Kylie Jenner just cut a major deal. The 22-year-old has agreed to sell a majority stake in her cosmetics line to industry giant Coty who owns beauty brands like Cover Girl, Tiffany & Co, and Balenciaga among other popular beauty brands, and is now $600 million richer.
The deal values her brand a whopping $1.2 billion, the company that she started as a teenager and the brand will be renamed into Kylie Beauty.
Jenner will still be on board on a creative role and will still be in charge of communications and marketing. Coty will be looking to expand the brand outside of the United States where it had one pretty well. Jenner’s website was the point of distribution for her cosmetics line and Coty will want to expand that as well, going to Ulta stores where Jenner’s products are already available.
TRENDING: Kylie Jenner sells her cosmetic line. pic.twitter.com/k4WzyTr6LB
— CNN Early Start (@EarlyStart) November 19, 2019
In a statement that Jenner told E! News earlier, the social media star and entrepreneur said that the new partnership will allow her and her team to focus on the creative aspect of each individual product while developing the brand into an international juggernaut.
People have applauded Kylie for her endeavors given that she already comes from a very wealthy family, and not many children from affluent families managed to create a billion-dollar business like her. Her other sisters themselves weren’t able to create such opportunities for themselves, and Jenner found a way to genuinely connect with people directly.
The consumer interacts with the influencer directly and she found a good way through creating what was a single product company, in the beginning, selling lip kits, a liquid form of lipstick paired with a liner for your lips until they managed to expand and create the billion-dollar business it is today. The key to their success is that they are so in tune with what the people wanted, they asked what the people needed and they addressed them.
This endeavor by Coty strikes as the old beauty and cosmetics companies looking towards what is hot today to freshen up their branding. If they can’t figure out how to create it, you then have to go out and buy it which what other cosmetics giants have done the past couple years to target the younger shoppers that predominantly makes up a huge portion of the market by acquiring these hot young brands and try to build them up to become big beauty brand labels that every consumer will gravitate towards.
Alain Ang is an editor for Best in Au. He enjoys writing about entertainment, movies, and lifestyle. On off days he spends his time with his rescue dogs, Sansa and Heart, digging holes in Minecraft, and developing his novel.