Hailey Bieber, the 28-year-old model and social media influencer, has finalized an agreement to sell her makeup brand Rhode to e.l.f. Beauty in a transaction valued at up to $1 billion (ยฃ740 million). This deal, announced on Tuesday, could significantly boost Rhodeโs growth trajectory following its successful launch in 2022.
Business Overview and Sale Details
Rhode, co-founded by Bieber and named after her middle name, has quickly gained popularity for its skincare products, particularly its blush and lip tints. The brand reported impressive net sales exceeding $200 million over the past year, benefiting largely from its strong online presence and social media engagement. Looking ahead, Rhode plans to expand distribution, with products set to be available in Sephora stores in both the US and UK later this year.
e.l.f. Beauty, a well-known cosmetics company specializing in budget-friendly products, stated that they are committing $800 million in cash and stock upfront, with an additional $200 million contingent upon future sales performance. The transaction is anticipated to be finalized later this year.
Bieberโs Vision and Future Plans
Hailey Bieber will continue with the brand as chief creative officer, expressing optimism about the future of Rhode. In a social media announcement, she described the partnership with e.l.f. Beauty as an โincredible opportunityโ to enhance the brandโs reach and innovate new products. Other co-founders and current executives will remain in leadership roles, ensuring continuity as the brand transitions to its new ownership.
โOur partnership with e.l.f. Beauty marks an incredible opportunity to elevate and accelerate our ability to reach more of our community with even more innovative products and widen our distribution globally,โ Bieber stated in the official announcement.
Celebrity Influence in the Beauty Industry
Bieberโs entry into the beauty sector is emblematic of a broader trend in which celebrities leverage their fame to launch successful beauty brands. She joins the ranks of well-known figures like Rihanna, whose Fenty Beauty brand was valued at nearly $3 billion last year, and Kylie Jenner, who sold a significant stake in her cosmetics company in 2020 for $600 million. Selena Gomezโs Rare Beauty line also saw commendable success, contributing to the billion-dollar revenue figure recorded for celebrity beauty brands in 2023, according to a Nielsen IQ report.
Despite initial surprises at Rhodeโs rapid growth, Bieber reflected on the brandโs success, saying in a pre-announcement interview with Vogue, โIn my wildest dreams, itโs already gone beyond what I wouldโve hoped for.โ
Cultural Impact and Social Media Strategy
Rhode has garnered a devoted following largely through engagement on social media platforms, with viral content featuring products like its pocket blush and peptide lip treatments. Influencer culture in the beauty industry continues to flourish, demonstrating the significant impact of social media on consumer behavior and brand growth.
As Hailey Bieber embarks on this new chapter for Rhode under e.l.f. Beautyโs umbrella, industry experts will be watching closely to see how the brand evolves and expands in the competitive beauty market.
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