22 year old Kylie Jenner's 3 year old cosmetic company, Kylie Cosmetics, is facing business turmoil. According to a new report, the company's sales are falling like a rock. Apparently, the majority of customers who tried it once - never returned as customers.
The NY Post obtained a confidential document, that spelled out the company's troubles.
But things aren't too bad - yet. Kylie's company is valued at about $1 billion and the company is in discussions with Coty Inc. to acquire a majority stake for $600 million.
Rakuten Intelligence wrote a report saying that the company's revenues were down 14% so far this year.
Revenues peaked in November 2016, one year after the first product was launched, but two years later, in November 2018, revenues were down by 62%, according to Rakuten, which tracks online purchases.
The drop may be due to Kylie Cosmetics’ troubles getting customers to stay loyal, according to Rakuten, which relied on online receipts for 1.5 million customers.
More recently, the 21-year-old’s shoppers have taken to the internet to complain about lousy customer service, a lack of a refund or return policy, order mix-ups and quality issues associated with the products, according to a scan of websites that have published consumer reviews, including the Better Business Bureau and Ulta, the only retailer that has a partnership to sell the brand.
“I will never buy their product again,” one self-described first-time buyer, “Angel,” wrote in March on the BBB site, saying she spent $250 on merchandise and received only seven of the 12 items she ordered. Kylie Costmetics’ customer service didn’t help with her complaint, she said.
On Ulta.com, the $49 Momager Kit — so named after family matriarch Kris Jenner — recently showed 16 one-star reviews compared to 13 five-star reviews for the eyeshadow and lipstick combo.
“Would NOT recommend,” wrote Becca from Wisconsin earlier this year. “This was the first palette I’ve bought from Kylie. It was such a disappointment. The colors show up different on your lid and are very difficult to blend.”