Kylie Jenner Sells $600 Million Beauty Company to Coty

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Kylie Jenner Sells $600 Million Beauty Company to Coty

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Mia Tiano - Staff Writer Edited by Charli Mattes and Nicole Prince, Liv Dufine - Creative Director and Editor in Chief

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The world of makeup has been taken to a new level since self-made billionaire, Kylie Jenner, released her hit cosmetic company, Kylie Cosmetics in 2015. In only 18 months, Jenner turned her small business into a $420 million empire. However, on Nov. 18, Jenner made a career-changing decision of selling approximately half of Kylie Cosmetics to Coty, another popular beauty company, in order to attain her goal of global expansion into new beauty categories.

Coty is a world-leading beauty company that makes cosmetics, skincare, fragrances, hair color and styling brands that positively impact the stereotypical modern beauty industry. The brand emphasizes how authenticity and self-confidence plays an important role in feeling beautiful in one’s skin. 

“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,” said Jenner in a past interview with Coty. “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.”

The influencer sold 51% of the Kylie Cosmetics stake to Coty for $600 million, and still remains the world’s youngest billionaire in this era. The collaboration has brought even more attention to Coty, resulting in a rise in stock prices in less than 24 hours after the news had been confirmed by Jenner herself. Although Jenner sold a partial amount of the line, she will still be continuing her journey of developing the brand to please her fans, allowing her passion for makeup to continue.

Jenner and her team plan to have a long-term partnership with Coty that will build her existing business to new heights and expansion. Together, the two world-famous brands will collaborate to create an industry-leading company with the help of both of their expertise.

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,” said Coty in a recent interview. “In addition to its responsibilities within the partnership, Coty will act as a licensee for skincare, fragrances, and nail products.”

As confident as the two cosmetic tycoons are with their decision, Jenner’s fans are skeptical about long-term growth that may not happen now that the brand has been handed to Coty. Analysts worry that Kylie Cosmetics has been seen as a fad up until the partnership, and online sales will eventually come to a decline since Coty is not a “trendy” brand. However, Jenner’s supportive fans seem to disagree and predict that the joint effort will only make the brand even more powerful and salable. 

With mixed opinions from fans, Jenner will have to build her brand to its full potential in order to satisfy the customers that have followed her line from its start. Kylie Cosmetics has defined a new standard for quality makeup, and her future with Coty is excitingly unpredictable.

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