When Louis Vuitton announced in March it was venturing into the beauty business with make-up supremo Pat McGrath, expectations were immediately sky-high.
Now the first products from Louis Vuitton La Beaute have been revealed, and The National was given a sneak peek. Set to hit shelves on August 29, they are $160 (Dh587) for lipstick and $250 (Dh918) for the eyeshadow quartet.
Even in the opulent world of luxury, it is surprisingly steep.
The packaging is beautiful, with an all-metal construction that closes with a satisfying, magnetic click. The cases are refillable for $69 (Dh253), and the eyeshadow refill is $92 (Dh360), which can make them longer-term purchases.
Unsurprisingly, Louis Vuitton is applying its luggage expertise to creating tiny, lipstick-sized carry cases, although we can presumably expect prices to match the craftsmanship.
The make-up formula leans into McGrath's expansive knowledge, gleaned over decades working for every major fashion house and fashion show, and will come in two finishes – an intense matte and a creamy satin, available in 55 shades. There are an additional 10 shades of sheer lip balm, made with hydrating shea butter and hyaluronic acid.
But at a time when the luxury sector as a whole is experiencing a slump, it is difficult to see past the eye-watering price, which is double that of the already expensive Hermes lipstick ($83) and over three the cost of a YSL lipstick at $54. Even the Louboutin Rouge Stiletto lipstick, which is housed in a dramatic, attention-grabbing spike feels something of a bargain at $60 in comparison.
Already, social media is echoing with laments that the price point will encourage other luxury brands to move their entry points upwards.
Beauty is typically the entry point into luxury, offering customers a first step into a coveted brand at a modest spend. A lipstick in the handbag builds aspiration and loyalty, setting up a progression from beauty to handbags to ready-to-wear.
The “Lipstick Effect” was coined by Estee Lauder's Leonard Lauder, who noted lipstick sales surged after 9/11, as consumers sought small luxuries when larger purchases felt out of reach.
Correlating a link between an economic downturn and a rise in smaller ticket luxury sales, such as lipsticks, he realised that customers look to gift themselves small, affordable treats, amid times of social pressures.
As Europe grapples with an ongoing cost-of-living crisis, global uncertainty triggered by the tariffs imposed by US President Donald Trump, and a dramatic downturn in the Chinese appetite for luxury goods, globally, customers are delaying buying expensive luxury items, deterred by rising prices and concerns about falling quality.
By pitching its beauty so high, Louis Vuitton risks alienating some potential clients, but it also signals supreme confidence – pricing lower, it suggests, would undersell the product. McGrath herself set a precedent with her 2015 Pat McGrath Labs line, charging $39 for lipsticks and growing it into a $1 billion brand and Selfridges’s bestselling make-up by 2019.
As the world’s most valuable fashion house, Louis Vuitton knows how to speak to its clients and is betting hard on the Lipstick Effect. No one needs a $160 lipstick. But history suggests they’ll sell out all the same.
