Kylie Jenner, a teenaged model/influencer, has a makeup business that did $330m of revenue last year. The infrastructure is managed by other companies, but she is effectively the distribution, with 111m (sic) Instagram followers. Distribution, reach and customer acquisition are everything for any online consumer brand – how do people know you exist? If you have that, the rest can be added (remember Beats).
Unreal. It really doesn’t matter if she has a famous background or that she leveraged her family’s wealth and market power to put this thing together… she still had to bring the goods to a fanbase that cares.
And that’s the point:
Distribution, reach, and are everything for customer acquisition for any online consumer brand.
This is a great reminder since I’m building a project that is going to have a large (and hopefully growing) consumer interest and brand. And, if we have the community (which Kylie has) then we can add products and services overtime.
We’ve done it right, to be honest – my partner and I have put together a powerful base of community that we really do love and we feel it reciprocated in a ton of different ways. For instance, who gets blueberry jam sent directly to them from one of their community members?
Basically, all Jenner does to make all that money is leverage her social media following. Almost hourly, she takes to Instagram and Snapchat, pouting for selfies with captions about which Kylie Cosmetics shades she’s wearing, takes videos of forthcoming products and announces new launches. It sounds inane until you realize that she has over 110 million followers on Instagram and millions more on Snapchat, and many of them are young women and girls–an audience at once massive and targeted, at least if you’re selling lip products. And that’s before the 16.4 million who follow her company directly, or the 25.6 million who follow her on Twitter, or the occasional social media assists from her siblings and friends.
Yeah, it’s pretty nuts. But, it’s not trivial work and it’s certainly not easy. Exit strategy? Very much in the cards:
Would someone buy it? “It could easily be an instant game-changing acquisition for any company on the hunt for a winning brand with a younger customer,” says Tara Simon, senior vice president of merchandising at cosmetics giant Ulta.
I love a lot about this article and even though I’m not a personal fan of anything related to that family dynasty I see what they are doing and its working… and I’m impressed. Kudos.
Also published on Medium.