Are Indian luxury fashion houses with extended beauty lines the next big thing?

Does owning a Dior tote feel the same as wearing a Dior lipstick? We delve into how brands aim to make this happen and how the Indian consumer perceives it all

Most legacy fashion houses across the globe have offered make-up, skincare and fragrances as a natural extension of their brands for decades now. It is yet another way to bring the brand into the lives of their high-paying fashion clientele. On the other hand, for those who might be hesitant to splurge on a bag or pair of shoes, being able to own a piece of the brand through such extended offerings becomes their gateway to luxury. We evaluate how luxury fashion houses lend their brand identity and aesthetic to their beauty lines, and how the Indian consumer perceives them. 

How luxury fashion meets beauty

According to Peter Philips, creative and image director of Christian Dior make-up, when developing beauty products, a luxury brand should assure “a guaranteed quality on all levels—including formula, ingredients, packaging, colours and textures, images, and sustainability. All of this without compromising on the luxury experience, service, and heritage.” With the brand name comes the price tag, placing these products a segment away from the average consumer while still being accessible to more people in comparison to the fashion lines. 

“Luxury beauty products are more affordable than a handbag or dress, despite having a higher price tag than the average product [in that segment]. So, in a way, it’s true that luxury beauty products make it more accessible for people to treat themselves with something luxurious,” confirms Philips. Despite the price difference, when the products are created at par with the fashion pieces, they retain the charm of owning a piece from the brand and even play on the feel-good factor. “Buying into a luxury house, pampering yourself with something special is good for your self-worth and will boost your confidence,” he adds.

India and the luxury beauty consumer

On Indian shores, luxury fashion houses have ventured into beauty primarily via collaborations as opposed to creating and retailing in-house. The year 2018 saw two luxury fashion houses dabble in beauty—Manish Malhotra announced his association with MyGlamm (still available today) for a complete beauty line and Sabyasachi Mukherjee joined hands with L’Oréal Paris for a limited-edition festive make-up range. The latest collaboration brings together Sabyasachi Mukherjee and Estée Lauder for a limited-edition range of 10 ultra-matte and satin-matte lipsticks. Not everyone can afford a Sabyasachi lehenga on their wedding day, so these 24k gold-plated tubes—adorned with the brand’s insignia, the Bengal tiger, and designed by Mukherjee’s jewellery team—are priced at ₹ 5,400. This is at a fraction of a lehenga, and a way for the designer to find himself in a lot more homes. 

A number of urban Indians who travel extensively often find themselves shopping for luxury beauty brands that may not be available in the country as yet—they’re informed consumers who appreciate what the name attached brings and can afford to spend on it. “Indian beauty consumers perceive luxury beauty brands like Prada and Armani Beauty as synonymous with high-quality products and formulations, trusting these brands to deliver good quality products due to their existing prestige value,” says Biju Kassim, CEO Beauty at Shoppers Stop. With over three decades of experience in the luxury retail (primarily beauty) business, Kassim is also responsible for the highly coveted brand Nars entering the Indian market. “Furthermore, these brands test across multiple ethnicities, instilling a sense of trust among consumers,” he says, adding that both Prada and Armani Beauty will arrive on our shores soon, joining the likes of Christian Dior, Chanel, and Hermès. 

Considering that India is only recently growing to become an important market for luxury fashion houses to have a physical footprint, a large chunk of the audience is an emerging luxury consumer, making beauty the right fit. “Similar to global trends, Indian consumers are also influenced by the aspirational value of luxury items and often use beauty as a starting point in their journey towards luxury purchases—it offers a more accessible entry point, especially for newcomers,” says Kassim.

The millennials-versus-Gen-Z debate

While both millennials and Gen-Z comprise the largest chunk of spenders on beauty, how do they perceive luxury brands offering products with premium price points? According to ‘The State of Fashion: Beauty’ report by The Business of Fashion (BoF) and McKinsey & Company in 2023, “Similarly to Millennials, close to half of Gen-Z report checking product ingredients and doing extensive research on their benefits before purchasing, compared with one-third of Gen-X (born 1965 to 1979) and one-fifth of Boomers (born 1945 to 1964). However, Gen-Z does not equate higher price points with quality like their older counterparts: one in two Gen-Z consumers report shopping for the best value for money and fewer than one in five consider products from premium beauty brands to be effective, compared with about one in three Millennials.”

In August 2023, Ziad Ahmed, founder of Gen-Z consultancy Juv Consulting, spoke to WWD about the demographic’s spending habits on luxury beauty. According to him, a brand name alone doesn’t sell to Gen-Z shoppers, no matter how premium it may be. “There’s this idea that you should pay more for something because a brand is well-known. That’s something we’re increasingly critiquing. It’s more, ‘I’ll pay more for something, but why? Is it actually higher quality? Are they paying their workers equitably?’ Luxury should not be based on an archaic legacy brand name, but on the basis of craftsmanship, of sustainable practices, and of labour practices,” he says.

Divya Mishra, a 33-year-old restaurateur, has been a luxury beauty consumer since her teens, and continues to invest in similar brands even today. “When luxury fashion houses develop in-house beauty products, there’s a certain assurance about quality, the packaging is appealing. You trust a big brand name with ingredients, believing that they only use the best. With smaller brands that have cheaper price points, you can’t be sure of what’s going into it, which makes me sceptical,” she says.

On the other hand, 23-year-old Natasha Rangel, creative director and co-founder of premium sneaker store Hype Fly India, doesn’t necessarily choose to buy into a brand name, echoing Ahmed’s insight. “Social media virality of beauty products is a motivating factor to make a purchase but from an awareness perspective. Gen-Z can see through marketing activations quite easily. We focus on the product and its delivery and efficacy even when a luxury brand is in question. The Dior lip oil that went viral online was also a product that genuinely felt good to use, and hence was worth the hype. I use the Hermès lip oil even though it was never trending; I just love it. Even then, I only care about the formula, not the brand name. I would be happy to buy a drugstore product if it’s better than this one.”

How luxury beauty can boom in India

With the “luxury” tag comes the expectation of a consumer experience that appeals to various touch points, apart from the product itself. The Indian consumer is very price and value sensitive, so providing them with a bang for their buck is key. “When introducing global luxury brands to the Indian market, we tend to pay close attention to replicating the immersive experiences offered in their international outlets,” says Kassim. “This involves recreating the ambiance and service standards to resonate with Indian consumers. Additionally, we need to tailor the offers and marketing campaigns to cater to the needs of Indian consumers and specific preferences and expectations of the Indian audience.”

Kassim credits accessibility to be a big driver of the increased demand for luxury goods in the country. “This shift reflects the evolving landscape of luxury beauty consumption in India, characterised by a desire for convenience and accessibility without compromising on quality or exclusivity.”

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