by Riley Cook
Kylie Jenner, the entrepreneur and reality TV star, has once again made headlines with the launch of her latest brand, Cosmic.
Image Credit: Pierre Suu | Getty Images
However, amidst the excitement surrounding her new venture, questions arise about the sustainability of Jenner's growing business empire and the strategic motivations behind her numerous ventures. Jenner's journey into entrepreneurship began in 2015 with the launch of Kylie Cosmetics, which quickly became a global phenomenon.
Since then, she has expanded her business portfolio with ventures like Kylie Skin, Kylie Baby, and Kylie Swim, each targeting different markets within the beauty and lifestyle industries. Now, in 2024, Jenner adds Cosmic to her roster of brands, along with the recent introduction of Khy and Sprinter.
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While Jenner's entrepreneurial spirit is commendable, some fans express concerns about the sheer volume of businesses she is involved in and the apparent lack of success compared to Kylie Cosmetics. Reports of issues with product quality and similarity to existing products, such as Cosmic's alleged resemblance to Ariana Grande's perfume, raise questions about the originality and viability of Jenner's new ventures.
Well, one YouTuber (Erica Moo Tan) speculates that Kylie's marketing strategy is to use controversy mixed with social media as a way to market her products to see rapid growth and then sell. This could very well be true, with Kylie Cosmetics facing backlash for its terrible wands, Kylie Skin receiving backlash for its walnut scrub, Kylie Baby not providing safety for children, and parents citing it to be a cash grab.
Image Credit: Kylie Jenner | Khy.com
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Kylie Swim was accused of using cheap fabric to manufacture its products, with many customers uploading videos of their purchases where threading seemed out of place. Khy is simply not selling out as many of the brands in the past would, meaning the hype for Jenner/Kardashian products could be dying down.
We asked entrepreneur and author, Lisa K. Stephenson, to weigh in. "We understand that the Kardashian/Jenners earn a lucrative income from various streams of revenue: YouTube, their show, Instagram, and even Snapchat. What many do not know is that they live in California where income, sales, and corporate tax are quite high. Not to mention mansion tax, their security detail, glam, and so forth.
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If we know anything from the Kardashians, it's that they are very smart businesswomen. In order to not owe taxes at the end of the year, your business has to spend the revenue it earns, deducting these expenses from the revenue. In other words, if they keep launching businesses, they can keep deducting their expenses to run those businesses, making it so that they will owe fewer taxes and perhaps in some cases get money back.
I don't believe Kylie is just launching companies to do it. Like most celebrities who have seen an influx of cash, they have also seen an increase in their tax bill. So, to reduce the amount they'll owe, they no longer just license their name; they open the business themselves and deduct the expenses. This way, they can make money DTC, market themselves, and avoid taxes."
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While Jenner's business acumen and ability to capitalize on her brand are undeniable, the sustainability of her expanding empire remains a topic of debate. As consumers become increasingly discerning and competition in the beauty and lifestyle industries intensifies, Jenner must navigate the balance between innovation, authenticity, and profitability to ensure the longevity of her brands.
But, what do you think?