Ì첩ÈüʹÙÍø

• In 2024, celebrity-led beauty brands brought in over $1.7 billion globally, with Hailey Bieber’s Rhode emerging as a key player following its $1 billion acquisition by e.l.f. Beauty (NPD Group).
• In the UK alone, TikTok-driven skincare trends generated £960 million in beauty sales last year—an indicator of the digital-first consumer base e.l.f. is now tapping into with Rhode.

In one of the most talked-about beauty deals of the year, e.l.f. Beauty announced its acquisition of Rhode, the skincare line founded by Hailey Bieber, for a staggering $1 billion. The agreement includes $800 million in a mix of cash and stock, with an additional $200 million tied to Rhode’s performance targets over the next three years.

The acquisition signals more than just a high-profile merger. It represents a broader shift in how personal brands and corporate giants are intersecting, especially within beauty. For e.l.f., it’s a move toward premium skincare and celebrity-led equity. For Rhode, it’s a jump from niche disruptor to global contender.

Why It Matters to You

If you’re passionate about skincare, this acquisition offers a lens into how a minimalist, highly curated product line can scale into a global operation without losing its core.

If you’re a consumer who follows product ingredients, packaging, and performance, not just celebrity names, it signals where product development is heading and how big players are thinking about quality and simplicity.

And if you’re loyal to a brand that feels personal and accessible, it raises the question: what happens to that intimacy when your favourite serum becomes a global bestseller??

Inside the Deal

When Hailey Bieber launched Rhode in mid-2022, expectations were high, but the brand delivered. With just a trio of products—Peptide Glazing Fluid, Barrier Restore Cream, and Peptide Lip Treatment—Rhode captured attention quickly. Scarcity helped. So did Bieber’s direct social media strategy.

A waitlist of over 700,000 grew in under six months. Not through gimmicks, but because the products worked and the brand felt personal. This wasn’t just another celebrity face on a label. This was a founder who posted her skincare routine in real time.

The timing helped. Consumers were shifting back to skincare post-pandemic, and Rhode’s clean, concise approach cut through the clutter. In a space saturated with 10-step regimens, Rhode told buyers: three good products are enough.

e.l.f. Beauty’s Strategy

e.l.f. has historically played the volume game—low prices, wide appeal, viral TikTok moments. But it has ambitions beyond its mass-market roots.

gives e.l.f. a premium skincare foothold and a deeper relationship with Gen Z buyers who are increasingly drawn to authenticity and minimalism.

Importantly, Hailey Bieber will stay on. She’s not cashing out; she’s doubling down, taking on the titles of Chief Creative Officer and Head of Innovation.

For e.l.f., the value here isn’t just product—it’s presence.

Financial Breakdown

• $800 million upfront in cash and stock
• $200 million in earnouts, tied to Rhode’s performance

Compare that to e.l.f.’s reported $846 million in total sales last year. This acquisition is not just additive—it’s transformational.

It also signals a clear pivot: more skincare, fewer price-based plays. Skincare typically commands better margins, and e.l.f. is positioning itself for long-term growth in this space.

What’s Next for Rhode

Going global is the next logical step. The UK will be central to that.

Look for retail partnerships with Boots, Selfridges, and Space NK. Expect more product drops—likely seasonally timed and potentially limited edition, all likely leveraging Hailey’s online visibility.

The brand’s current minimal range has room to grow—body care, SPF, and night treatments are obvious candidates.

UK-based pop-ups or community-led events may serve as brand awareness engines. The playbook mirrors what Glossier and Fenty did in their early international expansion.

The UK Beauty Landscape

UK consumers have long favoured simplicity over spectacle. Rhode fits that mindset. Its packaging is muted. Its ingredients are purposeful. Its message is direct.

That said, the competition is tough. From The Ordinary to Byoma to Beauty Pie, value-conscious skincare brands are everywhere.

The key for Rhode will be carving out not just shelf space but emotional territory—earning trust in a market that doesn’t default to celebrity worship.

The Celebrity Brand Model

Rhode isn’t the first celebrity skincare brand, but it might be the most calculated.

Hailey Bieber has been methodical in how she positioned herself, not as an endorser, but as a user. Her routines feel lived-in. Her launches feel thoughtful.

In a world where many celebrity brands over-promise and under-deliver, Rhode feels like it was built backwards: product first, platform second.