Brand worth a billion dollars: billionaire clan joins Kim Kardashian

The Jenner-Kardashian-West family is a brand power in the fashion and cosmetics industry. The Coty Group, which is behind a German billionaire family, would also like to benefit from this. For Kim's half-sister's makeup line, they were willing to invest a lot.

The cosmetics group Coty and Kim Kardashian West have agreed on the company's entry into the make-up brand of the reality TV star. According to a Financial Times (FT) report, Coty plans to pay $ 200 million for a 20 percent stake in the KKW brand. The value of the cosmetics line of the extremely successful influencer Kardashian West is valued at one billion dollars. Last year, Coty paid $ 600 million for a 51 percent majority stake in Kardashian West's half-sister Kylie Jenner's cosmetics business, valuing her brand at about $ 1.2 billion.

Coty 4.03

The majority shareholder of Coty is the JAB holding company, which manages the assets of the German billionaire Reimann family. In their portfolio, Coty was the problem child even before the Corona crisis. The world's largest supplier of perfumes includes the corresponding brands from Adidas, Hugo Boss, Joop, Calvin Klein, but also many stars such as David Beckham, Jennifer Lopez and Beyoncé. The group is heavily in debt through the takeover of many brands, among others from the consumer goods giant Procter & Gamble. Business has been going badly in recent years, and management has been replaced several times. The share price has fallen by around 70 percent since the beginning of this year alone.

The collaboration with the US celebrities is seen as an attempt to polish up the partially dusty brand portfolio of Coty and to switch more from traditional sales channels to direct marketing using social media. Kardashian West has 177 million followers on Instagram, Kylie Jenner 183 million. Kardashian West's husband Kanye West also runs his own fashion label. When the rapper announced a 10-year partnership with the clothing brand Gap last week, the company's share price jumped by almost 20 percent.

Nothing was known about the sales and profits of Kardashian West's cosmetics. According to the FT, Coty will be given the option to increase its stake in a majority stake at a later date.

. (tagsToTranslate) Economy (t) Kim Kardashian (t) Kanye West (t) Kylie Jenner (t) Investments