Why is Kim Kardashian richer than Kylie Jenner even though they both sell cosmetics?
“Kylie Jenner did not become a billionaire, but Kim did,” ELLE commented.
According to Forbes, Kim Kardashian has surpassed Kylie Jenner in net worth and officially became a billionaire. The entertainment star officially joined the list of world billionaires with his net worth increasing from 780 million USD in October 2020 to 1 billion USD at present.
Besides the reality show, this number is largely thanks to the shapewear brand SKIMS and cosmetics company KKW Beauty.
Thereby, many people wonder why Kim’s half-sister did not win the title of “billionaire” like her sister, while Kylie had her own cosmetics brand earlier? In fact, Kylie Jenner’s name once appeared on this list, but was soon withdrawn on the grounds of incorrect information about asset value.
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Kim and Kylie once collaborated to launch a beauty collection. Photo: Allure.
Wrong time
Building her own cosmetics brand since 2015 and receiving enthusiastic support from young people, Kylie Jenner has become the female image many people desire. Therefore, the decision to sell more than half of Kylie Cosmetics to “cosmetic giant” Coty in early 2020 is considered an interesting event. The deal values the company at $1.2 billion.
Meanwhile, Kim Kardashian started her own beauty line in 2017. Kim also signed a deal in June 2020 to sell a 20% stake in her cosmetics company KKW Beauty to Coty. Her company’s valuation is $1 billion, according to Business Insider.
By mid-October 2020, the article Why is Kim Kardashian West richer than Kylie Jenner? by writer Madeline Berg in Forbes magazine partly explains the wealth of both.
“In retrospect, Coty’s purchase of shares in Kylie Cosmetics turned out to be the wrong time. According to August filings from Coty, Kylie Cosmetics’ revenue in the first half of 2020 only reached 52 million USD,” this journalist admitted. determined.
The decrease is believed to be due to the impact of the Covid-19 pandemic. Kylie’s manufacturer – Seed Beauty – as well as its exclusive stores are closed throughout the spring.
With this failure, Forbes estimates Kylie’s stake in Kylie Cosmetics is worth $300 million. The rest of her fortune comes from an estimated $400 million in cash, cars, real estate and other investments.
Kylie Cosmetics’ revenue dropped sharply due to the epidemic. Photo: FirstClasse.
Cosmetics line KKW Beauty has also been affected by the pandemic, but Forbes estimates Kim’s 72% stake in her company is worth about $500 million. The rest of her assets include cash, real estate and other investments. Besides KKW Beauty, Kim also launched the SKIMS shapewear line.
In general, both KKW Beauty and Kylie Cosmetics have survived based on the reputation of two half-sisters. Rising like a “kite in the wind” or falling into “disgrace” of this form of business depends on each person’s ability to “trick” each other.
Not as skillful as her younger sister, Kim has been criticized many times for selling products too openly on her personal page. Offensive advertising photos or taking advantage of other people’s circumstances to attract customers are her familiar moves. However, it is these controversies that make the star’s brand even more famous.
Trouble from the title “billionaire”
Forbes once mentioned that the Kardashian – Jenner family took a long time to convince people of their wealth: “They invited journalists to their mansions and offices, and even created tax returns that could ability to be falsified”.
Kylie Jenner was once accused of falsely declaring her assets. Photo: abcnews.
When the details of the agreement signed with Coty were made public, the unreasonable points about Kylie’s position as the youngest self-made female billionaire in the world were gradually exposed. Statistics show that the businesswoman’s business is significantly smaller and less profitable than what the family claims.
Based on that information, the American business magazine lowered its estimate and Kylie is no longer the world’s youngest self-made billionaire. Immediately after that, many controversies broke out.
Kylie Jenner said that this magazine intended to insult her brand and asserted that she did not care (despite the fact that she continuously talked about this issue four times on her personal page).
“I thought this was a reputable site. All I saw were inaccurate statements and unproven assumptions. I never claimed any titles or tried to lie to get that location.
Anyway, it’s okay. I am so lucky to have a beautiful daughter and a successful business. I’m doing very well. I can list 100 things that are more important right now than how much money I have,” the young businesswoman argued at the time.
In fact, whether the beauty is called a billionaire or not, no one can deny Kylie Jenner’s efforts and influence in the field of fashion and beauty. Vogue recently published an article recognizing her charm in helping revive young brands and designers.
Despite her young age, she soon had hundreds of millions of followers. Thanks to that, Kylie wearing any design is enough to bring that brand closer to customers.
For Kim, the divorce story between her and Kanye West is also a topic of interest and analysis by the media. The scandals in this relationship have brought even more attention to her name and brand.
