LVMH invested in Versed, a mass-market clean beauty brand, as it slowly reorients itself towards new types of beauty consumers.

WHAT HAPPENED: LVMH invested in Versed, an eight-month-old clean beauty brand, who sells products for $10 to $30. The brand recently closed an $11 million Series A, led by Sonoma Brands, Greycroft and Jay Z’s firm Marcy Venture Partners.

WHY IT MATTERS

LVMH’s interest in Versed signals that it is moving beyond luxury into a broader beauty market. Including the conglomerates investment in Madhappy, this is the second time in three months that LVMH invested in a brand geared toward younger consumers. If clean beauty was LVMH’s main justification for investing, it should have directed its attention on developing this category within one of its existing brands—like Dior or Fenty Beauty. Instead, investing in Versed shows that LVMH is looking to capture some of the market share from the mass-market brands that everyone is talking about—like Glossier, Kylie Cosmetics or Ordinary.

While clean beauty is currently novel, it will soon become standard practice, and therefore less of a standout attribute. As a buzzword coined during the 2010s, clean beauty has no absolute definition and is often used as a marketing tool, similar to “organic.” Ethical manufacturing and sustainable beauty products will become the norm as consumers are more concerned with where their products came from and what they put in and on their bodies. While early adopters could win over more consumers later, investing in a brand that uses clean beauty as its primary selling point doesn’t promise longevity.