Introduction: From Media Powerhouse to Market Saturation

The Kardashian/Jenner family has made modern business history in the 21st century. By turning their personal lives into a colossal entertainment brand, they have not only dominated media but also built a multi-billion-dollar retail empire through cosmetics, shapewear, and wellness lines. Their power lay in their near-absolute ability to convert fame into revenue.

However, in 2025, warning signs have emerged. News of “financial cracks” is not a report of sudden insolvency but a reflection of a deeper challenge: the sustainability of the celebrity-driven business model in an increasingly saturated and discerning market. The marked divergence in business performance among the family members, particularly between Kim Kardashian and Kylie Jenner, has exposed latent fractures, forcing the entire empire into a painful phase of redefinition.

Part I: The Achilles’ Heel – The Decline of the “Cosmetics Queen”

Kylie Cosmetics, the core brand that once symbolized the family’s ability to monetize celebrity, was the clearest testament to their success. However, that very brand is now becoming their Achilles’ heel.

1. The Truth Behind the Valuation and Financial Scrutiny

The trouble began in 2019 when Forbes crowned Kylie Jenner the “youngest self-made billionaire,” largely based on the valuation of Kylie Cosmetics. However, when Kylie sold a 51% stake in the company to beauty conglomerate Coty in 2020 for $600 million, the public financial filings revealed numbers significantly lower than the family’s initial claims.

Coty’s $600 million payment valued the entire company at approximately $1.2 billion, yet the actual revenue figures were substantially lower than what was previously publicized, leading to serious market skepticism regarding the transparency of their ventures. This damaged reputation set the stage for suspicion surrounding the financial health of future projects.

2. Competition and Market Saturation in Beauty

By 2025, the celebrity beauty market has become heavily saturated. Kylie Cosmetics faces fierce competition from rivals with more robust business strategies and enduring appeal:

Fenty Beauty (Rihanna): Focused on genuine diversity, product quality, and Rihanna’s established artistic credibility.

Rare Beauty (Selena Gomez): Gained traction through a message focused on mental health and authenticity, appealing strongly to Gen Z consumers.

While these competitors build brands based on core values, Kylie Cosmetics has been criticized for being too reliant on Kylie’s personal image, lacking significant innovation in formulation and packaging. The drop in Kylie Cosmetics’ revenue is the clearest indication that the old business formula, based solely on individual fame, is no longer effective.

3. Reputation Crisis and Brand Damage

Kylie’s personal controversies, ranging from reports of excessive private jet usage that raises environmental concerns to scandals involving her personal relationships, have negatively impacted brand trust. Consumers, particularly Gen Z, increasingly demand “authenticity” and “social responsibility” from celebrities. Behavior perceived as overly extravagant or dismissive of environmental issues has eroded Kylie’s brand image, directly affecting the purchasing decisions of younger consumers.

Part II: The Uneven Pace – Kim Kardashian as the Exception

The biggest differentiator in this “financial crack” narrative is the stark performance divergence among the family members, with Kim Kardashian standing out as the successful exception.

1. SKIMS: A Sustainable Success Model and Strategic Vision

Kim Kardashian has succeeded in completely separating the SKIMS brand from the family’s personal drama. SKIMS’ success is built upon:

Tangible Product Value: SKIMS addresses a clear consumer need (size-inclusive, diverse shade range, and functional shapewear), rather than just selling “celebrity.”

Independent Positioning: Kim Kardashian hired top fashion and business professionals, positioning SKIMS as a credible, highly valued apparel brand less dependent on her personal celebrity.

Market Expansion: The expansion into swimwear, loungewear, and recently, menswear, demonstrates a long-term strategic vision and the ability to maintain a steady valuation exceeding $4 billion.

SKIMS’ outstanding success (while Kylie Cosmetics is declining) creates a clear, uneven pace. Kim Kardashian’s position within the family is increasingly shifting from a “reality TV star” to a “serious businesswoman,” intensifying the pressure on other members.

2. Other Ventures and Capital Allocation

Other family ventures also indicate an uneven distribution of capital and vision:

Good American (Khloé Kardashian): Focused on size inclusivity and has achieved relative success, proving that a focus on value can lead to stable profits.

818 Tequila (Kendall Jenner): Has faced criticism regarding product sourcing and a perceived lack of connection to Kendall’s personal brand, yet it maintains growth.

Lemme (Kourtney Kardashian): The supplement brand has been criticized for lacking scientific basis, serving as a prime example of leveraging fame to sell products without investing in core quality.

The contrast between SKIMS and Kylie Cosmetics suggests that the old business model is dying. Only brands that genuinely provide value (like SKIMS) can survive and thrive.

3. Internal Cracks and Financial Pressure (Gossip)

The “cracks” gossip primarily stems from financial pressure and subtle internal rivalry. The disparity in wealth and success leads to comparisons and blame among members. Rumors circulate that Kris Jenner, the mastermind manager, is forcing members to pivot their business strategies, causing tension over capital allocation and promotional priority across the family’s media platforms.

Part III: The Celebrity Model and the Sustainability Challenge

The Kardashian/Jenner crisis is not just an internal issue; it reflects a larger shift in the Fame Economy.

1. The Sustainability of the Fame Economy

The era of “Influencer Marketing” is gradually shifting towards “Expert Marketing.” Consumers no longer just want to buy products from a celebrity; they want to buy products from an expert or someone with genuine credibility in that field.

The family’s ability to sell based purely on fame has significantly diminished. Their struggling ventures indicate that the public is placing a greater emphasis on product quality and authenticity. Fame is no longer a license to sell anything.

2. Audience Fatigue and the “Flop Era”

Public fatigue with the family’s image is a key factor. The continuous airing of their reality TV series across streaming platforms (which is often used to promote their brands) has led to “Kardashian overexposure.”

Negative attention on social media has created a “Flop Era” in pop culture, where audiences openly express apathy or cynicism toward the family’s new projects, directly impacting media effectiveness and sales.

Conclusion

The Kardashian/Jenner empire is not collapsing, but it is entering a difficult transformation phase. The decline of Kylie Cosmetics is a stark warning that the golden age of selling fame is over.

To survive and flourish, this multi-billion-dollar empire must shift its focus from selling “the founder’s celebrity” to selling “the product’s intrinsic value.” Kim Kardashian’s success with SKIMS is the template for this necessary transition, while the other members struggle to reclaim authenticity and relevance in a changed market. These “financial cracks” are the wake-up call for a new era, one where they must prove they are not just reality TV stars, but genuinely astute business leaders.