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At 20, Kyle Jenner is about to become the youngest billionaire in the world. Kylie Cosmetics, its successful cosmetics company, has surpassed $ 630 million since its inception in 2015 and is now worth nearly $ 800 million.
Forbes, who called Jenner "the queen of cosmetics at $ 900 million" in early July, described the 20-year-old company as a business model so effective that it basically works on "air".
The key to Kylie Cosmetics' recent success? Jenner's expert social media strategy: With hundreds of millions of online followers, Jenner can advertise and sell her products without ever spending a fortune.
But for Li Jin, an investment partner of investment firm Andreessen Horowitz of Silicon Valley, Jenner's social media intelligence might not be enough to make his brand an activity sustainable.
On Twitter, Jin suggested that there was an edifying narrative at the heart of Jenner's unprecedented success, and that the cosmetic empire of this 20-year-old man could be doomed to the Darkness unless it expands its field of action.
Kylie Cosmetics
According to Jin, the first weakness of Kylie Cosmetics is that she is too focused on Kylie Jenner.
"The major work that his products help consumers do now is to feel that they have access to a piece of Kylie," Jin writes.
If Jenner hopes to maintain her business in the long run, Jin suggests that she should not rely so much on Jenner's celebrity: "To become a sustainable and independent business, it must be that all the brands of influence exceed bound to one person, and create a "goal mark."
Jin points to the example of Clayton Christensen, a professor at Harvard Business, as a company that "becomes [s] so closely associated with the work that it accomplishes that it becomes inextricably linked to that." this".
For example, enduring brands such as Coca-Cola, Starbucks and Kleenex have all reiterated their mission so well that consumers will pay a premium for their products compared to their more insignificant counterparts. These brands are not related to an individual, they are related to something much bigger: an idea, an emotion or a mission.
"Some of the strongest brands even become verbs, inextricably linked to specific work," Jin says. "It's difficult for brands to stay without being tied to a specific job, and consumer jobs do not change often."
Could Kylie Jenner's company suffer the same fate as Martha Stewart's Omnimedia?
AP
If Jenner does not shift the attention of Kylie Cosmetics beyond her own appeal to the influence of celebrities, Jin suggests that she could suffer the same fate as Martha Stewart's media company, Living Omnimedia, which dropped drastically in value following its IPO in 1997.
"In the '90s, Stewart leveraged his notoriety of books and television to create a business with publishing, broadcast and merchandising segments, all centered around his personality as a business. house goddess, "writes Jin. "His valuation reached $ 1.8 billion after the IPO, but 16 years later, [it] was written off and only worth a small fraction of that."
While some might believe that social media provides powerful and enduring support for any start-up or celebrity backed by influencers, Jin says it's just the opposite: In the digital age, star brands dissolve faster than ever.
"In today's digital world, with compressed hype cycles and no multi-year retail or broadcast contracts, celebrity-endorsed brands can disappear even more quickly" she writes. "Social media has made it easier than ever to attract an audience and create widespread influence … the barriers [to start] a brand new are lower than ever."
Is social media really all you need to run an 800 million dollar business if you're an influential celebrity?
The story of Forbes suggests that Jenner is almost entirely dependent on her social media to make profit: "Basically, all that Jenner does to make all this money, is to leverage his social networks, "reports Forbes. "Almost every hour, she takes Instagram and Snapchat, pouting for selfies with captions on which Kylie Cosmetics wears her glasses, takes videos of upcoming products and announces new launches."
Is social media really all you need to run a billion dollar business if you are an influential celebrity?
Jin does not think so. After all, she writes, celebrity brands like Blake Lively's Preserve and Mary Kate and Ashley Olsens StyleMint have all disappeared in recent years. Successful companies, such as Jessica Alba's Honest Company and Gwyneth Paltrow's Goop, have moved away very early from their starlet creators, Jin says.
"Their famous names gave a signal of credibility, but to evolve and last, they aligned themselves with broader movements and communities," she wrote.
To create a long-term business, Jin recommends that Kylie Jenner transfer Kylie Cosmetics' goal to a separate, mission-focused goal: "She can align her brand with a broader shift in attitudes of Women: Today, this could be makeup as a personal expression and celebration of individuality and diversity. "
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