Why Kering’s $4 Billion L’Oréal Deal Marks Luxury’s ‘Back to Core’ Moment

In a major move shaking up the beauty world, Reuters reports that Kering (parent company to Gucci, Balenciaga, and Saint Laurent) has sold its beauty division to L’Oréal for $4 billion. What does this mean for the luxury beauty market and the future of “smart luxury”?
We turn to Fashion Expert Roza Francken from Aurelien for her take on why this signals a powerful return to heritage, craftsmanship, and authenticity in luxury.

The Expert Insight

“The luxury industry is rediscovering the value of restraint,” says Roza Francken. “In a world obsessed with expansion, Kering’s decision to sell its beauty arm signals a strategic pause, and a return to what luxury truly means: focus, craftsmanship, and heritage. This move reflects a growing recognition that in the post-pandemic luxury market, diversification can dilute identity. Today’s consumers reward depth, not breadth. They want brands that stand for something authentic and enduring.”

Francken explains that over the past decade, luxury conglomerates chased scale, branching into beauty, hospitality, and tech to capture every lifestyle touchpoint. But as consumers gravitate toward meaning and longevity, the industry is pivoting back toward storytelling rooted in legacy and purpose.

“Purposeful pruning is strength, not loss,” she adds. “Independent houses like Aurélien are well-positioned in this new era. Agility allows them to balance innovation with timelessness, offering ‘smart luxury’ rooted in authenticity rather than volume.”

What This Signals for Luxury Beauty in 2025

• A “Back to Core” Movement – Luxury houses are narrowing their focus to heritage craftsmanship and creative direction.
• Independent Agility – Boutique brands can adapt more quickly to evolving consumer values.
• The Rise of Smart Luxury – Consumers now favor fewer, better things (quality over expansion).

Expert commentary courtesy of Aurelien.
Submitted by Leah Daly, Digital PR Manager.

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