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Kylie Jenner partners with Coty for a major $600 million business deal

American Coty Invests $600 million in Kylie Cosmetics

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A few days after the announcement of Tiffany’s acquisition by LVMH, American group Coty has also some big news to share. The iconic group of beauty products has just confirmed that it bought Kylie Jenner’s make-up line, Kylie Skin and Kylie Cosmetics.

Coty will thus become a major shareholder with 51% of the company at $600 million. The acquisition will be finalized by the end of the third quarter of 2020.

playbook 2019

This transaction only confirms the influence of influencers on the world of fashion, while Kylie Jenner became the youngest billionaire in the world. For Coty, the operation is also winning, since the group was looking for renewal.

A new milestone for Coty

Within a few hours, the news has become the talk of the town: Kylie Jenner’s cosmetics brands has just been bought by the American group Coty. Not only has this surprised the influencer’s world, but it has also confirmed Coty’s reposition in a new era – where digital influencers are the new trend setters.

Markets have instantly shown their support: while Coty’s share was only worth $7, back in February, it peaked to $13 right after the announcement.

With $170 million in sales, Kylie Jenner’s brand was built on the popularity of this influencer, the youngest billionaire in the world at 22 years old.

With a company valued at $1.2 billion, the young woman is one of the ten most popular influencers of all time – with nearly 152 million followers, and as many customers.

She has built her empire thanks to a very influential family – the Kardashian-Jenner clan – and has been featured on the TV reality show “Keeping up with the Kardashians” since age 10.

Read on Alvexo: “French Group LVMH Might Buy US Tiffany & Co”

Coty, the beauty’s world leader

With this transaction, Coty is affirming its influence in the world of beauty. While the group has already acquired GHD for $420 million earlier this year, a major German holding known for its hair straighteners and iron curlers.

Last but not least, back in 2015, the American Procter and Gamble also sold nearly 43 brands to the American house for $12.5 billion including the perfumes of Hugo Boss, Lacoste, Alexander McQueen and Covergirl makeup lines and even Max Factor.

The weight of influencers

Since the weight of influencers was confirmed this year, other brands are also hiring them to increase value. No later than this month, nail brand Essie chose beauty influencer Jonathan Van Ness as an ambassador.

Celebrities are also monetizing their social media following to sign lucrative contracts. With nearly 8.8 million subscribers, Rihanna has sold its make-up line, Fenty Beauty to the LVMH group with the Kendo brand.

In 2017, the brand of the singer had exceeded $700 million. A promising result for Coty, who looks forward to breaking new industry records with Kylie Jenner.

playbook 2019
Note: The opinions expressed in this article are the author's own and do not necessarily reflect the view of Alvexo on the matter.