Prestige beauty outpaces luxury fashion as accessible splurge holds firm

A Louis Vuitton lipstick or a Lancôme cream is proving an easier sell than a handbag, as the luxury industry works to rekindle growth and consumers gravitate toward lower-priced entry points into high-end brands.

The prestige beauty sector booked first-half sales growth of 7% in North America, 5% in Europe and 10% in Latin America, according to the consultancy Circana, which compiled the figures against a backdrop of inflationary pressure and an uncertain geopolitical climate.

Mathilde Lion, a director at Circana and an expert in the field, described the performance as "the fifth consecutive year of strong growth in the prestige cosmetics market worldwide."

The pattern was visible on the ground floor of Galeries Lafayette in Paris on Monday afternoon, where the space was crowded with shoppers. At the Louis Vuitton make-up counter, Jessica Karawa, 32, was sampling fragrances. The shopper said she is fond of perfume and had already bought one the previous day at Creed.

Karawa does buy luxury goods from time to time — she carried a monogrammed bag over her shoulder — but said the price increases luxury brands have introduced in recent years have curbed her spending.