The rise and fall of beauty KOLs: James Charles, Addison Rae and the changing face of influencer marketing

According to product developer Paulina Martinez, this shift has been a double-edged sword for influencer-founded brands. “On one hand, the influencers’ massive followings provide a built-in customer base and marketing machine,” Martinez explains. “Their endorsements carry immense weight, and a product launch with a popular creator can set sales records. On the other hand, the same drama that drives views and engagement can also threaten a brand’s stability.

“I think the ones that have not succeeded are those who haven’t done much research, are white-labelled, and where influencers take advantage of their name 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 launched his line with a splash, capitalising on a massive following and reputation.

The brand quickly gained a cultlike following, with products selling out within minutes of release. However, in 2019, a bombshell video surfaced alleging that Star had engaged in inappropriate behaviour towards a minor. The fallout was swift and devastating. Retailers like Macy’s dropped the range, and Star announced a temporary hiatus from social media. Once the target of a supposed US$500 million takeover by L’Oréal, Jeffree Star Cosmetics was left reeling.

The drama surrounding Star’s downfall echoes the scandals plaguing other influencer-lead brands. James Charles, the first male ambassador for CoverGirl, faced backlash in 2019 when he allegedly tried to seduce a straight man for a YouTube prank. The incident sparked a massive online controversy, with Charles losing millions of subscribers and his partnership with CoverGirl. Further allegations concerning underage boys emerged in 2021.

The “shiny new object” syndrome, where consumers quickly tire of products and brands that fail to innovate consistently, is a major threat. “The once-powerful endorsement of influencers is losing some of its sway as consumers become more discerning and sceptical of sponsored content,” Martinez says.

Evidence ranges from the surprising removal of Selfless by Hyram and Item Beauty from Sephora’s shelves to the shocking 2023 bankruptcy filing of make-up giant Morphe.

Companies like Morphe, which initially skyrocketed thanks to influencer partnerships, have faced significant setbacks. “Trust issues have emerged as a major roadblock, with consumers growing weary of the perceived lack of authenticity in influencer-backed brands – a reminder that simply slapping a popular influencer’s name on a product does not guarantee success any more,” Martinez says.

Despite the challenges, some brands have found a way to thrive in an oversaturated market. Tina Chen Craig’s U Beauty is one example. A self-proclaimed “serial entrepreneur”, Craig gained attention with her fashion blog, Bag Snob, in 2005. The blogger’s passion for fashion and beauty then led her in 2019 to create U Beauty, a luxury skincare brand that aims to address that oversaturation with scientifically backed products.

The brand is now carried by over 100 retailers in more than 40 countries, as Chen Craig remains true to her philosophy of creating high-quality, innovative products that deliver results.

A new generation of Instagram and TikTok-born beauty brands, like Live Tinted and Refy, are also making noise.

Live Tinted’s journey started with Deepica Mutyala’s viral YouTube video in 2015, which showcased her innovative use of red lipstick as an under-eye colour corrector. This initial fame led her to launch the digital platform Live Tinted, where she celebrated diversity and built a community of women of colour sharing make-up tips. Through conversations on the platform, Mutyala identified hyperpigmentation as a significant concern for this demographic, revealing a market gap.

In May 2019, Live Tinted transitioned into a full-fledged brand with the launch of its first product, the Huestick Color Corrector. Under Mutyala’s leadership, the brand has rapidly expanded its product line to include bronzers, liners, brushes and highlighters, always focusing on women of colour and their concerns.

Similarly, Refy, co-founded in 2020 by entrepreneur Jenna Meek, and model and influencer Jess Hunt, started out with a single launch: a brow-sculpting product. This eventually led to a collection and now, a full range. In an interview with Forbes, Meek and Hunt credited their success with a similar audience-focused ethos: establishing a following, creating and maintaining good relationships with their customers, and understanding their customer’s needs. “Jess Hunt has created such an authentic brand to who she is, brought her followers along the journey and stayed true to her roots,” Holland says.

For beauty brands looking to avoid the pitfalls of the influencer model, there are clear lessons to be learned. “They need to focus on creating products that are better and have a unique selling point [compared] to others out there,” adds Holland. “In a saturated market, your product has to be the best. It needs to represent you and can’t be less than what your value proposition is as a talent.”

The internet, with its endless possibilities, demands nothing less – and will quickly punish those who pass themselves off as someone they are not.