Coty’s New Business Model: Instagram Model

by | Jun 30, 2020

(Photo courtesy quoracdn.net)

No one keeps up with the Kardashians as well as Coty. After buying Kylie Jenner’s beauty business last January, cosmetics giant Coty announced that it would acquire a 20% stake in Kim Kardashian West’s cosmetics line, KKW, for $200 million.

The deal values KKW at $1 billion, making it officially a unicorn.

  • A unicorn is a privately held startup company valued at over $1 billion.

Kylie would like you to know that that’s slightly lower than the $1.2 billion valuation Coty put on Kylie Cosmetics last year.

Coty is acquiring the Kardashians’ cosmetics lines in order to work on their image. Coty’s other brands, which include Max Factor makeup and Sally Hansen nail polish, can’t compete with KKW Beauty’s Instagram fame. Max Factor, for example, has 585,000 Instagram followers while KKW Beauty has 4.4 million.

Instagram model: Coty is a 116-year-old company. By partnering with the Kardashians, the company is hoping to appeal to a younger audience. Their business model is now: Instagram model.

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