Kim Xiaomei Will Sell 51% Of Kylie Cosmetics Series.

Jenna will sell 51% of the Kylie cosmetics series, which is the latest case of the beauty group's high price acquisition of brands that attract young consumers.
"Her audience is more than two times the number of spectators per year," she said.
Pierre-Andr e Terisse, chief financial officer of Cotti, the beauty giant, said at a conference call on Monday that Cotti spent $600 million to buy 51% of the Kylie cosmetic brand of Kelly Jenna Jenner, partly because of this. The pure cash transaction has made the youngest sister of Kardashian Jenna's business worth nearly $1 billion 200 million.
Kylie, 22, launched the "Kylie Lip Kits" three color lip gloss in her own name in November 2015. The series of cosmetics sold out almost instantly, not only led to the collapse of her e-commerce website, but also made Jenna, who was only 18 years old, become a real beauty entrepreneur. In March this year, Forbes praised Jonna as the youngest self-made billionaire in the world.
Over the past few years, the world's largest beauty companies have spent hundreds of millions of dollars to launch a wave of brand takeovers, hoping to catch up with the department stores instead of shopping for grocery stores, instead of looking for young consumers with beauty inspiration on Instagram. In October, Shiseido bought Drunk Elephant at a price of 845 billion US dollars. Also on Monday, Estee Lauder acquired the remaining 2/3 stake in Dr. & Jart parent company Have & Be. Co, worth 1 billion 100 million US dollars.
Since buying the 43 brands of Procter & Gamble in 2016 at $12 billion 500 million, Cotti has been struggling with integration and has hardly participated in the recent competition. Last year, as Covergirl and other flagship brands got into trouble, the company's revenue fell to $8 billion 600 million. At present, the company is seeking to sell some brands including Clairol.
Previously, the company spent $600 million in 2017 to acquire 60% of the Younique company, which aims to attract more young consumers, but failed. According to reports, Cotti sold shares in August at a price of 78 million US dollars.
"This exposes Cotti's lack of younger consumers at the moment," Terisse said. In her view, Jenna and Z generation have "unmatched social media contacts". Her followers are 3/4 to 18 to 24 years old, and the number of fans is increasing by about 7000 each day. For such groups, Kylie series cosmetics may be more attractive than Younique.
Some analysts point out that there are signs that Jenna's product boom has begun to cool down. Rakuten Intelligence found that its sales declined by 14% in the first five months of 2019 due to the lack of repeat customers. In the first half of this year, sales of high-end cosmetics in the United States dropped by 4 percentage points. In May, Jenna launched the skin care product Kylie Skin, and successfully entered the hot field of the beauty market. Sales of the sub brand are expected to reach US $25 million, and the repeat purchase rate is expected to exceed 50%.
Terisse said that Kylie beauty has resisted the downward trend of the market. The Kylie series has generated about $177 million in revenue in the past 12 months, up 40% from 2018. The brand entered all 1200 stores in Ulta in November 2018, and sales increased significantly. In September, with the launch of Kylie Skin, cooperation has been further expanded. Terisse revealed that the brand's direct sales and wholesale volume are roughly the same.
Cotti plans to push the brand to the world. Terisse points out that more than half of Jenna's social media fans come from outside the United States.
"Some international retailers have shown strong interest in her cosmetic products," Terisse said.
In addition to capturing Z generation, Cotti also intends to use this rapidly growing digital native brand to consolidate its position in the high-end cosmetics and skin care products market. Jenna's "Kylie Lip Kits" series includes $29 retail liquid lip gloss and matching lip liner, and a $nine nine color eye shadow "Kyshadow". The price of Kylie Skin is at the entry point of high-end cosmetics, such as 24 dollar moisturizing cream, 20 dollar eye cream and 28 yuan vitamin C essence.
Jenna set off a celebrity cosmetic effect. In the four years since she launched her own brand, countless celebrities have followed suit, including Huda Kattan, Jeffree Star, Jet Atkin and Tati Westbrook.
Kattan's Huda Beauty acquired a small share of TSG Consumer Partners in 2017, with a valuation of $1 billion 200 million. Westbrook launched an eye shadow product earlier this month and is said to have sales close to $5 million that day. However, so far, no celebrity can sell more than Jenna. According to WWD's data, her e-commerce website has created a sales record of $19 million a day.