Fenty May have Out sold Kylie Cosmetics, But Kylie Will Always Make More Than Rihanna...Here is Why

 

When news filtered a few days back that Kylie Jenner is now a billionaire, most people were not shocked. This is because there had been projections that her main source of income, Kylie Cosmetics, will soon be worth a $1b after valuation.

Naturally people were curious as to who held the number one spot as the youngest billionaire before her. It turns it out was Facebook’s Mark Zuckerberg. At age 23,  was the youngest billionaire in the world.

This is not the only comparison people made. People also compared her with her biggest rival in the cosmetics market, Rihanna’s Fenty. The comparison is not exactly uncalled for as they both cater to the same demographic and they both have similar products.

Most people noticed
that despite Fenty’s obvious success, Rihanna is nothing near the billion Dollar mark yet. Well, this is not going to happen anytime soon.

While Kylie Owns her Cosmetic Line, Fenty is not Wholly Owned by Rihanna.  While her exact stake in the company is not known, Rihanna is however listed as the founder and creator of Fenty.She also owns the patent and trademark to Fenty.

Yep!! This may be shocking but true. Rihanna’s Fenty is owned by luxury company, Louis Vuitton Moet Hennessy (LVMH).

Even though according to Billboard, Fenty sells almost thrice what Kylie Cosmetic sells, Rihanna will still not earn as much as Kylie from her makeup line.

"Fenty Beauty consumers spend an average of $471 annually on makeup, outpacing shoppers of Kat Von D who spend $371, KKW shoppers who spend $278 and Kylie Cosmetics shoppers who spend $181. "

So when it comes to profits earned after offsetting costs (Net Profit), unlike Kylie Jenner who gets to keep all the profits, Rihanna still has to split the profit earned.

Kylie may have reportedly invested $250,000 into the company, Kylie Cosmetics has grown in leaps and bounds, turning over a lot of money , Kylie’s Overhead is not much

While Kylie Cosmetics belongs to Kylie 100%, her overhead cost is very slim.Seed Beauty handles the manufacturing and packaging, sales and sipping is handled by Shopify. Her mum, Kris Jenner handles the PR and the financial aspect of the brand. This is one smart move on her part because she gets to outsource most of her operations putting less pressure on her.

This scenario is a solid example of why the average Nigerian would rather go solo in business via sole proprietorship instead of partnering with anyone.e gets to keep his profits.😉

While being a sole proprietor has it's advantage , it also has some disadvantages. We would address that in another post. 

For now, let's celebrate two women who are obviously winning and learn a thing or two from them, business wise.