RPJ’s Deena R. Merlen Quoted in Business Insider on Louis Vuitton’s New Beauty Line

 

RPJ’s Deena R. Merlen was recently quoted in a Business Insider article examining the launch of Louis Vuitton’s new beauty line, La Beaute, which debuted this past Friday under the creative direction of renowned make-up artist Dame Pat McGrath.

The launch, which comes during a period of economic uncertainty and a broader luxury downturn, features attention-grabbing prices such as $160 lipstick and $250 eyeshadow.

Business Insider spoke with Ms. Merlen about the so-called “Lipstick Index”- the theory that lipstick serves as an economic indicator because lipstick sales allegedly rise as economic downturns approach. The Lipstick Index is premised on the belief that when consumers feel they must cut back on larger purchases, they tend to turn to inexpensive luxury purchases, like lipstick.

Responding to how quickly certain shades had already sold out, Ms. Merlen joked with Business Insider about a Lipstick Index in which the worried wealthy regard a $160 lipstick as a consoling, inexpensive luxury buy. She also discussed the flipside of the Lipstick Index, namely, that it may not be recession anxieties driving lipstick sales in this case, but rather a form of optimism in which Louis Vuitton’s new La Beaute line is an entry point to the venerable Louis Vuitton brand family, courting new customers who cannot afford that $6,000 bag just yet but can manage a $160 lipstick, to start.  To read the full article, click here.

This article is intended as a general discussion of these issues only and is not to be considered legal advice or relied upon. For more information, please contact RPJ Partner Deena R. Merlen, who counsels clients in areas of employment and labor law, intellectual property, media and entertainment, general business law, commercial transactions and dispute resolution. Ms. Merlen is admitted to practice law in Connecticut and New York.