As the luxury industry grapples with a post-pandemic slowdown, rising tariffs, and shifting consumer sentiment, major fashion houses are turning to small indulgences to keep their sparkle alive. From $160 lipsticks to $1,400 bag charms, brands like Louis Vuitton, Prada, and Coach are betting on bite-sized glamour to woo aspirational shoppers and offset declining demand for big-ticket items.
The strategy is clear: offer entry-level luxury that feels exclusive but doesn’t break the bank. This approach, dubbed treatonomics, is reshaping how luxury is consumed and marketed in 2025.
Key highlights from the shift
1. Louis Vuitton’s beauty debut
The 171-year-old LVMH-owned titan launched its long-awaited beauty line last month, featuring 55 lipsticks, 10 lip balms, and 8 eyeshadow palettes. Prices start at $160 per lipstick, with a $2,890 mini trunk carry case for collectors. The collection, led by makeup icon Pat McGrath, is designed to appeal to younger, style-savvy consumers in the U.S.
2. Rise of luxury accessories
Alongside cosmetics, brands are pushing extravagant accessories. Louis Vuitton’s $1,420 bag charm joins a wave of playful keychains from Coach and Longchamp, inspired by the viral Labubu trend. These items offer a taste of luxury without the commitment of a full handbag or couture piece.
3. Diversification across the board
Other brands are following suit. Prada, Celine, Dries Van Noten, and soon Miu Miu have expanded into beauty, capitalizing on high gross margins and cultural cachet. The goal is to broaden their total addressable market while maintaining brand prestige.
4. Strategic pricing and relevance
Analysts note that mega-brands are wisely avoiding overexposure of their core products. Instead, they’re using lower-priced categories to engage aspirational buyers. This echoes tactics from 2015–2016, when brands leaned into streetwear, sneakers, and mini bags to weather a similar slump.
5. Economic backdrop
The luxury sector has been under pressure since 2022, when the pandemic-era boom faded and consumers began pushing back against steep price hikes. U.S. tariffs and cost inflation have added to the strain, prompting brands to rethink their offerings and positioning.
Cultural relevance and emotional appeal
Luxury is no longer just about exclusivity—it’s about emotional resonance. A $160 lipstick isn’t just a cosmetic; it’s a symbol of belonging, aspiration, and self-expression. By tapping into beauty and accessories, brands are embedding themselves into daily routines and personal rituals, making luxury feel more intimate and attainable.
This shift also reflects changing consumer psychology. Shoppers are more selective, seeking value and meaning in their purchases. Small luxuries offer a dopamine hit without the guilt, making them ideal for a generation navigating economic uncertainty and lifestyle recalibration.
The future of luxury: layered access and brand storytelling
As luxury brands diversify, they’re also investing in storytelling and cultural relevance. From collaborations with artists to limited-edition drops, the focus is on creating emotional connections and viral moments. Beauty and accessories serve as perfect canvases for this strategy, allowing brands to experiment without diluting their core identity.
The move toward layered access—where consumers can engage with a brand at multiple price points—is likely to define the next phase of luxury retail. Whether it’s a lipstick, a charm, or a couture gown, each item becomes part of a larger narrative of aspiration and identity.
Sources: CNBC, MSN, Maritime Economies
