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

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

From Ecommerce On Tap by Nathan Resnick and Aaron Alpeter

March 3, 2026 · 42 min · Season 7 · Episode 5

About this episode

This episode explores the rise of Kayali, a Middle Eastern fragrance brand, and its global scaling through Sephora amidst the challenges of the prestige fragrance industry.

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.

People in this episode

Hosts: Aaron Alpeter, Nathan Resnick

Topics covered

  • fragrance
  • beauty
  • ecommerce
  • retail strategy
  • cultural translation

Keywords

  • Huda Beauty
  • Kayali
  • Vanilla 28
  • TikTok
  • COVID
  • prestige fragrance

Mentioned in this episode

Products: Vanilla 28, Kayali, Huda Beauty

Places: North America

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