2. EVOLUTION
Huda Beauty is a Dubai based cosmetics line that was launched in
2013 by Huda Kattan.(US national lady)
Her younger sister, Mona Kattan and Alya Kattan initially helped her
by financially contributing to the setup of the business.
Huda Kattan had started the business with $10,000 of her savings
and another $6,000 that she had borrowed from her sister Alya Kattan
who along with Mona Kattan owns a small stake in the company and
help manage the company
The most interesting about Huda Kattan’s story of building Huda
Beauty into a global cosmetics brand is the fact that all of it started
with a simple blog.
It was 2010 when she started this blog with some simple makeup
tutorials. According to Forbes, it is now the most viewed beauty blog
in the internet.
In April 2010, Huda Kattan started the beauty blog "Huda Beauty,"
and she also began a YouTube channel with the same name
.Currently she has more than 51 million followers on Instagram and
more than 4 million subscribers on YouTube and that’s where most of
her influence comes from.
A simple post from her there would get as many as a million likes and
tens of thousand of comments.
As of 2020, Kattan has a net worth of $510 million, according to
Forbes, which ranked her as one of America's Richest Self-Made
Women that year. In 2020, Forbes estimated that Huda Beauty makes
at least $250 million in annual sales.
3. TARGET MARKET
GENDER=WISE:
Target market of 91% female, she attracts a primarily single
fanbase
AGE-WISE:
Huda speaks to a predominantely 20-24-year-old audience.
closely followed by 25-29-year olds.
LOCATION-WISE:
Based in the US, UK, Canada, Brazil and Ireland, her audience's top
cities are London, New York, Chicago, LA and Manchester.
6. MOST SELLING PRODUCT
• Single product can never be best-selling for years
• New products can replace the old best-selling product when it comes to
innovation.
• FAUX LASHES – Launched in 2013, remains the best-selling for years
with an impressive array of 11 different styles, ranging from full to
dramatic.
• Other best-selling products
• Luminous matte foundation
• 3D Cream
• Power Bullet Matte Lipstick
8. COMPETITORS
Global Competitors
• Il Makiage
• Milk Makeup
• Glossier
• Beauty Counter
• Deciem
• Perfect Diary
• Charlotte Tilbury
• Winky Lux
• Kylie Cosmetics
• Pat McGrath Labs
Pakistani Competitors
• Loreal
• Maybelline
• Rose gold
• Mac
• Krylon
• Garnier
9. MOST MARKET AND REVENUES
Most market
• Huda Beauty is among the best-selling cosmetics brands in Sephora in the
Middle East and Harrods in London.
Revenues
• In 2018, all launched products brought in at least $200 million in annual
revenue, They own a significantly growing share of the whole market..
10. CASE STUDY
Lawsuit of $2 million (Neon Obsessions eyeshadow palette)
• In May,2020 Huda Beauty was accused of using substances in its product, Neon
Obsessions eyeshadow palette, which caused pain and irritation around eyes.
• These ingredients were disapproved for use around the eye area by the US Food and
Drug Administration(FDA).
• Hidden warning labels
• Who filed the law suite?
The US lawsuit filed by consumers claimed that Huda Beauty concealed the prohibited
ingredients by hiding warning labels such as “not intended for the eye area”. Despite the
illegal substances, the Neon Obsessions palette was packaged in the same way as Huda
Beauty’s other eyeshadow palettes and advertised by Huda Kattan, the owner of the
brand.
11. CASE STUDY CONT.
Settlement of the lawsuit
• The lawsuit, settled in October, 2021 requires the cosmetic company to pay
$1.93 million to resolve the claims and $1.2 million in legal fees for the
plaintiffs.
• Refunds are available for those who bought the product at the original retail
price of $29 each.
• The palette itself is not up for sale anymore and Huda Beauty has agreed to
stop manufacturing it as well any other similar products.
• The collection is listed as “out of stock” in UK retailers and Sephora no longer
stocks the products in Europe.