📘 Case Study
“Rebranding Revival: Saving an Aging Beauty Icon”
Company Background
Lunaria Beauty, founded in 1985 in Paris, was once a luxury staple known for timeless elegance, natural ingredients, and French sophistication. Throughout the 1990s and early 2000s, Lunaria held strong appeal among women aged 35–55, with best-selling products in skincare and fragrance.
But by 2025, Lunaria’s glow has faded. Gen Z and millennial consumers have shifted to inclusive, cruelty-free, sustainable, and influencer-led brands like Glossier, Fenty Beauty, and The Ordinary. Lunaria’s sales have declined for seven straight years, and it has almost no digital presence beyond a dated e-commerce website.
Current Snapshot (2025)
| Metric | Value |
| Annual Revenue | €214 million |
| YOY Revenue Decline | -6.2% |
| Social Media Engagement (avg) | 0.3% |
| Gen Z Brand Awareness (France) | 11% |
| % Sales from Online Channels | 18% |
| Top-Selling Product | “Jardin de Nuit” Eau de Parfum (launched 1999) |
The Strategic Fork
In Q2 2025, CEO Camille Duret, newly appointed from LVMH, must lead Lunaria through a bold turnaround. The board has approved €20M over 2 years to rejuvenate the brand—but decisions must be made quickly.
Strategic Options
Option A: Digital-First Rebranding
- Relaunch brand with new logo, modern packaging, and a sustainability mission.
- Revamp e-commerce platform.
- Collaborate with micro- and mid-tier influencers.
Option B: Heritage Luxury Revamp
- Double down on French roots, elegance, and craftsmanship.
- Position Lunaria as an “affordable luxury” alternative to Chanel Beauty.
- Focus on Gen X and affluent millennials through premium retail and print campaigns.
Option C: Inclusive Skincare Line
- Launch a separate brand or sub-brand targeting Gen Z and diverse skin tones.
- Vegan, refillable, AI skin diagnostics, gender-neutral packaging.
- TikTok-first launch strategy.
Option D: Strategic Partnership or Licensing
- License the Lunaria name to a fast-growing beauty tech company or DTC disruptor.
- Focus on royalties and brand equity preservation over operational control.
The Dilemma
Camille must decide:
- Which strategic direction will revive Lunaria’s relevance while honoring its legacy
- Whether to revamp the mothership or spin off new ventures
- How to navigate brand identity in a market where heritage often clashes with Gen Z values
Student Discussion Questions
📈 Brand Strategy & Positioning
- Which option(s) from A–D offer the best chance to revive Lunaria while preserving brand equity?
- Should Lunaria pursue one unified brand, or split into separate sub-brands for different generations?
- How can the brand reposition itself for Gen Z without alienating its loyal older base?
📊 Marketing Tactics & Execution
- What specific campaigns, channels, or influencers should be leveraged to build awareness among new audiences?
- How can digital and in-store experiences be unified to reflect the brand’s revival?
- What role can sustainability and inclusivity play in building modern brand loyalty?
💬 Culture & Consumer Behavior
- How do Gen Z consumers differ in expectations from Gen X or boomers in the beauty space?
- How can Lunaria create emotional engagement and authenticity in a competitive landscape?
- What KPIs and brand health metrics should the team use to measure the success of the rebranding?
🧠 Long-Term Thinking
- What does success look like for Lunaria by 2030? Should it aim to be niche luxury, mass premium, or something else?