Chiara Ferragni, one of the most powerful influencers in the world, wants to make her debut in the capital market through an IPO on the Milan Stock Exchange

After building a personal lifestyle brand and attracting over 21 million subscribers and collaborations with Dior, Lancôme and other famous brands, Chiara Ferragni, Italian entrepreneur, fashion blogger, influencer and designer, decided to take in considering, after more than 10 years of activity, the debut in the capital market to monetize their efforts, writes Reuters.

Ferragni, 33, said in a September interview with an Italian publication that he wants to make an initial public offering (IPO) on the Milan Stock Exchange, his hometown, to test self-sufficiency. of the “influencer” business model. Such an operation would also be an important publicity stunt for the head of the Italian Stock Exchange, Raffaele Jerusalmi.

By building a reputation in the fashion market, social media celebrities can promote various services or products among fans on social networks. Brands usually allocate between 10% and 20% of the promotion budget to such marketing. According to Influencer Marketing Hub, the total amounts directed to this type of promotion amounted to 6.5 billion dollars in 2019, an increase of almost four times compared to 2016.

Other stars in this industry have already built their brand empires. The Louis Vuitton Moët Hennessy cosmetics collection in collaboration with Rihanna generated sales of 500 million euros a year after its launch, while last year the pop star obtained the support of Bernard Arnault for the fashion collection. Perfume maker Coty has also agreed to pay $ 600 million for a 51% stake in TV star Kylie Jenner’s make-up business.

Another proof of the power of influencers comes from the campaign through which Chiara Ferragni mobilized her community and partners and managed to raise in less than 24 hours about 3 million dollars to fight the pandemic in Italy. To figure out the power of social marketing, as reported by Celebrity Gossip, in one of her last posts on Instagram she showed up without make-up and generated millions of views.

Chiara Ferragni did not specify which of the three companies she controls will list her or when. Sisterhood, the company that manages its marketing campaigns, reported revenues of 11 million euros in 2019, according to the Italian press. Together with its fashion business Serendipity and TBS Crew, which owns the blog The Blonde Salad, the group generated sales of 20 million euros in 2019.

At a fourfold sales of Prada shares, Chiara Ferragni’s group could be worth about 80 million euros, a small value, but which could be the first IPO of a personal brand built on self-promotion online . On the other hand, as the pandemic forces companies to reduce their marketing costs, some are questioning the influencer business model, and investors will need to be convinced that digital businesses built on a beautiful face are sustainable.

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