The importance of beauty for independent brands

Hailey Bieber and Selena Gomez have taught us that beauty is booming, to the point of saving entire companies from bankruptcy and transforming an actress’s career into that of a multimillionaire entrepreneur. Spreading out investments widely ultimately helps to better protect earnings and increase financial stability. Perhaps that’s why, in the fashion industry, the beauty sector is becoming the most popular among independent brands—a saturated market that continues to yield returns for entrepreneurs looking to safeguard their businesses. A striking example of the importance of beauty for independent fashion comes from Dolce&Gabbana, whose beauty division is significantly contributing to the company’s prosperity. Over the past twelve months, Dolce&Gabbana Beauty’s revenue has grown by 20%. The brand is now aiming for beauty sales of €1 billion by 2027, especially after regaining control of both production and distribution of products, from perfumes to skincare. In a turbulent time for luxury and independent fashion—struggling to stay afloat amid declining sales and general consumer disinterest—beauty serves as a true lifeline.

Beauty is not the only sector in which Dolce&Gabbana is investing. The company has also embarked on a strategy to expand its revenue streams through real estate initiatives in Marbella, Spain, Miami, Dubai, Saudi Arabia, and the Maldives—though it is still seeking funding for these projects. Beauty remains the primary driver of the brand’s recent growth: with sales nearly quintupled in twelve months, the brand reported total revenue of €1.9 billion at the end of the 2024 fiscal year, and this month’s results further reinforce the company’s growth expectations. With even more significant results, fellow Italian brand Prada has achieved similar success using the same approach: in 2023, it launched a beauty line, followed in 2024 by a skincare line. Over recent years, the Prada Group has also heavily invested in real estate, acquiring strategic buildings in cities such as Milan, Hong Kong, London, New York, and Paris. As revealed by the latest financial results of the group, every one of these operations has proven to be highly profitable.

Diversifying a portfolio is essential for reducing risks, expanding a brand’s financial (and creative) opportunities, and adapting to market changes. But what makes beauty the ultimate ally is its ease of sale. Unlike luxury clothing and tourism, which require significant financial means from consumers, purchasing skincare products or perfumes is a relatively smaller financial commitment. Additionally, the customization of the shopping experience—from in-store shopping to packaging, from ambassador involvement to social media sponsorship—makes beauty lines accessible to a wider audience. Even though one of Prada’s new serums costs €370 for 30ml, and Dolce&Gabbana’s eye patches cost €40 for five sets, luxury beauty products are still less prohibitive than accessories and clothing.

Alongside Prada and Dolce&Gabbana, more and more brands are realizing the importance of beauty for a company’s independence: Ferragamo has just launched its first fragrance under the creative direction of Maximilian Davis, called Fiamma. Jacquemus has secured support from L'Oreal, and even Chopova Lowena, a London-based brand with far more limited financial resources than the first two, has unveiled a new fragrance line. Meanwhile, Puig, the luxury conglomerate dominating the international perfume market, closed 2024 with an 11% increase in sales, reaching €4.79 billion. All these success stories make you want to expand your wallet, don’t they?