If you have noticed high-end fashion houses like Louis Vuitton launching makeup collections, you are not alone. With many shoppers feeling the shock of high prices, some of the world’s biggest luxury brands are creating new, more affordable products to bring in new customers.
A strategy for tough times
This move is a deliberate plan to navigate an industry-wide slowdown, as reported by CNBC. The goal is to engage a new generation of shoppers with “entry-level” luxuries. By offering items like a designer lipstick or a trendy keychain, brands hope to build loyalty without discounting their main products, such as expensive handbags.
- It allows younger consumers to own a piece of the brand.
- It taps into the trend of buying small “treats” during tight economic times.
- Beauty products often have very high profit margins for the company.
- The hope is that new customers will buy more expensive items in the future.
However, experts warn there is a risk. Brands must be careful not to damage their exclusive image by becoming too accessible. Whether this strategy will succeed in today’s economy is something that remains to be seen.
