This decade was full of beauty trends and big cosmetic brands revolutionizing the beauty industry. There has been significant growth in this industry since 2009 – the global cosmetics market was at its lowest during the recession, but the industry has prevailed over the past 10 years.
Business Insider reported that today the beauty industry is worth $532 billion! For the next three years, it is expected to grow 7.14 percent annually, which means by 2023, the industry will be worth an estimated $805 billion!
More consumers want to buy the latest cosmetics products, and this trend has opened up a huge market for entrepreneurs. When entrepreneurs notice a major popularity spike in a particular industry, they want to know how to open a beauty business themselves.
So, why is the beauty industry in a major boom right now?
When we talk about the beauty industry, we must consider the different sectors, or sub-industries, that make up the market as a whole. These sectors are as follows:
The sub-industry that contributes most of the estimated over $500 billion worth of the beauty industry is cosmetics. The cosmetics industry is worth around $93 billion, which is an increase of approximately $13 billion from 2015. The annual growth rate for the cosmetics industry went from one percent in 2009 to 5.5 percent in 2018!
So, why are more people buying makeup? Well, cosmetics companies thrive on social media. Many brands have abandoned traditional means of advertising and marketing by utilizing the power of social media influencers to promote their products. Cosmetics companies also allow consumers to buy their products directly from social media apps.
One specific brand that built its name through social media is Kylie Jenner’s makeup brand, Kylie Cosmetics. Her brand is the second most popular beauty line on Instagram with an estimated 21.8 million followers. The company is worth over a billion dollars!
So, who is Kylie Jenner, what exactly is Kylie Cosmetics — and why is Kylie Cosmetics so successful in the beauty industry?
Kylie Jenner is known for being on the famous reality television show, “Keeping Up With The Kardashians,” but Jenner is not just a reality tv star: she’s also the youngest “self-made” billionaire in the world.
At 22 years old, Jenner has created her own makeup empire, Kylie Cosmetics. She recently sold a majority ownership stake to Coty Inc. for $600 million. Now, her cosmetics company is worth $1.2 billion! Coty Inc., who also owns established brands like CoverGirl, Adidas, and Marc Jacobs, now owns 51 percent of Kylie Cosmetics.
Jenner’s life has always been made public. She’s been on television her whole life and her family continues to be in the spotlight. In her teen years, she was interested in makeup and beauty, and in an interview with London’s Evening Standard, the then 20-year-old spoke about how her insecurities inspired her to create her own beauty line. When she was 15, she received harsh comments about her lips, and it became her biggest insecurity.
In adulthood, she started to become interested in business. In addition to that, she gained millions and millions of followers on social media. With this major platform and newfound influence on her followers, she decided to merge her passion for makeup and interest in entrepreneurship to create Kylie Cosmetics.
In 2015, she launched Kylie Lip Kit and sold her line of lipsticks and lip liner sets. The following year, she changed the brand to Kylie Cosmetics, and within that first year, her company made approximately $360 million, The Washington Post reports. Once she partnered with brick-and-mortar retailers, specifically Ulta Beauty, sales of her products rapidly grew.
Jenner turned her insecurity into a gold mine, and today, her beauty line is one of the largest cosmetics brands in the world.
So, can you own a Kylie Cosmetics?
Unfortunately, you can’t open a Kylie Cosmetics. It is a private company, now owned by Coty, Inc. The company was started by its parent company, Seed Beauty, which also launched many other popular cosmetics brands. Consumers can find the brand in retailers like Ulta Beauty or buy from them directly through their online store.
But, I am interested in this hot industry…how do I open a beauty business?
The cosmetics and beauty industry continues to grow and is now worth $532 billion, Business Insider reports. Entrepreneurs want to open their own beauty business, but don’t want to start it from the ground up. This presents risks such as high startup costs and competition. This is true for the beauty industry that continues to welcome new brands and now consumers have more options.
An entrepreneur can open a beauty franchise to limit the risks, for franchising offers an entrepreneur corporate support, an established brand, and a proven, successful business model. So, how do you open a beauty business? Here is a list of beauty franchises an entrepreneurial beauty guru can open today.
5 Beauty Businesses You Can Open Today
BodyBrite is a beauty center that offers body rejuvenation and hair removal services. These services include facials, skin rejuvenation, microdermabrasion, and other body care treatments. The beauty business also sells a line of skincare and natural makeup products.
Financial Information (per BodyBrite’s 2019 FDD)
- Initial Franchise Fee: $24,750 – $49,500
- The lump-sum initial fee is $49,500 when a potential franchisee signs Franchise Agreement to operate a BodyBrite in a single territory. The fee is discounted to $24,750 to existing franchisees who already own a BodyBrite.
- Startup Costs: $119,683 – $249,100
2. The Lash Lounge
The Lash Lounge specializes in temporary or semi-permanent eyelash or eyebrow enhancing services. These services include eyelash extensions, facial threading, and permanent makeup services.
Financial Information (per The Lash Lounge’s 2019 FDD)
- Initial Franchise Fee: $49,500
- Startup Costs: $175,029 – $377,025
3. Massage Envy
Massage Envy provides total body care services to anyone seeking a little relaxation. These services include massages, hot stone therapy, facials, and other skincare services.
Financial Information (per Massage Envy’s 2019 FDD)
- Initial Franchise Fee: $28,000 – $45,000
- The initial franchise fee is a range because of Massage Envy’s discount for veterans. See FDD for more details.
- Startup Costs: $481,400 – $898,700
4. Elements Massage
Elements Massage is a day spa with client services such as deep tissue massages, couple massages, cupping therapy, and integrative reflexology.
Financial Information (per Elements Massage 2019 FDD)
- Initial Franchise Fee: $39,000
- Startup Costs: $137,050 – $363,700
5. My Salon Suite
My Salon Suite provides customers with hair-styling services, nail treatments, and various types of massages.
Financial Information (per My Salon Suite 2019 FDD)
- Initial Franchise Fee: $50,000
- Startup Costs: $582,164 – $1,479,827
So, now is the time to join the booming beauty industry!
So, you can’t open a Kylie Cosmetics, but there are plenty of other exciting opportunities in the beauty industry! Beauty and cosmetics are a constant trend, and these types of services and products are always in demand. Entrepreneurs who have a passion for this industry should know how to analyze the markets and understand which sector of the beauty industry is right for them. This is how they will be able to open their own beauty business. Remember, beauty (and business) is in the eye of the beholder!
By Ana Borruto and Jim Notaris