Forget Diamonds, Luxury Brands Are Now Obsessed with Beauty
Pranav Rishi S.
Customer Experience & CRM Specialist | Driving Loyalty Programs, Retention & Omnichannel Engagement
Luxury brands are making a splash in the beauty world, and it's not just about fancy fragrances. From Bottega Veneta 's debut perfume to Kering 's ambitious €4 billion beauty division, there's a clear trend: high-end brands are bringing beauty in-house. But is this a goldmine or a power play? Let's unpack the reasons behind this captivating move.
Beyond Perfume: The Money Talks
The beauty industry isn't just about pretty scents; it's a financial powerhouse. Kering 's ambitious beauty division is a prime example, aiming for a staggering €4 billion by 2025. And their recent acquisition of iconic fragrance house Creed further underscores their commitment to the lucrative potential of this sector. This lucrative potential is hard to ignore, but there's more to the story.
Controlling the Narrative: More Than Just Looks
Owning beauty lines allows brands to tell a unified story across all products. Imagine Parfums Christian Dior perfectly capturing the brand's timeless elegance. It's not just about aesthetics; it's about controlling the brand image and directly engaging with customers, leading to stronger connections and targeted marketing.
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Omnichannel Symphony: A Seamless Experience
Integrating beauty isn't just about expanding products; it's about enhancing the customer journey. Imagine buying a Bottega Veneta outfit and its matching perfume in one luxurious go. This seamless experience strengthens brand identity and boosts sales across categories.
Market Magic: A Golden Opportunity
The beauty market is booming, expected to reach a staggering $563 billion by 2025. And within this vast landscape, the luxury beauty niche is growing even faster, with a projected 7.4% CAGR from 2023 to 2028. No wonder LVMH Perfumes & Cosmetics 's beauty division outpaced its fashion segment with a 15% growth in the first half of 2023. The numbers speak for themselves: beauty is a luxury growth engine.
Growth & Control: A Two-Pronged Approach
For giants like Kering and LVMH, the beauty move is twofold: capturing market share and protecting their brand narrative. Acquisitions like Tiffany & Co. , with its fragrance line, and Creed, the renowned French fragrance house, acquired by Kering for a reported €3.5 billion, showcase this ambition. It's not just about expansion; it's about maintaining control over creative direction and product quality.
The Future Beckons: A Symbiotic Bond
Integrating beauty is a strategic move by luxury brands, balancing financial prospects with brand control. This trend signifies a deeper connection between fashion and beauty, creating a unified experience that resonates with today's consumers. As we move forward, staying informed about financial performances, acquisition outcomes, and evolving consumer trends will be crucial for understanding the full impact of this strategic alignment.
Remember, this is just the beginning. Stay tuned for more updates on this captivating love affair between luxury and beauty!
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Product Owner - CRM | IIM Lucknow | Retail (B2C, B2B), SaaS, Automotive
9moGreat read! 👏 Your insights on the topic are very interesting. Here are my 2 cents on the topic - It's fascinating how brands can expand their reach and maintain brand awareness across diverse customer segments by offering luxury fragrances. Your article reminded me of my own experiences. While I often contemplate purchasing high-end apparel or accessories from brands like Dior, it's the accessibility of their perfumes that truly captures my attention. A Dior perfume makes for a perfect gift, bridging the gap between aspiration and affordability. Thanks for sharing such valuable insights!