Why skincare tests luxury’s credibility

For the latest on skincare, cosmetics, fragrances, wellness, emerging Chinese and APAC beauty brands, subscribe to our weekly Jing Beauty Newsletter. Virtually every major fashion house — from Bottega Veneta to Miu Miu — has launched a fragrance. Many now have makeup lines, too. In the past four years, Louis Vuitton, Hermès, and Prada have expanded into color cosmetics, capitalizing on social media visibility and entry-level price points that attract Gen Z and millennial shoppers. Makeup’s accessibility — a $45 lipstick versus a $4,500 handbag — and its ability to reinforce runway aesthetics make it a natural extension of a fashion brand’s DNA. But skincare remains the toughest frontier. High R&D costs, scientific scrutiny, and a crowded competitive field make it a high risk, high investment play, even for luxury conglomerates with deep pockets. Though groups like LVMH and Kering are pushing aggressively into beauty, skincare exposes the limits of fashion brands’ traditional strengths in storytelling and heritage. “Skincare requires a fundamentally different type of investment compared to fragrance or makeup,” says Lexie Morris, chief growth officer at Essence Group, one of China’s largest luxury marketing agencies. “Product cycles are longer, clinical validation is essential, and credibility comes from sustained R&D rather than fast-moving trends. In markets like China, ingredient-savvy consumers scrutinize labels closely and expect both efficacy and transparency, which raises the bar considerably.” Fragrance and makeup: Easy wins for luxury Fragrance has long been the simplest category for luxury brands to master. Development cycles are short, formulas are less scrutinized, and storytelling, like the scent of Paris, a memory bottled, is the product. “Fragrance is certainly the category with the least barrier to entry,” says Gregoire Grandchamp, co-founder of beauty investment firm Next Beauty. Makeup is more complex, but still plays to fashion’s strengths. Runway looks double as marketing campaigns, and color cosmetics thrive on social media aesthetics. “Makeup and fragrance benefit from the so-called ‘lipstick effect’,” says James Hebbert, managing director at the digital marketing agency Hylink. “Even in tough economic times, people continue to indulge in small luxuries that bring immediate satisfaction.” According to McKinsey, the global beauty market is projected to grow around 6% annually through 2027, led by fragrance and color cosmetics, both of which are outpacing skincare. Skincare, by contrast, is unforgiving. “The main barrier for skincare is that consumers are very loyal to their ‘cream’ once they find the right one,” Grandchamp says. “It requires more R&D and innovative ingredients.” Why skincare is different from makeup For luxury houses whose core business has always been about image, the credibility gap in skincare is stark. “Luxury houses don’t have a legacy in skincare, their reputations were built on emotion and aspiration, not on ingredients and efficacy,” says Morris. “That works for a niche audience who will buy into skincare simply because of the brand name. But the wider consumer market is much more demanding: They compare ingredients, expect visible results, and want proof of value for money.” Social platforms like Xiaohongshu (also known as RedNote) have accelerated the dynamic in China, the world’s largest beauty market. “The surge of ingredient-conscious consumers is fueled largely by social platforms,” Hebbert shares. “A brand’s reputation alone no longer guarantees success; if science doesn’t hold up, the premium is quickly challenged.” The contrast shows in the rankings. While Chanel and Dior retain prestige, online leaders in skincare are more often the likes of Lancôme, L’Oréal, or rising local champions like Proya. Half of Tmall’s top skincare brands are now domestic, according to Jacques Roizen, managing director at Digital Luxury Group. These players leverage “China made for Chinese” claims, focusing on efficacy, relevancy, and price transparency. Acquisitions and partnerships: A shortcut to science To compete with science-first giants like Estée Lauder or Shiseido, fashion houses face a choice: invest decades in R&D or acquire expertise. “The true currency in skincare is research,” Hebbert says. “That’s why groups like Kering are focusing more on acquisitions and partnerships in beauty. A pragmatic way to bridge the science gap, rather than depending only on brand allure.” Grandchamp tells Jing Daily, “Clearly Chinese consumers will expect the brand to invest massively in R&D, to develop innovative formulas and really high-performing products. For this, it is really better to work with a partner. If the fashion house is powerful enough, the best way is to partner with a leader of the skincare industry like L’Oréal.” The tension lies in balancing fantasy and science. “Luxury fashion has always been about selling dreams,” Morris says. “That translates beautifully into fragrance and makeup. Skincare is about fact. Go too far into hard science, and you risk clashing with the mother brand’s DNA. Stay purely aspirational, and you lack credibility. That’s the tightrope that luxury houses face.” China, the first battleground for luxury brands venturing into beauty Luxury maisons are betting heavily on China as the launchpad for new beauty ventures. Louis Vuitton unveiled its La Beauté makeup line in Nanjing this summer, collaborating with Pat McGath on a collection of lipsticks and eyeshadow palettes. Prada launched makeup and skincare in China in 2023 through its licensing deal with L’Oréal. “Launching beauty lines lets luxury houses leverage their brand strength at an entry-level price point,” says Morris. “That opens access to a much wider audience than handbags, and naturally attracts younger consumers who have lower spending power. Seen in that light, choosing China first is a clear commercial move.” Gen Z and millennials, already the largest buyers of prestige beauty in China, are the obvious targets. But their loyalty is fragile. “These consumers love to experiment and will pay for hype, but their loyalty is far less certain,” Hebbert says. “On Xiaohongshu, every luxury beauty debut sparks a wave of conversation, yet that excitement rarely converts into repeated purchases.” Maisons’ next growth frontier With fragrance and makeup increasingly saturated, analysts see the next frontier at the intersection of science, technology, and wellness. “The true frontier lies where science meets technology,” Hebbert says. “From AI-powered diagnostics to personalized formulations. In times of economic pressures, consumers seek products that deliver visible, lasting value. This is precisely where luxury brands can set themselves apart.” Morris highlighted another opportunity: “A particularly dynamic arena is where beauty meets medical aesthetics. As procedures like injectables and ‘tweakments’ become mainstream, there is rising demand for post-procedure recovery and accelerated repair skincare. That intersection of medical science, efficacy, and luxury experience will be the next big growth story.” Grandchamp added that holistic wellness is increasingly shaping consumer demand: “The holistic approach of beauty will become more and more important, especially in China. And of course AI will enable amazing innovations both on products and consumer experience.” High stakes for luxury conglomerates For behemoths like LVMH, Kering, and Richemont, beauty is no longer an afterthought. LVMH’s beauty division topped $8 billion in annual sales in 2023 and grew 4% in 2024, nearly 10% of group revenue, rivaling Shiseido in size. Kering and Hermès have established dedicated beauty divisions, hiring executives from Estée Lauder and L’Oréal to build expertise. But the stakes are highest in skincare, where barriers are steepest. “Creating a line of clothes or accessories is very different from the conception of skincare,” Grandchamp says. “It is key to work with partners who have strong experience in the beauty industry.” Luxury brands are known for craftsmanship in leather, couture, or jewelry. In beauty, they chase easy wins in fragrance and makeup. Skincare requires decades of laboratory research and formula breakthroughs. The question is whether they’re willing to make that long-term commitment. For now, perfume and lipstick remain the most reliable “cash cows.” But in skincare — where credibility depends on science, not storytelling — luxury houses face their hardest test. Cracking the category will demand long-term R&D, smart partnerships, and patience. The real question: Which house will make that leap, and will the market reward it?

Why can’t fashion houses crack skincare?

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Why can’t fashion houses crack skincare?