Key Takeaways
- KVD Beauty has been acquired by Windsong Global, marking Kendo’s first brand sale.
- The new owners plan to focus on eye makeup, responding to a predicted trend shift in the beauty market.
- Windsong Global is actively seeking to expand its portfolio with additional beauty brands.
Acquisition Details
KVD Beauty, formerly Kat Von D Beauty, has been acquired by Windsong Global from Kendo, marking a significant shift as it is Kendo’s first brand sale. The terms of the deal were not disclosed. Windsong is building a multi-brand beauty platform, Belle Brands, which also includes other recently acquired brands like JVN Hair and Pipette.
Windsong’s CEO, William Sweedler, has shown a willingness to revitalize brands that have faced challenges. The portfolio previously successfully managed controversial brands such as Lime Crime. KVD Beauty has struggled since its founder, Kat Von D, distanced herself from the brand amid controversies, allowing Kendo to revamp it as KVD Vegan Beauty in 2021. However, the brand has struggled to adapt to shifting beauty trends favoring minimalism, resulting in a significant drop in revenue.
Market Trends and New Direction
Despite its recent struggles, KVD maintains a strong social media presence with 6.7 million Instagram followers and a notable retail presence in major U.S. stores. Windsong is optimistic about a return to bold makeup trends, particularly regarding eye products. Teresa Lo, the global president of Belle Brands, expresses confidence that 2024 will see a resurgence of eye makeup, a significant opportunity for KVD.
Plans for KVD’s revival include a rebrand slated for early next year, which will drastically reduce its extensive product line from over 300 to around 50. Focus will be placed on eye and lip products, which have historically driven sales. The iconic Tattoo Liner remains a strong seller and will be central to the brand’s renewed strategy.
Growth Strategy and Future Plans
Belle Brands is also looking to expand KVD’s reach into new distribution channels, including Amazon and TikTok to engage with a broader audience. The brand aims to work with professional makeup artists to leverage their expertise in creating engaging content for social media platforms, thus enhancing KVD’s brand image.
Windsong Global is keen on acquiring more beauty brands that can benefit from revamping, citing a willingness to consider various segments within the beauty industry. Although the multi-brand model is often viewed skeptically within investment circles, Sweedler believes it reduces risk exposure compared to single-brand ownership.
The company sees value in brands that engage consumers authentically and are poised for growth, particularly those positioned between $25 million to $50 million in revenue. Their emphasis on creating a diverse portfolio of brands aims to establish a resilient business model that attracts multiple buyers in the beauty sector, further enhancing Windsong’s market presence.
As the landscape of the beauty industry continues to evolve, KVD’s resurgence under new management offers a promising avenue for both the brand’s legacy and future profitability, with eyes set firmly on the trends of the upcoming year.
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