Kylie Jenner Sells A $ 600 million Cosmetics Company To Coty

Kylie Jenner cosmetics company


Kylie Jenner cosmetics company:


The world's youngest self-made billionaire is the majority owner of Kylie Cosmetics. The deal involves the German billionaire Reimann family.

Dusseldorf Even if Kylie Jenner posts a photo of a rather unspectacular vending machine on Instagram, more than three million people around the world click the heart - after all, she has filled her fans with her lipsticks.

Eyeliners are called "Kyliner" in their cosmetic company. And whoever opens a can of her Shine Body Powder shines a recessed dollar sign.

Welcome to the beautiful world of Kylie Cosmetics, the fast-growing brand of reality TV stars.

In 2015, the influencer, who alone followed more than 150 million people on Instagram, founded Kylie Cosmetics.

Now the 22-year-old, who is the newest self-made billionaire on the cover of "Forbes" magazine, is doing a pretty good job with her start-up For $ 600 million (more than 540 million euros),

She is now leaving 51 per cent of the company - and Although one of the very big players in the market: Coty Inc.,

One of the world's largest beauty companies, the majority of the JAB Holding of the German billionaire family Reimann heard.

Although the family is hardly public in appearance, the background of the investment is clear: Since Coty in 2016, the beauty division of Procter &

Gamble has taken over for 12.5 billion euros, stumbles in 1904 by the perfumer François Coty founded in Paris.

The debts are high, the profits break down, especially in the beauty section with its many mass brands it goes downhill.

Whether the investment for the Reimann ever pays, is questionable. Finally, Coty had to write off more than $ 3 billion in the summer, the stock price broke at times by almost 20 per cent.

Top management - the fourth in five years - is working on a four-year turnaround. Joining Kylie Cosmetics, called "Strategic Partnership", is a big step in this restructuring.

It was not until October that Coty had announced that it would focus more on fragrance, cosmetics and skincare, and consider phasing out professional cosmetics and hair care.

That, in turn, would have repercussions in Germany. In Darmstadt, where Coty employs around 1,000 people and has housed its DACH headquarters, Wella, the professional haircare brand, is also located. Concrete plans are not yet known.

Anyway, Kylie Jenner brings with it what Coty is missing - as well as other big competitors.

Global players such as L'Oréal, P & A, Shiseido or Colgate-Palmolive are buying young, new and rapidly growing niche or independence brands.

So they want to maintain contact with young target groups or even win, to be present on social media and thus in the sales of Generation Z.

Kylie Jenner cosmetics company - Clearance within hours:


Kylie Jenner, the youngest of the five highly successful marketing talents from the Karde‧shian-Jenner clan, landed an instant clearance sale with her debut product, a lipstick.

A picture of her attracts six to seven-figure "likes" within a few hours, her online shop is one of the most successful in the world.

And after her business idea for mascara, rouge and concealer proved successful, in May 2019 she underwent the "Kylie Skin" brand for skin products - the first series was sold out within ten hours.

Kylie, from the perspective of Coty "successful entrepreneur, beauty mogul, fashion designer, author, TV star" as well as simply "style icon",

with her team at Kylie Cosmetics will continue to provide the creative part in product ideas and communication - especially with a view to their more than 270 million followers in various social networks.

Coty, in turn, wants to act as a licensee and bring in expertise in research, product development, manufacturing and distribution.

Coty boss Pierre Ladies, who has been in office for a year, commented that it was "exciting to combine Kylie's creative vision and unparalleled consumerism with Coty's experience and leadership in the beauty market."

Also, Peter Harf, JAB chairman and thus quasi mouthpiece of the underlying investor family, could quote with an assessment of "Kylie": It has "an incredible sense of the beauty consumers".

Joining Kylie Cosmetics will not be the solution to all of the Coty Group's multiple problems. But the investors and analysts rewarded the step.

The share price has risen by several percentage points since the announcement on Monday afternoon. The rating agency Moody's, which gave a positive outlook, said:

"The purchase fits in with the announced turnaround plans, bringing Coty's brand portfolio closer to the coveted Millennials and Generation Z target group,

which is increasingly gaining ground through platforms like Instagram or Youtube informed about products and also buys there, instead of shopping in pedestrian zones and store lines.

Coty plans to complete the transaction in the third quarter of 2020, the investment is expected to pay off in 2023.

When Kylie Jenner sells out her new holiday edition, which was launched in the United States on Tuesday afternoon, within hours, they can at least be fuller at Coty Looking forward to next year,

follow the hashtag #KylieCosmetics on Instagram. Of course, the cosmetics brand has its channel there - with another 22 million fans.


******

Post a Comment

0 Comments

close