The reality TV star and owner of the biggest cosmetic company Kylie Cosmetics, Kylie Jenner has set the world record by being the youngest self-made billionaire. At the age of just 21, she beat another young billionaire the CEO of Facebook Mark Zuckerberg who previously held the title at the age of 23. Last year alone her company generated an estimated $360m in sales last year.
How did this all Began?
In mid-November, Kylie Jenner marked a milestone moment with a visit to a strip mall. For the past few years, her company Kylie Cosmetics had only sold its makeup online and in a few pop-up shops. But after signing an exclusive distribution deal with Ulta, the beauty retailer, Kylie Cosmetics revenue increased by 9% last year. The digitally-native brand had success even through just online sales but “there’s only so far that can take her,” said s Shannon Coyne, an equity research analyst at BMO Capital Markets. After her products started hitting the Ulta stores Kylie Cosmetics sold $54.5 million worth of products. Ulta which has more than 1000+ stores in the US has a huge market reach and thus was able to quickly increase sales.
Kylie Cosmetics were sold out in a matter of hours after its primary release. Tara Simon the vice president of merchandising at Ulta admits “It sold out faster than we planned”.
Kylie’s Close Team:
Forbes estimates Kylie Jenner’s company to be worth at least $900 million. She owns all of it. Adding the cash Jenner has already acquired from her profit she is now a billionaire. Her company consists of only seven full-time and five part-time employees. Seed Beauty manufactures and packages the products. Shopify handles sales and online fulfillment. Her mother, Kris, takes care of finance and PR in exchange for 10% management fees she ships from all her kid’s business.
With her partnership with Ulta, Kylie Cosmetics has reached 50 states in America. Ulta, which had $5.88 billion in net sales in 2017, features both prestige and mass brands at its more than 1,100 stores nationwide. Her marketing is done mostly through social media such as Instagram where she usually posts about her new releases. And having more than 128 million followers on Instagram and 175 million followers on Snapchat also helps her cause.
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What’s Next for Kylie Cosmetics?
Regarding the future, she firmly dismisses the idea of selling her company. But her mother is interested. “It’s always something that we’re willing to explore,” Kris told Forbes last year. For now, Kylie Jenner is focused on expanding her business and getting more products on the shelves of Ulta stores.