If you’re anything like me and live on the internet, you know that a new beauty brand is launching almost weekly. There is no rest for our wallets. Everybody seems to be launching their beauty brand, from celebrities to makeup artists and even influencers. But at what cost?
That’s the question not just me, but I presume many other brand founders have been asking lately. It takes a lot to keep a brand running. From research to keeping up with trends, licensing, inventory, testing, branding, marketing, and PR are all I can think of, just off the top of my head.
It All Began With An Indian Brand!
In 2008, Indian ayurvedic luxury brand Forest Essentials sold 20% of its stake to Estee Lauder. With this partnership, the brand expanded to the UK and opened around 12 retail outlets across the country. While this can be seen as a win-win for both brands, newer brands may not have the same luck.
Kylie Cosmetics, once one of the biggest makeup brands in the world, sold its majority stakes to Coty in 2020 for a whopping $600 million. While there are talks about Kylie wanting to buy back her company, nothing has transpired.
When Revlon filed for bankruptcy in 2022, the industry was taken aback. A famous brand we’ve all grown up with and used to, the T was struggling so much it didn’t have money anymore. Cut to 2023, and it cleared the $2.7 million debt after its lenders took ownership of the company and emerged as a private company instead. A story of growth? Hell yes!
Meanwhile, There Are Other Makeup Brands Up For Sale
Recently, Makeup by Mario, founded by Mario Dedivanovic (MUA of the Kardashians), has started exploring exit options. This is a surprise, as the brand was only launched in 2020. The brand also struck a chord with its customers because of its founder – a professional makeup artist who understands the nitty-gritty of the industry. Despite that, the brand is struggling to find buyers.
Merit, another cosmetics brand loved by celebrities, has also been looking for a buyer despite expanding to the UK in 2023. While the clean beauty brand has been around for years, it’s also a hit among the younger generation thanks to its minimal packaging and high-performing products.
For a company like Glossier, which seems to be churning out new products by the month, taking customer feedback, and re-launching products with old formulations, it’s hard to tell they need help. However, the millennial and GenZ-loved brand is looking for buyers since its profit numbers are reportedly in single digits.
Rare Beauty is a brand neither you nor I expected to be on the list. The Selena Gomez-owned makeup brand seems like one of the best celebrity-owned makeup brands today. But the ugly truth is that even Rare, while still more profitable than the rest on this page, is still not profitable enough. According to reports, the brand has been exploring exit options but is waiting for the right buyers.
The beauty business is not for the faint-hearted. Besides being able to churn out new products frequently, brands also need to look at reliability, relevance, customer satisfaction, and profits. And if all doesn’t end well, a buyer who can turn the world around for them!
Featured Images: Instagram
