Kylie Jenner has recently announced that she sold 51% of her makeup and skincare empire to a company called Coty. The company was sold for $600 million and has risen Coty's stock shares by 80% since the announcement. Kylie Cosmetics and Kylie Skin are what gave Jenner the title of the youngest self-made billionaire ever. So how does selling more than half of the company benefit her?
Certainly, Coty will gain access to all of the people Kylie Jenner reaches including viewers of Keeping Up With the Kardashians, her Instagram and Snapchat followers, current customers and more. However, she believes that sharing the company will allow her and her team to focus solely on the creation process, while Coty focuses on consumer interest.
Owning other well-known brands such as Covergirl, O.P.I, Rimmel and more, Coty certainly covers a broad range of products. The brand believes that Kylie Cosmetics can be expanded globally, and has the potential to do really well by adding fragrance to her wide array of products. The team is also taking advantage of the fact that Kylie's brand is primarily online, and are planning on selling the products through more retailers in the US and worldwide.
Although they are planning to move most products into stores, it is ultimately the online factor that catapulted Jenner to her success in the first place. Having such easy access to fans, followers, and potential customers made advertising the brand easy. Since her name has been attached to the product since the beginning, many members of her gigantic fanbase have been attracted to her products. Additionally, since a lot of advertising was done on Instagram and Twitter, even people who aren't following Kylie are likely to see her brand and her product advertisements.
Source:
https://www.cnbc.com/2019/11/19/beauty-stock-coty-could-surge-after-kylie-jenner-makeover.html
https://people.com/style/kylie-jenner-sells-majority-stake-kylie-cosmetics/
There is no doubt that Kylie has become a successful young business woman. From your reading your post, I kept thinking about the relationship between connections made in the media and business. If this was their intention or not, having such a high profile celebrity create a business eliminates the fear of not having consumers. Her already established presence in all forms of media have benefitted her greatly.
ReplyDeleteWith Kylie being a billionaire at such a young age, I was guessing that at some point she would be selling her company. I think this was a very smart decision in her perspective. She is still gaining profit from her product, while focusing on the aspect of creation, which is what she is most interested in. Agreeing with Emma, I think the relationship with with media and business was the main reason why Kylie Cosmetics and Kylie Skin was so successful. Since Kylie is a huge user on platforms such as Snapchat and Instagram, publicity and advertisement was never going to be an issue, so is Coty really going to do much to IMPROVE? This makes me believe that even though Kylie has sold a portion of her company, she still has the "heart" of the company (the creation) in her hands.
ReplyDeleteI feel like this business decision will probably benefit Coty more than it will Kylie. Kylie has established a huge platform for herself and her fans love to keep up with her life. Since this business agreement has been released, the media is eating it up because it is Kylie. If Coty were to make a deal with anyone else there wouldn't be nearly as much publicity, therefore this is probably bringing a lot of attention to their company and may help them sell more products to Kylie's followers.
ReplyDelete