From Huda Beauty to Kayali: The $100M Fragrance Spinout

Prestige fragrance is one of the most structurally gated industries in consumer beauty. Four compounding houses control formulation. Retailers decide survival based on velocity per door. Most brands never break through. So how did Kayali — an influencer-born, Middle Eastern-positioned fragrance brand — scale globally through Sephora? In this episode of eCommerce on Tap, Aaron Alpeter and Nathan Resnick break down: • Why Middle Eastern fragrance historically struggled in North America • How Huda Beauty built the infrastructure first • Why Vanilla 28 became the hero SKU • The impact of TikTok and COVID on fragrance growth • Why Kayali spun out as an independent company • Who could eventually acquire Kayali (Puig? Estée Lauder? LVMH?) This episode explores cultural translation, retail strategy, portfolio logic, and the economics of prestige fragrance. If you’re building in beauty, CPG, or consumer — this is a masterclass in strategic positioning.