The Rise and Fall of Kylie Cosmetics

Kylie Cosmetics was once the most popular brand in the makeup industry, but after a very public lawsuit and a rebrand they apparently lost that status, but they may be able to make a comeback after all. Kylie Jenner was obviously very famous before the start of her brand specifically she was known for the reality show Keeping Up with the Kardashians, but she was also making big waves on Instagram due to her beauty makeup upgrades and speculation surrounding that specifically. went viral for allegedly having lip injections, which she initially denied. causing a domino effect The trend called the Kylie lip challenge, where one sucked air out of something small to create a vacuum that forced the lips to swell.

This was widely discussed as it was considered quite dangerous by health professionals, but it was still really visually appealing and was very popular with young people, this was around April 2015, the year after colourpop bosses created Seed Beauty. If you want to learn more, I already have a video about Seed Beauty which was intended to be an incubator for young people. Brands, so it seemed like a good company through which Kylie could launch her own brand. See Beauty could use the formulas they already had with Colourpop and change them slightly to make a new product for Kylie.

Effectively, they were doing their research, development and formulation. for the products, in exchange they would have exclusive production rights and she would bring her celebrity status and ideas for promotion, obviously they were paid for this, but Kylie owned one hundred percent of the company, so it was similar to what which you might know from Outsourcing, they started their association with a line of lip products and the first product launched was the Kylie lip kit which came in three colors: Dolce K Candy K and True Brown K which consisted of a liquid lipstick and a matching lip liner, they say in a Kylie Cosmetics documentary released much later that for the promotion they didn't want to approach this in the traditional way and instead used social media marketing to create buzz by having Kylie, who already had a huge number of followers with 43.6 million on Instagram, 12.6 million on Twitter and an unknown amount on Snapchat T are the products before the official launch of the brand, this was really successful and at launch it was an absolute sensation , the product and the company really got ahead of the hordes of celebrity brands we have today and benefited from that. both outside of the trendy topic, a trendy celebrity and the excitement of something new, as they had promoted it as the first lip liners to match their lipsticks, the launch was absolutely massive and the lip kit sold out in no time. of minutes, creating a lot of Buzz and demand for the product, however in production the kits were run in a very limited quantity with only 15,000 units meaning there were only 5,000 per shade, this really isn't much and it's a very old and well-studied marketing tactic called scarcity. marketing that is initially based on Brem's theory of psychological reagents from 1966, as well as most of the work of his entire career and later on his book Psychological Reagents from 1981.

In it, they effectively theorize that by removing In short, people want what they can't have, so in theory, if you can force the image that your brand is inaccessible, it actually becomes more desirable, so as an extension, when they replenish, demand is higher and they can move more product. than they might have been able to initially, it also has the added benefit of being a great way to get a second wave of PR after a brand launch, which meant that every time a product was restocked, which was every few weeks after the initial release, it caused another surge in popularity, gaining more sales and making more profits;

In fact, the company would ride this wave of popularity until the eventual decline, several months later, this decline in the popularity of lip kits was correlated with the

rise

in popularity of lip fillers, something that The Lip Kit Kylie Lips, now called Kylie Cosmetics, wouldn't actually be launching right now and I'm not really sure why it seems like a missed opportunity to me. Instead, they released eyeshadow palettes in 2016, highlighters in February 2017, and blushes. circa March 2017, although none of them achieved the success of the lip kit and in fact all three would have their own scandals to add to the scandals of the new Shades lip kit, although again none are talked about as much as the Kylie's initial lip Plumping. controversy that helped launch the brand but despite this Kylie Cosmetics continued to do very well specifically becoming known for having themed collections like this Halloween one that came with a video on her personal YouTube channel and collaborations with multiple themes that have become in a Kylie signature.

The

cosmetics

brand as a whole around this time also had its first in-store stock with Ulta Beauty in 2017 for a seemingly limited selection of products; Before this, they were primarily a direct consumer brand, so this actually had a huge impact on the growth and legitimization of the company that followed theirs in 2018 also had a collaboration with Topshop to make the company's

cosmetics

Kylie brand will be sold in seven stores across the United States. Furthermore, in 2018, Forbes valued Kylie Cosmetics at US$900 million, which supposedly made Kylie Jenner one of the youngest billionaires in history, however, some time later, Forbes retracted this statement claiming that Kylie Jenner's net worth had been massively inflated by her family and her publicist, which was quite a scandal at the time, but in the timeline it was still 2019 and despite she stopped posting to Kylie's designated YouTube channel Cosmetics a year earlier with this as her last video.

Kylie Cosmetics was still one of the most popular cosmetics companies, they had multiple successful products, and they were generally still very important in the cultural zeitgeist of the company as a whole. was set for a purchase to occur in November 2019, when Koti Incorporated bought 51 shares of the business from Kylie, who had previously owned 100 of the company for US$600 million, also making the company valued at US$1,200. million US dollars from the beginning. This seemed to be a totally positive thing for both companies, it allowed Koti to rejuvenate their portfolio, while it allowed Kylie Cosmetics to have access to Coates' marketing, distribution and manufacturing operations, something that Kylie Jenner would go on to say was the reason for However, by selling its stake, it wanted to expand into new categories and markets, because Koti is a publicly traded company, which meant that its sales information became public and revealed that these sales were doing significantly worse and The public had been led to believe that this was worth up to hundreds of millions of dollars to him over the course of the last few years alone;

In fact, instead of growing continuously, it had declined by 62 between 2016 and 2018 alone or, more likely, the family had simply been lying about sales. since its inception in 2016. This also revealed that Kylie potentially hadn't even owned 100 of the company's profits to begin with, as Kris Jenner had her business registered in the 2018 KMJ irrevocable trust as a five-share owner. percent in the profits of Kylie Cosmetics, so although she technically didn't own any part of the company, she still made five percent of all profits at least until the sale to Koti, after which that five percent was transferred to Capital or ownership of the company, meaning that Kylie is now, in fact, the owner. 44.1 percent and her mother owns just under five percent.

Included in this was an exposé of Kylie's skin that was published in May 2019 and which had in fact only generated a quarter of the claimed US$100 million, which was actually not that much. It was a surp

rise

as it hadn't really had much social success as it also hit the scandal after they used walnuts in their scrub which isn't very good for the skin and that's why it seemed like the product wasn't right. Considered meanwhile for the beauty side of the product, it actually wasn't doing that bad, they continued to release collections with their family members to pass on that from their first collaboration with kkw, all of which included now-known Kylie products.

Cosmetics, such as lip kits, highlighters and eye shadows. It wasn't exactly Smooth Sailing In July 2020, Seed Beauty filed a lawsuit against Koti and Kylie, as well as kkw, alleging that the company had shared confidential information about Seed Beauty's trade secrets and business practices during the due diligence process. of the acquisition. evidenced by public relations articles from around the time of the sale that used information that should have been private. He also stated that Seed had tried to deal with this privately but had been ignored and therefore had to take legal action. The lawsuit sought to prevent Koti from using. confidential information of Seed Beauty to manufacture and distribute Kylie Cosmetics products, the public assumed that Seed was alleging that when Kylie switched to Koti, she potentially shared cosmetic formulas that were actually initially produced by Seed Beauty, i.e., they were not hers. to share, it's actually technically.

From what I could see, it's not in the court document, but her top 10 trade secrets are heavily redacted, so I can't conclusively say whether they're included or not. However, they mention the manufacturing process in the documents and how they are the only manufacturer. So I can see where the public got this idea, definitely just from how it's worded, it could certainly allude to the concern that they would no longer be the only manufacturer if trade secrets like this were shared and it would cost them a lot of future. This revenue demand began in July 2020, but Coty and Kylie continued producing products until November 2020, when beauty products simply stopped arriving for the next few months, this began to cause concern among their audience and beauty enthusiasts. beauty that they were left wondering what it was. continue with the company, but instead, Cody and Kylie opted to give more push to Kylie Skin, which had launched across Europe, in the United Kingdom, France and Germany, as well as in Australia, although they said that maybe boost is a bit of a strong term because it was still relatively quiet, it had quite a bit of initial buzz, but at this point it seems like they were just trying to stay quieter than such a big celebrity boosted brand normally would.

They hadn't even released a single YouTube video about Kylie. skin since the eight she launched with, perhaps just so the skin could grow without drawing attention to the lawsuit, but that's just me speculating that, in fact, everything with Kylie Cosmetics would remain relatively quiet until May 2021, when Kylie says they will relaunch Kylie Cosmetics with the official announcement. actually arrived in June, this occurred about a month before both the seed and highly issued settlement notices on July 9 for their lawsuit case, meaning that it had been settled out of court for an undisclosed sum and that They were sure to go ahead waiting for the lawsuit only to end it completely, this was obviously a big surprise to Kylie Jenner fans and was a promotion in itself, but in addition to this promotion, the brand had deleted all of their previous posts on Instagram , something we know is a modern marketing technique, but they also weren't selling those products anymore, so it made sense in a more general way, so they posted this image of a supposedly new Kylie Cosmetics that came along with a part of the documentary about the rebranding of Kylie Cosmetics on her personal YouTube channel, but not the brand's channel, which no longer posts this look, was more in line with the branding and packaging of Kylie's skin products, which had been working well during this time, but the relaunch was not necessarily well received, they decided to change the point of view. being vegan, which technically I already was anyway, and clean, which was more in trend;

However, strangely, they chose to keep the somewhat dated logo on the dripping lips instead of just making a new logo, perhaps with something that aligned with her now changed clean point of view. There was nothing in these new images that was particularly clean, either much more polished or synthetic and the makeup still seemed to be very heavy on the material.promotional, plus the Kardashian Jenners aren't as known for a more natural or clean aesthetic at all. favoring heavier makeup styles in general, so it inherently goes against her personal brand, which is really silly for a celebrity brand whose differentiator is the celebrity herself and yes, I know Kylie is trying to rebrand herself personal right now, but it's also not really in line with what Kylie 2.0 is and seems more like a callback to the King Kylie era that Kylie Cosmetics started in, if anything, all of which wouldn't be a problem for the brand if it wasn't so tightly tied to Kylie, which Of course, even this relaunch was on her personal YouTube channel, so there wasn't even a physical separation between Kylie, the person, and Kylie Cosmetics, the brand. , at least on YouTube they still have separate Instagrams, but even that seems to be inconsistent when you consider it. that YouTube is all under one.

But ultimately this was all due to demand, they had to change the product because of it, if not legally then at least socially, so it seems like they thought they would try to promote this as a re-release just to get more Buzz To be fair , it would have been smart if they had actually tried, but clearly they didn't, it wasn't enough of a change and their words seemed to contradict Kylie's new images and personal brand, so it didn't really happen. Capturing most people's attention, it just didn't have the impact they seemed to expect for August 2021 with the lawsuit.

Finally everything was done and settled out of court and the brunette was ready to move forward with the new image of she. The first new product arrived in September 2021 with the announcement of baby Kylie, who was already a mother in her personal life. in 2018 with Stormy, but at the time she was in the middle of pregnancy with Air and was born in February 2022. They said the product began development about three years earlier and was founded on the same platform of being vegan and clean with a similar aesthetic . The language, once again, is very connected to Kylie, the person, which brings us to where Kylie Cosmetics is today.

They are still supposedly leaders in cosmetics, although as far as I could see they are not directly named in Coty's annual reports after the rebrand. so I'm not 100% sure how the product is actually selling. Cody in 2022 experienced losses to the tune of 77.4 million, although in reality the koti Prestige brand saw an increase of 15 million in net income of which both Kylie and kkw are a part. There are many other brands like Burberry Calvin Klein and Gucci, all of which contributed to that from the cultural side. Kylie Jenner isn't my experience, but from the Kelly Gucci video it seems like people seem to think she may be phasing out the cosmetics line entirely. in favor of Simply her other brands and from Robert Welsh's video it seems like public opinion about Kylie having a beauty brand in general is just false which is reflected in the comments obviously authenticity is incredibly important for literally any company, so when the public likes Robert stopped believing in his authenticity, it often predicts the beginning of a company's down

fall

or at least in Kylie's case, a possible second down

fall

personally.

I do not think this will happen. I think they'll try another rebrand before giving up completely. Kim. I've seen a pretty successful revival with kkw with skin by making it a skincare focused line with brand new packaging and marketing and frankly Kylie's packaging has been outdated even before this new rebrand from koti, in quotes, so it looks like it's really ready. to change and has brand equity to do so, however, I personally believe that this rebrand has actually been held back because they do not have a product based differentiator so far, something that customers are really starting to notice with this comment on particular of Robert Welsh.

The video I just showed Kylie Cosmetics is now nothing more than a celebrity product line, it's an average product with a celebrity face. Their newest product at the time of making this video is this mascara and I think they missed a trick if they had thought of it. a product-based differentiator like Fenty did, but perhaps with mascara it would take them beyond celebrity brand status to legitimately fulfill a need or a perceived need within the market if they can combine discovering a gap in the market or a counterfeit of a gap in the market with a Rebrand certainly has the potential to become a major brand once again, although honestly I suppose the same could be said for most companies.

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