Core Viewpoint - LV has launched a new beauty line, La Beauté, including lipsticks, lip balms, and eyeshadow palettes, amid declining sales in its traditional leather goods sector. The high pricing strategy, with lipsticks priced at 1200 yuan, has sparked debate about the viability of this new venture [1][2][4]. Group 1: Product Launch and Pricing - LV has opened its first dedicated beauty store in Nanjing, featuring the La Beauté line, which includes 55 lipsticks, 10 lip balms, and 8 eyeshadow palettes, all overseen by renowned makeup artist Pat McGrath [2][3]. - The pricing of LV's lipsticks at 1200 yuan each, with refill cartridges priced at 510 yuan, significantly exceeds competitors like Chanel and Dior, whose lipsticks range from 400 to 800 yuan [2][4]. Group 2: Market Context and Challenges - The luxury goods sector, including LVMH, is facing performance challenges, with LVMH reporting a 4% decline in revenue to 39.81 billion euros and a 22% drop in net profit to 5.69 billion euros in the first half of the year [4][5]. - Other luxury brands like Kering and Chanel have also reported significant declines in revenue and profit, indicating a broader trend of struggling sales in the luxury market [4][5]. Group 3: Strategic Implications - The move into beauty products is seen as a strategy to tap into new growth areas, as beauty lines have shown potential for growth even amid overall declines in luxury sales [4][5]. - Experts suggest that LV's high pricing strategy aims to enhance brand image and loyalty among high-end consumers rather than targeting the mass market [6][7]. Group 4: Consumer Behavior Trends - Recent data indicates that luxury consumers, particularly in China, are becoming more rational in their spending, with a notable decline in the willingness to increase luxury purchases [8]. - The shift in consumer preference towards experiential spending, such as travel and outdoor activities, poses additional challenges for luxury brands like LV [8].