“What gave us the conviction for a billion-dollar deal is Hailey and Rhode’s track record, and what they’ve been able to build and achieve with such a level of conviction and depth with their community and in the market. But, the thing that truly made us interested is that she is a fellow disruptor, and that gives me a lot of confidence when I’m looking at a long-term M&A environment,” says Amin. The CEO hopes that Elf Beauty will help maximise the brand’s dollar share, given its 20-year industry expertise and 25 consecutive quarters of growth, as well as expand the brand into new territories (Bieber referenced demand for Rhode in markets such as Brazil). “We’ll thoughtfully and sequentially (following the Sephora launch) take the brand around the world because it belongs everywhere,” he adds.
(Left to right) Rhode CEO Nick Vlahos, Elf Beauty CEO Tarang Amin, Rhode founder Hailey Bieber and co-founders Michael Ratner and Lauren Ratner.
Photo: Courtesy of Yana Yatsuk for Rhode
Increasingly, celebrity-founded brands need to demonstrate that they can succeed independent of their star ties. Aside from Bieber’s pull, Rhode’s strategic roadmap includes a streamlined product assortment, calculated expansion into makeup and body care, performance-driven marketing, viral social media execution and selective retail partnerships, all of which has made it a compelling blueprint for M&A in today’s turbulent and uncertain market.
As for the future of celebrity and high-profile-founded beauty players, Rhode has not only raised the bar, but it has helped shed the long-standing industry scepticism that could support other beauty deals possibly on the horizon, such as Rare Beauty, Makeup by Mario, One/Size and Glossier.
The brand signals a shift in what it takes to build long-term value as a celebrity brand moving forward. For the next generation of high-profile founders, real involvement in operations, product development and ownership is increasingly non-negotiable. The days of the high-profile or ‘celebrity-as-just-a-face’ model appear numbered, with Rhode offering a roadmap for longevity rooted in authenticity, influence and strategic substance. “Hailey’s vision and innate understanding of what consumers want in a product, coupled with our incredible team and innovative marketing approach, has enabled our exponential growth. I can’t wait to see what the bright future looks like with Elf Beauty,” says Lauren Ratner, Rhode’s co-founder, chief brand officer and president.
“I want to be the biggest beauty brand in the world, and I believe that Elf is going to help me get there,” concludes Bieber.
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