Kylie Jenner's lip line may lose shine.
According to The New York Post, Kylie Cosmetics is struggling to maintain customer loyalty and sales are declining as first-time customers do not return.
NEW YORK, NY – MAY 7: Kylie Jenner and Stormi seen on May 7, 2019 in New York City. (Photo by Raymond Hall / GC Images)
Jenner's private business has been in existence for three years and is reportedly in talks with Coty Inc. to acquire a $ 600 million controlling interest. Nevertheless, the sales of the cosmetics line this year by May has fallen by 1
According to Forbes, 21-year-old Jenner became the world's youngest self-made billionaire in March. This followed the milestone of Kylie Cosmetic, when in November an exclusive contract was signed with Ulta, the beauty retailer. The company of Jenner previously sold its various makeup products only online and briefly in pop-up stores.
Forbes estimates the company now stands at nearly $ 900 million.
The company's revenue reached an all-time high in November 2016. one year after the launch of the first product. Two years later, according to the postal sales went down by 62 percent. The decline in the company's total revenue is due in part to the struggle to retain its 1.5 million online customers.
Between June 2016 and May 2019, 60 percent of the brand's customers had made only one purchase at the company's website and Ulta.com, the Post reported.
"The Kylie Jenner brand is very valuable, but customer loyalty is a big part of brand value," said Jaimee Minney, senior vice president of Rakuten Intelligence, Post. "Their brand power brings people into the game, but the big question is whether they can retain people."
Jenner's products were a great success when they launched in August 2016, also because of their large presence in the social media. The success of their product continued in February 2016 when Kylie Cosmetics released three new colors for their Kyshadow Lip Kits. According to the Post, they were active on eBay before the sale even ended with a starting price of $ 225 – almost eight times their original price of $ 29.
Meanwhile, there was an increasing number of online complaints in the make-up line. According to Kyle's mother Kris Jenner, many shoppers have reportedly gone online to complain about lousy customer service, lack of refund or return conditions, order mix-ups and product-related quality issues – recently 16 one-star ratings compared to 13 five Star ratings for the combination of eye shadow and lipstick shown. Lip products, which make up about 69 percent of Jenner's revenue, according to Post, appear to be better than some of their newer make-up sets.
PARIS, FRANCE – JUNE 21: Kylie Jenner and Kim Kardashian attend the Louis Vuitton Men's Fashion Spring / Summer 2019 as part of the Paris Fashion Week Week on June 21, 2018 in Paris, France. (Photo by Stephane Cardinale – Corbis / Corbis on Getty Images)
CLICK HERE TO OBTAIN THE FOX BUSINESS APP
According to the Post, the turnover of lip products has been reversed since June 1st Decreased 2.3 percent, 2016, to May 31, 2019, compared to an industry-wide decline of 5.3 percent for lip products.
Eyewear and face makeup sales of the brand, however, declined 29 percent and 8 percent, respectively, compared to the same period last year. The reporting period ended in May, while demand for such products has generally increased over the same period, according to the Post.