Hailey Bieber’s Rise: Building Rhode into a $1 Billion Beauty Brand in Just Three Years
The beauty industry, once characterized by long-standing dynasties like L’Oréal, Avon, and Estée Lauder, is rapidly transforming into a realm dominated by celebrity influence.
Among the most prominent cosmetics brands today are those led by some of the most recognizable women worldwide: Rihanna with Fenty Beauty; Kylie Jenner’s Kylie Cosmetics; Selena Gomez’s Rare Beauty; and Rhode, which was established in 2022 by model Hailey Bieber.
While celebrity endorsement is often profitable, Rhode has reached remarkable financial heights. Recently, Bieber, 28, the spouse of pop icon Justin Bieber, announced the sale of her brand to Elf Beauty for an astonishing $1 billion, just three years post-launch. In an Instagram update, she expressed her long-standing aspirations for the company. The deal comprises approximately $800 million in cash and stock, with Bieber poised to receive around $200 million.
Rhode primarily attracts a demographic of women and girls aged 13 to 28 who have a significant disposable income for beauty products. Research from business consultancy CACI reveals that this market segment in the UK is estimated to be worth about £2.3 billion. Bieber has direct access to this audience through her substantial following of 55 million on Instagram. In a competitive beauty landscape, how has Rhode secured a leading position?
One key factor is the brand’s commitment to product quality. Rhode emphasizes its “scientifically proven formulas” and features a board of chemists and dermatologists, a strategy praised by beauty editor Nateisha Scott from Vogue Business as vital in an industry often driven by hype.
The brand’s minimalist packaging, the slow introduction of new products, and a limited range help create anticipation and reflect the thoughtful approach to each launch, according to beauty director Jenn George from Sheer Luxe.
Pricing remains competitive, with a “Natural Flush” blusher retailing at £24, a cost that aligns with Gen Z brands like Glossier. Olivia Houghton, lead beauty analyst at The Future Laboratory, notes that Rhode has been able to cultivate credibility where many celebrity beauty brands falter.
Its marketing strategies have proven effective in creating viral products. For instance, a cult phone case designed to hold the popular peptide lip balm sold out immediately after its release in February. Additionally, a collaboration with Krispy Kreme resulted in a “Strawberry Glaze” lip treatment. Scott commends Rhode’s marketing as nothing short of exceptional.
Importantly, Bieber herself embodies the brand. With Rhode named after her middle name, she leveraged her YouTube presence, sharing skincare routines that showcased her signature natural look. Her technique—clean, radiant skin—has inspired numerous viral videos on how to recreate her aesthetic. On Rhode’s website, Bieber appears in tutorials demonstrating product use.
Scott refers to her approach as minimal and authentic, offering a refreshing contrast to traditional celebrity marketing. Houghton points out that Bieber is central to Rhode’s success.
Despite this business acumen, Bieber’s journey has not been without privilege. Born in Arizona in 1996 and raised in a wealthy suburb of New York, she is the daughter of actor Stephen Baldwin, the younger sibling of Alec Baldwin. In January 2023, she humorously acknowledged her background by wearing a “Nepo Baby” t-shirt.
Stardom came early for Bieber; she began modeling as a teen and quickly graced the pages of Vogue and walked runways for renowned brands like Tommy Hilfiger. However, her relationship with Justin Bieber catapulted her into the spotlight.
The couple became engaged in July 2018, married shortly thereafter, and welcomed their first child, Jack, last year. They reside in a luxurious $16 million home located in La Quinta, a gated community popular among wealthy individuals, including neighbors like Kris Jenner. They are also active members of Churchome, a non-denominational church appealing primarily to a celebrity congregation.
Bieber’s “clean girl” image sharply contrasts her husband’s increasingly controversial public persona. After reducing his music commitments in 2022, Justin has faced scrutiny for peculiar online behavior and disconcerting public appearances, notably at Coachella. Recently, while promoting a new album in Iceland, his social media posts were controversial, overshadowing Bieber’s significant announcement regarding her billion-dollar deal.
Bieber has also had to contend with a segment of the online community that believes her husband should have remained with his ex-girlfriend, Selena Gomez. Following the Rhode announcement, detractors expressed negative sentiments on social media. In response, Bieber stated that much of what is written about her is “not real,” expressing disappointment that public scrutiny continues even after having a child. She indicated that the negativity won’t define her, asserting, “So I guess these bitches are going to be mad.” Now, she enjoys success on her own terms.
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