Don’t Underestimate the Power of Kylie Jenner
Last month, Snap Inc. lost $1 billion in market value. This was their worst trading day since they went public in 2017. Why? Because Kylie Jenner tweeted.
Whether this was a calculated move (does Kylie own stock in Instagram?) or not, that kind of power is astounding. 377,000 people liked her status. That’s like the size of the U.S. National Guard.
But what exactly does Kylie Jenner do with her marketing power? Let’s find out.
1. What Actually Happened with Snapchat?
When most of us have a #showerthought, a company doesn’t lose a billion dollars of worth overnight. But that’s the power of social media celebrity-hood.
By the time Kylie Jenner posted her tweet, Snapchat was actually worth $1 billion less than it had been, investors just hadn’t realized. The Snapchat user base has been dwindling for months thanks to other social media platforms like Instagram who copied Snap’s media model.
When Jenner tweeted, thousands of people said, “Oh, yeah, I have Snapchat on my phone! Meh.”
Kylie was one of the many celebrities who adopted the social media platform a few years ago. And when Snapchat began to officially recognize celebrities, Jenner received a crown emoji while other “Official” users received their own emoji.
This highlights one thing about social media that companies in the biz need to remember. Celebrities are the backbone of their user base. If they don’t have the endorsement of celebrities, they most likely won’t have the endorsement of the public.
This could mean real value loss for social media companies.
The power that Jenner wields? It’s essentially the ability to plug into the consciousness of her followers. If she abandons a platform, she brings thousands if not millions with her.
Twitter better hope they don’t do something to upset the Queen of social media. She’s got over 25 million followers there.
2. Kylie’s Cosmetics Victory
According to US Presort, 65% of consumers check online before deciding whether they trust a brand. But when a celebrity is behind a brand, a switch flips in their brains and trust becomes implicit for some. Which might be why Jenner’s makeup brand made $420 million in only 18 months.
But we can’t just chalk all of her marketing success up to her celebrity status.
When you have celebrity reach like Kylie Jenner, you might be tempted to rest on your laurels. “Sure!” You think, “I’ve always wanted to build a cosmetics company!” You build a product line and then in your hubris and overconfidence over produce and tank your company.
But Jenner was smart. She used basic economics to her advantage and produced a limited number of products for her first cosmetics line. The $29 Kylie Lip Kit immediately sold out and within six weeks of business, Jenner partnered with a manufacturer.
Kylie already had it all. But a lot of that was given to her. Making something herself was a big motivation for creating her cosmetics company.
And becoming the youngest celebrity on Forbes 100 isn’t an honor that’s easy to achieve. She received the honor for making $41 million with her company over a year.
Kylie says that her reach and fame was always background noise to her. She didn’t realize how much she had achieved until she made it on the Forbes 100.
Kylie Cosmetics is toe-to-toe with other major cosmetics brands. But major brands like L’Oreal and Estee Lauder have one major cost Kylie Cosmetics doesn’t. Brick and mortar.
While Kylie plans on opening some pop-up stores in Chicago and Houston, her brand is entirely online. This eliminates an incredible amount of overhead from warehouse and store logistics to rent and store employees.
The accelerated rate at which Kylie Cosmetics can earn will possibly help them reach the coveted $1 billion dollar mark. This took other major companies decades to earn.
3. Business Woman and Mother
When Kylie was a child, the term businesswoman was a slight. Success-driven women weren’t seen as legitimate women who could raise a family. Jenner proved that stereotype wrong recently.
While still tackling her cosmetics business, Kylie is pivoting her brand to focus on mothers. Why? Because she’s becoming a mother.
Brands do have to pivot. But usually, that’s in relation to an outside force or internal growth. Kylie’s audience hasn’t changed and thus it’s an interesting thing she’s decided to focus on mothers.
But this might be a wise move on her part. She can continue to market to young people through her cosmetics brand. But her personal brand will now focus on mothers who are fashion conscious.
This is perfect because many brands are clamoring to sell their baby merchandise. Little Nike pumps? You bet Jenner’s gonna be hawking those on her social media when her kid can wear them.
But what’s really going to make Kylie mad cash is her “Baby Stormi-inspired” cosmetics collection. With new palettes like “Eye of the Storm” and “Calm Before the Storm” plus eyeshadows like “Starbaby,” Kylie Cosmetics is going to be selling out fast.
Branding for these new baby-inspired products is consistent from the silver lightning bolts on the packaging to the lightning bolts etched into the lipstick.
Kylie didn’t need to pivot her personal brand at all. She’s got enough in her cosmetics branding to last her a lifetime of extra revenue and fame.
Kylie Jenner Has Invested Well
Whether you admire or scoff at the 20-year-old Jenner’s fame and success, it’s undeniable that she’s taken her talents and put them to good use. If she continues in her endeavors as an entrepreneur, she will be forever known as a successful businesswoman, which today is no longer a slight.
If you’re interested in more celebrity entrepreneur news, check out more at shoemoney.com.