Jenner launched her beauty brand last year with a limited-edition lipstick line and matching lipsticks that sold out instantly. By comparison, her sister Kylie Jenner’s cosmetics company, Kylie Cosmetics, had sales of $14.4 million.
Jenner says she was initially uninterested in working with Kylie Cosmetics before setting up her own business.
The Beginning of Kylie’s Company
In 2016, she founded her cosmetics company Kylie Cosmetics, which has been hugely successful ever since. Six weeks after the first release, they decided to merge, and eventually, she joined the action as stated by Vox.
The business model of the family’s various ventures is based on their fame, which is why they are so successful in the business world.
The companies want to capitalize on their huge fan base, which spreads in the millions on various social media platforms. When Kylie first launched her lipstick kit in November 2015, she was able to market it to millions of fans in just a few days, meaning she is able to ‘do without the marketing costs and get away with what people do or don’t like.
Her Family in Relation to Business
The family’s business dealings in the early days of fame, particularly with older siblings Kourtney, Kim and Khloe, have not always been smooth sailing.
According to BBC, through a licensing deal, the sisters became part of an invented brand called Khroma Beauty, which was later re-branded as Kylie’s own brand.
Although it looks authentic and bears Kylie Jenner’s signature, the document is not exactly convincing, because the story it tells – that Kylie’s Cosmetics e-commerce brand has grown from zero to $300 million in sales in a single year – is hard to believe. The line was pulled from stores and in 2012 she launched her own cosmetics line, which she shares with her sister Kendall Jenner.
Coty recently bought 51 percent of Kylie’s Cosmetics from Jenner for $600 million, valuing the business at $1.2 billion.
While the buyout initially seemed to solidify Jenner’s billionaire status, Coty’s filing reveals that Kylie’s Cos cosmetics will make just $125 million in profit in 2018, less than half what the industry estimates, though the Jenners have led Forbes to believe the profit is $360 million. Cosmetics is a “very important part of their business model” for her and her family, she said in a conference call Monday.
The cash deal values the younger Kardashian-Jenner sibling’s business at nearly $1.2 billion, according to Forbes, up from an earlier valuation of $500 million.
Kylie’s Early Success
As reported by Business of Fashion, Kylie has already launched her own brand, Kylie Cosmetics. The 22-year-old launched her first cosmetics line in 2013 with lipsticks, lip gloss and lip balm.
The financial boost provided by the Kardashians advertising combined with fame and beauty has proved a successful marketing formula.
However, Kylie has yet to draw on other help to promote her products, particularly in the US.
She is the ultimate influencer, using her own face to showcase her makeup palette, and her targeted product expansion strategy has helped make the Jenner brand what it is today, a multi-million dollar business that has made Jenner a billionaire.
Kardashian family members have been able to build their own makeup empires at a time when the market is on a small downward trend.
Kylie’s alleged earnings is that she serves as the face of the brand’s cosmetics, hair and makeup line as well as a clothing line.