Kiehl's
| Company type | Subsidiary |
|---|---|
| Industry | Personal care |
| Founded | 1851 |
| Founder | John Kiehl |
| Headquarters | |
Area served | Worldwide |
Key people |
|
| Products | Cosmetics |
| Parent | L'Oréal |
| Website | kiehls.com |
Kiehl's LLC is a U.S.-based retailer specializing in cosmetics focused on skin, hair, and body care. Originating in 1851 as a single pharmacy located in Manhattan’s East Village, the brand was acquired by the L'Oréal Group in 2000. By 2015, Kiehl's operated 65 locations across the United States and 400 stores globally, alongside more than 1,000 additional sales points including department stores, airports, and independent retailers. The company is distinguished by its unique marketing approach, a significant male clientele, and minimalist packaging.[1]
Origins
Established in 1851 by John Kiehl, the enterprise started as a homeopathic pharmacy situated at Third Avenue and 13th Street. In 1921, Irving Morse, a pharmacologist trained at Columbia University and an immigrant from Russia of Jewish descent, acquired the business. He was responsible for creating several long-lasting products such as Blue Astringent Herbal Lotion and Creme de Corps.[2][3]
During the 1960s, Irving’s son Aaron Morse—also a Columbia-educated pharmacologist and former WWII pilot—assumed control of the company. He redirected the brand’s emphasis from pharmaceuticals toward premium natural skin care products, expanding Kiehl’s market reach through targeted product innovation. Under Aaron’s guidance, the company transitioned from relative obscurity to global recognition by the 1980s.[2][3]
Between 1988 and 2000, Aaron’s daughter Jami Morse Heidegger grew annual revenue to $40 million while preserving the original store location. Her approach prioritized organic growth driven by word-of-mouth recommendations and generous sampling instead of conventional advertising methods, fostering strong customer loyalty that fueled expansion.[2]
L'Oréal Acquisition
In April 2000, the French multinational beauty corporation L'Oréal purchased Kiehl's for an estimated $100–$150 million after a pursuit lasting more than two years. The deal addressed Kiehl’s operational difficulties handling increasing order volumes amid rising demand. At that time, then-president Morse Heidegger acknowledged the necessity of partnering with a larger entity to sustain growth and fulfill market needs.
L'Oréal’s strategy involved broadening Kiehl's global footprint while maintaining its identity as a luxury brand rather than converting it into a mass-market product. Following the acquisition, Heidegger resigned her position, with Michelle Taylor appointed president; Taylor emphasized preserving Kiehl's heritage and core values during this transition.
Stores
For the initial century and a half, Kiehl's maintained just a single retail location alongside its presence in department stores. Following its acquisition by L'Oréal, the brand expanded its footprint to more than 30 outlets worldwide. Revenue experienced remarkable growth, rising from $40 million in 2000 to upwards of $200 million by 2009. By 2016, Kiehl's annual sales had reached the $1 billion mark, reflecting substantial expansion and increased market prominence.
The Stuyvesant Pear Tree
Since its establishment in 1851, Kiehl's original shop at the intersection of 3rd Avenue and 13th Street in Manhattan’s East Village has remained operational. This site, often referred to as "Pear Tree Corner," holds historical importance due to a pear tree planted in 1667 by Peter Stuyvesant, the governor of New Amsterdam. Although the original tree was lost in 1867, Kiehl's honored this legacy by planting a new pear tree in 2003.
The flagship store has evolved into a neighborhood landmark and has been described by Frommer's as "more than a store, it's a virtual cult." Noteworthy features include antique pharmacy artifacts and an assortment of vintage Harley-Davidson and Indian motorcycles. In 2022, Kiehl's refreshed this flagship location to celebrate its heritage and growth, unveiling the "We Skincare About You Since 1851" campaign to emphasize its dedication to customer care.
Products and sales
Kiehl's allocates three to five times the investment in its skincare formulations compared to competitors, positioning its offerings within the lower tier of prestige skincare brands. The packaging reflects a minimalist apothecary aesthetic that evokes a classic, old-fashioned style.
The brand’s marketing strategy is unconventional, heavily favoring free samples and organic word-of-mouth promotion over traditional advertising. Approximately 80% of Kiehl's marketing budget is devoted to product giveaways, with more than 12 million samples distributed annually. This method aligns with their philosophy that superior product quality naturally drives sales without reliance on aggressive marketing. Additionally, charitable donations and gift bags at fundraising events foster customer loyalty.
At the community level, Kiehl's adapts its approach according to local markets. For example, when launching a store on New York’s Upper West Side, the company contributed to enhancing a nearby Central Park playground, demonstrating commitment to local engagement. Within stores, emphasis is placed on customer service and delivering a unique shopping experience; employees wear lab coats and complete an intensive four-week training program covering product chemistry and usage techniques.
Clientele
Allan Mottus, editor of The Informationist, observed that Kiehl's appeals strongly to a trend-conscious younger demographic. Distinctively among cosmetics brands, Kiehl's attracts a significant male customer base, accounting for 30 to 40 percent of shoppers. Each retail location features a motorcycle display, inspired by Aaron Morse’s personal collection of 44 bikes, which serves as an effective tool for engaging male clientele. In key urban markets such as New York and Los Angeles, men represent nearly half of customers. Wendy Liebmann, CEO of WSL Strategic Retail, points out that Kiehl's health-oriented approach demystifies skincare products, fostering an authentic and accessible brand image.
Philanthropy
Kiehl's dedication to charitable efforts extends back more than four decades, originating from Aaron Morse’s foundational "Mission of Kiehl's," which focuses on fostering improved individuals, businesses, and communities. The brand places significant emphasis on supporting AIDS research and prevention, promoting children's health, and advancing environmental initiatives. Additionally, Kiehl's retail locations frequently organize pet adoption drives. In August 2010, the company introduced the "Liferide for amfAR" charity motorcycle event along California’s coastline, culminating in a donation of $85,000 presented by Chris Salgardo, who serves as President of Kiehl's USA.
Controversy
Kiehl's has encountered scrutiny regarding the inclusion of squalene in its skincare formulations, a substance traditionally derived from shark liver. Nevertheless, both Kiehl's and independent entities have verified that the squalene utilized is extracted from olives, ensuring adherence to environmentally responsible sourcing methods.
Further reading
- Manmade: The Essential Skincare & Grooming Reference for Every Man authored by Chris Salgardo, President of Kiehl’s USA. Released in 2016.
External links
- 1851 establishments in New York (state)
- Cosmetics companies of the United States
- Companies based in New York City
- Retail companies established in 1851
- History of cosmetics
- L'Oréal brands
- American companies established in 1851
- 2000 mergers and acquisitions
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- Companies of the United States by year of establishment
- Pages with reference errors
- Pages with script errors