Billion dollar babies

A recent cover story in Forbes Magazine heralds Kylie Jenner, who is a month shy of turning 21, as being the world’s youngest self-made billionaire.

Some have criticized Forbes for their definition of “self-made,” arguing that Jenner was born into wealth and celebrity. This is true, but today she is apparently worth more than the rest of her extended family combined, so I guess she must have done something on her own. I wouldn’t deny her the title.

I also wasn’t too surprised at her age. We’ve been hearing about boy billionaires for years now, and the tech industry in particular has already thrown up more than a few. If Jenner does become a billionaire in the next year or so — and once you’ve accumulated that amount of wealth, increasing it becomes almost inevitable — then she’ll be beating out Mark Zuckerberg, who became a billiionaire at the age of 23. These things happen in our lottery economy.

What I did find surprising was just how lucrative the cosmetics industry is. When Lilian Bettencourt died last year she was said to have been the richest woman in the world, due to her having inherited the L’Oréal fortune from her father. But Kylie Jenner only launched her own cosmetic brand in 2016 and Forbes today values it at nearly $800 million (it did an estimated $330 million in sales last year). That’s amazing growth. Markups and profit margins in cosmetics I know are high, but this sounds like a license to print money.

There doesn’t seem to be a huge difference between cheap and very expensive cosmetics, either in terms of what they cost to produce or how well they actually work, so marketing is very important. Jenner has taken her name and fame and successfully branded herself, as is often recommended to young entrepreneurial types. Her stunning success, in other words, is another example of the triumph of celebrity in our time, as if any more were needed after the 2016 U.S. presidential election. This is something that I think we really need to be more concerned about.

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