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From the very first lip kit to the $600 million deal.

Senior Reporter, Men’s and Accessories

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In just four years, Kylie Jenner ’s Kylie Cosmetics has hit the $1 billion mark.

The 22-year-old beauty mogul and reality TV star leveraged her fame and signature pout to create one of the most lucrative businesses in the beauty industry. She’s expanded her reign to skin care with the launch of Kylie Skin , and now has her sights set on creating a hair-care line and baby products.

Now that Jenner has sold a majority stake of her business to Coty Inc. for $600 million, WWD looks back at the trajectory of her business, including her many collaborations, product launches and partnerships.

Read on to see how Jenner turned her beauty empire into a $1 billion business.

Read More: The Evolution of the Kardashian-Jenner-West Fashion and Beauty Empire

November 2015

At 18 years old, Kylie Jenner embarked on her beauty business with the launch of Kylie Lip Kits on Nov. 30, 2015 — a collection of three lip liquid lipsticks with corresponding lip liners.

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Jenner launched the trio of products as a test run, producing just 5,000 units of each shade priced at $29. The products sold out immediately and it took roughly six months to produce the next batch of products.

February 2016

After the initial success of Kylie Lip Kits, Jenner renamed the brand Kylie Cosmetics and added three new shades of lip kits to her product range for Valentine’s Day. Production was boosted to 500,000 units of all six shades to satisfy consumer demand.

Jenner expanded the brand outside of the lip category in July 2016, introducing her first Kyshadow palette, a nine-pan eye shadow palette with bronze and neutral colors.

November 2016

November 2016 proved to be a busy month for Jenner. She embarked on Kylie Cosmetics’ first collaboration, teaming with half-sister Khloé Kardashian for the Koko x Kylie collection. The collection included a four-piece lipstick set, which immediately sold out upon launch.

https://www.instagram.com/p/BMZ7DhqBFD_/

Jenner later restocked the collection multiple times and has teamed with Khloé for two more collaborations since.

Later in the month, Jenner released her first Kylie Cosmetics holiday collection, which included mini liquid lipsticks, lip kits, crème eye shadows, a new Kyshadow palette, the brand’s first set of brushes and a makeup bag.

In an interview with WWD in August 2017, Jenner revealed that the launch of the holiday collection on Nov. 21, 2016, was the brand’s biggest sales day to date, generating roughly $19 million in just 24 hours.

December 2016

Jenner made her foray into brick-and-mortar retail in December 2016 with her first Kylie Cosmetics pop-up shop held at the Topanga Westfield Mall in Los Angeles. The pop-up included a wall of rainbow colored lip kits and merchandise from Kylie’s apparel merchandise shop.

View this post on Instagram A post shared by Kylie 🤍 (@kyliejenner)

She later went on to host more pop-ups nationwide, including one in New York the following February and one in San Francisco in May 2018.

February 2017

Kylie Cosmetics expanded yet again in the beginning of 2017, launching its first product in the face category with Kylighter, a collection of six highlighter shades.

Jenner looked to her famous family again for her next Kylie Cosmetics collaboration, creating the KKW by Kylie Cosmetics crème lipstick set with half-sister Kim Kardashian .

https://www.instagram.com/p/BTFR5JDl11H/

The collaboration served as a litmus test for Kardashian’s own KKW Beauty brand , which she launched a few months later in November. The KKW by Kylie Cosmetics collaboration sold out immediately, generating $13.5 million in sales.

August 2017

Nearly two years after starting the business, Jenner and her mom, Kris,  sat down for their first in-depth interview about Kylie Cosmetics with WWD, revealing that the brand had earned $420 million in its first 18 months in business and was on track to hit a $1 billion valuation by 2022.

It was projected that Kylie Cosmetics would experience a 25 percent increase in sales in 2017 with a projection of $386 million for the year.

November 2017  

Jenner embarked on her first retail partnership with Topshop , partnering for seven, five-week pop-up shops in the brand’s top-performing U.S. storefronts. Up to this point, the brand strictly operated direct-to-consumer, with her mom revealing to WWD that about 70 percent of transactions took place on a mobile device accessing the Kylie Cosmetics web site.

Jenner sent the Internet into a frenzy when she secretly gave birth to daughter Stormi Webster in the beginning of 2018.

https://www.instagram.com/p/BfhIdZ4lpPp/

While pregnant, Jenner created the Weather Collection to celebrate her daughter’s birth. The collection included an Eye of the Storm eye shadow palette with 10 storm-inspired shades, lip gloss, highlighters and liquid eye shadow.

To celebrate Mother’s Day, the Kylie Cosmetics Instagram account changed its name to Kris Cosmetics, hinting at an upcoming mother-daughter collaboration.

The Kris x Kylie Collection launched with the Momager Lip Kollection , poking fun at Kris’ title as her daughters’ manager. The collection also included a 12-shade eye shadow palette with shade names inspired by Jenner’s notable quotes from their hit reality TV show “Keeping Up With the Kardashians.”

July 2018  

Jenner made Forbes’ list of America’s Richest Self-Made Women, ranking at number 27 with an estimated net worth of $900 million. Jenner, who at the time was 20 years old, was featured on the magazine’s cover that month and is the youngest person to ever make the list.

Backlash ensued against Jenner for the accolade, with many on social media claiming that the beauty mogul is not “self-made,” considering she launched her business after gaining fame and wealth through her family’s reality show.

November 2018

After testing out brick-and-mortar through its pop-up shops at Topshop, Kylie Cosmetics entered Ulta Beauty ahead of the holiday season.

The beauty retailer has publicly commented that the Kylie Cosmetics brand has driven shoppers into the stores. The partnership has quickly expanded since its initial launch, with the brand entering more Ulta Beauty doors and expanding its product offerings in store.

The same month, Kylie Cosmetics debuted its mobile app , giving customers an additional channel to shop from the brand.

December 2018

Kylie Cosmetics ranked number 73 on WWD Beauty Inc’s Top 100 list for 2018 with an estimated $360 million in sales that year.

After conquering the makeup category, Jenner brought her business acumen to the skin-care market with Kylie Skin.

View this post on Instagram A post shared by Kylie Skin by Kylie Jenner (@kylieskin)

Jenner launched the brand with a line of six skin-care products, including a Foaming Face Wash, Walnut Face Scrub, Vanilla Milk Toner, Vitamin C Serum, Face Moisturizer and Eye Cream. The brand has since expanded the line with new facial skin-care products and has entered the body-care category.

August 2019  

Jenner made her first foray into fragrance in August 2019, partnering with Kim Kardashian’s KKW Fragrance brand. The two sisters collaborated on a trio of fragrances that are housed in bottles reminiscent of Jenner’s signature pout.

September 2019

Kylie Cosmetics revealed its first collaboration with a high fashion line in September, with Jenner teaming with longtime friend Olivier Rousteing for the Kylie x Balmain collection.

Along with the collaboration, Rousteing tapped Jenner as the artistic director for makeup for the Balmain spring 2020 runway show during Paris Fashion Week. Jenner had planned to attend the show and subsequent launch party, but canceled last minute due to an apparent sickness.

November 2019  

Months after WWD first reported that Kylie Cosmetics was in M&A talks , it was announced that Jenner sold a 51 percent majority stake in her beauty empire to Coty Inc., in a deal totaling $600 million. The deal values the business at $1.2 billion, with Jenner hitting the $1 billion mark three years earlier than previously projected.

With the deal, Jenner will stay on with the brand and continue to focus on product development and social media with her Los Angeles-based team. Coty Inc. plans on international expansion for the business through its expertise in research and development, manufacturing and distribution.

WWD reported that Kylie Cosmetics expects to end 2019 with $200 million in sales, with Kylie Skin contributing $25 million.

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How Coty plans to grow Kylie Cosmetics

By Annachiara Biondi

Coty Inc. acquired a 51 per cent stake in Kylie Cosmetics for $600 million on Monday, adding the beauty and skincare line to a roster of brands that includes Rimmel, Max Factor and Covergirl. The four-year-old startup has generated $177 million in net revenue over the past 12 months, according to its new parent company.

“Today's announcement changes the growth profile of our core business by partnering with a high-growth, digitally native beauty brand,” said Coty chief financial officer Pierre-André Terisse during a call with analysts. “Kylie Cosmetics will expand our presence in both premium cosmetics and skincare, two categories where we are currently under-index and are focused on growing.”

Since his appointment in January, Terisse has been working with chief executive officer Pierre Laubies on a turnaround plan aimed at returning the company to growth — sales were down by 4.4 per cent last quarter — and expanding margins from 8 to 16 per cent by focusing on Coty’s core fragrances, cosmetics and skincare businesses. The acquisition of Kylie Cosmetics falls in the third phase of the turnaround, expanding Coty’s portfolio presence in premium, skincare and digital.

Following the completion of the acquisition, Coty will assume control of portfolio development, distribution and licensing for skincare, fragrance and nail products, while product and communication initiatives will remain with Jenner’s team. In addition to expanding into new product categories, Coty plans to dramatically extend Kylie Beauty’s distribution overseas, where Jenner has over half of her social media followers. “By combining our global network in many different forms and countries with the power of a brand that has been able to expand at such a quick rate in the US without the network we have, there is an obvious case for value creation,” says Terisse.

Beauty conglomerates, including Shiseido and Estée Lauder , are turning to acquisitions to fuel top-line growth and consolidate their respective positions in the market as digitally native, direct-to-consumer brands increase their pull on younger consumers.

“Kylie brings incredibly strong brand equity as both a person and as a brand... This exposure to much younger consumers is something currently lacking in Coty portfolio and beauty brands,” says Terisse. Jenner has 270 million followers across her personal and brand social media channels. She is the seventh most-followed person on Instagram, with three-quarters of her followers between the ages of 18 and 34. Amongst beauty brands, Kylie Cosmetics has the second-highest number of followers.

By Amy Francombe

By Vogue Business in partnership with GXO Logistics

By Akanksha Kamath

The acquisition follows the May launch of Kylie Skin, a skincare line that sold out in the first 10 hours and is on track to reach $25 million sales by the end of the year. Skincare , one of the fastest-growing categories in prestige beauty in the US, is becoming increasingly important for beauty companies as cosmetics growth stalls. According to NPD , US skincare sales grew by 13 per cent in 2018, contributing 60 per cent to prestige beauty’s total gains, while makeup grew only 1 per cent.

During the call, Terisse dispelled doubts about a cool-off in Kylie Cosmetics’s popularity and growth. According to Rakuten Intelligence , which analysed online receipts, Kylie Cosmetics’s revenue dipped by 68 per cent for the year ending July 2018, before recovering slightly in the following 12 months. According to Terisse, the brand’s revenue of $177 million represents a more than 40 per cent increase over 2018’s calendar year. “We see strengths everywhere.. in cosmetics [and] in skincare, both in DTC and in the launch at Ulta,” he says.

Still, some analysts raised eyebrows over the price tag. “For a brand that is almost surely a fad in the makeup category that is clearly slowing, we certainly question the amount of money and valuation on this deal,” Ali Dibadj, senior vice president and managing director at Sanford C. Bernstein, writes via email.

Others see the strategic value. Jane Hali, chief executive officer of Jane Hali & Associates, likens Coty's investment to Estée Lauder's acquisition of social media-friendly brand Too Faced for $1.5 billion in 2016. “It doesn’t appear to be overly expensive because Coty is desperate to appeal to a younger audience, namely Gen Z,” Hali writes via email. “Coty paid $600 million with projected yearly revenue for 2019 coming in at $200 million… Coty can take this brand global and make their money back in no time.”

Terisse expects to see a full return on invested capital by year three. “We are making a deal which, as opposed to other skincare deals that I have seen on the market, is very accretive for Coty and shareholders.”

Correction: An earlier version of this story mistakenly stated that Kylie Cosmetics will be renamed Kylie Beauty. The brand will keep its original name. (18 November 2019)

This article was updated with analysts’ comments on 19 November 2019.

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• Marketing strategies

Marketing Strategy and SWOT Analysis of Kylie Cosmetics

by Sona Avetisian · Published October 19, 2022 · Updated June 8, 2023

A reality television star on Keeping Up With the Kardashians is Kylie Jenner. She also runs her own company, Kylie Cosmetics, a beauty line she started in 2016. On all of her social media platforms, where she frequently promotes her cosmetics, Kylie has a sizable fan base. She transitioned from reality television star to cosmetics diva. Kylie undoubtedly understands how to manage her own company and appease her followers. This blog will further analyze its marketing strategy to unravel the mystery of Kylie Cosmetics’ success.

The mission and vision statements of Kylie Cosmetics are first studied.

Mission statement: “Disrupting the beauty industry.”

 Investors think highly of Kylie Cosmetics because its brilliant price strategy drove a gulf between established and “drugstore brands.” While Kylie Cosmetics is growing its product range, it is also gradually lowering the average cost of its goods. Over the past six months, the average cost of a Kylie product has reduced by roughly $4 , according to price information we’ve gathered from the company’s website.

Unlike most beautiful cosmetics brands with a social media presence, Kylie does not require outside assistance while advertising her goods. She is the ideal influencer since she showcases her beauty options on her face.

Vision statement:

“To educate, inspire & equip an entire generation of beauty lovers with all the tools to create your perfect Kylie Glam with incredible ease and endless choice.”

Many cosmetic experts have recommended Kylie Jenner’s lip kits as dupes since they apply virtually precisely the same and are considerably less expensive. Kylie’s matte liquid metal lipsticks are unique. In general, metallic-looking liquid matte lipsticks are hard to come by.

The most often recommended dupes for her metallic lipsticks are Kat Von D’s Studded Kiss Lipstick and Too Faced’s Melted Metal Lipstick. These goods, however, fall well short of Kylie’s metals in comparison. Kat Von D’s Studded Kiss Lipstick indeed has a fantastic metallic effect.

How many other beauty brands regularly provide their fans access to their inventor and owner? Kylie Jenner has a significant online following on Twitter, Instagram, and Snapchat, totalling millions of followers. She even created her app where she publishes insider news regarding the dates of her lip products’ releases and intriguing brand-new details. Kylie usually gives customers who write to Kylie on Instagram or Twitter personalized answers.

Kylie’s readiness to interact with her followers and clients and address any issues that could emerge with her lip kits enhances her reputation as a manufacturer and distributor of high-end cosmetics.

Look at an Instagram post that exemplifies Kylie Cosmetics positioning strategy.

So here’s the thing: people will always debate why there is even a need for a nude lipstick. Especially for females of colour. Why not simply apply vaseline and call it a day? Said, the answers to those inquiries are “because” and “Vaseline is not the same thing,” respectively.

Over time, lips might get discoloured, and you occasionally want a little something to level things out. At the same time, it maintains the appearance that you are wearing nothing at all. Folks, it’s called natural makeup. It is something.

Sometimes you want a little extra, artificial colour. Various colours from Kylie’s Cosmetics, ranging from a delicate, light brownish pink to a more bottomless, dark espresso, complement a wide range of skin tones.

Nothing smudged. Let’s discuss how free it feels to dine without your lipstick transferring to your face or your meal! You’ll forget you’re wearing anything since the almost there appearance is so practical!

These factors lead us to the conclusion that KK belongs to the Lover archetype.

Lover brands frequently bond closely with their customers and want to please them. The logo conveys the feeling of being close to loved ones, friends, and everything else nearby. It urges us to value all lovely things, including delicious and stunning landscapes. Let’s talk about some potential customer concerns for Lover brands.

• Being solitary.
• Being unwelcome.
• Not being loved.

Lover brands perform well on items like perfume and cosmetic equipment (ex Chanel, Estee- Lauder).

Sometimes Lover is a good fit for businesses who don’t like Ruler brands and have reasonable prices. We see this illustration in jewellery goods.

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• A 12-question survey will reveal the archetype of your brand.
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While attempting to communicate our brand message to customers, it is crucial to use the appropriate phrases. Here are several stories that fit the Lover archetype and have relevant meanings.

The Lover archetype enjoys classic automobiles and vintage women’s clothing; these associations highlight the essence of the next archetype.

Stories about wedding ceremonies and every tiny aspect related to them are covered in love messages: the bride’s outfit, the cake, and the decorations in the reception hall. We see storytelling components in this article about how to make a cake and what attire the bride should wear.

Next, we’ll look into the SWOT analysis of Kylie Cosmetics.

Kylie has a sizable following on all of her social media platforms. She has more than 200 million followers on Instagram alone. She limits the display of her appearance, wardrobe, travels, and daughter Stormi to this platform. She interacts with her admirers and often fulfils their requests. Even her Instagram account for her beauty line is different. She has more than 25 million followers on this account.

Kylie’s brand expanded and succeeded thanks to her notoriety. Moreover, she often shares a sneak of her new cosmetic collections and selfies wearing her makeup. Her followers like watching her makeup and routines in action. Her company keeps growing and introducing new things.

She began by using lip kit goods first, then added other ones. For every product, she provides a variety of shades and packages. She also has the advantage of not testing any of her goods on animals, which is another quality many clients appreciate.

Weaknesses:

Kylie is often tone-deaf to the outer world because she is devoted to her brand. She stays silent during protests or natural disasters and keeps posting about her cosmetics brand. Because of the potential for customers and subsequent loss, this might be risky for her brand. She also debuted a collection with a financial focus, for which she quickly came under heavy fire. It was a gift for her 22nd birthday. Fans were furious with Kylie for boasting about her fortune and being a millionaire.

The cosmetics market is huge and fiercely competitive; hence every company aspires to have the most acceptable product. Numerous celebrities have launched their own cosmetics lines. Kim Kardashian, Kylie’s sister, runs a company called KKW. KimShe faces intense competition from well-known companies whose prices are less high than hers.

Opportunities:

There are various prospects for Kylie Cosmetics. She may host additional cosmetic tutorials with celebrities and other owners of beauty brands to grow her business. If Kylie Cosmetics collaborates, beauty enthusiasts who follow other celebrities’ makeup tips but are unaware of their brand may become aware of it. She created a limited edition collection by combining her label with her sister’s.

She can increase her customer base if she contacts other well-known cosmetics companies. Since her products aren’t the cheapest, lowering the price of her cosmetics or increasing sales will draw in more clients.

It’s time to choose the Kylie Cosmetics Segment at last.

We shall watch one of their advertisements to do this.

Stormi’s mother is an expert in product creation; after all, her foresight led to the release of millions of lip kits. With a new baby on the way and a line of baby care products fittingly dubbed Kylie Baby.

Jenner revealed the first four items in her collection of baby basics with followers on her Instagram story and explained that it had taken two years of development and testing before she could release them. When she became a mother, she said, “I just wanted to produce safe goods for my kids.

Therefore Kylie Baby is clean, vegan, cruelty-free, fragrance-free, and created without parabens, sulfates, or silicones. “We have also passed paediatrician testing and are hypoallergenic. Baby goods need much time to create, so I wanted to ensure that we did all the testing to make this very safe for your children and newborns. I wanted to develop a treatment I would apply to my children” – Kylie Jenner.

The first four items are a bubble bath, a moisturizing lotion, a tear-free gentle shampoo, and a mild conditioner. Jenner claims that her three-year-old, who has had sensitive skin for the past two years, has served as the main product tester.

Fun fact: We used these bubbles while testing Kylie Baby a year and a half ago when I uploaded this adorable picture of Stormi. Stormi essentially used to attempt to eat these bubbles and put them in her eyeballs so I wouldn’t advise this for your kids. So there is no need to worry about that because this is entirely safe and tear-free. It also produces the most delicate bubbles.

By now, it should be evident that Peacocks are the market niche that Kylie Cosmetics has selected.

How well do we understand peacocks?

Values and way of life:

Peacocks must be different, unique, and stick out. It doesn’t matter how they do it—through identity, clothes, hobbies, or the interface. Peacocks must succeed in making their goal a reality.

In any event, we are all aware of how the obsession with perfection leads to ambiguity. In any event, this does not diminish the peacocks’ unwavering faith. For example, this part won’t be confused or demotivated if a little setback occurs at work.

Additionally crucial to Peacocks, accomplishments also add to the fragment’s compulsiveness. Peacocks first establish their goals before breaking them down into manageable stages. And it is via those modest stages that individuals finally reach their ultimate aim.

Peacocks suggest becoming innovators in the workplace. They accomplish it by working for each development, starting with pursuing a more critical education. An integral aspect of a successful profession is making money and leading a prosperous life. However, Peacocks struggle with that.

Although they make a lot of money, they also tend to waste some. For instance, peacocks frequently purchase inexpensive yet little objects solely for fun or to satisfy their desires.

Viewpoint on shopping:

Suppose we know that peacocks like satisfying their needs. We will learn something else. They value buying from prestigious, well-known luxury brands. Additionally, this highlights their obsession with standing out. They believe that looking well means being amazing.

This particular section stands out among the others significantly. Individuals tend to favour quantity or quality, but this group is equally concerned with both. Discounts and exceptional offers are thus enormous promises of help.

Peacocks’ propensity to stay modern is another factor in why they buy so frequently. They like that their clothing is current. For them, using media differently has an impact. Peacocks soak up fashion inspiration like a sponge, whether from Instagram or a TV commercial. This part adheres to the trademark. They stick with a firm once they’ve found one they like.

Our new released book “16 Personalities” provides in-depth information that may be of interest to you.

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• Discover techniques for capturing their interest in and creating compelling messaging strategies.
• Gain a deeper understanding of customers by exploring their values and fears within these personalities.
• The book serves as a masterpiece for individuals interested in furthering their knowledge of target markets and buyer personas.

Other information.

• Peacocks place significance on how they are recognized and how they seem physically.
• They go to the gym often. The latter serves as a means of meeting new individuals in addition to serving as a means of gaining and maintaining fitness.
• This group enjoys going to the movies.
• They are more frequent customers at bars and cafes.
• Their friends must share some characteristics with them.
• TV is their primary source of information.
• Magazine reading is an excellent pastime for peacocks.
• Online channels serve as intermediaries for maintaining human connections and communication.
• Fewer of them listen to the radio, and some use print media.

Now it is pretty evident why Kylie Cosmetics is so popular. In this essay, we focused on the crucial advantages of Kylie Cosmetics. We carefully examined the mission and vision statements that serve as their primary sources of “inspiration” and the segment and brand archetypes. The company must consider the risks to keep its position as a top fashion brand.

Interested in reading blogs like this one? Click the link below to view our team’s previous articles!

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How Kylie Jenner Built One of the Fastest-Growing Beauty Brands Ever It took less than two years for Kylie Cosmetics to reach an estimated $630 million in sales.

By Tiffani Bova • Jul 20, 2018

Opinions expressed by Entrepreneur contributors are their own.

Excerpted from Growth IQ: Get Smarter About The Choices That Will Make Or Break Your Business by Tiffani Bova with permission of Portfolio, an imprint of Penguin Publishing Group, a division of Penguin Random House LLC. Copyright © Tiffani Bova, 2018.

The traditional makeup market was down 1.3 percent in 2016. But independent brands were up 42.7 percent. The growth of these smaller independent brands is a direct reflection of a change in market context, consumer tastes and buyer demographics. Case in point ...

One of the most successful recent examples of a company executing a highly targeted and effective product expansion growth strategy is Kylie Jenner, best known as being the youngest of the Kardashian-Jenner empire.

Related: This Former Marketing Student Turned Her Knack for Life Hacks Into 6 Million YouTube Subscribers

Regardless of what you may think of reality TV or the Kardashian family, this is an impressive story that takes advantage of many of the benefits that technology and changing consumer behavior provide companies today, which is at the heart of growth IQ.

Taking full advantage of her exposure on the Keeping Up With the Kardashians television show, Kylie became an influential voice on makeup and fashion. In 2012, when she was only 15 years old, she collaborated with the clothing brand PacSun, along with her sister Kendall, and created a line of clothing, Kendall and Kylie, targeted at teenage girls, which was their natural fan and target customer base. In 2014 and 2015, Time magazine listed the Jenner sisters as one of their " Most Influential Teens in 2014 ." If that wasn't enough, in 2015 Kylie launched her own cosmetics line , Kylie Cosmetics. What made her believe she could successfully enter a cosmetics industry occupied by some of the most famous brands in the world?

First, she had a passion for makeup and fashion. Second, she had the ability to leverage a huge platform from both the show and her growing fan base, which allowed her to form (required) manufacturing and distribution partnerships. Third, she saw an unmet need in the market. Fourth, she wanted to focus on customers who were just like her -- teenagers.

Related: This Cosmetics Company CEO Turned a $1 Million Packaging Fail into Quadrupled Sales. Here's How.

Let's focus on the second one for a moment, because it is an important piece of this lesson. In December 2017, at 20 years of age, she reached 100 million followers on Instagram alone. She also has more than 24 million Twitter followers and 20 million Facebook followers , bringing her social media reach to more than 150 million people. In short, she had one of the largest social media followings on the planet (maybe only rivaled by her big sister Kim)!

As part of a product expansion strategy, its initial collection of discrete cosmetic products was expanded over subsequent months (yes ... months) in two different directions. One direction was related cosmetic categories: Kyshadows (eye-shadow palettes), Kyliners (eyeliner), Snapchat tutorials (which average 10 million views), a mobile app and other fashion products. The other direction was the bundling of products thematically (Kylie's Vacation Edition, Kylie's Valentine Collection).

Now firmly established in her target market, Jenner leveraged a personal milestone to stretch the edges of that market with these new products -- to continue to be relevant to her aging, yet still teenage, customer base -- with the #KylieTurns20 product campaign.

Related: Beauty Entrepreneur Bobbi Brown Explains the 'Secret Sauce' to Building a Brand Loved By Everyone

The success of this strategy depended heavily on both combination and sequence. Yes, there is no question that part of her success is based on making the most of her massive platform, but that will only get you so far. Similar to what we saw with Jessica Alba and The Honest Company , being a celebrity might get your foot in the door, but without great products, a loyal customer base and a strong customer experience, it won't matter.

Many other (much older and more established) celebrities have attempted to extend their brand by venturing into the business world, only to fail. Jenner -- along with her business manager and mother, Kris Jenner, and her extended business team, including Laura Nelson and Josh Nelson of Seed Beauty -- had to first capture a sizable share of her target market by playing off the context of Kylie's teen stardom and massively loyal fan base.

The sequence of this massive growth was critical. Kylie started by establishing her personal brand first, before she endorsed or released any products on her own. Next, she created her own niche within the family empire, different from her other siblings, and stayed focused there, with various endorsements and partnerships. Then, once those efforts had shown promising results, she launched her own line of "Lip Kits" -- in a limited run, at a premium price -- which sold out in minutes .

Related: Kylie Jenner Learns a Harsh Business Lesson That You Already Know NEXT ARTICLE

Some might argue that this is the classic "scarcity" marketing tactic, and they may be right. Was it intentional or not? Who knows, but she has become a master at knowing her customer base (or, rather, fan base), catering to their needs and continuously pursuing product expansion to extend her product line as her customer base ages into adulthood.

The combination of her marketing and social media moves was a critical component of its success. As social media replaces traditional media, it's possible you won't see an ad in Teen Vogue anytime soon from Kylie Cosmetics. Kylie is leveraging all aspects of social media marketing (video, Instagram, Twitter, Facebook) to stretch the boundaries of customer engagement.

Fabrizio Freda of Estée Lauder observed : "Younger generations are defining the culture with images of self-expression. They take more pictures in a day on average than their parents took in a year. Sixty-five percent of teens rely on social media to discover and select beauty products. ... Volatility and the pace of change are not diminishing. What we're living through is not a moment in time, it's the new reality. ... The art of leading through change is understanding what has not changed and how to leverage our historical strengths."

Related: Kylie Jenner and 20 Other Extremely Successful Celebrity Entrepreneurs

In less than two years, and with no paid advertising campaigns, Kylie Cosmetics is now a full-service, direct-to-consumer (D2C) beauty brand and social media powerhouse, with an estimated $630 million in revenue .

Let's put this all in perspective. How does Kylie Cosmetics revenue performance measure up against other beauty titans? Well, it took fashion genius Tom Ford 10 years to reach half a billion dollars in sales after he launched his beauty line in 2006. It took L'Oréal's Lancôme cosmetics line 80 years to hit $1 billion. It took MAC 13 years to achieve $250 million and another 10 years to reach $500 million, even with Estée Lauder owning a majority and then all of it during that time frame.

As for Kylie Jenner, the current rate of growth of her company suggests that she will rocket past the $1 billion mark by 2022 while still picking up speed. And there appears to be no end in sight.

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The Business Model and Revenue Streams of Kylie Jenner Explained

Learn how Kylie Jenner has built her business empire and diversified her revenue streams beyond just cosmetics.

Understanding Kylie Jenner's Business Model

The genesis of kylie cosmetics.

At the young age of 19, Kylie Jenner launched her own cosmetics company, Kylie Cosmetics, in 2015. The brand initially gained traction with the release of the immensely popular Kylie Lip Kits, a range of lipsticks and lip liners. Jenner's strategic use of social media platforms , such as Instagram and Snapchat, played a crucial role in creating buzz and generating significant demand for her products.

Over the years, Kylie Cosmetics has expanded its product line to include eyeshadow palettes, highlighters, and blushes, among others. With a keen understanding of her target demographic and an unparalleled ability to connect with her followers, Jenner has been able to cultivate a strong and loyal customer base.

Expansion into Skincare: Kylie Skin

Building on the success of Kylie Cosmetics, Jenner ventured into the skincare industry with the launch of Kylie Skin in 2019. The brand focuses on providing a comprehensive range of skincare products, including cleansers, toners, and moisturizers. Once again, Jenner harnessed the power of social media to promote her new venture, effectively leveraging her existing customer base and widening her reach.

With the skincare industry experiencing rapid growth, Kylie Skin has quickly gained popularity, further diversifying Jenner's revenue streams .

Leveraging Social Media for Business Growth

One of the key factors that sets Kylie Jenner apart is her innate understanding of social media and its potential as a marketing tool. With millions of followers across various platforms, she has built a formidable online presence that enables her to engage with her audience and promote her products effortlessly.

By frequently sharing behind-the-scenes glimpses into her personal life and documenting her beauty routine, Jenner has effectively humanized her brand and fostered a sense of authenticity among her followers. This approach has proven successful in creating a loyal fan base and driving sales.

Collaborations and Partnerships

Beyond her own brands, Kylie Jenner has also ventured into collaborations and partnerships to expand her business reach . Notably, she collaborated with her sisters to create the KKW x Kylie Cosmetics collection, a collaboration with her sister Kim Kardashian's beauty brand. The launch of this collaboration was met with immense success, generating substantial revenue for both parties involved.

Dissecting Kylie Jenner's Revenue Streams

Revenue from kylie cosmetics and kylie skin.

Kylie Jenner's primary source of revenue stems from her eponymous beauty brands , Kylie Cosmetics and Kylie Skin. According to Forbes, as of 2020, Kylie Cosmetics alone was valued at approximately $600 million, with Jenner retaining a 51% stake in the company. This valuation reflects the immense popularity and profitability of her beauty empire.

Moreover, with the launch of Kylie Skin, Jenner has further solidified her position in the beauty industry. The revenue generated from both brands forms a significant portion of her overall earnings, contributing to her billionaire status.

Earnings from TV Shows and Endorsements

In addition to her business ventures, Kylie Jenner has also garnered financial success through her appearances on television shows. Most notably, she gained widespread recognition from the reality TV series "Keeping Up with the Kardashians," which follows the lives of her family members.

Jenner's prominence as a television personality has opened doors for endorsement deals and collaborations with various brands. These partnerships have added a notable stream of revenue to her business portfolio.

Income from Social Media Influence

As an influential figure on social media, Kylie Jenner has become a highly sought-after partner for brands looking to promote their products. Her massive following and strong engagement rate make her an ideal choice for companies aiming to reach a large audience.

Jenner commands substantial fees for sponsored posts on her social media platforms, further augmenting her revenue streams. Her ability to monetize her online presence serves as a testament to the value of cultivating an engaged following.

Other Ventures and Investments

Beyond beauty, Kylie Jenner has diversified her business interests through various investments . She has made strategic financial decisions, such as investing a portion of her earnings into real estate and stocks.

Furthermore, Jenner's entrepreneurial spirit has led her to explore adjacent industries, such as fashion and lifestyle. Her clothing line, collaborations with fashion brands, and her ownership of a successful merchandise company have added to her ever-expanding list of revenue streams.

The Role of Branding in Kylie's Business Success

Building a personal brand.

Kylie Jenner's success is intricately tied to her ability to forge a powerful personal brand. She has carefully crafted an image that resonates with her target audience, allowing her to differentiate herself in a highly competitive market.

Through her openness and authenticity on social media, combined with her impeccable style and beauty expertise, Jenner has created a relatable persona that resonates with millions of young consumers. This connection has been instrumental in driving the success of her ventures.

The Impact of Celebrity Status on Business

Kylie Jenner's celebrity status undoubtedly plays a significant role in her business success. As a member of the globally recognized Kardashian-Jenner family, she entered the business world with an existing fan base and media attention.

However, it is worth noting that Jenner has managed to leverage her fame effectively by strategically positioning herself as a legitimate businesswoman. Her relentless work ethic and dedication to her craft have helped separate her ventures from mere celebrity endorsements, establishing her credibility within the industry.

Branding Strategies and Tactics

Jenner's branding strategies are multifaceted and encompass various elements. From product packaging and design to powerful storytelling through social media, every detail is meticulously curated to align with her overall brand vision.

Moreover, Jenner has adopted a direct-to-consumer approach, primarily relying on online sales through her website and exclusive partnerships with select retailers. This direct connection with her audience facilitates a more intimate and personalized customer experience, which, in turn, strengthens brand loyalty and drives revenue.

Challenges and Controversies in Kylie's Business Journey

Criticisms and legal battles.

Despite her remarkable success, Kylie Jenner has faced her fair share of criticism and legal challenges. Some critics argue that her billionaire status was exaggerated by Forbes, leading to controversy surrounding her self-made label.

Additionally, her brand has been subject to legal battles, such as trademark infringement disputes and allegations of stolen designs. Navigating these challenges has required Jenner to possess business acumen and legal support to protect her brand and reputation.

The Forbes Billionaire Controversy

In 2019, Forbes scrutinized Kylie Jenner's billionaire status, raising doubts about the accuracy of her reported wealth. The controversy sparked discussions about wealth disparities and the influence of social media-fueled business ventures.

Nevertheless, Forbes acknowledged Jenner's undeniable influence and success as an entrepreneur, highlighting the significant financial impact she continues to make.

Navigating Business Challenges

Like any business, Kylie Jenner's empire has faced various challenges along the way. However, her ability to adapt and pivot has been instrumental in overcoming these obstacles.

She has consistently demonstrated resilience and a willingness to learn from her experiences, ultimately contributing to her long-term business growth. Entrepreneurs can look to Jenner's journey as a reminder that success often comes hand in hand with challenges, and it is the ability to navigate these hurdles that sets great businesses apart.

What Can We Learn from Them to Grow Our Revenue?

The phenomenal success of Kylie Jenner's business ventures provides valuable lessons for entrepreneurs seeking to grow their revenue:

• Establish a Strong Personal Brand: Invest in building a brand that resonates with your target audience and sets you apart from the competition.
• Leverage Social Media: Develop a strategic social media presence to connect with your customers, promote your products, and create brand loyalty.
• Embrace Collaboration and Partnerships: Seek collaborations and partnerships that align with your brand's values and provide opportunities for mutual growth.
• Explore Diverse Revenue Streams: Be open to diversifying your revenue streams by exploring new industries, investing wisely, and identifying lucrative opportunities.
• Adapt and Overcome Challenges: Learn from setbacks, remain adaptable, and embrace change to navigate challenges and propel your business forward.

Ultimately, Kylie Jenner's extraordinary entrepreneurial journey serves as a testament to the power of ambition, strategic branding, and leveraging one's unique strengths. By applying these lessons to your own business, you can unlock new avenues of growth and propel your revenue to new heights.

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Social media and branding: behind Kylie Cosmetics’ success, new marketing rules and risks

L'Oréal Professor of Creativity Marketing, ESCP Business School

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Ben Voyer does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.

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Two years ago who would have thought that Kylie Jenner, a 20-year-old American socialite, would now be heading a cosmetics company that [has achieved retail sales of US$420 million . The success of her eponymous brand – Kylie Cosmetics, launched just 18 months ago – exemplifies what can be achieved when social media, including Facebook and Twitter , are used efficiently as a marketing tool. While the brand’s sudden emergence has generated much debate, marketing research in the last decade has studied the consequences of social media on traditional marketing practices and models, and how these have profoundly reshaped marketing.

Social media and the branding landscape

Establishing a brand that becomes well-known was once seen as the ultimate goal for any company looking for a significant market share. Brands provide consumers with a reassuring promise, often in terms of high quality, after-sales support or style. Brands are enduring, and consumers – at least traditionally – were introduced to brands by their relatives, social circles or TV and print advertising. The main advantage of this traditional branding approach for companies was to increase consumer loyalty and “willingness to pay” – thus adding a “brand premium”. A notable example is Hèrmes , which has spent 180 years building its iconic brand, and bottom line.

However, the emergence of social media has profoundly reshaped the role of brands and how they emerge and survive in an increasingly competitive marketing landscape. While social media haven’t diminished the importance of brands – if anything, they’re everywhere on social media – they have changed two important aspects of consumers’ relationship to brands.

First, branding cycles are much faster than before. From initial discovery to being considered “has been”, brands are confronted to increasingly rapid consumption cycles. Consumers’ desire for brands can rise rapidly, yet vanish within a few months, making intense but brief fads more frequent than ever. Second, consumers can more easily discover new, often niche and alternative, brands. In a context of defiance towards consumerism and mass marketing, brands that look small and honest provide a reassuring feel to consumers. These smaller brands are best exemplified by their founders, which incarnate the brand and its values in a direct way.

Are the days of long-established, omnipotent brands over?

As we approach the 2020s, how has branding changed?

More than ever, brands have to be personalised and convey emotions, as consumers are looking for ones that display authenticity.

Self-branding is also becoming the norm – and the trend of successful celebrities, including Kylie Jenner, successfully launching their brands will increase. Influencers (instagramers, YouTubers…) also work to brand themselves, even as they endorse other brands, increasing cross-selling.

Consumers want brands that resonate with themselves and that capture their individuality. This desire can go so far as to incorporate brands into selfies, a trend that can help build brands but also destabilise them .

Brand loyalty remains, but is less dominant. Consumers may keep buying, but it can be more as a habit than for the brand itself.

One powerful trend is for brands to offer an ecosystem of associated products and services that become indispensable to the product itself – think Apple. Creating a powerful consumption habit and a strong ecosystem around products and services are some of the key success factors for a strong 21st-century brand.

On the other end of the spectrum comes the phenomenon of “unbranded” products. What’s the pitch? Buy a brand that doesn’t make you pay a premium. A classic example of premium pricing is perfume, the price of which mainly comes from marketing (packaging, promotion…). Recently, the company Brandless launched a website where everything sells for US$3 . Since the early 1960s, the brand No-Ad – standing for not-advertised – has offered an inexpensive sunscreen product that’s never advertised. This is not a new concept, however, and can be seen as a different take on the dollar/pound shop concept.

The future of branding for large companies

Traditional large fast-moving consumer goods companies (FMCG) have often reacted by buying emerging brands, a trend that has been described as large corporations swallowing hipster brands. This can be a risky strategy, as FMCG firms can end up paying a hefty premium for such brands, which have often not been completely stabilised. This also casts doubts on why these larger corporations were not able to come up with such brands and products themselves.

Do these changes mean that David will ultimately beat Goliath and that it’s all doom and gloom for long-established brands and FMCG companies? No, especially as larger firms are become more agile, fostering in-house innovation and launching new brands. They have the ability and leverage to work with influencers, leading to co-branding that can give a more personal feel to long-established brands. FMCG companies are also starting to be more reactive and quickly launch of new products and brands, including ephemeral ones.

Of course, the power of social media still varies according to the type and maturity of industries in which companies are competing. Whatever the sector, anticipating shifts in demand is key, as shorter consumption cycles mean traditional companies need to be prepared to launch more of these short-lived brands, and drop them should they outlive their usefulness. The new reality of marketing in the era of social media is that while brands can rise faster, they can also fall faster than ever before.

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Coty and Kylie Jenner announce plans for the future of Kylie Cosmetics

07-Jan-2020 - Last updated on 01-Jun-2020 at 14:29 GMT

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In late 2019 Coty acquired 51% of the Kylie Cosmetics business ​. That transaction is now complete and the company is moving ahead, announcing plans to turn the brand Kylie Jenner launched online in 2015 into “a global powerhouse.” ​

Christoph Honnefelder will soon be CEO of 2 Kylie beauty brands

The former Douglas executive will “in the near future” ​step into the role of CEO for both Kylie Cosmetics and Kylie Skin.

“I’m excited to welcome Christoph to the team and look forward to the continued growth of Kylie Cosmetics and Kylie Skin,” ​ says Kylie Jenner, in this week’s media release.

At Douglas (a sizable European beauty retail chain), Honnefelder served as the executive vice president for assortment and purchasing and was also part of the company’s executive committee. Additionally Honnefelder has experience in consumer goods and coffee retail; and he worked for several years as a project leader with the business strategy firm The Boston Consulting Group.

Kylie Jenner will continue to lead communications and creative strategy

According to the media release Coty posted on its site Monday, Jenner (along with her existing team) will maintain leadership of creative strategy for the brands’ products and communications. This will allow her to “[build]” ​ on what Coty describes as “her unrivalled global reach capabilities through social media.” ​Jenner has more than 270 million followers across social platforms.

And for now, there are no plans for product formulation or packaging changes: “The company intends to continue to work with the current strategic partners in existing product categories,” ​notes the release.

How big can the Kylie Cosmetics business get?

Coty acquired 51% of the Kylie Cosmetics business for $600m. And the company see tremendous potential for growth. “We are pleased to complete this transaction and partner with Kylie Jenner to build a high growth, digitally native beauty brand,” ​says Pierre Laubies, CEO of Coty, in the media release. How large and how quickly the brand will grow as part of the Coty portfolio is yet to be seen.

Deanna Utroske has a discerning sensibility for quality news that resonates with today's digital audience ​and is a leading voice in the cosmetics and personal care industry as well as in the indie beauty movement. As Editor of CosmeticsDesign.com, she writes daily news about the business of beauty in the Americas region and regularly produces video interviews with cosmetics, fragrance, personal care, and packaging experts as well as with indie brand founders.

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Investor Relations Olga Levinzon, +1 212 389 7733 [email protected] Media – for Coty Ariel Dunne, +1 646 484 3653 [email protected] Media – for Kylie Jenner Christy Welder, +1 212 995 2147 [email protected]

Release Summary

Coty announces the relaunch of Kylie Cosmetics with new and improved clean and vegan formulas

Kris Jenner Reveals Kylie Jenner's Beauty Business Plans After Majority Sale

On monday, beauty company coty inc. announced it will pay $600 million for a 51% majority stake in kylie cosmetics..

Will Stormi Webster  help run Kylie Cosmetics one day?

Kris Jenner  is reassuring fans that  Kylie Jenner will continue building the company despite selling off most of it week, adding that the 22-year-old reality star wants to remain in the beauty business for the rest of her life and may pass down her empire to her own daughter.

On Monday, beauty company Coty Inc. announced it will pay $600 million for a 51% majority stake in Kylie Cosmetics. The deal values her group at about $1.2 billion, and is set to close in the third quarter of the 2020 fiscal year. Under the terms of the agreement, Kylie and her team will "continue to lead all creative efforts in terms of product and communications initiatives."

"She feels like this is where she belongs, this is where her passion is, since she really wants to use her creative side to develop her brand," Kris said on CNBC on Tuesday. "And this is what she wants to do for rest of her life. She talks about it all the time. Twenty years from now, she sees herself doing this and maybe passing it down to her daughter."

"She's so excited about the partnership, but at the same time, this is her dream to build this beauty empire and just go into many categories that she hasn't even scratched the surface," Kris said. "You know, she launched [Kylie] Skin this year and she's really excited about that and that's been a huge success for her, and looks forward to working with Coty to develop more categories and going into other areas of the beauty business and that's very exciting."

Kris said the goal is "to just keep building Kylie's existing beauty business into a global powerhouse brand."

"That's the vision," she said. "And we decided to partner with Coty because they share the same vision that we do in building this into a huge thing and it's, you know, we dream big and this is something we're so excited about." 

Kris also did not rule out the possibility of another Kardashian-Jenner family member selling off part of their own business.

"I think there's always that possibility, you know, as the businesses grow," Kris said, adding, "I think that the focus for the kids isn't always about growing it just to sell it. I think that they really are so passionate about what they're doing."

"I mean, I can't think of a better match than Kim [ Kardashian ] and her SKIMS [shapewear] business," she said. "Because she's just dreamed about this for a decade, thought about developing something like this, thought about creating a business like this, and she's done it and she lives it and breathes it and I watch her every single day try to create something even better, and it's really exciting. So I think that it's the whole process of what they're going through and learning."

She added, "I think that if they do grow the business and they're able to sell something and keep having a hand in it, that that's kind of the ideal situation."

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Kylie officially launched Kylie Cosmetics in 2016, months after she released her signature product, her Lip Kits, as a test line. Coty said on Monday that Kylie Cosmetics had an estimated $177 million in net revenues over the past year.

In 2018, thanks partially to a a distribution deal with beauty retailer Ulta, the reality star's company brought in an estimated $360 million in retail sales, Forbes reported in March. At the time, the magazine estimated that Kylie was worth at least $900 million, and dubbed the then-21-year-old the " youngest self-made billionaire ever ."

" I think she's self-made ," Kris said on  CBS Sunday Morning in May. "Listen, my girls, you can say that certain things have been handed to them. But it takes a lot of work to do what they're all doing."

"The money she's made is her own," she continued. "It began with her own savings. She put her own blood, sweat and tears into it. It was her idea. It was amazing what she did, and what she showed the rest of us how to do it."

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• COTY AND KYLIE JENNER ANNOUNCE STRATEGIC PARTNERSHIP TO EXPAND BEAUTY BRANDS

Coty and Kylie Jenner Announce Strategic Partnership to Expand Beauty Brands Globally

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NEW YORK -- Coty Inc. (NYSE:COTY) and Kylie Jenner announced today that they have entered into a long-term strategic partnership in order to jointly build and further develop Kylie’s existing beauty business into a global powerhouse brand.

Together, Coty and Kylie will set and lead the strategic direction of the partnership, focusing on global expansion and entry into new beauty categories. Kylie and her team will continue to lead all creative efforts in terms of product and communications initiatives, building on her unrivalled global reach capabilities through social media.

Kylie is one of the world’s most admired personalities with over 270 million followers across her personal and brand social media channels, as well as being one of the most influential voices among beauty consumers globally. Both of her brands, Kylie Cosmetics and Kylie Skin, are two of the fastest-growing and most-engaged beauty brands on social media.

The transaction is also a key milestone in Coty’s ongoing transformation into a more focused and agile company. Coty will have overall responsibility for the portfolio’s development, leveraging its global knowledge and capabilities in R&D, manufacturing, distribution, commercial and go-to-market expertise, as well as its deep understanding of the fragrances, cosmetics and skincare categories. In addition to its responsibilities within the partnership, Coty will act as a licensee for skincare, fragrances, and nail products.

Through the partnership each party will leverage its unique strengths to further build a high growth, digitally native beauty brand.

Pierre Laubies, Coty Chief Executive Officer, added, “We are pleased to welcome Kylie into our organization and family. Combining Kylie’s creative vision and unparalleled consumer interest with Coty’s expertise and leadership in prestige beauty products is an exciting next step in our transformation and will leverage our core strengths around fragrances, cosmetics and skincare, allowing Kylie’s brands to reach their full potential.”

Kylie Jenner commented: “I’m excited to partner with Coty to continue to reach even more fans of Kylie Cosmetics and Kylie Skin around the world. I look forward to continuing the creativity and ingenuity for each collection that consumers have come to expect and engaging with my fans across social media. This partnership will allow me and my team to stay focused on the creation and development of each product while building the brand into an international beauty powerhouse.”

Peter Harf, Chairman of the Board, said, “This new partnership between Kylie and Coty is an exciting step in Coty’s renewed emphasis on its beauty business. Kylie is a modern-day icon, with an incredible sense of the beauty consumer, and we believe in the high potential of building a global beauty brand together.”

Under the terms of the agreement, Coty will acquire a 51% ownership in the partnership for $600M. Coty expects the transaction will be accretive to the net revenue growth of its core fragrance, cosmetics and skin care portfolio by more than 1% p.a. over the next three years. The transaction is expected to be neutral to Coty’s earnings per share (EPS) in year one, and accretive thereafter. The ROIC of the transaction is expected to exceed Coty’s cost of capital by Fiscal 2023. Kylie Cosmetics realized an estimated $177M net revenues for the trailing twelve months (TTM).

The acquisition is expected to close in the third quarter of fiscal year 2020. All beauty categories within the new partnership will continue to be sold through leading luxury beauty retailers as well as owned digital channels.

Tiger Chark served as an advisor to Coty on the transaction.

Conference Call

Coty Inc. will host a conference call at 10:00 a.m. (ET) today, November 18, 2019 to discuss the transaction. The dial-in number for the call is (866) 834-4311 in the U.S. or (720) 405-2213 internationally (conference passcode number: 3762099). The live audio webcast and presentation slides will be available at https://investors.coty.com . The conference call will be available for replay.

About Coty Inc.

Coty is one of the world’s largest beauty companies with an iconic portfolio of brands across fragrance, color cosmetics, hair color and styling, and skin and body care. Coty is the global leader in fragrance, a strong number two in professional hair color & styling, and number three in color cosmetics. Coty’s products are sold in over 150 countries around the world. Coty and its brands are committed to a range of social causes as well as seeking to minimize its impact on the environment.

For additional information about Coty Inc., please visit www.coty.com .

About Kylie Jenner

Kylie‎ Jenner is one of the world's most-followed people on social media with a combined following of over 270 million users and counting. Featured as the youngest-ever self-made billionaire on the cover of Forbes Self-Made Billionaire issue in August 2018, Kylie is a successful entrepreneur, beauty mogul, fashion designer, author, TV personality and style icon. In November 2015, Kylie launched her cosmetics brand, Kylie Cosmetics, inspired by her love for makeup and passion for business. The debut product, the Kylie Lip Kit, was a sell-out success and her eCommerce site KylieCosmetics.com is one of the most successful online stores in the world today. Kylie has expanded the collection beyond lip products to include offerings like eyeliners, eyeshadows, blushes, highlighters, concealers, brushes, and makeup bags as well as creating limited edition sets launched throughout the year. Following the success of the cosmetics brand, Kylie introduced Kylie Skin, a range of skincare products in May 2019. Kylie has a fashion brand with her sister, the Kendall + Kylie Collection, as well as her website, KylieJennershop.com, which features merchandise and accessories.

For more information contact :

Investor Relations

Olga Levinzon, +1 212 389-7733

[email protected]

Media- for Coty

Andra Mielnicki, +33 7 76 14 69 58

[email protected]

Arnaud Leblin, +33 1 58 71 72 00

[email protected]

Media- for Kylie Jenner

Christy Welder, +1 212 995 2147

[email protected]

Also in the news

Kylie Jenner Is Ready to Take Kylie Cosmetics and Kylie Skin International

The makeup mogul plans to "go worldwide" with her wildly successful brands.

Every product on this page was chosen by a Harper's BAZAAR editor. We may earn commission on some of the items you choose to buy.

• The makeup mogul revealed her plans to take her seriously successful brand, Kylie Cosmetics , global.
• She also discussed what it's like coparenting with her ex-boyfriend, Travis Scott .

Kylie Jenner financially eclipsed her family members in 2019 when she sold a $600 million stake in her company, Kylie Cosmetics .

Placing the brand's value at a whopping $1.2 billion, Jenner's ongoing success proved that she has an eye for makeup and a fierce sense of business. Per Harper's BAZAAR 's March 2020 issue, " The Coty partnership , Kylie explains, will allow her to focus on creative and communications efforts for the brand as she, Kris, and Coty look for opportunities to grow internationally." Basically, Jenner has already conquered the American market. Next: the world.

As for why she decided to sell such a large stake in her company, Kylie revealed, "I think it was just time... I mean, we have a great team. But it’s me and my mom kind of leading the pack, which will still be the case. Nothing’s going to change. But hopefully we can expand and get a big infrastructure behind Kylie Cosmetics, and go worldwide and get more amazing people on the team to expand the business.”

Jenner has already launched Kylie Cosmetics vending machines , and ships makeup internationally via her website. But with the Coty deal in place, Jenner should be able to scale her brand, and potentially place it in countries all over the world, which is more than a little exciting.

Kylie Jenner's Style Transformation

Amy Mackelden is a freelance writer, editor, and disability activist. Her bylines include Harper's BAZAAR, Nicki Swift, Cosmopolitan, Marie Claire, ELLE, The Independent, Bustle, Healthline, and HelloGiggles. She co-edited The Emma Press Anthology of Illness , and previously spent all of her money on Kylie Cosmetics.

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Kylie Jenner cosmetics deal has delivered promise and peril for Coty

Beauty giant worried about social-media star’s personal life, but covid has been the real problem.

On the cusp of a deal to acquire one of the hottest new names in makeup, directors of beleaguered beauty giant Coty Inc. had some unconventional concerns.

Will sales fall if the chief executive decides to have another child? Can a 22-year-old social-media star reliably stay out of trouble? What role will her mother play?

Last year, Coty was hatching a plan to pay $600 million for a controlling stake in the cosmetics startup founded by “Keeping Up with the Kardashians” star Kylie Jenner , a move aimed at reviving a beauty business dependent on drugstore staples like Cover Girl and Max Factor.

KIM KARDASHIAN WEST'S BEAUTY LINE AND COTY PLAN BIG FUTURE AS $200M DEAL CLOSES

Coty directors ultimately decided Kylie Cosmetics’ metrics—$200 million in annual revenue with fewer than a dozen employees and virtually no ad spending—outweighed their worries. Also persuasive were reassurances from Ms. Jenner’s mother, Kris Jenner, who helped launch the company in 2015 and led negotiations.

A year after closing the deal, Kylie Cosmetics has both bolstered its new parent and dealt it some blows—though none that the company initially anticipated.

The deal gave Coty a hot brand with social-media savvy and a new skin-care line, a segment women have recently been spending more on.

When Coty announced the deal in November of 2019, executives said the plan was to meld Kylie’s wide appeal and bare-bones business structure with Coty’s reach and capabilities in manufacturing and research and development. Company executives said they planned to eventually take over production of Kylie makeup and expand the brand both geographically and into the fast-growing and lucrative skin-care category.

Ms. Jenner has a social-media following similar to Nike or Starbucks , Coty CEO Sue Nabi said in an interview. “On one side, you have Kylie Jenner knowing the next thing that people are looking for,” she said. “Then you combine that with the fantastic machinery of a company that is Coty.”

Peter Harf, Coty’s executive chairman, lauded the deal in a recent call with Wall Street analysts. “I personally think that this is a brand that could reach, I mean, hundreds of millions,” he said. “It could very, very soon be the biggest brand we have.”

Through a spokeswoman, Kylie Jenner and her “momager”—or mom-manager—Kris Jenner, both declined to comment.

WHAT IS THE KARDASHIAN-JENNER FAMILY’S NET WORTH?

But fallout from the coronavirus pandemic hobbled Kylie Cosmetics’ production this summer while giving birth to trends that analysts say could hurt the brand’s sales.

Without disclosing figures, Coty executives have said sales of Kylie Cosmetics were depressed this year by Covid-related supply-chain disruptions. The company said sales of Kylie Skin—which launched in early 2019 and includes face moisturizers, body scrubs and serums—tripled in the quarter than ended this October, compared with the same period a year earlier. Coty said Kylie Skin reached $25 billion in sales in 2019.

A third-party estimate indicates that excluding Kylie Skin and in-store sales, revenue fell significantly in 2020.

The acquisition also faces another challenge: a lawsuit filed in June by the private-label manufacturer that makes and distributes Kylie Cosmetics products. Oxnard, Calif.-based Seed Beauty LLC claims in the suit that it played a key role in fueling the company’s early success and alleges that Ms. Jenner shared trade secrets with Coty as part of the deal.

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Coty, whose brands also include Clairol hair dye, OPI nail polish and a stable of luxury fragrances, foundered since acquiring dozens of beauty brands from Procter & Gamble Co. in 2016. Coty stock has lost 70% of its value since that deal, and the company last year took $4 billion in write-downs on the P&G business.

Kylie Cosmetics came on the company’s radar as it sought an acquisition that would provide growth potential and entry into the world of influencer-fueled, direct-to-consumer beauty.

In talks with Coty, Kris Jenner played the role of deal maker, working closely with Mr. Harf, the company’s chairman. He is one of two managing partners of JAB Holding Co., Coty’s largest shareholder.

Coty said last January it was installing Christoph Honnefelder, an executive with European specialty retailer Douglas, as Kylie Cosmetics’ CEO. He resigned from the job in June, Coty said, citing personal reasons. Mr. Honnefelder declined to comment.

CLICK HERE TO READ MORE ON FOX BUSINESS

Instead, Coty installed its head of luxury brands to run Kylie Cosmetics. As it continued to build up the newly acquired unit, Coty also raised its bet on the Kardashian-Jenner clan. In June, Coty said it would pay $200 million for about 20% of the makeup brand owned by Ms. Jenner’s reality-star sister, Kim Kardashian West, KKW Holdings LLC.

Ms. Jenner was 18 when she started Kylie Cosmetics, selling nude lip liners and lipsticks promising the look of fuller lips. She had previously acknowledged using fillers to augment her lips amid controversy over her look. Kylie Cosmetics’ first products were $29 “lip kits,” which pair a pencil and matte liquid lipstick to make lips look fuller.

Ms. Jenner amassed a legion of loyal customers such as 24-year-old Kristi Murguly, who says she owns between $8,000 and $10,000 worth of Kylie Cosmetics products. Products are sold online, in department stores and at specialty retailers such as Sephora. Kylie Cosmetics and Kylie Skin lines are pricier than most drugstore mainstays, with offerings that include $12 lip gloss and $24 face moisturizer. Pricey limited-edition bundles are popular among loyalists who, like Ms. Murguly, spend hundreds of dollars on a new release.

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Kylie Cosmetics

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Under Coty, Kylie Jenner’s cosmetics and skin care lines have expanded internationally. But the brand that kicked off the celebrity beauty boom seven years ago may be showing its age.

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The most valuable luxury brands are all over 100 years old, but under certain conditions investing in luxury start-ups can deliver stellar returns, writes Pierre Mallevays.

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Cosmetics & Personal Care

Kylie Cosmetics brand profile in the United States 2022

Kylie cosmetics brand awareness, usage, popularity, loyalty, and buzz among cosmetics and make-up users in the united states in 2022.

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Kylie Cosmetics

5 followers

Kylie Cosmetics by Kylie Jenner is one of the fastest growing beauty brands in the world. Having launched three years ago, Kylie Cosmetics was put on the makeup map, by Kylie’s infamous "Lip Kit," consisting of a matching liquid lipstick and lip liner to create the perfect Kylie pout. Kylie’s never-... Read more

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Top 10 Cosmetic Industry Business Plan Templates with Examples and Samples (Editable Word Doc, Excel and PDF Included)

Samradni Pradhan

Welcome to the glamorous universe of cosmetics, where even the brightest stars have used their business sense to shine. Celebrities like Rihanna with Fenty Beauty, Kylie Jenner's Kylie Cosmetics, and Selena Gomez's Rare Beauty have conquered the industry with their beauty empires. But what's often overlooked is that beneath the celebrity status, they, too, required a well-crafted business plan template to succeed. In this world of fierce competition, their stories testify that a well-thought-out strategy is the true beauty secret behind their flourishing cosmetic empires.

For all those out there who are aiming to join the list of top cosmetic brands, we have something inspiring coming up! 

Enter Cosmetic Industry Business Plan Template!

We're talking about a roadmap that goes beyond contouring and takes you through market trends, financial forecasts, and everything in between. Whether you dream of launching the next iconic lipstick shade or revolutionizing skincare routines, this template is your canvas. It's where your flair for cosmetics meets smart business strategy .

Get ready to learn how to create a Cosmetic Business Plan!

Table of Contents

• Executive Summary
• Company Overview
• Industry Analysis
• Customer Analysis
• Competitor Analysis
• SWOT Analysis
• Porter’s Framework
• Operational Plan
• Financial Plan

Note: Before we delve into the details of this business plan, note that this template comprises 61 detailed business pages. Each of these business pages is customizable as per the needs of the business. Every page in this package has been systematically crafted to keep in mind your business requirements. The design elements are professional and appealing; your job is half done with just the inclusion of these slides. This blog will cover the top 10 pages within this deck in depth. You will get the 61-Page Doc, PDF, and XLS files on downloading.

1. Executive Summary

An Executive Summary is a concise yet powerful component that encapsulates your brand's essence, market potential, and strategic vision. Investors will be captivated by the brief overview of your cosmetics venture, from innovative product lines to unique selling propositions.

It ignites interest and showcases your business acumen. Elevate your business plan with a dynamic Executive Summary that leaves stakeholders eager to delve deeper into your cosmetic empire's intricacies. Open the door to a world of beauty and profitability.

In our Executive Summary section, you will get templates for:

1.1 The Quick Pitch- Concise pointers to highlight your business offerings.

1.2 The Entity- Investor-friendly information about your company profile.

Download this business plan

Do you want to promote your healthy organic skincare business plan but lack the right resources? Explore our H ealthy Skincare Cosmetic Business Plan ; this one is bound to help you start on a great note!

2. Company Overview

Company Overview unveils the heart of your brand – its history, mission, and values. Provide the narrative of your cosmetics venture, highlighting the innovation, quality, and customer-centricity that sets you apart. From breakthrough formulations to ethical practices, showcase the tapestry of your brand's identity. Elevate your business plan by presenting a holistic view that assures stakeholders of your cosmetic brand's resonance and readiness to conquer the market.

In our Company Overview section, you will get templates for:

2.1 Vision and Mission: Craft a compelling mission and vision statement that encapsulates the essence of your cosmetic brand.

2.2 Company Goals and Objectives: Clearly define the goals and objectives you aim to achieve through this strategic plan.

2.3 Start-up Summary: Present a concise yet informative summary that provides an overview of your cosmetic business.

2.4 Market Gap and Business Statement: Identify and emphasize market gaps while establishing a compelling business statement that defines your unique position within the cosmetic industry.

2.5 Products Offered: Showcase your range of cosmetic products, detailing their features and benefits.

2.6 Key Success Factors: Outline the critical success factors that will serve as benchmarks for evaluating the effectiveness of your business plan, ensuring a strategic and comprehensive approach to your cosmetic venture.

3. Industry Analysis

With Industry Analysis, dive deep into the dynamic cosmetics landscape, unveiling market trends, consumer preferences, and competitive dynamics. Display your profound understanding of this ever-evolving sector, showcasing your brand's adaptability and strategic insight. From emerging clean beauty trends to digital marketing shifts, highlight how your cosmetic venture seizes opportunities. It's a roadmap for market dominance.

In our Industry Analysis section, you will get templates for:

3.1 Market Analysis: Dive deep into a comprehensive analysis of the cosmetic industry market, examining its dynamics and trends.

3.2 Market Trends: Illuminate the prevailing market trends and emerging factors shaping the industry landscape.

3.3 Major Challenges: Identify and list the key challenges from a business perspective, helping you devise effective strategies to address them.

3.4 Growth Drivers: Highlight the pivotal growth drivers that will propel your beauty business forward in this dynamic industry.

3.5 Geographical Analysis: Conduct a thorough geographical analysis to gain a well-rounded understanding of your business's regional impacts and opportunities.

4. Customer Analysis

With Customer Analysis page, showcase the consumer behavior, preferences, and trends, unlocking the secrets to capturing hearts and markets. Investors will be captivated by your nuanced understanding, revealing how your cosmetics brand aligns perfectly with diverse customer aspirations. From eco-conscious millennials to skincare aficionados, highlight how your brand meets their desires.

This isn't just demographics; it's the art of creating loyal brand advocates. Elevate your business plan with a customer-centric approach that assures stakeholders of your cosmetic brand's magnetic appeal and readiness to dominate the market.

In our Customer Analysis section, we offer comprehensive templates for:

4.1 Target Market: This section provides an insightful overview of your intended target market.

4.2 Buyer Persona: Here, we guide you through the process of crafting a detailed buyer persona that represents your ideal consumer.

4.3 Market Sizing: We assist you in estimating and conducting a thorough analysis of the size of your target market, offering valuable insights for your business strategy.

5. Competitor Analysis

Enter the competitive arena with our Competitor Analysis page, a critical element within your cosmetic industry business plan. Here, we dissect rivals, exposing their strengths, weaknesses, and market positions. Investors will be enthralled by your strategic insight, revealing how your cosmetics brand competes and excels in this dynamic landscape. From innovative product differentiators to nimble marketing tactics, showcase your brand's advantage.

In our Competitor Analysis section, we provide templates for:

5.1 Major Players – Brief overview of your immediate beauty competitors

5.2 Attributes Comparison   –  Comparing your offerings against other beauty competitors

6. SWOT Analysis

Meticulously scrutinize your brand's Strengths, like innovative formulations and a loyal customer base, to leverage and amplify your market presence. Identify Weaknesses such as supply chain vulnerabilities or packaging concerns, developing strategies to fortify these areas. Explore the vast Opportunities within the beauty sector, from emerging wellness trends to global expansion, to maximize your growth potential.

Lastly, confront Threats like evolving regulations or competitive pressures head-on, fortifying your market resilience. Elevate your business plan with this beauty-focused SWOT analysis, ensuring your cosmetics brand emerges as a formidable industry player.

7. Porter's Framework

Porter’s Framework helps in dissecting the industry's competitive forces, empowering your cosmetics business to thrive. Highlight your strategic prowess in understanding supplier power, buyer influence, and the threat of new entrants, enabling you to make informed decisions.

Dive deep into the dynamics of substitute products and rivalry among existing competitors, crafting a blueprint for market domination. This isn't just analysis; it's a strategic compass altered to the unique challenges and opportunities within the beauty and cosmetic sector.

8. Marketing Plan

This section unveils the art and science of promoting beauty and skincare products. Impress the investors with your innovative marketing strategies, tailored precisely to captivate beauty-conscious consumers. From leveraging influencers for authentic endorsements to crafting captivating product launches, showcase your brand's ability to seize attention, skincare market share, and growth statistics .

It's a beauty-enhancing strategy that ensures your cosmetic brand shines amidst fierce competition.

In our Marketing Plan section, we provide templates for:

8.1 Sales Strategy: Strategically plan your sales approach tailored to your cosmetic business's unique needs and goals.

8.2 Promotional Strategy: Articulate a comprehensive outline of your promotional efforts, ensuring a well-coordinated marketing strategy.

8.3 Pricing Strategy: Present detailed pricing information and strategies for your cosmetic brand and its products.

8.4 Sales Funnel: Clearly delineate the stages of your sales funnel, providing a roadmap for targeted marketing efforts to maximize conversions and customer engagement.

9. Operational Plan

Here, we unravel the intricacies of product development, supply chain management, and quality assurance specifically tailored to meet the high standards of the beauty and cosmetic sector. Showcasing how your brand ensures premium product quality, ethical sourcing, and efficient distribution.

From selecting top-grade ingredients to implementing sustainable packaging practices, highlight how your operations align with industry trends and consumer expectations.

In our Operational Plan section, we provide templates for:

9.1 Retail Selling Plan- Outline your plan of action for selling products in the retail setting

9.2 E-commerce Selling Plan- Elaborate on your digital spending plan

9.3 Milestones- Highlight all of your operational milestones

10. Financial Plan

Dive into meticulous fiscal projections driven by your passion and expertise. Present your financial strategy, showcasing profitability, sustainability, and growth potential. From budget allocation for product development to marketing spend, highlight your prudent financial management.

This isn't just numbers; it's the heartbeat of your cosmetic brand's financial future. Elevate your business plan with a compelling narrative that instills trust in stakeholders. Illuminate the path to fiscal prosperity, assuring investors of your brand's sound financial footing and its exciting journey toward cosmetic industry success.

10.1 Financial Assumptions  -   In-depth basis for financial projections in your cosmetic industry business.

10.2 Revenue Model and Sales Forecast -   An all-encompassing blueprint illustrating revenue origins and sales expectations for the growth of your cosmetic brand.

10.3 Break-Even Analysis –   Assessing and analyzing the parameters that will lead to break-even success for your cosmetic business  

10.4 Projected Profit and Loss Account -   Financial report outlining estimated revenues, expenses, and net profit and loss statement.

10.5 Projected Cash Flow Statement -  Presentation of anticipated cash movement, managing liquid finances for your cosmetic industry business.

10.6 Projected Balance Sheet -   Financial overview detailing projected assets, liabilities, and shareholders' equity.

10.7 Scenario Analysis -   To gauge the financial repercussions of business conditions and potential risks, evaluate scenarios.

10.8 DCF Valuation -   Analysis using discounted cash flows to ascertain the current value of your cosmetic business.

There’s more to it!

It rarely happens that with just one download click, you can get access to multiple things. But that is the case with this business plan template. This fantastic resource is perfect for anyone who is starting a new cosmetic industry business or altering the current business plan. The entire plan is available for download in a PDF, Word Doc format for easy adaptability. So take the first step and access the business plan ppt of your dream. Download now!

FAQs on Natural Cosmetic Industry Business Plan

1) what is a cosmetic business plan.

A cosmetic business plan document outlines a company's strategies, goals, and operations. The document includes:

• Company overview is the first section describing the business's vision, purpose, objectives, and mission.
• The second section is Industry analysis, which analyzes trends, opportunities, market size, and industry challenges.
• Next comes the product description, which details the cosmetic business's products and services. It will also include all the benefits, features, and competitive advantages.
• The last section is the marketing plan outlining the cosmetic business's pricing, customer segments, target market, promotion, distribution, and branding strategies.

2) How do I write a cosmetic business plan?

To write a successful business plan for a cosmetic business,

• The first thing is to describe the purpose of the business. 
• Make a list of services and products that are going to be offered by the cosmetic business.
• Make a creative marketing strategy.
• There needs to be an operational plan. 
• Include the description of the organization and management of the cosmetic business.
• Determine the cost in terms of expenses and capital that will be required.
• Work on creating a financial projection and plan.
• Last comes the executive summary, which will introduce the business plan. In the company overview section, the type of cosmetic business is explained.

3) How can I start a Cosmetic business?

In starting a cosmetic business, the first step is to choose a cosmetic product that will be developed. After selecting the product comes market research. Market research plays an important role in knowing about the product's demand and performance. It is also important to research the local laws and federal regulations extensively. Once the initial steps have been taken care of, decide on the business name. Create a business plan in the beginning to get funding for the business. Once the funding has been taken care of, start the development of the product. The next step in starting a cosmetic business will be deciding on a niche and the location of the cosmetic business. The business should also have a logo or a sign which will make it unique.

4) How much does it cost to start a cosmetic business?

The cost of starting a cosmetic business depends on many factors because funds are required for everything, i.e., product development, initial inventory, testing, etc. The business will need a lot of money in research and development If it is looking to create unique formulas. Then, the business will need some funds for safety assessments, regulatory compliance, and legal requirements. Then comes the cost of packaging and branding. Renting a store and an e-commerce platform will add to the cost. Advertising and marketing expenses can't be ignored. Then there are the salaries, insurance, and utilities costs. So, after combining all the costs, a cosmetic business can range from a few thousand to several hundred dollars.

5) What is the profit margin in cosmetics?

The profit margin of the cosmetic business can vary significantly because of the different factors involved. The brands that have strong customer base has high profit margins like 60% to 70%. At the same time, newer cosmetic brands have lower margins because of marketing costs and higher production. Distribution channels, product pricing, and manufacturing methods also affect profit margins. Mass-market products have lower margins than luxury cosmetics, which have higher margins. While the potential for healthy profits is quite high in cosmetics, changing customer trends and competition can affect the margins considerably. To have a growing profit margin is difficult to maintain because the cosmetic market is competitive and innovative.

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The Kylie Cosmetics Target Market: Who Loves This Beauty Brand? (And Why?)

One of the main reasons people buy and use cosmetics is to improve their looks. It’s no different with the Kylie Cosmetics target market.

While it is true that a large portion of the market buys cosmetics of all brands to make themselves look better, there are many other reasons and factors that go into the purchase decision process that consumers follow when buying cosmetics including from Kylie Cosmetics.

The cosmetics industry is a multi-billion dollar industry with a broad and complex consumer base.

So, what makes up the Kylie Cosmetics target market and what attracts them to this beauty brand?

Let’s dig deeper and find out.

Who is the Kylie Cosmetics Target Market?

One of the best ways to understand the Kylie Cosmetics target market is to understand the reasons that people turn to make-up and cosmetics in the first place. Why do people need to change the way they look? What is the underlying reason for trying to look different?

Once we understand a consumer’s root reasons for using cosmetics, then we need to ask ourselves why they buy Kylie Cosmetics when there are numerous other cosmetics brands out there like Glossier , Estee Lauder , L’Oreal , Mac Cosmetics and Bobbi Brown , just to name a few.

Such a thought analysis helps us divide the Kylie Cosmetics target market into the following consumer segments:

• Consumers who would like to look better
• Consumers who would like to smell good and feel attractive
• Consumers who would like to relax and pamper themselves
• Consumers who would like to express their individuality
• Consumers who will use cosmetics under peer pressure
• Consumers who buy Kylie Cosmetics as a status symbol
• Consumers who use makeup to hide skin defects

Let’s look closely at each of the consumer segments of the Kylie Cosmetics target market.

#1. Consumers who would like to look better

Most people buy cosmetics  to improve the way they look. If they’re not happy about a blemish or a wrinkle, they will use cosmetics and try to hide or disguise it. And so, these people are the primary segment of the Kylie Cosmetics target market.

There are many different reasons why someone would buy cosmetics from Kylie Cosmetics. Some people buy cosmetics because they like the way it makes their skin look or feel – smoother, softer, younger. Others are after a certain color or shade that will highlight their eyes and make them stand out more in a crowd.

Looking better is a strong need for most people. And by segmenting the market  based on need , cosmetic companies like Kylie Cosmetics are able to create loyal customers who will return to their brand time after time.

#2. Consumers who would like to smell good and feel attractive

Some consumers buy a beauty product because they want a certain scent or taste on their bodies. In this case, the desire isn’t to cover up blemishes or wrinkles; instead, they’re after the smell of perfume or a scent that is attractive to others.

The Kylie Cosmetics target market includes consumers who are looking for a particular scent that makes them feel more attractive. And so, this market segment includes people who may not necessarily be interested in the cosmetic properties of the product, but instead, they’re after the scent and how it makes them feel about themselves.

#3. Consumers who would like to relax and pamper themselves

Many people buy cosmetics just to relax and pamper themselves. Makeup is a way for them to take time out for their own pleasure, and the act of applying it can be calming and soothing for many.

So, consumers may buy Kylie Cosmetics products for the simple reason that it makes them feel good. It’s a way to relax and escape from the everyday stressors of life. And for these people, the cosmetic properties of the product are secondary to the way it makes them feel.

In fact, people who want to relax and pamper themselves are an important  segment of the beauty market .

#4. Consumers who would like to express their individuality

Many people use makeup to make a statement about how they feel or what they think. It’s a way of expressing their individuality and showing the world that they’re different from everyone else.

Many use cosmetics as a form of self-expression – they want to use products that make them feel pretty or attractive, or that reflect their personality. Some use cosmetics to create a certain image or persona that they want others to see.

For instance, someone may use a Kylie Cosmetics product because they want to look like a movie star or a model. Or they may use it to create an alter ego that is completely different from their everyday self.

#5. Consumers who will use cosmetics under peer pressure

Peer pressure is often a strong motivator for people to use cosmetics, especially among young people. If all their friends are using a certain product, they may feel like they need to use it too in order to fit in.

This is especially true for teenagers and young adults who are still trying to figure out their identity and who they want to be in the world. By using cosmetics, they’re able to experiment with different looks and images until they find one that feels right for them.

So the peer pressure to conform can be a strong driver of sales for cosmetic companies like Kylie Cosmetics.

#6. Consumers who buy Kylie Cosmetics as a status symbol

Just like looking good and attractive is important to people, so is having the latest and greatest products. For some people, using a particular brand of cosmetics is a way to show others that they have money and can afford the best.

So, these consumers may buy Kylie Cosmetics products because it’s a status symbol. They want to be seen as someone who can afford to buy the best and most popular products on the market.

This is especially true for luxury brands like Kylie Cosmetics. These brands come with a high price tag, but for some people, it’s worth it because it shows that they’re successful and can afford the best of the best.

#7. Consumers who use makeup to hide skin defects

Some consumers like to use makeup to cover up skin defects or blemishes. This may be because they’re self-conscious about their appearance or because they want to create a certain image that they feel is more attractive.

Sometimes, for unfortunate reasons, people can have a skin defect. This could be because of an accident, a medical condition, or simply because they were born with it. Whatever the reason, these people may use makeup and cosmetics to conceal and minimize their skin defects.

Kylie Cosmetics provides a wide range of products that can help these consumers cover up their skin defects and feel more confident about their appearance. A part of this market also includes  those interested in natural skin care products . Especially, people who have skin problems and want to use makeup to cover them may look for natural ingredients to avoid any skin irritation.

The Kylie Cosmetics target market is diverse, and there are many different reasons why people buy Kylie Cosmetics products. The primary reason is naturally to look better. Closely related is the need to smell good and feel attractive.

Consumers also buy cosmetic products from Kylie Cosmetics to relax and pamper themselves as well as to express their individuality. Peer pressure can play a big role in which brand of cosmetics someone purchases. This too leads to some consumers trying out a product from Kylie Cosmetics.

Some consumers will also buy Kylie Cosmetics as a status symbol. It makes them feel good about themselves. And finally, consumers who use makeup to hide skin defects are also a segment of the Kylie Cosmetics target market.

Cosmetic Business Plan Template

Written by Dave Lavinsky

Cosmetic Business Plan

Over the past 20+ years, we have helped over 500 entrepreneurs and business owners create business plans to start and grow their cosmetic companies.

If you’re unfamiliar with creating a cosmetic business plan, you may think creating one will be a time-consuming and frustrating process. For most entrepreneurs it is, but for you, it won’t be since we’re here to help. We have the experience, resources, and knowledge to help you create a great business plan.

In this article, you will learn some background information on why business planning is important. Then, you will learn how to write a cosmetic business plan step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What is a Cosmetic Business Plan?

A business plan provides a snapshot of your cosmetic business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategies for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan for a Cosmetic Company

If you’re looking to start a cosmetic business or grow your existing cosmetic company, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your cosmetic business to improve your chances of success. Your cosmetic business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for Cosmetic Businesses

With regards to funding, the main sources of funding for a cosmetic business are personal savings, credit cards, bank loans, and angel investors. When it comes to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to ensure that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings and bank loans are the most common funding paths for cosmetic companies.

Finish Your Business Plan Today!

How to write a business plan for a cosmetic business.

If you want to start a cosmetic business or expand your current one, you need a business plan. The guide below details the necessary information for how to write each essential component of your cosmetic business plan.

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your executive summary is to quickly engage the reader. Explain to them the kind of cosmetic business you are running and the status. For example, are you a startup, do you have a cosmetic business that you would like to grow, or are you operating a chain of cosmetic businesses?

Next, provide an overview of each of the subsequent sections of your plan.

• Give a brief overview of the cosmetic industry.
• Discuss the type of cosmetic business you are operating.
• Detail your direct competitors. Give an overview of your target customers.
• Provide a snapshot of your marketing strategy. Identify the key members of your team.
• Offer an overview of your financial plan.

Company Overview

In your company overview, you will detail the type of cosmetic business you are operating.

For example, you might specialize in one of the following types of cosmetic businesses:

• Niche market cosmetics: This type of cosmetic business specializes in one particular segment of cosmetics. For instance, a niche cosmetic business could sell only fragrance-free products, all vegan products, or gluten free products.
• High-end cosmetics: This type of cosmetic business develops and sells premium make-up and skin care products.
• Kids cosmetics: This type of cosmetic business specializes in producing inexpensive play-makeup products for children.
• Beauty blogger/influencer: This type of cosmetic business involves trying out products from different types of cosmetic brands and providing tutorials, reviews, and other helpful information for people who may be interested in the products. Usually, beauty companies will pay the blogger/influencer to sample or endorse their products.
• Make-up Artist: This type of cosmetic business involves providing make-up services for special occasions like weddings or graduation ceremonies.

In addition to explaining the type of cosmetic business you will operate, the company overview needs to provide background on the business.

Include answers to questions such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include the number of customers served, the number of products sold, and reaching $X amount in revenue, etc.
• Your legal business Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry or market analysis, you need to provide an overview of the cosmetic industry.

While this may seem unnecessary, it serves multiple purposes.

First, researching the cosmetic industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your marketing strategy, particularly if your analysis identifies market trends.

The third reason is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your cosmetic business plan:

• How big is the cosmetic industry (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential target market for your cosmetic business? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your cosmetic business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: individuals, families, and corporations.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of cosmetic business you operate. Clearly, individuals would respond to different marketing promotions than corporations, for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, including a discussion of the ages, genders, locations, and income levels of the potential customers you seek to serve.

Psychographic profiles explain the wants and needs of your target customers. The more you can recognize and define these needs, the better you will do in attracting and retaining your customers.

Finish Your Cosmetic Business Plan in 1 Day!

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With Growthink’s Ultimate Business Plan Template you can finish your plan in just 8 hours or less!

Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other cosmetic businesses.

Indirect competitors are other options that customers have to purchase from that aren’t directly competing with your product or service. This includes mass market cosmetic brands and retailers, as well as secondhand cosmetic retailers. You need to mention such competition as well.

For each such competitor, provide an overview of their business and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as

• What types of customers do they serve?
• What type of cosmetic business are they?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you make it easier for customers to acquire your products?
• Will you offer products or services that your competition doesn’t?
• Will you provide better customer service?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.  

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a cosmetic business plan, your marketing strategy should include the following:

Product : In the product section, you should reiterate the type of cosmetic company that you documented in your company overview. Then, detail the specific products or services you will be offering. For example, will you provide premium make-up, skin care products, or esthetician services?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your plan, you are presenting the products and/or services you offer and their prices.

Place : Place refers to the site of your cosmetic company. Document where your company is situated and mention how the site will impact your success. For example, is your cosmetic business located in a busy retail district, a business district, a standalone store, or purely online? Discuss how your site might be the ideal location for your customers.

Promotions : The final part of your cosmetic marketing plan is where you will document how you will drive potential customers to your location(s). The following are some promotional methods you might consider:

• Advertise in local papers, radio stations and/or magazines
• Reach out to websites
• Distribute flyers
• Engage in email marketing
• Advertise on social media platforms
• Improve the SEO (search engine optimization) on your website for targeted keywords

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your cosmetic business, including answering calls, stocking shelves, greeting customers, and collecting payments, etc.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to acquire your Xth customer, or when you hope to reach $X in revenue. It could also be when you expect to expand your cosmetic business to a new city.  

Management Team

To demonstrate your cosmetic business’ potential to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally, you and/or your team members have direct experience in managing cosmetic businesses. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act as mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing a cosmetic business or successfully running a small salon.  

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet, and cash flow statements.

Income Statement

An income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenue and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you expect to serve 20-30 customers per day, and will each customer purchase 1-5 items on average? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets

Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your cosmetic business, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a lender writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement

Your cash flow statement will help determine how much money you need to start or grow your business, and ensure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt.

When creating your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a cosmetic business:

• Cost of equipment and supplies
• Payroll or salaries paid to staff
• Business insurance
• Other start-up expenses (if you’re a new business) like legal expenses, permits, computer software, and equipment

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your office location lease or photos of happy customers using your products.  

Writing a business plan for your cosmetic business is a worthwhile endeavor. If you follow the template above, you will be able to prepare a winning beauty product business plan, makeup business plan or a business plan for a cosmetic company. You will understand the cosmetic industry, your competition, and your customers. You will develop a marketing strategy and will understand what it takes to launch and grow a successful cosmetic business.  

Cosmetic Business Plan FAQs

What is the easiest way to complete my cosmetic business plan.

Growthink's Ultimate Business Plan Template allows you to quickly and easily write your cosmetic business plan.

How Do You Start a Cosmetic Business?

Starting a cosmetic business is easy with these 14 steps:

• Choose the Name for Your Cosmetic Business
• Create Your Cosmetic Business Plan
• Choose the Legal Structure for Your Cosmetic Business
• Secure Startup Funding for Cosmetic Business (If Needed)
• Secure a Location for Your Business
• Register Your Cosmetic Business with the IRS
• Open a Business Bank Account
• Get a Business Credit Card
• Get the Required Business Licenses and Permits
• Get Business Insurance for Your Cosmetic Business
• Buy or Lease the Right Cosmetic Business Equipment
• Develop Your Cosmetic Business Marketing Materials
• Purchase and Setup the Software Needed to Run Your Cosmetic Business
• Open for Business

Don’t you wish there was a faster, easier way to finish your Cosmetic business plan?

OR, Let Us Develop Your Plan For You

Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.   Click here to see how Growthink’s business plan writers can create your business plan for you.

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