Latest news with #E.L.F.Beauty
Yahoo
10 hours ago
- Business
- Yahoo
Hailey Bieber put the clean-girl aesthetic on the map. Then she sold it for $1 billion.
While social media was busy deconstructing Hailey Bieber's life, she was building a billion-dollar business. The 27-year-old model has been a gossip magnet for a decade due to her relationship with Justin, whom she has been married to for six years and shares a son with. To this day, there's constant conjecture about whether her marriage is healthy, whether she's spending enough time with her son and whether her posts are secretly shading Justin's long-ago ex-girlfriend Selena Gomez, whom she has long been pitted against. As that chatter persisted — and continues to this moment — Bieber found stealth success building her beauty brand, Rhode, and turning it into a booming business. Its sale to E.L.F. Beauty has been covered far beyond the typical celebrity gossip and beauty sites, elevating her to an influential player in the skin care industry. The ink is now dry on the deal in a package potentially worth $1 billion — $800 million in cash and stock now, with another $200 million contingent on future growth over three years. There are big plans for Rhode, with its launching in stores for the first time this fall and global expansion, as well as for the founder, who will stay on as the brand's chief creative officer and head of innovation and strategic adviser to the combined brands. While the sale doesn't make her a billionaire — Rhode has cofounders (Lauren and Michael Ratner) and investors splitting the pie, and it's unclear what percentage stake Bieber had in the company — it's an impressive feat for a brand that launched less than three years ago. (On June 15, 2022, to be exact.) Call Bieber a nepo baby or dismiss her for having industry connections through modeling or her husband, but that's short-sighted. 'A lot of people assume Hailey Bieber is just the face of Rhode, but her marketing instincts tell a very different story — and I think that's exactly why e.l.f. brought her on as a strategic adviser,' AvidAI CEO & cofounder Brooke Yoakam, who shares branding and marketing expertise through the Brand Blueprint, tells Yahoo Entertainment, 'She's not just riding trends; she's setting them.' Bieber could have been just another star with a side hustle. Instead, she has been credited with innovation. 'What sets Hailey apart is that she's not just selling skin care, she's selling a lifestyle,' Yoakam says. 'Everything from Rhode's pop-ups to its packaging to its 'food marketing' strategy — naming flavors like 'Strawberry Glaze' and 'Pineapple Refresh' — shows how deeply involved she is in the creative vision. She understood early how viral food-themed beauty could be and doubled down on it before most brands even clocked the trend.' Not only have Rhode's products stood out, but they've also done so in a saturated marketplace. 'In today's market, you need either breakout marketing or first-to-market products to win — Rhode has both,' Yoakam explains. 'Take the Glazing Milk, for example,' a hydrating makeup prep product. 'Hailey was one of the first to push that kind of dewy, skin-barrier-focused product, and now we're seeing brands scramble to copy it. Then there's the phone case, which is Rhode's second-best-selling item — from a skin care brand. That's not just smart merchandising, it's cultural relevance. And of course, the Peptide Lip Treatments — yes, Summer Fridays' came first, but Rhode was the brand that turned it into a daily ritual and aesthetic moment.' She adds, 'When every brand is trying to dupe your products and replicate your brand experiences, that's not luck,that's vision.' The company's business strategy has been smart — a small number of products that are reasonably priced, a condensed team making for low overhead and a direct-to-consumer model — but its marketing strategy has been even smarter. The brand's secret sauce was rolling out a very 'media-forward, marketing-forward, viral-forward push' that was 'done so beautifully in its execution,' Alexis Androulakis, one half of the Lipstick Lesbians, which decodes beauty marketing and educates consumers about products on social media, tells Yahoo. A big part of Rhode's marketing magic can be attributed to Bieber directly. As a celebrity who people love talking about — with a pop star husband who also draws major interest — she has a lot of fans. To put it into social media numbers: On just her personal accounts, she has 55 million Instagram followers, 15.6M on TikTok and 4.3M on Facebook. 'Social media is the reason why Rhode has been this successful,' Sammi Tannor Cohen, host of Social Currency podcast, covering business, culture and branding, tells Yahoo. 'Last year, Hailey drove $400 million in earned media value,' or the monetary worth of unpaid exposure a brand receives. 'This is wildly impressive.' Just posting a simple selfie to her grid drives sales. 'She built — we have to talk about it, right? — the coolest iPhone case ever that would hold the Peptide Lip Balm,' Androulakis says. 'So that every time she's taking a selfie — bam — there it is. You're seeing it.' Credit also goes to Rhode's brand ambassador army, which was recruited to post about the brand and products. 'That's the thing about social,' says Androulakis. 'Whether we're talking about 2014 Glossier, [which] saw success because they had an affiliate army, [or] brands today that are crushing it on TikTok Shop like Tarte, it's always about these brand evangelists. I think that Rhode did an incredible job building media and marketing sex appeal right … to their audience — and making people want it, even if the Peptide Lip Treatment crystallized, even if the Pocket Blush weren't shade inclusive initially and even if there were no actives in the skin care.' E.L.F. chief executive Tarang Amin told the Wall Street Journal that both Rhode and E.L.F. brands also have the benefit of appealing to multiple generations, especially Gen Z. 'Long before launching the brand, she was already idolized for her 'clean girl' aesthetic — glowy skin, minimalist makeup, effortlessly cool fashion,' Yoakam says. 'She became the blueprint for a generation that craved simplicity, and Rhode made that aesthetic feel attainable.' Rhode buyers are also trend-obsessed, drawn to pop culture and products that feel like status symbols. They will be online and ready to buy when every new product launches, leading to things selling out in minutes, or literally in line at a pop-up. These buyers have powered Rhode from startup to sensation in record speed. 'I had never before seen a brand hit acquisition that quickly, especially in a market that was so insanely confused with the tariffs, with the uncertainty, with the unknowns, [in the beauty industry],' Androulakis says. 'It just seemed like a really intensely, scary unknown time in the beauty industry and then — bam — we have this massive acquisition of a brand in just about three years total.' While the Rhode acquisition came as somewhat surprise news — despite it now being known it was being shopped to buyers — what isn't is the fact that the beauty industry is a significant economic force. Rihanna, Kim Kardashian and Kylie Jenner all have billion-dollar businesses. So, which celebrity will be next to follow? 'I'm super bullish on celebrity makeup artists and hair care founders,' says Yoakam. 'These are the experts celebrities already trust behind the scenes — so when they launch their own brands, they come to market with built-in credibility and proven product expertise. That's why I believe Makeup by Mario, Patrick Ta and Chris Appleton with Color Wow are strong contenders for the next billion-dollar celebrity beauty exits. I'm also excited about One/Size by Patrick Starrr and Personal Day by Lili Reinhart, [which] have carved out clear niches' — sweat-proof makeup and acne-safe skin care, respectively — 'and are winning in them.' Don't count out Selena Gomez's popular beauty brand, which launched in February 2020. It's been valued at $2 billion, though Gomez has said she has no plans to sell. 'Of course, everyone is interested in what the future of Rare Beauty entails,' Cohen says. 'There have been whispers that they were looking to sell, but since then, the sale process was placed on hold. Their annual revenue is estimated to be in the $350 million range, so they are definitely looking at a sale price over $1 billion.' Who knows? Maybe it won't be a traditional celebrity at all. 'I think we have to broaden the definition of celebrity to include influencer,' Androulakis says. 'We're at a really interesting point in history, specifically beauty history, where the greats like Pat McGraths, the Charlotte Tilburys, the François Narses, who were icons and are icons, Gen Alpha doesn't necessarily know who they are. Gen Z might have a vague idea of who they are. But Gen Z and Gen Alpha surely know who Hailey Bieber is, and surely know who Justin Bieber is, and I think it's important to make that distinction and understand that the next generation of celebrity is going to be rooted deeply in social.' She adds, 'Fashion and runway and editorial and magazine covers once dictated what was paramount. Today, we can't ignore the fact that social has disrupted and interrupted that flow.' And Bieber rode that wave right to the top.
Yahoo
01-06-2025
- Business
- Yahoo
Hailey Bieber Just Sold Rhode for More Money Than We Could Even Dream Of
It's kind of wild to think about how Rhode, one of the most successful and influential beauty brands in recent history, debuted only three years ago. In 2022, the thought of selling the direct-to-consumer brand was a distant dream for founder Hailey Bieber—but it's already here. E.L.F. Beauty announced today that it is acquiring Rhode. Though this acquisition has been widely reported as a $1 billion deal, in reality, we have no idea yet just how much money will ultimately change hands. But it will certainly be a massive amount: As a press release tells it, that billion-dollar figure is 'comprised of $800 million of consideration payable at closing in a combination of cash and stock, subject to customary adjustments, and an additional potential earnout consideration of $200 million based on the future growth of the brand over a three-year timeframe.' As it stands, the agreement has been approved by the E.L.F. Beauty board of directors, and the transaction is expected to close next year. Allure spoke with Bieber today about what this means for her and her brand. In short: expansion, something Bieber had hoped to achieve since Rhode's conception. 'When you're launching a brand, you're just so focused on what's right in front of you at the time,' Bieber says of Rhode's early days. 'And of course, you always have really big dreams and really big goals for it. This is definitely one of those things being realized. I could never have anticipated that it would happen at this exact time.' That growth is certain with E.L.F. Beauty, which also owns Keys Soulcare, Naturium, Well People, and, of course, the blockbuster drugstore brand E.L.F. Cosmetics, bolstering it. As for the branding of Rhode, it seems that, going forward, it won't change much, if at all. 'We want to nurture Hailey's vision, and that includes providing more resources and investing more in marketing,' says E.L.F. chairman and CEO Tarang Amin, who calls Bieber the most thoughtful founder he's ever met. 'She's built an incredible team that we want to continue to build and expand globally.' Amin and Bieber's excitement to be working together is tangible even through a Zoom thumbnail, though that's to be expected of any two people who just made a deal as potentially lucrative as this one. Bieber says she feels confident about the E.L.F. team as business partners and as people since meeting them. 'Vibes matter,' Bieber says. She believes her new investors are, for lack of a better word, invested in her as a creative force (again, not a surprising thing for someone to say of an entity that's now funding their company). '[The E.L.F. team] care about founders and… supporting [my] vision and giving their resources to take it to the next place.' The first next place is Sephora. It was announced a week ago that Rhode will be expanding beyond its DTC model and arriving on the beauty retailer's digital and brick-and-mortar shelves this fall. 'I'm super excited,' says Bieber, reminding me that Rhode has also done plenty of its own in-person pop-up experiences. 'I think we'll probably still play in that space. But we're really focused on Sephora right now.' That doesn't mean there isn't a lot more for Bieber to do now that Rhode is moving under the E.L.F. umbrella. In fact, her role is set to expand, even trickling over to other parts of E.L.F: 'I'll be the chief creative officer and head of innovation at Rhode and advisor to E.L.F. Beauty,' Bieber tells Allure. 'I feel like at this very moment in time, my vision has never been more clear to me. I want to expand globally, and I have so many more dreams and goals that I want to be realized. And I really believe that E.L.F. is going to help us get there.' My last question about the immediate future of Rhode is whether this new partnership could mean a crossover collection with E.L.F. Cosmetics. When asked, Bieber offers a broad, sly smile. Amin responds, 'Well, that'll depend on our strategic advisor.' In other words: If Bieber wants it, we'll all get it. 'I'm always open to seeing how we can innovate together. I mean, that is the whole point of all this,' she tells Allure. 'I would say nothing's off the table.' More must-reads: This Genius Blush Tip Goes Against Everything You Were Taught Eczema Can Be Tougher on Black and Latinx Skin—Here's Why Is Evolysse the Answer to 'Filler Fatigue?' Now check out Nicole Kidman's new cover shoot: Originally Appeared on Allure Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
30-05-2025
- Business
- Yahoo
Hailey Bieber Is a Great Entrepreneur. She Did Not Make $1 Billion This Week.
When model Hailey Bieber was on the cover of Allure introducing her soon-to-launch skin-care line called Rhode, she told us that her biggest hope for the brand was that someone might pick it up and not know it's hers: 'That would be my dream, for it to actually surprise people.' And what a surprise we all got this week when Bieber announced she'd sold her brand to E.L.F. Beauty only three years later. Even more unexpected than this accelerated time frame, though, was the amount she sold it for, according to Wednesday's press release: $1 billion. Later that afternoon, we weren't surprised to see news headlines and user-generated TikTok videos swirling, mostly jumping on that B-word: Many said that Hailey Bieber sold Rhode for a billion bucks, or that she was set to earn a billion dollars from the sale of the brand. Several outlets went so far as to declare that Bieber is a billionaire now, implying that the announcement of this deal triggered a direct deposit of a 10-digit figure into her checking account. In the headline for our interview with Bieber this week, we referred to the value of the deal as being 'more money than we could ever dream of.' Definitely accurate! In a video posted to our social media accounts, our content director, Kara McGrath, stated the brand was sold for 'more than half a billion.' Also accurate! Yet commenters were quick to respond, telling us we got the number wrong. But there's a reason we didn't say this is a full-on, billion-dollar acquisition (at least not yet). After we looked at the transactional details laid out in the press release, we realized we wouldn't be 100% comfortable in stating that Bieber had sold Rhode for $1 billion. It describes the deal as being 'comprised of $800 million of consideration payable at closing [the second quarter of fiscal 2026] in a combination of cash and stock, subject to customary adjustments, and an additional potential earnout consideration of $200 million based on the future growth of the brand over a three-year time frame.' Since $200 million of that $1 billion is hypothetical, we paused before putting '$1 billion' in our headlines and social content. And that $800 million figure itself, as stated in the release, is a combination of '$600 million of cash and $200 million, or approximately 2.6 million shares, of newly issued shares of E.L.F. Beauty common stock issued to existing equity holders of Rhode, subject to certain customary purchase price adjustments.' So, as fun as it is to imagine, the CEO of E.L.F. didn't show up at Bieber's office with a suitcase full of cash. And in general, the deal, though very lucrative for Bieber, won't make the automatic impact on her wallet that some people seem to think it will. Even if the deal nets out to a billion dollars (or more with soaring E.L.F. stock), in the end, this does not make Bieber a billionaire. She is one of the many people who work for (or invested in) Rhode who will be getting a payout. Regardless of precisely how much this young phenom of a brand ultimately sells for, it's a brilliant move for both Rhode and E.L.F. Rhode makes great products (two of them have won Best of Beauty Awards) beloved by consumers, and Bieber has been able to infuse the brand with a cool factor that many companies have tried and failed to replicate. It's a cool that has translated to spectacular sales numbers, as we learned this week: $212 million in net sales (Whoa!) over the last 12 months—and that's with less than a dozen products and only direct-to-consumer distribution (the brand is entering Sephora this fall). Meanwhile, E.L.F. clearly has a ton of cash, which they can now use to supercharge those already impressive sales and to have Hailey and her serious beauty influence on their team. So does the ultimate, definitive, exact number really matter when, at the end of the day, Bieber and her partners are still bringing in amounts of money most of us will never see in a lifetime? Maybe not. But at Allure, we're committed to choosing our words clearly and carefully—whether we're covering a financial transaction or skin-care terminology or sustainable packaging claims. More beauty news: Thank You, And Just Like That… For Rebuking Middle-Age Hair Clichés Kris Jenner's New Face Is a Great Case for Keeping Plastic Surgery Old School TikTokers Are Saying This Dior Lip Oil 'Turned Their Lips Black' And wow, Hailey Bieber's 10 beauty commandments: Follow Allure on Instagram and TikTok, or subscribe to our newsletter to stay up to date on all things beauty. Originally Appeared on Allure Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
