According to product developer Paulina Martinez, this shift has been a double-edged sword for influencer-founded brands. “On the one hand, influencers’ massive followings give them a customer base and a built-in marketing machine,” Martinez explains. “Their advocacy is immense, and product launches partnered with popular creators have the potential to set sales records. On the other hand, the same drama that drives views and engagement can also threaten a brand’s stability.”
“Where they haven’t been successful, I think it’s a mix of not doing enough research, white labeling, and influencers using their own names when the brand needs to feel natural and authentic,” says Hannah Holland, CEO of HLD Talent. One striking example is the meteoric rise and fall of Jeffree Star Cosmetics. In 2018, the beauty YouTuber used his massive following and notoriety to launch his own line with much fanfare.
LiveTinted Products
The brand quickly gained a cult following, with products selling out within minutes of launch. But in 2019, a shocking video surfaced of Star engaging in inappropriate behavior with minors. The fallout was swift and devastating: Retailers like Macy’s dropped the products, Star announced a social media hiatus, and Jeffree Star Cosmetics, once the target of a $500 million acquisition by L’Oreal, was shaken.
The drama surrounding the star’s downfall resembles scandals that have plagued other influencer-driven brands. CoverGirl’s first male ambassador, James Charles, came under fire in 2019 for trying to lure straight men in a YouTube prank. The incident sparked a massive online controversy and cost Charles millions of subscribers and his partnership with CoverGirl. More allegations involving underage boys have emerged in 2021.
U Beauty’s Tina Craig at the Hotel Café Royal in London in 2023. Photo: Getty Images
The “shiny new thing” syndrome, where consumers quickly become bored with products and brands that fail to continually innovate, is a major threat. “Once-powerful influencer endorsements are losing some of their impact as consumers have become more discerning and skeptical of sponsored content,” Martinez says.
The evidence ranges from the sudden removal of Selfless by Hyram and Item Beauty from Sephora shelves to cosmetics giant Morphe’s shocking bankruptcy filing in 2023.
Hiram Yarbro, the skincare influencer behind Self-Less, attributed the brand’s separation from Sephora to a change in direction and retail adjustments. Despite its initial success bolstered by Yarbro’s fanbase, the brand now faces an uncertain future. Similarly, TikTok star Addison Rae’s Item Beauty, which enjoyed a brief exclusive partnership with Sephora, has now suspended operations. Self-Less by Hiram
Companies like Morphe, which initially grew fast through influencer partnerships, have faced major setbacks: “Trust issues have emerged as a major obstacle, with consumers weary of influencer-backed brands, who they perceive as lacking authenticity. This is a reminder that simply slapping a popular influencer’s name on a product is no longer a guarantee of success,” Martinez said.
Despite the challenges, some brands have found ways to thrive in a saturated market. One example is Tina Chen Craig’s U Beauty. A self-described “serial entrepreneur,” Craig gained attention in 2005 with her fashion blog, Bag Snob. The blogger’s passion for fashion and beauty then led her to launch U Beauty in 2019, a luxury skincare brand that aims to address oversaturation with scientifically-backed products.
Deepica Mutyala of LiveTinted
Chen Craig remains committed to its philosophy of creating high quality, innovative products that deliver results, and the brand is now stocked in over 100 retail outlets in over 40 countries.
A new generation of beauty brands born from Instagram and TikTok, such as Live Tinted and Refy, are also becoming a hot topic.
Live Tinted’s journey began in 2015 when Deepica Mutyala went viral on YouTube with her innovative use of red lipstick for under-eye color correction. This initial buzz prompted her to launch a digital platform, Live Tinted, to celebrate diversity and build a community of women of color sharing makeup tips. Through conversations on the platform, Mutyala realised that pigmentation was a major concern for this age group and identified a gap in the market.
A meet-and-greet with James Charles Mauch in New York in 2018. Photo: Getty Images
In May 2019, Live Tinted launched its first product, Huestick Color Corrector, transitioning into a full-fledged brand. Under Mutyala’s leadership, the brand has rapidly expanded its product line to include bronzers, liners, blushes and highlighters, always with a focus on women of color and their concerns.
Similarly, Refy, co-founded in 2020 by entrepreneur Jenna Meek and model and influencer Jess Hunt, started with a single brow-shaping product. This eventually led to a collection, and now a full line. In an interview with Forbes, Meek and Hunt attributed their success to a similar audience-focused philosophy: building a following, building and maintaining good relationships with customers, and understanding their needs. “Jess Hunt has created an authentic brand that is true to who she is, and has brought her followers along with her on that journey, staying true to her roots,” says Holland.
Refy Products
For beauty brands that want to avoid the pitfalls of the influencer model, there’s a clear lesson to be learned: You need to focus on creating products that are better and have a unique selling point. [compared] “In a saturated market, your product has to be the best. It has to represent who you are and can’t be less than your value proposition as a talent source,” Holland added.
The Internet, with its limitless possibilities, demands nothing less, and is quick to punish anyone who pretends to be someone they’re not.
