Louis Vuitton's $160 Lipstick
The Launch of Louis Vuitton's New Beauty Line, LA BEAUTÉ
What’s the story behind this?
The launch of Louis Vuitton's new beauty line is finally here. Back in March 2025, the brand announced a partnership with Pat McGrath, who would serve as the creative director. As a legend and one of the most sought-after makeup artists in the world, Pat McGrath's relationship with Louis Vuitton goes back to 2014, when she began creating beauty looks for Nicolas Ghesquière's runway shows.
Pat McGrath was the authority Louis Vuitton needed to legitimize their entrance into the beauty world and increase its chances of success. She brings decades of experience as a globally renowned makeup artist and the expertise of running her own successful cosmetics line, Pat McGrath Labs. The brand was once valued at a peak of $1 billion, but like many beauty companies evaluated during that venture capital hype period, its value has since dropped to around $500 million.
Why Is the Price a Talking Point?
Everyone is talking because Louis Vuitton is charging $160 for a single lipstick. I really have to laugh when I type this because even the likes of Hermes and Chanel aren’t charging this egregious amount for a single lipstick. While refills are available for $70, the initial sticker shock of $160 is significant. The likelihood of a consumer buying the lipstick, using it completely, and then purchasing a refill seems slim. Maybe Louis Vuitton's analysts anticipate this, hoping to capture as many one-time buyers as possible.
This launch also represents a late entry into the beauty market for Louis Vuitton especially when we compare them to their peers. This timing makes me think of an economic theory called the “lipstick effect.” This theory suggests that during a recession, sales of luxury goods decline while sales of smaller, affordable luxuries like lipstick increase. With LVMH (Louis Vuitton's parent company) being down 4% year-over-year, is this their recognition of global economic shifts? Are they now trying to diversify their offerings by taking a literal definition of the lipstick effect?
While I can recognize that charging $160 for a lipstick is absolutely insane work, I can also easily picture the ideal customer. This person wears makeup but isn't a dedicated enthusiast. They don't buy makeup often and are an inconsistent luxury shopper who treats themselves once a year. They appreciate nice things or, at the very least, the appearance of them. This shopper would buy the lipstick because Louis Vuitton has created the allure of a top-tier product, led by Pat McGrath. At this price, it’s one of the brand's most accessible items, even cheaper than their fragrances, reducing the entry point to owning a piece of Louis Vuitton.
Where I Think the Real Opportunity Is
Honestly Louis Vuitton ate with all the beauty accessories they launched in this line. Some of my personal favorites are their cosmetic cases in the epi leather. I’m sorry I have to give it to them on this, it's so cute and it makes sense for the brand to do this. This is a product for the dedicated Louis Vuitton shopper who understands the brand's offerings and is looking for a new take on a classic staple.
Epi Leather Accessories
Final Thoughts
While the pricing is egregious, people will buy this lipstick. It’s for the aspirational consumer who can't afford a Louis Vuitton bag but can purchase the lipstick to gain some of the social capital that comes with owning a product from the brand. Ultimately, Louis Vuitton isn't just selling a lipstick; they are selling a feeling to their customers of owning a Louis Vuitton product.
