The Rollercoaster Journey of Kylie Cosmetics: From Industry Leader to Brand Crisis

Kylie Cosmetics was once considered the hottest, trendiest makeup brand on the market. But after a very public lawsuit and rebranding, the company seems to have lost its luster and industry-leading status. How did Kylie Jenner’s namesake beauty brand go from dominant player to struggling to regain its footing? Let’s analyze the brand’s dramatic journey.

Kylie Jenner’s Pre-Brand Fame

Before launching Kylie Cosmetics, Kylie Jenner was already a huge celebrity personality thanks to:

• Starring on the hit reality show Keeping Up with the Kardashians
• Having over 100 million followers across social media
• Going viral for her enhanced lips after alleged lip injections

This notoriety primed Jenner for success in the cosmetics world based on her beauty-focused persona.

The Controversial “Kylie Jenner Lip Challenge”

• In 2015, a dangerous viral “challenge” emerged where people would suck the air out of a shot glass on their lips to temporarily enlarge them.
• This dangerously swollen pout became known as the “Kylie Jenner Lip” look.
• It sparked controversy but underscored the associations between Jenner’s image and specific beauty trends.

Launching with Seed Beauty and ColourPop

• Jenner partnered with Seed Beauty, the brand incubator behind ColourPop, to launch Kylie Cosmetics in 2016.
• Seed Beauty could leverage its existing ColourPop resources and formulas for Kylie’s new products.
• In exchange, Jenner provided her celebrity marketing power and creative input.

This mutually beneficial partnership allowed Kylie Cosmetics to hit the ground running.

Capitalizing on Scarcity Marketing

• Kylie Cosmetics launched with just 15,000 units of its debut Lip Kits in 3 colors.
• The product immediately sold out, creating massive buzz and demand.
• This “scarcity marketing” technique stimulated hype by making supplies seem limited.
• Each restock release created a new round of buzz.

Expanding into Eyeshadow, Highlighter, and Blush

While lip kits remained the brand’s signature, Kylie Cosmetics steadily expanded into other makeup categories:

• Eyeshadow palettes launched in 2016.
• Highlighters dropped in February 2017.
• Blushes debuted in March 2017.

However, these new products never reached the massive popularity of the lip kits.

Accusations of Scandalous Product Issues

• Many of the new product expansions faced controversies about quality issues:
  • Eyeshadows criticized as cheap, flimsy, and prone to breaking.
  • Highlighters alleged to include materials unsafe for use near eyes.
  • Blushes reported as scratchy and irritating.
• This hurt the brand’s reputation as new releases seemed rushed or poorly formulated.

Continued Success and Growing Legitimacy

Despite some product scandals, Kylie Cosmetics still thrived overall in subsequent years:

• Began selling at Ulta Beauty stores in 2017, which added legitimacy.
• Collaborated with British retailer Topshop to sell in their stores in 2018.
• Valued at $900 million by Forbes in 2018. Jenner called youngest “self-made billionaire.”
• Released thematic collections and collabs to maintain buzz.

Jenner became the face of her generation’s beauty and style.

The Coty $600 Million Acquisition

• In November 2019, beauty conglomerate Coty Inc. purchased 51% of Kylie Cosmetics for $600 million.
• This valued the full business at $1.2 billion.
• Seen as a win-win pairing Kylie’s brand with Coty’s resources.

Coty Financials Reveal Declining Sales

• After acquiring Kylie Cosmetics, Coty’s public financials revealed:
  • Sales had declined up to 40% between 2016-2018, contradicting claims.
  • Jenner may not have owned 100% of profits as stated.
• Forbes rescinded its billionaire designation as sales figures were inflated.

This exposed cracks in the business, despite ongoing new product releases.

The Seed Beauty Lawsuit

• In July 2020, Seed Beauty sued Coty and Kylie Cosmetics alleging confidential trade secret misuse.
• This threatened Kylie’s ability to continue manufacturing products with Coty.
• The lawsuit was eventually settled out of court in 2021.

But it likely contributed to the brand going silent in 2020.

Attempted Rebranding Falls Flat

• In 2021, Coty and Kylie tried rebranding Kylie Cosmetics with minimal changes.
• They doubled down on messy, unrealistic branding claims of being “clean” despite no real changes.
• The rebranding had little impact and felt inauthentic.

Where Kylie Cosmetics Stands Today

Currently Kylie Cosmetics seems to be in limbo:

• Still releasing products but lacking the cultural buzz it once had.
• Financials unclear since being folded into Coty’s portfolio.
• No highly successful new releases since the lip kits.
• Public skepticism rising about Jenner’s involvement.

The brand faces an identity crisis and possible decline without real innovation. A dramatic overhaul may be required to regain relevance. With cosmetics more saturated than ever, relying on Jenner’s celebrity power may no longer be enough. Relaunching with a true product unique selling proposition could be the differentiator needed to revive Kylie Cosmetics. Because the precedent of meteoric success under the right conditions gives hope that with smart evolution, this beauty brand could shine again.