Kylie Cosmetics is an American multinational company. Kylie Jenner founded the cosmetic company in 2014. The cosmetic brand has 51% ownership of the beauty company Coty. Today, we’ll discuss the PESTLE analysis of Kylie Cosmetics; it focuses on external environment factors like; political, economical, social, technological, legal, and environmental factors.
Political Factors Impacting Kylie Cosmetics
Some of the main political factors in the Kylie Cosmetics PESTLE analysis are as follows;
I-Government Regulations
The consumer protection government regulations are very strict and tight for cosmetics and beauty products companies like Kylie Cosmetics. They focus on areas like no animal testing, health and safety laws, consumer protection laws, ingredient disclosure, side effects of beauty products, and others. However, the objective of strict government regulations is to ensure the health and safety of ordinary users.
II-Trade Policies
Kylie Cosmetics procures raw materials and ingredients for its beauty products from various countries across the globe. The trade policies of various countries are different and it is dependent on their foreign policy and diplomatic relations. For instance, if the procuring country doesn’t have good trade relations with the US, they would impose higher taxes and tight documentation to reduce trade with them.
III-Political Stability
The stable political environment of the country plays a critical role in the supply chain and distribution of Kylie Cosmetics. For instance, if the raw material sourcing country is going through political turmoil, roadblocks, and violent activities, then it disrupts the flow of raw materials to the production facilities. Ultimately, it delays the finished goods for the end consumers.
Economical Factors Affecting Kylie Cosmetics
Some of the main economic factors in the Kylie Cosmetics PESTLE analysis are as follows;
I-Economic Growth
The economic environment of the country plays a key role in the growth of businesses and companies like Kylie Cosmetics. When the country has a stable economic environment with multiple employment opportunities, it implies that people have sufficient disposable income. With sufficient disposable income, people are willing to spend it on the luxury beauty products of Kylie Cosmetics.
II-Currency Exchange Rate
Kylie Cosmetics procures raw materials and ingredients from various countries in different currencies. The currency exchange rate market is highly unstable and it keeps changing due to multiple factors. A small change in currency exchange rate would increase the cost and expenses of the beauty products, and it negatively impacts the revenue and profitability of the company.
III-Competitive Market
Kylie Cosmetics is facing tough competition from other beauty and cosmetics brands. They are offering similar cosmetic products of the same quality at the same price range, and it has become highly difficult for the cosmetic brand to maintain the customer market share.
Social Factors Impacting Kylie Cosmetics
Some of the main social factors in the Kylie Cosmetics PESTEL analysis are as follows;
I-Customer Market Trends
The customer market trends are highly unpredictable and they keep changing due to multiple factors. It puts great pressure on Kylie Cosmetics to conduct thorough market research and become familiar with the growing customer market trends. However, it helps them to develop the product relevant to the needs and demands of the customer’s market.
II-Organic Natural Ingredients
Speaking of customer market trends, the trend of natural and organic beauty and cosmetic products has been increasing among the young audience. They want to use natural ingredients on their skin that won’t have any type of side effects, instead of using chemicals. Kylie Cosmetics should expand its operations on natural and organic beauty products.
III-No Animal Testing
Animal testing for beauty and cosmetic products is a common unethical practice in the cosmetic industry. Kylie Cosmetics should make it clear to the public that they’re engaging in ethical practices and not conducting animal testing. It allows them to keep up with the growing environmental sustainability and animal welfare trends.
Technological Factors Affecting Kylie Cosmetics
Some of the main technological factors in the Kylie Cosmetics PESTEL analysis are as follows;
I-Advanced Technology
Kylie Cosmetics is investing a significant amount of capital resources in the latest advanced technological tools and equipment in its production and manufacturing facilities. It allows them to efficiently perform their production and manufacturing operations with limited wastage of resources and timely delivery of products to the end customers.
II-Data Analytics
Kylie Cosmetics is implementing a data analytical technology. It allows them to keep up with the growing customer market trends, accurately predict the demands of particular products of the upcoming seasons, and avoid overstocking and stock-out options.
Legal Factors Impacting Kylie Cosmetics
Some of the main legal factors in the Kylie Cosmetics PESTEL analysis are as follows;
Regulatory Compliance
Kylie Cosmetics needs to comply with the government regulations and policies of various countries. It comprises consumer protection laws, labor laws, ingredient disclosure, ethical practices, no animal testing, data privacy, and health and safety laws. Regulatory compliance would help them to smoothly and efficiently perform their operations without any delays and disruption.
Environmental Factors Affecting Kylie Cosmetics
Some of the main environmental factors in the Kylie Cosmetics PESTEL analysis are as follows;
Sustainability Initiative
Kylie Cosmetics should make a strong commitment to environmental sustainability initiatives. It comprises investing in renewable sources of energy, biodegradable packaging, and ethical sourcing of ingredients to reduce the carbon emission rate. However, it helps them to keep up with the growing sustainability trends of the customer market.
Conclusion: Kylie Cosmetics PESTLE Analysis |PESTEL Analysis of Kylie Cosmetics |External Environmental Analysis of Kylie Cosmetics | Strategic Analysis of Kylie Cosmetics
After an in-depth study of the pestle analysis of Kylie Cosmetics; we have realized that Kylie Cosmetics is the leading beauty and cosmetics products brand. If you are learning about the Kylie Cosmetics PESTLE analysis; then you should keep in mind the abovementioned external environmental factors like; political, economic, social, technological, legal, and environmental.
Ahsan Ali Shaw is an accomplished Business Writer, Analyst, and Public Speaker. Other than that, he’s a fun loving person.
