Priya Rao, Executive Editor of the Business of Beauty at BoF, discusses Hailey Bieber's monumental success with her beauty brand Rhode, which was recently acquired by E.l.f. Beauty for $1 billion. Rao highlights how Rhode's clean, minimalist aesthetic not only resonates with consumers but aligns perfectly with E.l.f.'s mission. The conversation dives into the unique value proposition of Rhode that sets it apart in the competitive celebrity beauty market and what this acquisition signals about the evolving landscape of beauty branding.
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insights INSIGHT
Minimalist Product Focus Drives Success
Hailey Bieber's Rhode succeeds with a minimalist, intentional product line tailored to her personal beauty aesthetic.
She avoids launching many products, focusing instead on skincare, blush, lip gloss, and lip liner that resonate with her audience.
insights INSIGHT
Reverse-Engineering Viral Beauty Trends
Hailey Bieber reverses typical beauty trends by first establishing viral looks, then launching products to achieve them.
This strategy enhances authenticity and marketing effectiveness, contrasting with brands chasing viral trends after product launch.
insights INSIGHT
Strategic Blend of Mass and Prestige
Elf's acquisition of Rhode blends their mission of accessible yet aspirational beauty by entering prestige markets.
Rhode’s premium positioning complements Elf’s mass-market base, boosting its portfolio reach and margins.
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Bieber, a celebrity and influential beauty figure with a strong Gen-Z following, launched Rhode just three years ago, quickly distinguishing the brand with minimalist product offerings closely tied to Bieber's personal aesthetic. She just sold to E.l.f. Beauty for $1 billion, even as rival celebrity beauty brands struggle to grow sales or attract buyers.
Priya Rao, executive editor at The Business of Beauty at BoF, joins the Business of Fashion's Brian Baskin and Sheena Butler-Young to discuss how Rhode distinguished itself in a crowded celebrity beauty landscape, why E.l.f. Beauty saw strategic value in the acquisition, and what this landmark deal signals about the evolving beauty industry.
Key Insights:
Rhode’s clean, minimal brand aesthetic also mirrors e.l.f.’s broader mission, albeit at a different price point. "There’s something about Rhode’s branding that really makes sense with what E.l.f. already does. They both want to be accessible but aspirational," Rao notes. Like Rhode, "E.l.f. has always had a really good sense of what young people want," says Rao.
The success of Rhode demonstrates that differentiated, clearly communicated value propositions continue to resonate strongly in the beauty market. "From the consumer side, this just shows that the right brand can find the right price at any time, as long as you're able to point and show you offer something different," explains Rao.
Rao highlights how rare it is for a celebrity beauty brand to resonate beyond hype. "Most celebrity beauty brands are not succeeding at this level," she says. Rhode’s limited and focused product assortment have also contributed to its success. "She's not launching everything under the sun," says Rao. "She’s focusing on what she knows and what her audience connects with, and that’s why it’s working."
The acquisition isn't just about short-term gain – E.l.f. sees lasting value. "This isn't a flash in the pan for them," says Rao. "They’re betting on Rhode being a long-term growth engine, not just a trendy pick-up."