Recently, Forbes magazine named the name of the youngest girl who became a billionaire. And this is Kylie Jenner, who made herself on her own. Jenner’s financial fortune is estimated at $ 1 billion, and her cosmetics company Kylie Cosmetics at $ 900 million.
Most people disagree that Kylie has made her successful. This is because Kylie was born into wealth and fame. But many people think differently when they hear the words “homemade”. According to the latest contract of the Kardashian-Jenner clan, their show brings them $ 30 million per season, but information on how the amount is distributed between the Kardashians and Jenner is closed!
Kylie, with her new billionaire status, is the most financially successful family member. Her older half-sister Kim is the second in the family, with $ 350 million. Kylie’s main source of income is her cosmetics company Kylie Cosmetics, which she founded at the age of 17 with an investment of $ 250,000 of her own money to launch her lip kits. The $ 250,000 she received from sponsors of various brands and deals her mother secured during Kylie’s teenage years. From walking fashion shows to publishing fantasy novels for adults, Kris Jenner kept Kylie busy with all sorts of things.
The collaboration with Topshop and her sister Kendall also expanded to the Kylie and Kendall collection, the line at Neiman Marcus, and the collaboration with PacSun. With the help of these contracts, which bring in cash, Kylie was able to start her own business without funding from other companies and banks, which even entrepreneurs do not always manage to do so.
In her company, from the beginning, Kylie was the sole owner of Kylie Cosmetics, as well as its CEO and marketing director. In its first 18 months, Kylie Cosmetics generated $ 420 million in sales and Kylie personally earned $ 60 million after taxes.
Kylie credits the early success of her company to her big fans on social media. Before the release of the lip kits, Kylie had 56 million followers on Instagram and Twitter. 4 years later, Kylie now has around 155 million followers on Instagram and Twitter. Also, her activity on social networks brings Kylie a lot of income thanks to sponsored publications. The cost of one post is $ 1 million.
Kylie Cosmetics launched on November 30, 2015, with Kylie Jenner Lip Kit liquid matte lipsticks, which immediately became a bestseller: her lipstick sets sold faster than they were produced, and there was a long line of pre-orders in the online store. Kylie Cosmetics’ own Instagram star has become the launch site for Kylie Cosmetics. The lipsticks were so in demand that hundreds of fakes and replicants appeared on the gray market, and the $ 29 original kits were resold on eBay for $ 1,000. Mottus explains that for celebrities to successfully sell their makeup line, they “need to have an appropriate lifestyle.” Kylie Jenner had it.
The youngest of the Kardashian-Jenner family invested $ 250,000 in the production of the first lipsticks and, according to independent estimates at the time, earned about $ 300 million in the first year. And six months later, her earnings reached $ 420 million since launch, as Kylie’s mother, Kris Jenner, said in an interview with Women’s Wear Daily.
The first batch of lipsticks was released in a circulation of 15,000 pieces – 5,000 units of each shade. Three months later, the circulation was 500,000 pieces (and already six shades). And by mid-2018, Kylie Cosmetics was producing 300,000 of each product (apart from lipsticks, lip gloss and pencils, eyeshadows, bronzers and highlighters, blush, and makeup brushes appeared).
The production, and testing of cosmetics, and the creation of new formulas and packaging is carried out by the Seed Beauty company. Trade & Fulfillment is the Shopify online store that Chris Jenner partnered with after seeing her daughter’s first success. By the way, she is not only the strategic, but also the CFO of Kylie Cosmetics, and Kylie herself is the head of the marketing department. Other members of the Kardashian-Jenner family are also directly involved in the development of the brand and willingly post new product announcements on their Instagram. If we collect the total audience of Instagram followers of their sister and her mother, as of March 2019 it is 550 million.
By the way, Kylie Jenner did not rely only on social networks and sold her cosmetics through the Topshop retailer, and also opened small stores in New York, San Francisco, and Los Angeles.
Kylie Cosmetics range from $ 12 for a lip liner and $ 29 for a lip set (lipstick + pencil) to $ 100 for a set of seven lip glosses and $ 310 for a set of 15 products – blush, bronzers, and highlighters each in five shades. For example, when compared with well-known beauty brands, Tom Ford’s lipstick costs 55-60 dollars, and Chanel’s lipstick will cost 34 dollars. If we talk about the income of Tom Ford Beauty, which is part of the portfolio of the Estee Lauder corporation, then its revenue, according to the owner, only 10 years later reached $ 500 million.
