Why is every celebrity and influencer starting a skincare line?
You have probably seen it already. Kim Kardashian, Hailey Bieber, Drew Barrymore, even DJ Khaled have launched their own skincare lines.
In these cases price is not based on the cost of goods sold, it’s rather based on the value of the product in the mind of the end consumer also known as Perceived Value.
The value is determined by the brand and the trust in that brand, and celebrities have an entire fanbase of people that trust them. Skincare is a great example of a type of product that has a huge range in value depending on the brand. Skincare lines can cost anywhere between $10 – $2,000. Sure there are different ingredients and formulas and the cost of goods sold could be larger for some brands vs other, but the difference isn’t THAT much. The value comes from the brand’s marketing and perceived lifestyle value. It’s Profitable.
Traditional Media isn’t paying what it used to.
TV is out and budgets are lower than ever. Celebrities are starting to monetize their following through product lines and skincare is one of the most profitable.
They aren’t really selling skincare.
What are they actually selling? Celebrities are gorgeous whether this is natural or (more often than not) enhanced, it doesn’t really matter, people want to copy these celebrities. These celebrities often use aspirational messaging to attach their product to their own lifestyles. Their aspirational lives and “beauty” makes it easy to sell these magic creams that make you “look like them”.
Listen to the full episode to hear our thoughts on Rhode by Hailey Bieber, SKKN by Kim Kardashian, Human Race by Pharrell, and Kinlo by Naomi Osaka and more!