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Prada is venturing further into the competitive beauty space with the launch of makeup and skincare, and has tapped makeup artists Lynsey Alexander and Ines Alpha as its new ambassadors.
Launching on 1 August, Prada’s beauty range includes lipsticks, lip balm, eyeshadows, foundations, day and night creams, serum, cleanser and makeup remover — most of which are refillable. The brand is also introducing multi-use beauty tools such as brushes and sponges for complexion, lips and blending, shaping and defining the eyes. Prices range from £37 for a lip balm to £315 for a face and eye serum.
The products will be sold via Prada’s main e-commerce site, as well as a dedicated Prada Beauty site, followed by a rollout at selected retail partners including Harrods and Selfridges. A physical Prada Beauty store in the US is also in the works for early 2024. The category expansion is being driven by L’Oréal, which has held the fragrance and beauty licence for Prada since January 2021 (prior, it was licensed to Puig, which launched Prada’s first perfume in 2004).
Beauty is heating up as more luxury brands see an opportunity to tap into the lucrative business. Investment bank Morgan Stanley points to consistent growth in the global market over the last 22 years, except in 2020, when pandemic lockdowns materially impacted consumers’ need and, in some cases, ability to procure product. Looking ahead, mid-single-digit growth is expected.
Competition is stiff. Prada is up against longtime players Chanel, Dior, YSL Beauty and Armani, and more recent entrants to beauty such as Hermès, Valentino (also licensed by L’Oréal), Gucci (Coty), Dries Van Noten and Paco Rabanne (both Puig). More launches are expected: Balmain has linked up with Estée Lauder to launch beauty in 2024, under creative director Olivier Rousteing. There “is not a lot of white space in an incredibly crowded market”, says Erwan Rambourg, HSBC s global head of consumer and retail research. Still, he is optimistic about Prada’s chance of success, thanks to its “super strong brand equity” and “the good work from L’Oréal”.
Prada Beauty is designed to offer a “full skincare to complexion routine”, according to a statement from the brand. The focus is less on correction and more on protecting and enhancing. Its skincare was created to help skin adapt during environment changes, while the versatility of its colour cosmetics offers “maximal expression with minimal effort”, Prada said. Lipsticks are curated into four colour families — brown, red, pink and orange — that are drawn from founder Miuccia Prada’s “ugly-chic” vision and inspiration.
The brand’s “inimitable design principles” set it apart, says David Legrand, lifestyle director at Selfridges. Sustainability also plays a key part in the appeal, he adds. “Refill is at the heart of [Prada Beauty] across skincare, eyeshadow palettes, lips and foundation. This focus on a behavioural shift for both brands and customers aligns with Selfridges’s commitments.” While refillable beauty has faced challenges, many brands are betting on the long-term uptake of refillables to reduce packaging waste and build loyalty.
The price points for Prada’s beauty offering are high, suggesting that the company is targeting the top end of the consumer pyramid — a shift away from many luxury peers that built profitable beauty businesses by targeting the mid-market consumer, and offering an accessible entry point into their brands. The ultra-premium category is where Cyril Chapuy, president of L’Oréal’s Luxe division (under which Prada sits), sees an opportunity. “Super-premium luxury has developed strongly in the last five years, both in skincare and fragrances. It’s at the beginning of it in makeup also,” he told Vogue Business last month.
Over the 12 months, L’Oréal has been rebooting the Italian luxury house’s perfume portfolio, introducing scents such as Prada Paradoxe, with Emma Watson directing — a first for the actor — and starring in its campaign. During Prada’s earnings call last Thursday, analysts asked how the relationship with L’Oréal was progressing. Prada Group chief executive Andrea Guerra said he was “extremely happy” and the extension into beauty marked “another milestone”.
To introduce the new ranges, Prada is working with ambassadors London-based Alexander, who has collaborated with brands including Loewe, Fendi and Lanvin, and Paris-based 3D artist Alpha, known for creating beauty looks using 3D software and augmented reality. The two artists also play a part in colour development. A marketing rollout will include a campaign by director and photographer Tim Elkaïm, photographer Benoît Delhomme and 3D studio Tomorrow Bureau.
Technology is a key component for Prada Beauty. Developed in collaboration with L’Oréal s research and innovation centre, the brand is introducing a skin diagnosis device designed to conduct advanced analysis of consumers’ skin, and reveal current conditions as well as potential areas for improvements (Prada did not reveal where the service would be made available). It is also launching a virtual makeup try-on service for eye and lip cosmetics. Luxury brands that come to market with innovative beauty offerings have a first mover advantage, says Rambourg.
Prada’s makeup and skincare launch comes off the back of stellar first-half 2023 financial results that brings it closer to its mid-term sales target of €4.5 billion, more firmly establishing it in the select mega-brand club and putting it in a healthy position to expand. Rambourg identifies many strategic changes at Prada over the past four years, including new management, product design consistency, and a focus on growth through full-price sales and retail execution aimed at driving sales density, which is now starting to bear fruit.
The commercial value of a brand is core to its ability to expand, says Rambourg. “If your brand equity is strong, there’s no limit to what you can do.”
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