Hailey Bieber’s $1 Billion Rhode Deal with e.l.f. Transcends Makeup

This week, E.L.F. Beauty acquired Hailey Bieber’s beauty brand Rhode for $800 million in cash and stock, with an additional $200 million contingent on growth. Rhode’s success in the cosmetics industry, despite having only ten products, is attributed to the combination of celebrity influence, marketing, and its status-driven appeal. The brand reported net sales of $212 million by March.

Hailey Bieber, a major influencer with millions of followers across Instagram and TikTok, remains integral to Rhode as its chief creative officer and a strategic adviser. The acquisition reflects how her influence and a dedicated younger fan base contribute significantly to Rhode’s attractiveness as a brand.

Rhode takes inspiration from Glossier, known for pioneering the “skin first, makeup second” aesthetic in the mid-2010s. Glossier’s influence on Rhode is evident in its approach to marketing and community engagement, with Bieber leveraging her social media literacy to elevate Rhode products to status symbols.

A notable outcome of the E.L.F. Beauty deal is a partnership with Sephora, marking Rhode’s consistent availability in stores for the first time. Despite limiting brick-and-mortar exposure, Rhode’s selective and exclusive marketing strategies have proven effective, underscoring its resonance in a saturated market, driven by Bieber’s celebrity and lifestyle promise.