Partnering with a well-established brand like Estée Lauder, renowned for its quality products, could guarantee Balmain success where other fashion-beauty expansions failed.
By Lizzy Zarrello.
The French luxury fashion house Balmain has been famed for its extravagant formalwear since it was founded in 1945. However, rumors are circulating that the brand is in discussion with Estée Lauder Companies about branching into the beauty industry. Although the brand founded Balmain Hair in 1971, this would be its first time exploring other forms of beauty. Business of Fashion recently reported that Estée Lauder Companies is in the final stages of a deal with Balmain to produce a cosmetics line. Reportedly, the arrangement is similar to the company’s contract with Tom Ford, which sees Estée Lauder Companies manufacture, sell, and distribute cosmetics for the fashion juggernaut.
It’s no secret that the beauty industry is vast and ever-growing. It generates over $100 billion in revenue worldwide. Partly due to new trends constantly circulating on social media, a 2017 study estimated that the average American woman spends $3,756 per year on beauty products and services. Estée Lauder Companies control about 21% of the worldwide makeup product market, practically ensuring an enormous profit to any brand that may collaborate with them. Tom Ford’s partnership with the company began in 2006 with a single fragrance and has since become one of their leading brands, generating $1 billion in revenue in 2021. Last month, The Wall Street Journal reported that Estée Lauder Companies is in talks to buy the Tom Ford clothing brand, a deal that would cost $3 billion or more. If Estée Lauder hopes to expand further into the fashion industry, Balmain would be another luxury name under their belt.
Although Balmain Hair has existed for over 40 years, the brand has not received mass recognition (particularly when compared with Estée Lauder Companies hair brands like Aveda), nor has it drastically impressed consumers. Now more than ever, celebrities and fashion brands are branching into beauty to make money from the thriving market rather than create quality goods. Brands like Christian Louboutin Beauty, Kylie Skin, and Gucci have ventured into the realm of beauty and have garnered unflattering reviews. However, partnering with a well-established brand like Estée Lauder, renowned for its quality products, could be beneficial for Balmain.
Olivier Rousteing, the creative director of Balmain since 2011, has increased the brand’s recognition worldwide. As a 36-year-old designer with 8.5 million Instagram followers, Rousteing has grown the brand’s social media presence. Since his tenure, Balmain’s marketing strategy has included dressing influencers and creating the ‘Balmain Army,’ a collective of female celebrities wearing the brand’s clothing to represent empowerment, including some notable names including Beyonce, Rihanna, Lady Gaga, and the Kardashians.
However, not every Balmain fan can afford a $3,000 dress. Cosmetics—even luxury cosmetics— are sold for much lower price points, allowing consumers to purchase luxury products more affordably, expanding the brand’s consumer base, and creating a steady revenue stream. Ultimately, due to the beauty industry’s booming economy, the pairing of powerhouses Estée Lauder Companies and Balmain could greatly benefit both parties.
Images courtesy of Aradhita Parasrampuria and Cindy Kutikova
