With hundreds of millions of followers on social networking sites, Rihanna has an excellent foundation to start a career in the beauty industry.
After establishing a strong foothold in the music industry, Robyn Fenty, also known to the world by her stage name Rihanna, launched cosmetic brand Fenty Beauty in 2017.
Perhaps even Rihanna herself did not think that after only 4 years, Fenty Beauty would be a turning point that would change her life. The cosmetics company was successful beyond expectations, turning Rihanna into a successful businessman – a billionaire and no longer having to run tours with a tight schedule like before.
Rihanna at the launch of a Fenty Beauty store in Paris (France). Photo: Reddit
Forbes estimates that Rihanna currently owns a fortune of $1.7 billion and is the richest female singer in the world. She is second only to American “media queen” Oprah Winfrey in the list of richest female celebrities in the entertainment world.
Collaboration with luxury giant LVMH
Obviously music is not the main reason why she became so rich. Most of Rihanna’s assets come from 50% of Fenty Beauty shares (estimated at up to 1.4 billion USD) and shares in the lingerie company she founded Savage x Fenty (worth about 270 million USD).
However, music is a great launching pad to help Rihanna start her career. Her successful singing and acting career has helped her become one of the most famous people in the world with more than 101 million followers on Instagram and 102.5 million followers on Twitter.
Such a huge number of followers on social networks is the dream of any beauty company in the 4.0 era. As soon as it launched, Fenty Beauty was offered a joint venture by luxury giant LVMH, with the ownership ratio divided equally 50-50.
Rihanna with billionaire Bernard Arnault – head of LVMH. Photo: The Fashion Network.
With LVMH behind it, the company continuously launches diverse products for all ages and skin colors. Fenty Beauty products are also sold online and in Sephora luxury stores – all distributed by LVMH.
The French luxury group said that by 2018, after only 1 year of operation, Fenty Beauty had reached 550 million USD in revenue. This number far exceeds other celebrity-founded beauty brands such as Kylie Cosmetics (Kylie Jenner), KKW Beauty (Kim Kardashian), and Honest Co. (Jessica Alba).
The golden age of beauty companies
Despite a slowdown in cosmetics sales during the pandemic, beauty companies are still more highly valued by investors than ever. Shares of industry leaders such as Estée Lauder and L’Oréal are on the rise, reaching all-time highs and trading at an impressive 7.5 times annual revenue.
Smaller independent brands such as Beautycounter and Charlotte Tilbury were also valued in the billions after signing deals with investment firms earlier this year.
This is all good news for Rihanna. According to Forbes, thanks to the trend of investing in beauty companies, Fenty Beauty’s valuation also increased to 2.8 billion USD and the parameters show that the company will continue to grow.
In its annual report for 2020, LVMH said the Fenty Skin brand launched last year had a “very promising start” and “generated unprecedented buzz”. Meanwhile, Fenty Beauty is described as “maintaining its appeal as a leading makeup brand”.
