Billionaire Kylie Jenner Is the Future of Shopping

1 class=group-data ng-repeat-start=group in groupArray data-test=$index

data.symbol reutersRICLabelFormat:group.RICS

GFL Environmental files for IPO said to raise about US$1.5 billion

Gold rally energized Canadian stocks even before Ray Dalios essay

Caldwell Investment to pay $1.8M penalty for breaking rules: OSC

Boeing shares shake off concerns over 737 Max charge

AB InBev bounces back with US$11.3B Asahi deal and talk of new IPO

Martello is more than just a T-shirt Bruce Linton wore: CEO

North American markets end the week lower on mixed Q2 earnings

Elizabeth Warren declares war on private equity vampires in 2020 plan

Levi Strauss falls to record low after Goldman gives it first sell

Chinese investor who made 785% on Moutai says hes found the next big thing

Blue Apron surges after partnering with high-flying Beyond Meat

Pattie Lovett-Reid: How to know when youve gone from frugal to cheap

Searching for summer travel deals? Be flexible

Canadian housing gets boring with sales little changed

Seeds to startups: How summer tree planting helped Bruce Croxon blaze a trail in tech

Personal Investor: Im retiring at 55 heres how I did it

Stubborn B.C., Alberta homeowners unwilling to sell real estate: Royal LePage

How wealthy singles can protect their riches from partners looking for a payout

Pattie Lovett-Reid: Are vacation properties a smart investment for millennials?

Personal Investor: New TFSA limit to take an inflation leap

Pattie Lovett-Reid: Canadians are carrying less cash

Inequality highlighted as 10% of U.S. workers get half of all pay

Pattie Lovett-Reid: Dont let emotion sabotage your investment decisions

Ontarios new Grade 10 careers curriculum to stress financial literacy

Trans Mountain expansion gets second green light from Ottawa

Financial worries keep most Americans up at night

Micro-condos and ice-cream pints: How businesses cater to Canadas singles market

Pattie Lovett-Reid: How to make your Tax Freedom Day come sooner

Retirees risk running out of money a decade before death

Key household debt ratio held steady in first quarter: StatsCan

Apple plans to open office in Westbanks glitzy Vancouver tower

Canadian housing gets boring with sales little changed

Rents in most cities are unaffordable for lower-income earners: Study

Brookfield said to explore sale of Atlantis resort in Bahamas

Home ownership elusive for young Canadians who fear going broke

Almost 40% of U.S. homes are free and clear of a mortgage

Toronto set for record apartment surge after rent control lifted

Canadian housing starts surge 25% on coast-to-coast increase

Luxury home sales rise in Toronto, Montreal; fall in Vancouver

Vancouvers benchmark home price falls below $1M for first time since May 2017

Montreals housing market conditions tightest since 2005 as listings plunge

WeWork to lease 10 floors in new Vancouver office development

Toronto housing market heats up in June: Sales jump 10%, listings fall

Genworth shopping stake in Canadian unit amid delay in Chinese takeover review

Billionaires detention rocks his Chinese real estate empire

Toronto condo prices see weakest growth in five years as rules bite

A dorm with pub crawls, only fancier: Co-living comes to Canada

Hudson Yards developer plans one of Canadas biggest projects

Toronto is worlds third-fastest growing city for coworking spaces: Study

Liberals mortgage help for first-time buyers lands Sept. 2

GFL Environmental files for IPO said to raise about US$1.5 billion

Ford to cut 185 jobs in Oakville, Ont. plant on slowing sales: Union

Walmart shuffles leadership team for store-digital integration

Boeing to take US$4.9B charge as 737 Max fallout worsens

From the brink: How Home Capital fought to win back confidence

Laurentian Bank ending teller services at nearly all branches as of Monday

AB InBev bounces back with US$11.3B Asahi deal and talk of new IPO

PepsiCo snaps up a South African gem in Pioneer

Morgan Stanley posts steepest trading slide on Wall Street

Porter is not for sale despite recent wave of airline consolidation: Deluce

Meet the refugee-run company behind Trudeaus favourite chocolate

Trump to host U.S., Qatar airline CEOs in White House showdown

Pain From Hong Kong protests spreads as luxury brands get hit

Unifors Dias supports Air Canadas bid for Transat, citing worker stability

Toys R Us targets 10 stores by end of 2020 in comeback bid

Disney calls heiresss remarks about workers gross and unfair

Aimia sues former president over trade secrets allegedly emailed to his father

Ontario writes off $445M in old Chrysler debt from bailout

BofAs consumer business drives record second-quarter profit

B.C. town declares financial crisis in wake of latest sawmill closure

NEB restores orders and decisions issued to Trans Mountain prior to court ruling

Barrick expects gold production at upper end of 2019 guidance

In the pig plague, it pays to be a crop giant in the right place

Halliburton and other drillers are fighting for new life in a world of cheap oil

Alberta oil and gas producer cleanup cost estimates set too low: Coalition

RNC Minerals CEO resigns for personal reasons effective immediately

Americans are finally getting tired of chicken breasts

As Canada gears up for pot 2.0, more shortages are on the menu

Oil falls to 4-week low on trade angst, oversupply worries

Natural gas CEOs demand government action in open letter to Kenney

Hibernia suspends oil production after 12,000-litre spill off Newfoundland coast

Gas price inquiry questions Trans Mountain capacity, company denies collusion

Pea-protein craze lures second processing plant to Manitoba

Kinder Morgan Canada income falls despite rise in pipeline and terminals revenue

Look, Im human: CannTrust CEO on regulatory, social media pitfalls

Organigram is a Canadian pot rarity after four profitable quarters

FortisBC signs term contract to send LNG by shipping container to Chinese client

Huawei rift not part of U.S.-China trade war: U.S. official

Feds Rosengren signals his opposition to an interest-rate cut

Paul Martin calls for very public fight against Trumps world view

Loonie could cool off, say analysts at some top Canadian banks

Going it alone: Economists react to Bank of Canada holding rates

Trudeau calls out NDP over CETA as European summit wraps up

Bank of Korea cuts key interest rate as risks to economy grow

Canadian inflation slows in June on declining gasoline prices

Im extremely positive: Scotias Dan Rees on Canadas economy

Fear of Facebooks Libra unites finance chiefs at fractious G7

Bank of Canada to take over administration of key risk-free rate

Alberta economy doing better than expected in June forecast: TD economists

Powell reiterates Fed will respond to mounting downside risks

Trump says he could impose more China tariffs if he wants

IMF says Lagarde submits resignation effective Sept. 12

Central bankers are sick of rescuing the world economy alone

Powell concession on too-tight Fed underlines shift toward cuts

U.S. retail sales post broad gains in June, topping estimates

YouTube reaches settlement with U.S. on childrens privacy

Are cellphones a flight danger? They could be on these Boeing jets

BuzzFeed reaches deal to recognize union after months of talks

Mnuchin, Kudlow invite U.S. tech giants to discuss Huawei ban

Upgrade your memory with a surgically implanted chip!

Everything you need to know about cryptocurrencies

Lyft is adding New York subway info to app, even as it fights with the city

Microsoft shares rise to record after strong Q4 earnings report

The Uber IPO: Three million drivers, Big Macs and flying taxis

Trump says hes looking very seriously at Pentagon cloud deal

Banning Huawei could make U.K. networks less secure, MPs say

Feds should assess housing broadly, revisit mortgage rules: ATB CEO

IBM shows shrinking sales in biggest unit as all eyes on Red Hat

eBay profit beats analysts estimates; company mulls asset sale

Users of FaceApp should be wary of terms of use: Experts

CRTC looking at whether new mobile device financing plans fit wireless code

Amazon faces EU probe as antitrust chief plans summer finale

Rogers to open Waterloo lab to develop commercial uses for 5G networks

One chipmaker may tell ETF traders everything about earnings

Stock investors go all-in with US$6B bet on S&P 500 ETFs

Larry Berman: S&P 500 at 3,000. A hurdle, ceiling or emotional test?

Cannabis ETFs face a day of reckoning that even 30% gains cant avert

Zombie ETFs liquidated at record pace as fee war starts to sting

Bitcoins wild June is a slam dunk against crypto ETF approval: Money manager

Cannabis treatments are finding a home in the MMA fighting ring

BlackRock ETF breaks into stuffy credit trading market

ETF report: Video gaming ETF launches on the TSX

Backlash from ETF traders grows over push for bond reporting lag

Cage-fighter sponsored by pot ETF issuer in rare marketing move

Goldman steers stock pickers toward ETFs as liquidity evaporates

Personal Investor: ETFs that can last a lifetime

Beaten-down chip ETF crushed by heavy focus on Huawei suppliers

Horizons unveils higher-risk leveraged, inverse cannabis ETFs

Bitcoin enthusiasts undeterred by SEC delay of ETF decision

Sprott CEO on gold: No one wants to own fire insurance, but the fires coming

Hogg, Mastercard CEO who introduced the Gold Card, dies at 91

Canadas top firms show disappointing data gap on gender, minorities

BMW names production chief Oliver Zipse as new CEO

A sad day for Bruce: Linton finds his zen after Canopy dismissal

Ex-CannTrust president fears for firms future amid regulatory probe

Seeds to startups: How summer tree planting helped Bruce Croxon blaze a trail in tech

Cannabis CEOs are white men, just like in the rest of the corporate world

CannTrust CEO breaks silence on Instagram amid regulatory probe

Feds should assess housing broadly, revisit mortgage rules: ATB CEO

Search on for prominent Quebec businessman, son after helicopter goes missing

OpenText observes moment of silence for competitor Red Hat after IBM deal

Ontario Teachers moving slowly on cannabis investments: CEO Mock

Ontario Teachers names Jo Taylor to succeed retiring CEO Ron Mock

Martello is more than just a T-shirt Bruce Linton wore: CEO

Porter is not for sale despite recent wave of airline consolidation: Deluce

Unilevers former chief moves on with plan to fix the world

Lee Iacocca, star CEO who led Ford, saved Chrysler, has died

We needed to find growth: George Cope on BCEs evolution as retirement looms

Inside Apples long goodbye to design chief Jony Ive

The information you requested is not available at this time, please check back again soon.

Billionaire Kylie Jenner Is the Future of Shopping

BC-Billionaire-Kylie-Jenner-Is-the-Future-of-Shopping , Andrea Felsted

(Bloomberg Opinion) — Kylie Jenners debut on the Bloomberg Billionaires Index at the ripe old age of 21 should strike fear into the hearts of mainstream consumer companies everywhere.

The young member of the Kardashian-Jenner clan (a brood made famous by reality TV) has joined the tycoon club after signing an exclusive partnership for her cosmetics company with Ulta Beauty Inc., a chain of U.S. beauty stores. The deal embodies the trends ultra-celebrity branding, Instagram and smartphone shopping that are reshaping the retail landscape in everything from liquid foundation to food.

The giant corporates that still dominate the consumer industry have little choice but to try to keep up, not just with the Kardashians but the millions of Konsumers they have spawned.

Women have always looked to well-known personalities for inspiration. But Jenner takes the cult of celebrity endorsement to a new level. Not content to merely stick her name on something from LVMH SE or Kering SA and take a percentage, she kept more of the branding value for herself by setting up her own company. And why not? Jenner belongs to arguably the best-known family in the world (after the Windsors). The Kardashians are an industry in their own right, a powerful machine that pumps out influence over much of what we buy, whether thats leggings or lipstick.

Like her half-sister, Kim Kardashian West, Jenner is a hugely powerful presence on social media. But by founding Kylie Cosmetics back in 2015, she has managed to take that in an even more lucrative direction. With 128 million Instagram followers, she can communicate directly with her fans, who then become customers.

The assumptions used to calculate Jenners wealth are still open to interpretation, as Kylie Cosmetics outsources its manufacturing, packaging and sales to other companies according to Bloomberg News. The terms on those deals arent public. But she has shown that with the right name and face you can cut out the LOreals and Procter & Gambles and just sell straight to the market.

While Ultas bricks-and-mortar stores open up a new channel, before now she has sold to her millions of followers over the internet, most likely via their phones. Forbes magazine, which first reported Jenners billionaire status, said Kylie Cosmetics had sales of $360 million last year.

So how can mainstream brand-owners make sure they dont lose market share to future super-influencers. First off, they can try the traditional route of just signing them up to front their brands. But even this can be fraught with peril. LOreal, a competent operator on social media, parted company with transgender model Munroe Bergdorf in 2017 after claims she posted racist comments online. Bergdorf has 119,000 Instagram followers, so that was a lot of potentially upset customers once the relationship didnt work out.

Other consumer groups have gone further. LVMH has teamed up with pop star Rihanna (68.4 million Instagram followers) to create Fenty Beauty, another makeup line. Fenty generated 500 million euros ($561 million) of sales in 2018, according to the French luxury giant. Rihannas cut of the profit is undisclosed, but this looks like a smart way for the industry to keep pace with the social media revolution in shopping.

Still, not all tie-ups are successful. Estee Lauder ended its collaboration with Kendall Jenner (Kylies sister, 105 million Instagram followers) after just 18 months because the Estee Edit, as it was known, fell short of expectations. Executives described it as not authentic. But perhaps the mistake was not plastering Kendalls name all over the range, as Kylie has with her products.

Another option is buying celebrity brands outright. At some point celebpreneurs like Jenner will want to cash in via an exit. The purchasing company can then combine the draw of a famous name with its powerful distribution network, thereby turbo-charging sales. Its an expensive choice, though. Diageo Plc paid as much as $1 billion in 2017 for George Clooneys tequila brand.

Any buyer of a celebrity-backed company is also betting on their popularity lasting. In a world where fortunes can turn on a tweet, thats a big risk.

Theres always the safer option of buying non-celebrity brands that serve similar consumer categories. For example, LOreal, Estee Lauder and Unilever Plc have been snapping up niche cosmetics, skincare and fragrance businesses for the past few years. Companies could also do better at product innovation, though thats never easy when theyre as big as they are.

The publics fickleness means Jenners star will fade eventually, but the social media phenomenon that she represents is surely here to stay especially given that the big consumer brands are deeply unimpressed with the returns they get from advertising through Google and Facebook. What can compete with a superstar sharing their intimate thoughts about products with millions of shoppers?

To contact the author of this story: Andrea Felsted at

To contact the editor responsible for this story: James Boxell at

This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.

Andrea Felsted is a Bloomberg Opinion columnist covering the consumer and retail industries. She previously worked at the Financial Times.

Amanda Lang: Facebook is creating its own currency because it can

How Amazon Web Services is dealing with cloud cybersecurity risks

The cloud represents the modernization of businesses: Amazon Web Services

Netflix to double subscriber numbers in next four years despite blip: Analyst

Whats to blame for Netflixs big subscriber miss?