Kiko Milano has undergone a significant transformation over the last three years. Along with adapting to changing consumer behaviors and expanding its global footprint, it’s changed its name from Kiko Cosmetics Milano to Kiko Milano.
The Italian beauty brand, which was acquired by L Catterton in April of this year, last reported revenue of $724 million in 2022. Its Smart Fusion lipstick accounts for 12% of sales, and it recently expanded into the skin-care and hair-care categories. In May, it appointed its first global brand ambassador, actress Emma Roberts.
Simone Dominici, CEO of Kiko Milano, said the brand’s recent evolution has included focusing on mood makeup, engaging employees in trend hunting, and expanding to the American and Indian markets.
In the past, the brand had “a heavy promotional strategy that impacted perception,” he said on a panel at Shoptalk Europe. But “shifting our focus to [product] quality and innovation [has] allowed us to build a global brand with better market growth and margins.” At the same time, the brand reinvested in brand building, he said.
The recent investment buyout from L Catterton is set to further accelerate Kiko Milano’s growth. According to Reuters, the deal was valued at $1.5 billion. “Their support will boost our growth in brand support, footprint expansion, digital transformation, and new categories [like hair care and body care],” Dominici told Glossy.
Kiko Milano has recently leaned into trends that are popular with Gen Z, the brand’s biggest customer demo. For example, it’s championed the concept of mood makeup — which is makeup based on one’s mood, rather than the occasion — with UGC content from its partner creators.
“Consumers today want to create their own looks rather than follow trends set by brands,” Dominici said. “They change their expression daily, following their mood.”
In addition, the brand has seen big sales results from its collaboration with “Bridgerton,” the Netflix series from Shonda Rhimes, which launched on April 23. Its Instagram-based announcement of the collaboration saw 18,000 likes. Dominici declined to elaborate on sales.
“We have a network of cultural pioneers and 7,000 advisors in stores who interact with 100,000 customers daily, providing direct insights from the field,” he said.
Kiko Milano’s aggressive growth strategy includes opening new stores and expanding to America and India, aided by the L Catterton acquisition. “We’ve opened 120 stores in the last 24 months and plan to reach 1,100 stores globally by the end of the year,” Dominici told Glossy. “Our strategy in America includes not just opening new stores but also enhancing our digital presence. We’re integrating customer data, inventory and order management systems to provide a seamless shopping experience.”
Dominici added, “India represents enormous opportunities for us. The country is rapidly growing, and we see it as a major market for our expansion.” Between April and September 2023, Indians spent over ₹5,000 crore, or about $600 million, on more than 100 million cosmetic products, according to market research company Kantar Worldpanel.
To market the brand in India, the brand is engaging local influencers. “Engaging with cultural and entertainment companies allows us to connect with the latest trends and cultural moments in India,” said Dominici. “This strategy helps us remain relevant and appealing to Indian consumers.”
