Today, Fenty Beauty will be launching in China. This is about a month after launching in India, making it the first move for the company into the Asian market. The global cosmetics brand, founded by Rihanna in 2017, is under LVMH Moët Hennessy Louis Vuitton (LVMH) umbrella. The infrastructure of LVMH as well as the brand of Rihanna have so far made for a fine pairing. As she dives deeper into the global market, let’s look at the numbers for China and India.
The revenue for the global cosmetics market is projected to reach $108.4 billion in 2024. The revenue for the cosmetics market in China is projected to grow to $16.5 billion in 2024. The revenue for the cosmetics market in India is projected to reach $6.4 billion in 2024. Fenty Beauty is estimated to be worth 2.8 billion, and this is before it touched the continent of Asia. The safe assumption is that the access and availability to the Asian market will substantially increase the market share that Fenty beauty has and increase the valuation as well.
In regard to China specifically, this is significant for Fenty because of how difficult it is generally to sell in China. Rules introduced in 2021 have made the amounts of disclosure before selling in China a bit tedious. Of course, regulations such as these were more than likely sorted out and that’s partly due to Fenty’s already prominent global presence and the current relationship with LVMH, who has experience navigating the global regulatory issues for their various luxury companies.
What does this mean to us?
When it comes to Black entrepreneurs, there are usually 2 problems that we face. 1. Lack of capital. 2. Lack of distribution. To build at scale, you need both. You need the money to build, and you need a plan to distribute once the money has been secured. Without both, building at scale is near impossible. With Fenty Beauty, Rihanna had the capital. What sets this company apart is the plan for distribution. Alone, she may have done it but it would have been difficult. Partnering with an industry staple who understands the ins and outs made the process for growth and distribution more efficient. Dealing with the regulatory landscapes both domestically and internationally is tough to do as a first time entrepreneur. Having a business partner, or mentor, that has experience in that as well as areas you lack are helpful. Only time will tell how the dive into Asia will go for Fenty beauty, but based on the track record, this will be as successful as everything else the company has tried.