Great question. Even though most people were at home, the category shifted. Makeup became less about “going out” and more about self-expression and wellness during lockdown. People were experimenting with looks on social media, Zoom calls, and TikTok blew up that year, which Fenty leaned into heavily with strong digital and influencer marketing.
They also had momentum from inclusivity. So while traditional beauty brands saw a dip, Fenty benefited from cultural relevance and brand love that went beyond the product itself.
Important to mention that LVMH is able to make such profit due to using forced and unpaid labor to sustain their many brands. Exploitation is a prerequisite.
Question for the smart folks in the group. How did a make up company peak in 2020 when we were all literally stuck at home and wearing masks when we did go out? Very few people were going to work, going out and certainly no one was going to places that required a full face of make up.
“In 2020, Fenty generated up to $550 million (£411M) in revenue with a valuation of $2.8 billion (£2.1B)”
This is a great question. Maybe people were bored and decided to try out new stuff during lockdown? Ik it wasn’t me.
I never buy celebrity makeup bc they always sell out to someone. Same with clothing. This has been a playbook since the 80’s when it was just shampoo and conditioner. Same ole, same ole. I mean Estee Lauder owns LaMer which is abt what…7 x’s the price? You cannot tell me it so much different. Maybe a few items to fool the consumer, allegedly of course. I tried it years ago, didn’t see a difference.
Additionally, tried Kylie’s lip stuff bc of the hype, which sold out ridiculously fast - what a waste of money. Count blv how bad it I was.
Great question. Even though most people were at home, the category shifted. Makeup became less about “going out” and more about self-expression and wellness during lockdown. People were experimenting with looks on social media, Zoom calls, and TikTok blew up that year, which Fenty leaned into heavily with strong digital and influencer marketing.
They also had momentum from inclusivity. So while traditional beauty brands saw a dip, Fenty benefited from cultural relevance and brand love that went beyond the product itself.
Love the cultural moat reference + super technical analysis on the stages of impact short/med/long term.
I get it. Companies create value using celebrity status. Once value has peaked then sell. it’s like the stock market buy, hold then sell.
Important to mention that LVMH is able to make such profit due to using forced and unpaid labor to sustain their many brands. Exploitation is a prerequisite.
Wow this is so sexist.
how?
I really appreciate your analysis of these companies.
Question for the smart folks in the group. How did a make up company peak in 2020 when we were all literally stuck at home and wearing masks when we did go out? Very few people were going to work, going out and certainly no one was going to places that required a full face of make up.
“In 2020, Fenty generated up to $550 million (£411M) in revenue with a valuation of $2.8 billion (£2.1B)”
This is a great question. Maybe people were bored and decided to try out new stuff during lockdown? Ik it wasn’t me.
I never buy celebrity makeup bc they always sell out to someone. Same with clothing. This has been a playbook since the 80’s when it was just shampoo and conditioner. Same ole, same ole. I mean Estee Lauder owns LaMer which is abt what…7 x’s the price? You cannot tell me it so much different. Maybe a few items to fool the consumer, allegedly of course. I tried it years ago, didn’t see a difference.
Additionally, tried Kylie’s lip stuff bc of the hype, which sold out ridiculously fast - what a waste of money. Count blv how bad it I was.
Brilliant Dissection!🤲🏿