Morphe

YouTube 2016-10 beauty declining
Also known as: MorpheBrushesMorphe2

Morphe Brushes transformed from affordable makeup tool supplier to beauty influencer powerhouse through collaborations with Jaclyn Hill, James Charles, and other YouTube creators, achieving mainstream retail success before a dramatic 2023 collapse.

Early Growth

Morphe (founded 2008) sold professional-quality makeup brushes and palettes at accessible prices ($10-$40) primarily through its online store and single Los Angeles location. The brand’s breakthrough came through early partnerships with YouTube beauty gurus, seeding products to creators who praised the quality-to-price ratio.

By 2015-2016, Morphe had become a staple in beauty YouTubers’ makeup collections, with creators frequently featuring the brand’s brushes and eyeshadow palettes in tutorials. The brand offered generous affiliate programs (10% commission codes for influencers), incentivizing promotion and building a creator-brand symbiosis.

Jaclyn Hill Partnership

October 2016: Morphe’s collaboration with beauty YouTuber Jaclyn Hill (5+ million subscribers) launched the Jaclyn Hill Eyeshadow Palette—35 shades of warm neutrals, pinks, and browns for $38. The palette sold out within hours and became one of the decade’s best-selling eyeshadow palettes, with over 1 million units sold by 2017.

The collaboration established Morphe’s influencer partnership model: co-create products with major creators, leverage their audiences for marketing, split profits. The Jaclyn Hill partnership generated an estimated $10+ million in revenue and put Morphe on the map as a legitimate beauty brand beyond brushes.

James Charles Collaboration

November 2018: Morphe launched the James Charles x Morphe Artistry Palette—39 shades including bold brights and neutrals for $39. The palette became Morphe’s best-selling product ever, moving over 1 million units in its first month.

Charles (then 19, with 12+ million YouTube subscribers) promoted the palette relentlessly, with unboxing videos, tutorials, and a world tour of Morphe store appearances. Lines wrapped around malls for hours as fans waited to meet Charles and purchase the sold-out palette.

Retail Expansion

2017-2019: Morphe expanded aggressively from its single LA store to:

  • Morphe 2 stores (prestige mall locations)
  • Ulta Beauty partnership (2020)—Morphe-branded shops within Ulta stores nationwide
  • International expansion (UK, Ireland, Australia, New Zealand)
  • Company-owned storefronts in major US markets

The retail footprint peaked at 50+ locations globally, transforming the online brand into a brick-and-mortar beauty destination. Store openings featured influencer appearances (James Charles, Bretman Rock, Jeffree Star) drawing thousands of fans.

Controversies & Decline

2019-2021 brought mounting problems:

James Charles Scandal (2019): The Tati Westbrook-James Charles feud (May 2019) saw Charles lose 3 million subscribers in days amid grooming allegations. Morphe issued a vague statement but continued selling his palette, drawing criticism. Additional allegations in 2021 led Morphe to end the partnership (April 2021) and discontinue the palette.

Jaclyn Hill Lipstick Fiasco (2019): Hill launched her own brand (Jaclyn Cosmetics) with lipsticks containing visible hairs, fibers, and quality issues. The scandal damaged Hill’s credibility and, by association, Morphe’s judgment in partners.

Shane Dawson Controversy (2020): Morphe launched a Shane Dawson x Jeffree Star “Conspiracy” palette (October 2019) that became a best-seller. When Dawson’s racist past videos resurfaced (June 2020), Morphe cut ties, discontinuing the palette and Dawson’s association.

Jeffree Star (2020): Amid the Dawson fallout and Star’s own controversies, Morphe ended their long-standing partnership with Star (July 2020), discontinuing his palettes and products.

COVID Impact & Bankruptcy

The pandemic devastated Morphe’s retail strategy:

  • Store closures (temporary, then permanent)
  • Declining mall foot traffic
  • E-commerce competition
  • Influencer marketing losing effectiveness as YouTube beauty declined

January 2023: Morphe’s parent company announced the closure of all Morphe retail stores in the US, shifting to online-only and Ulta partnership.

May 2023: Morphe filed for Chapter 11 bankruptcy, citing $200+ million in debt and inability to compete in an oversaturated beauty market. The brand’s influencer-dependent model collapsed as creator credibility eroded and consumers shifted to mission-driven brands (Rare Beauty, Fenty).

Legacy

Morphe proved the power and peril of influencer-driven beauty. The brand’s explosive growth (estimated $500 million+ annual revenue at peak) demonstrated that YouTube creators could drive massive sales. But when those creators fell from grace or audiences moved on, Morphe had no independent brand identity to sustain itself.

The bankruptcy marked the end of an era for influencer beauty brands built entirely on personality partnerships rather than product innovation or brand values.

Sources:

  • Forbes: “How Morphe Built A Beauty Empire” (Nov 2018)
  • WWD: “Morphe Closes All Stores” (Jan 2023)
  • Bankruptcy filing (May 2023)
  • YouTube analytics and partnership announcements (2016-2021)

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