Why Luxury Brands Are Betting Big on Beauty — Retail Bum
The desire to appear and feel one’s best is so intrinsic to human nature that even during times of economic uncertainty, consumers see beauty products and services as essential, not just nice-to-haves.
With consumers consistently spending on skincare, cosmetics, fragrances, and grooming today, the beauty industry has proven resistant to a period of economic downturn, while players in the apparel and broader retail sector are reporting declining sales.
Recent developments in the beauty sector are also a testament to the industry’s potential for growth and profitability.
For example, Richemont, a conglomerate known for brands like Cartier, Montblanc, and Dunhill, identified potential in the beauty sector and subsequently introduced Laboratoire de Haute Parfumerie et Beauté, a dedicated division for beauty products. It also appointed a new CEO to head its new division, signifying the company’s dedication to gaining a substantial share in the beauty market.
Richemont’s expansion into beauty shows that established luxury brands are increasingly considering the beauty industry as a profitable venture — one that is largely inflation-resistant.
