Key Takeaways
- Huda Beauty’s sales dropped significantly on Sephora’s U.S. website following a controversial TikTok video by founder Huda Kattan.
- Sephora is reviewing its relationship with Huda Beauty amidst calls for a boycott and consumer backlash.
- Kattan claims her comments were misrepresented, asserting that she does not condone hate of any kind.
Decline in Sales Following Controversy
Huda Beauty has experienced a decline in sales on Sephora’s U.S. website, attributed to a controversial TikTok video posted by founder Huda Kattan. The video featured Kattan promoting anti-Israel conspiracy theories to her 1.8 million followers, leading to negative public backlash. Data from Navigo Marketing indicates that sales of eight out of ten bestsellers fell during the week following the video’s release on July 27. Although TikTok removed the video for violating community guidelines, Kattan stated she deleted it herself.
Sales of popular products, such as the $25 Lip Contour Lip Stain and the $21 Faux Filter Tinted Jelly Lip Oil, dipped by 2% and 45%, respectively. A notable exception was the $39 Easy Bake Loose Baking & Setting Powder, which saw a 2% sales increase.
A significant reduction in advertising activity may also be impacting sales. Sponsored content on Sephora’s site fell from 2,400 keywords to approximately 150 in the same timeframe, indicating an abrupt halt in paid placements. This advertising drop coincides with growing backlash over Kattan’s comments.
Sephora’s Response to Backlash
Under mounting pressure from consumers and organizations such as the Anti-Defamation League, Sephora is reviewing its partnership with Huda Beauty. The retailer expressed its commitment to creating an inclusive shopping atmosphere and made it clear that promoting hate or misinformation contradicts its values. In a prior instance, Sephora severed ties with the controversial Lime Crime brand in 2014 due to past scandals involving its founder.
Margarita Arriagada, a former chief merchant at Sephora, emphasized the importance of objectivity in the retailer’s decision-making, asserting that sales figures should not overshadow their principles of inclusivity.
Huda Beauty’s Market Presence
Despite the current challenges, Huda Beauty remains a strong player in the beauty market. Last year, the brand was projected to reach $450 million in sales, and Kattan recently regained full ownership from private equity firm TSG. The brand has made a significant impact since launching in Sephora Dubai in 2013 and entered the U.S. market in 2015. Outside of Sephora, Huda Beauty products are also sold in other retailers like Harrods and Nykaa.
Data from YipitData indicates that Huda Beauty holds about 4.6% of Sephora’s gross merchandise value in makeup through July, with the Easy Bake Loose Baking & Setting Powder ranking as one of the top-selling products.
Public Reactions and Kattan’s Defense
The fallout from Kattan’s video prompted the launch of a Change.org petition demanding Sephora remove Huda Beauty, which amassed over 18,000 signatures within days. Kattan addressed the backlash in an August 8 TikTok video, claiming her original statements were misrepresented and arguing that a smear campaign has been directed against her. She maintains that she does not condone hate and described the situation as an attempt to silence her.
Support for Kattan remains strong among her fanbase, with many users expressing their intention to support her brand regardless of Sephora’s decisions. As the situation continues to unfold, Huda Beauty faces uncertainty in its partnership with Sephora and potential impacts on sales.
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