Why a lipstick may matter more to a fashion house’s business than a runway dress.
By Shreya S · Last reviewed 15 November 2026
Why do fashion houses sell beauty?
Because it is the cheapest way into the brand. Most people will never buy a couture gown or a leather bag, but they can buy a lipstick or a bottle of perfume. That gives the house millions of customers, keeps the name in airports and department stores worldwide, and makes the logo familiar to people who may buy something bigger later.
Does the fashion house make it?
Usually not. Most houses license their name to a beauty specialist such as L’Oréal, Coty, Puig or Interparfums, which develops, makes and distributes the products and pays royalties. The house approves the designs, bottles and campaigns. Chanel, Dior and Hermès keep beauty in-house.
Is beauty profitable?
Very. The liquid in a perfume bottle costs little compared with its price; the money goes on development, packaging, marketing and the retailer’s cut. Fragrance in particular kept growing through the luxury slowdown of 2024 to 2026, which is why groups are paying so much for it, including L’Oréal’s €4 billion deal for Kering Beauté.
Is there a risk?
Yes: overexposure. Pierre Cardin licensed his name to so many products in the 1970s and 1980s that it lost its luxury status, a cautionary tale every house knows. Today’s houses limit where their beauty is sold and treat it as part of the brand’s image, not just a revenue line.
Read on Ayerhs: Why Luxury Got So Expensive · Inside the Little-Treat Economy · 17 Luxury Makeup Gifts