Every week there are people on the covers of magazines and for some of them they have a following on social media. One of the families which as capitalized on social media is the Kardashian-Jenner family. There family has been in the spotlight for years and still going strong. The youngest daughter is the Kylie Jenner and she has 270 million social media followers. The demographics is they are young people and generally young people spend money.
Among other things Kylie Jenner has a Cosmetics side and Coty Inc bought 51% of the business valuing Kylie Cosmetics at $1.2 billion. The company was launched in 2015 with a make up line of lipstick and lip-liner. In an article by Nivediat Balu of Reuters, Coty said Kylie Cosmetics had sales of $177 million in net revenues over the past 12 months.
Retail Analyst Linda Bolton Weiser of D.A, Davidson said the Kylie brand is a big brand, but Coty remains financially leveraged (has lots of debt). Coty has been adding to is skin care and fragrance products and spending more on marketing to boost sales.
Linking to dividend paying stocks, in the retail world, there are people of influence to following of social media. Most people do not have 270 million followers, but if they do companies see great potential in tapping those people. How sincere and authentic they are while lusting over increase sales, time will tell how successful they are.
There are more questions than answers, till the next time – to raising questions.