A groundbreaking acquisition has placed model Hailey Bieber's skincare brand, rhode, under the umbrella of e.l.f. Beauty in a deal valued at US$1 billion. Despite this monumental transaction, Bieber will retain an influential role within the company as chief creative officer and head of innovation. The brand’s signature minimalist design and appeal to social media audiences will remain consistent. Since its inception in 2022, rhode has demonstrated remarkable success, generating US$212 million in net sales with only 10 products. This strategic partnership aims to expand rhode’s presence globally through retail ventures such as Sephora in North America and the UK.

e.l.f. Beauty, renowned for its budget-friendly offerings targeting younger demographics, anticipates rhode enhancing its prestige skincare segment. Lauren Rothberg, co-founder of rhode, expressed gratitude to the brand’s community. Despite challenges like rising tariffs affecting e.l.f.'s Chinese manufacturing base, the brand remains optimistic about its future growth. The acquisition includes an initial payment of US$800 million with additional incentives tied to performance over three years, expected to finalize by year-end.

Bieber's Role in Shaping rhode's Future

Despite selling her skincare label, Hailey Bieber continues to play a pivotal role in shaping rhode's direction. As chief creative officer and head of innovation, she ensures that the brand retains its unique blend of minimalism and quiet luxury, qualities that have resonated deeply with consumers since its launch in 2022. Her involvement guarantees continuity in rhode’s aesthetic identity while guiding it towards new horizons.

Hailey Bieber’s decision to stay engaged with rhode signifies her commitment to maintaining the brand’s integrity and vision. By leading as chief creative officer and head of innovation, she oversees every aspect of product development and marketing strategies. This hands-on approach ensures that rhode continues to captivate its audience with innovative solutions and sleek designs. Bieber's influence extends beyond mere aesthetics; it encompasses a holistic philosophy centered around accessibility and quality, appealing not only to existing fans but also drawing in new customers. Her leadership is crucial in navigating rhode through its next phase of expansion into international markets via partnerships with major retailers like Sephora.

e.l.f. Beauty's Strategic Move

e.l.f. Beauty's acquisition of rhode marks a significant shift towards elevating their portfolio in the prestige skincare market. With rhode’s proven track record of success, including impressive sales figures from just ten products, this move aligns perfectly with e.l.f.’s ambition to diversify its offerings beyond affordable cosmetics. Through collaborations with high-profile figures such as Hailey Bieber, they aim to enhance their reputation among discerning consumers seeking premium yet attainable skincare options.

This acquisition represents more than just financial gain for e.l.f. Beauty; it symbolizes a bold step forward in redefining their brand identity. By integrating rhode into their roster, e.l.f. gains access to advanced formulations and cutting-edge innovations developed under Bieber's guidance. Furthermore, rhode brings along its burgeoning global appeal, bolstered by ongoing expansions at key retail locations such as Sephora across North America and the United Kingdom. Despite potential hurdles due to increasing tariffs impacting e.l.f.’s manufacturing processes in China, the company remains steadfast in its commitment to delivering value-driven products. The structure of the deal—US$800 million upfront plus performance-based incentives totaling US$200 million over three years—highlights both parties' confidence in sustaining long-term growth. As the acquisition progresses toward completion by year's end, all eyes are on how effectively e.l.f. can leverage rhode’s strengths to further solidify its position within the competitive beauty industry landscape.