Luxury Fashion Brands Enter Cosmetics Market with New Beauty Lines

High-End Brands Tap into Growing Beauty Industry Trends

Global luxury fashion brands are increasingly shifting their focus to the thriving cosmetics market as a strategic move to capture new growth opportunities. Renowned French luxury house Louis Vuitton is making its highly anticipated debut in the beauty sector with the launch of its La Beaute Louis Vuitton collection, set to roll out in fall 2025. This collection, spearheaded by creative director Pat McGrath, will feature an extensive range of products, including 55 lipsticks, 10 lip balms, and 8 eye palettes, signaling the brand’s intent to establish a strong foothold in high-end skincare and premium makeup. This move comes as demand for traditional luxury goods like fashion apparel, handbags, and accessories slows, prompting Louis Vuitton to leverage the cosmetics industry’s resilience to diversify its portfolio. The brand aims to infuse its signature opulence into skincare and makeup offerings, ensuring that the luxury experience remains consistent across its product lines.

Similarly, Jacquemus has partnered with global cosmetics giant L’Oreal to venture into the luxury beauty market, with a long-term exclusive agreement solidified in February 2025. This collaboration, which includes a minority stake investment from L’Oreal, positions Jacquemus to target younger demographics with innovative beauty products that reflect its distinctive fashion aesthetic. Known for bold and unique designs, the brand plans to introduce differentiated concepts and eye-catching packaging to stand out in the competitive premium makeup and skincare arena. This partnership underscores a broader trend where fashion labels are integrating beauty lines as an essential extension of their identity, appealing to consumers seeking affordable luxury amid economic uncertainty.

The pivot to beauty by luxury fashion brands is driven by clear market dynamics. Despite a global economic downturn, the cosmetics sector continues to flourish, buoyed by what industry experts call the “lipstick effect,” where consumers opt for smaller, more accessible luxury purchases like high-end skincare or premium makeup instead of splurging on expensive handbags or clothing. LVMH, the parent company of Louis Vuitton, Dior, and Celine, reported a 2024 revenue of 84.7 billion euros (approximately $92.6 billion), marking a 1 percent decline from the previous year’s 86.15 billion euros. Category breakdowns reveal a 1 percent drop in fashion and leather goods and a similar decline in watches and jewelry, yet the perfumes and cosmetics segment saw a 1.8 percent uptick, while the selective retailing division, including beauty retailer Sephora, grew by 2.1 percent. Sephora, in particular, has become a standout performer, with revenues soaring over tenfold since 1998, highlighting the robust demand for luxury beauty products even in challenging economic climates.

This resilience in the beauty sector has not gone unnoticed by other players. Established luxury brands like Chanel and Dior, already veterans in the cosmetics space, are doubling down by expanding their product ranges to secure greater market share in high-end skincare and premium makeup categories. Meanwhile, domestic e-commerce giants in South Korea are also capitalizing on this trend. Coupang recently unveiled R.LUX, a dedicated luxury cosmetics app launched in October 2024, featuring over 20 premium brands such as Estee Lauder, Sulwhasoo, and Biotherm. With its promise of authentic products and rapid rocket delivery, Coupang aims to make luxury beauty accessible beyond traditional department stores, catering to the growing online demand. SSG.com has similarly bolstered its platform by onboarding prestigious beauty labels in collaboration with LVMH and Amorepacific, enhancing the premium shopping experience for its users. Cosmax, a leading global beauty ODM and OBM firm, is stepping up by expanding production facilities in the US and China, developing its own high-end skincare and makeup lines to compete directly with luxury brands.

Industry insiders shed light on why this shift is gaining momentum. A fashion industry expert noted that while fashion and beauty were once considered distinct realms, operating a beauty line has now become a standard practice for luxury labels. This evolution allows brands to maintain their core identity while offering consumers a broader, more immersive experience. Beauty products, being relatively affordable compared to designer apparel or accessories, also serve as an entry point, boosting brand accessibility and attracting a wider audience. Another insider emphasized that luxury brands are not merely selling cosmetics but curating an elevated lifestyle experience. To achieve this, they are investing in pop-up stores, interactive beauty spaces, and robust social media campaigns to engage consumers directly, letting them test products and build emotional connections with the brand.

The strategic focus on luxury beauty trends reflects a calculated response to changing consumer behaviors and economic realities. As fashion houses like Louis Vuitton and Jacquemus redefine their offerings, and e-commerce platforms like Coupang and SSG.com democratize access to premium makeup and high-end skincare, the lines between fashion and beauty continue to blur. This convergence is poised to reshape the luxury landscape, with brands leveraging their heritage to deliver innovative, sensorial experiences that resonate with modern consumers. Whether through exclusive partnerships, expanded product lines, or digital innovation, the move into cosmetics underscores a shared goal: to stay relevant and profitable in a dynamic, beauty-driven market.