Kylie Jenner richer than Jay Z - and Diddy and Kim too
WHICH one’s Kylie? You won’t be asking that anymore. At age 20, she’s the youngest sibling of the Kardashian-Jenner reality TV dynasty. She’s also the richest.
You might have thought that was Kim Kardashian West, with US$350 million in net worth.
Or Kendall Jenner, the world's highest paid model? She made just US$22 million in 2017.
Nope, it's Kylie Jenner, keeper of the most-liked Instagram post ever.
And, apparently, because of her epoynmous line of lip sticks, liners, glosses and more, she's on track to become the youngest self-made billionaire. Ever.
This week, Forbes tallied up the value of Jenner's cosmetics empire, combined with her earnings from TV shows and product endorseements. Her estimated net worth: a cool US$900 million.
The sticker shock stands out given Jenner's age and the hardto-parse secret sauce that vaulted her family into its own celebrity stratosphere. But the figure also serves as the latest - and one of the largest - examples of how celebrities can leverage their fame to take on another job title: business mogul.
And wealthy ones at that. If Forbes stuck Jenner in its 2017 lineup of America's 10 wealthiest celebrities, she'd fit somewhere between David Copperfield ranked No. 5 and worth US$875 million - Michael Jordan, No. 4 and worth US$1.4 billion.
She is richer than Jay-Z. She is richer than Diddy. But she's no Oprah (yet).
Jenner's feat, experts say, took a careful mastery of name recognition mixed with socialmedia influence. Granted, celebrities launching their businesses often have a ready fan base, and they generally have the funds to lift their companies off the ground.
But with that privilege comes the never-ending task of keeping up with consumers' changing tastes, short attention spans and craving for relatability - even from the Kardashians.
“If we think of what Kylie Jenner has done in the past year with her personal life and even with her brand, she's good at keeping people guessing and keeping people on edge,” said Alison Gaither, a beauty and personal care analyst at Mintel.
Jenner surprised her followers by keeping a pregnancy out of view. Her daughter, with rapper Travis Scott, was born in February. “My pregnancy was one (journey) I chose not to do in front of the world,” Jenner wrote on Instagram.
“And equally, Kylie Jenner is making huge strides in the beauty industry,” Gaither said. “She can show that anyone with the right following - you can take your beauty brand to the next level and be right on par with your L'Oreals and your Estée Lauders.” Kylie Cosmetics debuted two years ago with US$29 “lip kits” and, according to Forbes, has ballooned into a beauty industry icon valued at nearly US$800 million. Forbes wrote that the company has sold more than US$630 million worth of makeup, including roughly US$330 million in 2017 alone.
Core to that success is a socialmedia presence that convinces consumers they share a personal connection with Jenner, said Vanitha Swaminathan, a professor of marketing at the University of Pittsburgh's Katz Graduate School of Business.
For scale, Jenner has 111 million Instagram followers - more than twice as many as Barack and Michelle Obama combined. According to Mintel data, 55 percent of consumers ages 18 to 23 used social media or YouTube to get information on beauty brands. Be it Twitter, Instagram, Facebook or Snapchat, those sites make it possible for celebrities like Jenner to not only maintain huge followings, but also keep up with their audiences “in a way that's more authentic, in a way that feels more relevant,” Swaminathan said.
Combine that with the decline in traditional advertising and the speed with which someone can boost their fame on social media.
“All of these things together make it possible for a celebrity to turn themselves into a billionaire,” Swaminathan said.
Jenner counts celebrities like Gwyneth Paltrow (Goop) and Rihanna (Fenty Beauty) as fellow powerhouses in the beauty industry. But as Swaminathan noted, name recognition could backfire with any kind of public slip misstep or scandal.
Plus, fame comes and goes, and “what's hot today might not be tomorrow,” Swaminathan said. Consumers' attention spans on social media can dry up in a blip.
“The basic product has to have appeal, and you have to keep it updated. It has to be relevant to your audience,” Swaminathan said. “The minute there's even the slightest hint of inauthenticity, your audience will just stop. All of those things are hard work.”
Still, having a name like Jenner makes it easier to step up.
“(Celebrities) already have the capital,” Gaither said. “And the capital is in their name.” — WPBloomberg
Kylie Jenner is making huge strides in the beauty industry. She can show that anyone with the right following - you can take your beauty brand to the next level and be right on par with your L’Oreals and your Estée Lauders. Alison Gaither, beauty and personal care analyst at Mintel