2024-04-16 03:03:41
Published16. April 2024, 05:03
Declining sales figures: “Danger of flopping”: Are the Kardashians about to end?
Kylie Cosmetics sales have been declining for a long time. The 26-year-old is now trying her luck with clothes and alcohol. An expert classifies her strategy.
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Kylie Jenner (26) recently tried her hand at three new sales areas: clothes, perfume and alcohol.
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As sales at her cosmetics company plummet, experts agree that she is desperately looking for a new business idea.
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According to marketing expert Prof. Martina Dalla Vecchia, Kylie doesn’t have to worry about damage to her image at the moment.
Kylie Jenner (26) made the cover of Forbes in 2019 as the youngest self-made billionaire. She owes the success to her cosmetics company Kylie Cosmetics. Meanwhile, the youngest of the Kardashian clan is struggling with income.
According to Statista, sales figures for Kylie Cosmetics have been declining for years. With around $29 million in e-commerce revenue, the brand’s earnings have more than halved since its launch in 2015. She made it to third place in the ranking of celebrity beauty brands behind Rihanna and Priyanka Chopra Jonas (source: Upbeat Agency).
Is Kylie Cosmetics in a downward spiral? The entrepreneur seems to be looking for a new successful company. She recently launched a clothing brand (Khy) and a canned seltzer (Sprinter). In doing so, she is sticking to her family’s typical strategy: The Kardashians have all already started and sold off several companies.
Is Kylie Jenner’s business strategy a good idea?
“In ‘schön’ this attitude, which is particularly celebrated in the USA, is called a ‘serial entrepreneur’,” explains marketing strategy lecturer Tanja Herrmann. As such, you are particularly interesting for investors: “If someone has a track record that shows how often he or she has had a good feel for something, then that inspires trust.”
Marketing lecturer Prof. Martina Dalla Vecchia also doesn’t think this strategy is bad per se. “It’s possible for the Kardashians. They have mastered the game: buying into a company, pushing product sales, increasing company value and then selling it again. Thanks to their large reach and fan base, they can open up new business areas,” she tells 20 Minutes.
This is something you have to keep in mind when diversifying your business
For smaller entrepreneurs and, for example, Swiss celebrities, business hopping is only recommended to a limited extent, according to the lecturer at the University of Applied Sciences in Basel. “Diversification requires business know-how, a feel for the market and financial resources,” she recommends.
Herrmann adds: “If you are ‘only’ the source of ideas, you can concentrate on several companies. But only if you have a management team in the individual company that you can rely on. Because every company needs at least one person with the necessary decision-making authority who “breathes” the respective industry.
According to the course director at the HWZ, when it comes to diversifying stars, it is important to ensure that all the companies still fit what the person stands for.
“I don’t see market saturation for the Kardashians”
Prof. Martina Dalla Vecchia
The fact that Kylie is in entrepreneurial distress is already leading to the theory on social media that the Kardashian dynasty is coming to an end. Dalla Vecchia contradicts: “I don’t see market saturation for the Kardashians. They have a sure hand for product innovations and know their fan base.”
Herrmann agrees: “From the outside, it doesn’t seem like that at first. Experience has shown that after the expansion, the countermovement of consolidation comes again. It is very likely that in the next few years the Kardashians will sell off the companies that are not sufficiently lucrative, sell others with very high profits and focus on new projects.
But for stars who work in many different markets, there is “the risk of flopping,” says Dalla Vecchia. This can cause lasting damage to the star image. As long as success remains on the Kardashian-Jenner clan’s side, the family doesn’t have to worry. “The Kardashians have shown good business sense in the past,” adds Herrmann.
Dalla Vecchia advises Kylie to stay calm. «She is known as a hardcore business woman. Her fan base looks up to her. As long as she is credible and stays true to herself, ‘business hopping’ works.”
Herrmann would recommend that every other person focus on one thing in order to build trust. “In my eyes, however, Kylie Jenner represents change. The whole family has been surprising us for decades by not sticking to one role, but by constantly reinventing it. And it is precisely this blatant ‘disobedience’ that makes Kardashian so fascinating.”
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