Louis Vuitton’s new $160 lipstick may raise eyebrows in the middle of a recession, but the logic behind the launch is shrewdly mathematical—and deeply psychological. When an iconic handbag goes for $2,000, a triple-digit lipstick suddenly feels like an affordable splurge. Luxury brands aren’t just selling high-priced beauty products—they’re selling brand access at “recession-friendly” price points, keeping aspirational customers engaged even when budgets are tight.
The Gateway Product Strategy
Luxury shoppers crave connection to their favorite brands, even if economic strains make big-ticket purchases impossible. By offering lower-cost products—lipsticks, perfumes, branded caps—brands like Louis Vuitton retain their customer base, rather than losing them to less exclusive competitors. The data is clear: beauty spending remains resilient, with over 70% of consumers reporting no plans to cut back, despite the squeeze of inflation. For many, a luxury lipstick becomes the bridge; it preserves that sense of aspiration and identity without risking financial overextension.
Beyond the Beauty Aisle
This “entry-point economics” goes well beyond cosmetics. Canada Goose‘s $800 parkas, now reports that 46% of fiscal 2024 sales came from non-heavyweight down products like shirts and shorts—more accessible interpretations of its luxury DNA. It’s a playbook of strategic diversification: offer more approachable products to onboard new customers and keep loyal ones in the fold.
Why It Works
The insight is simple: people desire brand affiliation more than any specific product. A Louis Vuitton lipstick or a Canada Goose t-shirt lets consumers enjoy the badge of luxury, participating in the brand’s world, even when they can’t—or won’t—plunge for the marquee item.
The proof? The luxury fragrance segment now accounts for 41% of all fragrance sales, showing that even in times of belt-tightening, premium beauty remains a consumer priority.
Lessons for Modern Retail
Retailers—luxury or not—can learn from this gateway approach. In periods of economic turbulence, strengthening the lower rungs of your product ladder maintains relationships, ensuring customers don’t vanish entirely when their wallets shrink. The smartest brands aren’t just surviving recession—they’re future-proofing their customer ecosystems, one accessible product at a time.
