Reality TV star Kylie Jenner has sold the majority of her cosmetics brand for 600 million dollars to the controlled by a German billionaire family Coty Group. Coty already includes make-up brands such as Max Factor and Bourjois Paris, the company struggling with business problems but wants to open up new target groups in a conversion.
The 22-year-old Jenner is the sister of Kim and Kourtney Kardashian. Its cosmetics brand Kylie Cosmetics, which was particularly successful with lipsticks, launched it in 2015. The deal, in which Coty takes the majority with 51 percent, the company rated a total of $ 1.2 billion. Over the past twelve months, Kylie Cosmetics has generated revenues of around $ 180 million, Coty announced on Monday when it announced its purchase.
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Kylie Jenner: Showstar, mother, company bossCoty has been suffering from the failed acquisition of Wella and other cosmetics brands from consumer goods giant Procter & Gamble in 2016 for some time. At the beginning of July, the company had shocked shareholders with write-downs of around three billion. In October, Coty announced that the sale of well-known brands such as Wella and its business in Brazil would be audited.
JAB Holding of the billionaire Reimann family had increased its stake in the group from 40 to 60 percent this year. To get back on track, the company wants to focus on significantly fewer brands - and attract younger buyers.
151 million followers on Instagram
Jenner advertised her social network profiles first and foremost on behalf of Kylie Cosmetics, a lipstick empire whose face and sole owner she was until now. Almost every hour, Jenner took pictures of herself, with links from her painted face directly into the Kylie online shop.
Jenner founded the company under the name of Kylie Lip Kits with a production of 15,000 lipstick sets, supposedly in response to her own dissatisfaction with her lips. With her products, she also helps other young girls to become more self-confident, says Jenner. That was one of the "most authentic things" she had done in her career.
The fact that she sprayed her lips does not seem to bother her fans then and now: The first products are said to have been sold out within a minute, traders allegedly sold the 29-dollar sets for up to $ 1,000 on Ebay. Meanwhile, the number that a customer can purchase per product is limited to three pieces.
Kylie Jenner is followed by 151 million people on the Instagram photo platform - more than twice as many as Barack and Michelle Obama together. By Kylie Jenner comes the most popular photo of the Internet. And the second most popular. Together, more than 31 million people liked the first two recordings that Jenner uploaded from her newborn daughter Stormi.
Jenner's pictures let the cash register ring - by more or less subtly hidden advertising. Jenner is estimated to receive one million dollars per advertising message, such as for Puma, Calvin Klein, or a variety of beauty products. She claims a third more than Cristiano Ronaldo and leads the list of "Instagram Rich," as the British technology company Hopper HQ calculated.
