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Are Tweens’ Wallets The Secret To LVMH’s Sephora Revenue Surge?

By Claire Moraa

  • At least 68% of Gen Z and Gen Alpha have an elaborate skincare routine
  • LVMH’s retailer Sephora is responsible for 25% revenue increase in 2023

Louis Vuitton Moët Hennessy (LVMH +2.01%), is known for their high quality, exclusivity, craftsmanship, and prestigious brand image. This exclusivity has traditionally made them accessible only to a wealthy elite. However, more recently, LVMH has expanded its product offerings to include items specifically designed for tweens. These products allow tweens to experience the luxury lifestyle associated with LVMH brands in a more accessible and age-appropriate way. This in turn has seen their revenue growth up by 10% in the last year.

Why This Matters: A look into LVMH’s 2023 performance records reveals fashion, fragrances and makeup as the top profit-earners. But this is not the exodus of the tweens craze. It all started from TikTok and this demographic has been influenced that they need to take care of their skin as early as possible. According to research, 68% of Gen Z and Gen Alpha have a skincare routine. And since they can’t afford these elaborate routines, their parents have been compelled to include their tweens’ new skincare routines into their financial budgets.

While it may just be a phase, Sephora is definitely taking notes. It’s easy to create a ripple effect because it already has the visibility with 2,700 stores in 35 countries. And being LVMH’s top earner, targeting tweens allows LVMH to cultivate brand loyalty from a young age, potentially securing long-term growth as these consumers mature and increase their purchasing power. With each demographic, it’s important for LVMH to create lifelong customers who continue to patronize its brands into adulthood. The teens are already locked in so it was only a matter of time for the tweens.

Situational Awareness: The rise of tween consumers in Sephora stores is a fascinating phenomenon that underscores how young, informed consumers can significantly impact a brand’s financial performance. In the evolving retail landscape, it’s clear that the brand is not just surviving, but thriving in today’s competitive beauty industry. However, with questions on ethical consumption flying around, LVMH may need to personalize and curate age-appropriate products to hush the concerns surrounding 9-year-olds going for age-reversing products.

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