Mega-Conglomerate, Coty recently added Make up Mogul, Kylie Jenner’s Kylie cosmetics and Kylie skin care brands in a 600 Million Dollar Deal. This was a rather big move by the company as it adds a new make-up brand to its already existing make and skin care portfolios. The deal, which values the young entrepreneur’s namesake beauty brand at $1.2 billion, will enable “global expansion and entry into new beauty categories,” the companies said in announcing the deal on Monday 18thNovember.
Jenner, whom Forbes magazine has labelled as the youngest “self-made billionaire,” will continue to be the Core Ambassador of both of her companies, i.e. Kylie Cosmetics as well as Kylie Skin. The 22-year old has developed a reputation as one of the most significant celebrities, amassing over 270 million followers on various social media site combined. The youngest family member of the Kardashian clan founded the company in 2015, when she was still a young teenager.
In an interview, Kylie was quoted saying the following “I’m excited to partner with Coty to continue to reach even more fans of Kylie Cosmetics and Kylie Skin around the world,” Jenner said in a statement. “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.” This definitely is a rather brilliant move on her part as she can focus solely on the creative and marketing strategies and can leave more logistical and finance related issues to the team at Coty. Furthermore, just as she mentioned, the brand will be able to have a much larger reach and can even expand globally giving rise to interest in new markets.
Coty also said it would be utilising its research and development, manufacturing, distribution and commercial resources to expand Jenner’s business. Which works perfectly for her brand and she would still remain the name, face and creative head for the brand. Jenner’s team will continue to handle her creative and communication efforts, which is notable because she’s one of the most-followed people on social media. She has 150 million followers on Instagram and 30 million Twitter (TWTR) followers.
“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,” Coty CEO Pierre Laubies mentioned in an announcement regarding the merger. He also mentioned that the deal 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.”
Publicly traded Coty Inc. is one of the world’s leading beauty companies, with roughly $9 billion in net revenue. Its portfolio of brands includes mainstream, luxury and professional beauty brands like Covergirl, Burberry fragrances, Marc Jacobs Fragrances and more.
Coty’s stock price rose about 1% Monday 18th November, to around $12 a share, on the news of the Kylie Cosmetics and Kylie Skin acquisition. The deal also helps the company future proof itself as younger shoppers are increasingly buying direct-to-consumer brands, like Glossier
https://www.elle.com/uk/life-and-culture/culture/a29855769/kylie-jenner-cosmetics-sold-shares-coty/
https://www.cnn.com/2019/11/18/business/coty-kylie-cosmetics-deal/index.html