This article was originally published in the Future Of Beauty Trend Report. Receive your copy here
A new opportunity in ultra-luxe beauty is unfolding. In 2024, premium brands will be exploring how to woo the wealthiest consumers through product innovations and retail experiences.
It is a trend that has already permeated hospitality and fashion. This year, Chanel unveiled two invitation-only boutiques for its top-tier clients in China, while Gucci’s new Salon concept, open in London, Los Angeles and Tokyo, has a minimum spend of £40,000.
Experts believe that beauty is next in line for an ultra-luxury upgrade.
Consumer spend in beauty has reached its highest ever level in 2023. And while this has largely been due to inflation-driven price rises, it is also true that in Europe, sales of big ticket fragrances, skin care and make-up have been growing almost twice as fast as the overall prestige beauty market in 2023.
Mathilde Lion, Executive Director of Global Client Development at Circana says that heritage brands have been increasingly focusing on this end of the spectrum as products above €160 or even €260 are still attractive price points for affluent consumers.
“We’re not talking about a Chanel handbag here, beauty products in comparison remain small luxury purchases.
“But because sales have been so dynamic, it proves that there’s a lot of potential in this area.”
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