TikTok Stars Charli, Dixie D'Amelio to Start Own House of Brands | Tech News

TikTok Stars Charli, Dixie D'Amelio to Start Own House of Brands

Family raises $6 million in financing round to branch out beyond endorsements, plans women’s footwear, skincare products.

By:BLOOMBERG
| Updated on: Sep 06 2022, 23:40 IST
Instagram looks to do a TikTok, YouTube; video war coming soon; here is what IG users will get
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1/8 Good things are coming to Instagram even though it is more due to fierce competition by the likes of TikTok and YouTube rather than something it really wanted to do. As far as Instagram users are concerned, their favourite app is all set to get features that they could only see in other apps and it is going to get more entertaining. The Instagram feature coming soon is full-screen videos and indicates that the app is focusing on staying relevant. In a world where user attention span is short and very fickle, this move is expected to, not just to retain Instagram's base, but actually add to it. (REUTERS)
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2/8 Instagram head, Adam Mosseri, posted a video on Twitter where he elaborated on new features. In it he underlined that perception is important and therefore, Instagram does not want to be bracketed as a "square photo-sharing app" in the minds of users and the rest of the global digitally aware community and henceforth, it will get more into entertainment and video. (AP)
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3/8 Mosseri took to Twitter to explain and this is what he posted. "At Instagram we’re always trying to build new features that help you get the most out of your experience. Right now we’re focused on four key areas: Creators, Video, Shopping and Messaging." (REUTERS)
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4/8 Mosseri said, "Video is driving an immense amount of growth online for all the major platforms right now and it is one direction I think we need to lean into more. People say they use Instagram to be entertained. Because lets be honest, there is some serious competition right now. TikTok is huge and YouTube is even bigger. We have to embrace that and that means change." (AFP)
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5/8 As far as the point about videos is concerned, Instagram already is into videos with IGTV, Reels, and Stories, but from now on, it will be giving much more emphasis on this medium. (AFP)
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6/8 And what is it exactly regarding videos that Instagram has in mind? Macrumours has listed these - "full screen, immersive, entertaining, mobile-first video." This surely, sounds like TikTok. Mosseri has said that this app's popularity is something Instagram wants to have. (AFP)
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7/8 Macrumours has it that Instagram will start testing recommendations and these will show up on users' Feed and that too in a month or so. (REUTERS)
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8/8 Over and above that, Mosseri says Instagram wants to be more transparent in the public's eye regarding its plans. So, expect to hear a lot more about what is going on in the House of Instagram going forward and today's video can be considered as part one. (Pixabay)
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The D’Amelios have amassed one of social media’s largest audiences, with nearly 400 million followers across platforms, since sisters Charli and Dixie became prominent personalities on TikTok. (Instagram)

The social media stars of the D'Amelio family have raised funds to start their own brands as they look to grow their own business rather than focus solely on influencer deals.

Investors including Fanatics Inc. Chief Executive Officer Michael Rubin, Apple Inc.'s Eddy Cue and Autograph co-chairman Richard Rosenblatt took part in the $6 million financing round set to be announced Tuesday. Lions Gate Entertainment head Jon Feltheimer and United Talent Agency also backed the new venture as it hires staff and prepares to debut its first products in the coming months.

The D'Amelios have amassed one of social media's largest audiences, with nearly 400 million followers across platforms, since sisters Charli and Dixie became prominent personalities on TikTok in 2019. Charli is now the second most-popular creator on the short-form video app with more than 146 million followers.

D'Amelio Brands plans to begin with a women's footwear line and a skincare label to be released by the end of the year, with the sisters active in product development, design and promotion. Goods will be primarily sold direct-to-consumer but management is also considering retail partnerships. Their father Marc D'Amelio will run the new operation, which has already integrated the family's existing fan merchandise shops. He's also weighing entry into more categories within the fashion, consumer packaged goods and food sectors.

D'Amelio said the concept is to take what the family has been doing with their brand deals, which often don't include equity, and bring the process in-house. In recent years, the creator economy has birthed all sorts of businesses as influencers seek to branch out beyond the usual endorsements and paid posts to better monetize their followings.

“We feel it's the next step for them,” Marc D'Amelio said of his daughters. “There's an opportunity for us to do things for ourselves. That's where this comes from.”

Charli, now 18, and Dixie, 21, have worked with companies like Dunkin' Brands Group Inc. and Sabra Dipping Co., a joint-venture between PepsiCo Inc. and Strauss Group Ltd., on ads and promotion. The pair have a clothing line with Abercrombie & Fitch Co.'s Hollister and Charli has a fragrance made by French manufacturer Robertet SA. The family also has a series on Hulu that's set to kick off its second season this month.

The D'Amelios have been particularly active investors lately too. Charli backed her first company at 16, investing in teen banking service Step in 2020, and in February the family struck an equity deal with editing-app developer Lightricks. Earlier this year, the D'Amelios started a venture capital fund that's looking to put up to $25 million into startups.

Marc D'Amelio said that down the road, his daughters may not want to keep living the influencer life or have the same spotlight they're enjoying right now. By starting their own brands, it may open up new opportunities.

“It's a way for both of my daughters to decide what they want to do,” he said. “Dixie has a music career. Charli is going to be in a movie. But they may decide 10 years from now they want to be more active in the business world.”

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First Published Date: 06 Sep, 23:40 IST
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