Who is REALLY profiting from your beauty care purchases? I know that is an interesting question, but I guarantee if you read on, it will make sense in just a bit!
If any of you know me, you know that I am on a mission to get people to view things a little differently! I have been around the beauty industry long enough to see the major industry shifts that have happened over the years. And if you read my article on diversion, you got a glimpse of just a fraction of what is going on.
Let’s start with this: Did you know that the United States Cosmetic Industry is the largest in the world, estimating a total revenue of $54.89 BILLION? And that this industry is projected to grow 3-4% each year over the next 5 years in the United States? Yes, you read that right…BILLION!
Part of my mission is to help as many salons and beauty professionals that I can, become more successful. I am passionate about the industry, and it’s time to put professionals hard earned money back in their pockets, and I have many ways that I can help them do just that, including capitalizing on the billion dollar industry cosmetic industry!! So if the above number intrigued you, that’s just a fraction of what I can help with!!
It is no secret that influencers are redefining the way that consumers decide what makeup they should buy. I have an entire post devoted to GLOBAL SOCIAL MEDIA STARS REDEFINING THE BEAUTY INDUSTRY. We can thank Instagram for that.
There’s no escaping the fact that the millennial generation’s coming of age has had a ripple effect on consumer habits as we once knew them. I’m not saying it’s a bad thing, No industry has been spared, and all businesses had to adjust the way they market to people. Traditional marketing became obsolete once social media invaded single facet of our lives. Millennials were leading the charge with fresh perspectives, ideas, values, and ambitions.
This is what I found: According to Fortune Magazine, Kylie sold $420 million in just 18 months and is on track to reach $1 billion by 2022.
Jenner, 20, is currently the youngest celebrity on Forbes’ rankings of the 100 highest paid celebrities in the world. And she is about three and a half years the junior than the next youngest on the list, Justin Bieber. According to Forbes, Jenner earned $41 million in just the last year. Yep, you read that right!! It’s amazing what she’s been able to do in such a short time!
Who else are you paying?
What I want you to pay attention to, is not only the brands these companies own, but the earnings of the top executives.
Here are a handful from the list:
Chairman & CEO 2015 Compensation $10,150,655
Main Brands: CONSUMER PRODUCTS: L’Oréal Paris, Garnier, Maybelline, Essie, NYX Cosmetics, Carol’s Daughter, Niely Cosmetics
PROFESSIONAL PRODUCTS: L’Oréal Professional, Kérastase, Redken, Matrix, Lancôme, Giorgio Armani, Yves Saint Laurent, Kiehl’s, Clarisonic, Urban Decay, The Body Shop
2015 SALES: $28.02 Billion
Procter & Gamble Co.
Chairman & CEO 2015 Compensation $18,286,621
Main Brands: CoverGirl, Max Factor, GUCCI, Dolce & Gabbana, Olay
2015 SALES: $17.6 Billion
The Estée Lauder Cos.
President And CEO 2015 Compensation $16,681,147
Main Brands: Estée Lauder, Aramis, Clinique, Prescriptives, Orgins, MAC, Bobbi Brown, La Mer, Aveda, Tom Ford Beauty, Smashbox, GlamGlow & recently purchases Too Face
2015 SALES: $11.1 Billion
President & CEO 2014 Compensation $3,450,253
Brands: Revlon, Almay, Natural Honey
2015 SALES: $1.91 Billion
Elizabeth Arden-Recently sold to Revlon
Chairman & CEO 2015 Compensation $4,215,291
Main Brands: Elizabeth Arden, Britney Spears, Elizabeth Taylor
2015 Beauty Sales-$962 Million
If you want to see the rest of the list, check out: Beauty Inc. Magazine
When I look at those figures and see how much the CEOs make, I can’t help but think: How many people could they potentially help if they shared more of that with those that help build the brand and retail the products?
Then I look at the company that I am partnered with and the parent company of Motives Cosmetics has paid $4,164,538,580.00 to their “UnFranchise” Owners since the companies inception (figures as of 9/30/17)
Motives mission statement-
People Empowering People…
“The ability to make people look
and feel better while achieving
the lifestyle they have always
dreamed about.” -Loren Ridinger
This mission statement says a lot. It’s about the people. And about having a platform and system in place for those that want to make people feel good, but also while achieving their dreams. It’s not about the CEO making millions of dollars a year…
Being from the Cosmetology/Salon Owner side of the industry, offering professional hair care lines in the salon was the norm. Retailing is a large part of our income. But, when it comes to cosmetic lines, there aren’t many that have the quality desired to be resold in a salon, and many cosmetic lines do not want pros to resell their products because they want to keep the profit.
As I mentioned earlier in my post, the beauty industry has been evolving and right now is having one of the biggest shifts that it has ever seen. If pros position themselves right and evolve there are a lot of things that can be done to keep the revenue using high quality EXCLUSIVE professional products. So why wouldn’t you?
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If you are interested in finding out more about what I can do top help you with your salon or freelance business, please email me Leigh@leighraeder.com or fill out this contact me form: