The beauty category has been inundated with celebrities launching beauty brands. Kylie Jenner threw her hat into the beauty business in 2015 with the launch of Kylie Lip Kits—a collection of three liquid lipsticks with corresponding lip liners in one ready-to-go kit—and became one of the most-followed beauty brands in the world. Coty acquired the mother of all celebrity brands in a $600 million deal for a 51% stake in the Kylie Cosmetic business in March of 2019, and has just unveiled a relaunch of the brand.
The coronavirus pandemic and falling out with manufacturing partner Seed Beauty hobbled the brand. Last July, the contract manufacturer filed a civil lawsuit in California's Superior Court that alleges that the brand knowingly shared trade secrets from the beauty manufacturer with Coty as part of the transaction. Coty executives have said sales of Kylie Cosmetics were depressed by COVID-related supply-chain disruptions. According to reporting by the WSJ, excluding Kylie Skin and in-store sales, revenue fell significantly in 2020.
On the last earnings call, Sue Nabi, CEO of Coty said, "Kylie Cosmetics sales in recent months have been limited by the completion of the former manufacturing contract and transition from Kylie's previous manufacturing supplier even as demand for cosmetic broadly remains weak."
The relaunch consists of new and improved clean and vegan formulas with refreshed packaging. "I'm so proud to relaunch Kylie Cosmetics with all new formulas that are clean and vegan," said Kylie Jenner. "Innovation has come far in the past few years. When creating this line, it was so important to me to commit to using clean ingredients across the board, but to never sacrifice performance. My new lip kit has 8-hour wear and is so comfortable on the lips, and all my new formulas are amazing. I'm excited for everyone to try the new products."
A new direct-to-consumer website will launch on July 15, and will be the first time consumers can shop both Kylie Skin and Kylie Cosmetics in one location. The site will be the first destination for all new product launches and collection drops and will also feature new educational content and shoppable selections of Kylie's favorite products. The revamp will also roll out with select retailers including Harrods and Selfridges in the UK, Douglas in Europe, and Mecca in Australia. In the US, the brand will relaunch with the new line in Ulta Beauty stores in August.
We are excited about the relaunch of Kylie Cosmetics with a reformulated range that is really at the forefront of everything Gen Z wants," said Nabi. "Kylie Cosmetics is followed by many millions of people across the world. Our new online platform, along with selected retailers, allows consumers to buy their whole beauty routine in one space, from the cleanser to the moisturizer, the highlighter, or the lip color.
