now, Louis Vuitton’s beauty presence was limited to fragrance. Launching makeup (and eventually skincare) under Pat McGrath signals a serious challenge to Chanel, Hermès, and even Dior Beauty.
Chairman and CEO Pietro Beccari makes it clear that this isn’t just another product line, but a long-term brand evolution: “La Beauté Louis Vuitton is a natural business evolution, driven by our meticulous attention to quality, formula, and innovation.” The message between the lines? Ownership of the ultra-premium space with category-defining products, deep R&D investment, and airtight brand storytelling. Louis Vuitton wants to set the price of admission to the beauty industry.
Unlike past fashion-brand beauty launches that leaned on name recognition, Louis Vuitton is leveraging McGrath’s credibility from day one.
Why McGrath?
- Deep Fashion Ties – She’s been backstage at Louis Vuitton shows for 20+ years.
- Proven Luxury Positioning – Her Pat McGrath Labs eyeshadow palettes sell for $128.
- Scarcity & Drop Culture Expertise – Her limited-run, sellout collections are beauty’s version of streetwear hype.
This move is about owning beauty from launch.
The China-First Play: Beauty as an Entry Point
LVMH’s investment in beauty is also a direct response to shifting global demand. With handbag sales slowing in China, cosmetics offer a way to capture aspirational consumers at a lower price point—without diluting the brand.
The LVMH Beauty Research & Innovation Center in Shanghai signals a China-first strategy:
- Localised R&D tailored to Chinese beauty consumers.
- Digital-first marketing via WeChat, Douyin, and Xiaohongshu.
- Luxury influencer & celebrity endorsements to drive demand.
If Vuitton follows the Hermès model, expect no beauty counters—only direct distribution through boutiques and VIP channels. Exclusivity will be the selling point.
Pricing Strategy: Ultra-Luxury Over Mass Appeal
Unlike Dior or Chanel, which cater to a broad range of price points, Louis Vuitton is going ultra-premium. The fragrance division offers clues:
- Les Extraits perfumes retail at $690 per bottle—far above traditional luxury pricing.
- Lovers Perfume sells for $356 per bottle, reinforcing the house’s high-end positioning.
Expect limited-edition drops, VIP access, and collectible beauty items—not viral $40 lipsticks.
The Big Question: Scalable Business or Exclusive Niche?
Louis Vuitton must decide whether La Beauté Louis Vuitton is:
- A global beauty empire like Dior Beauty, designed for long-term scale.
- A niche ultra-premium play like Hermès Beauty, focusing on exclusivity over volume.
The outcome will define whether LV Beauty becomes a status symbol or just another luxury beauty experiment.
Can Louis Vuitton Replicate Its Leather Goods Success in Beauty?
There are two possible scenarios:
Scenario 1: Beauty Becomes Louis Vuitton’s Next Powerhouse
- If McGrath’s formulas redefine luxury beauty, LV could dominate ultra-premium beauty the way Hermès dominates leather goods.
- If exclusivity is maintained, LV Beauty could become a status collectible—like a Birkin for makeup.
Scenario 2: A High-Profile Experiment That Fades
- If pricing outpaces perceived value, even wealthy consumers may hesitate.
- If the products don’t feel distinctly Louis Vuitton, they risk blending into the crowd of fashion brands chasing beauty dollars.
Execution Will Define Success
Louis Vuitton’s entry into beauty is a return to an era when makeup was as much an accessory as a handbag.
The maison has a history of vanity cases, gilded compacts, and brushed metal lipstick tubes, and the real intrigue lies in how it will translate that legacy for today’s luxury consumer. Will we see 1920s flapper opulence reimagined? Will the products feel like true objets d’art—weighted, tactile, indulgent? With Pat McGrath at taking charge, the formulas will be impeccable—but just as crucial is the experience.
Luxury beauty, at its best, is about more than pigment and performance. It should be: a little ritual, a little history, and a lot of desire.
Louis Vuitton has mastered that feeling in leather goods—now, it just has to do the same in beauty.
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