The Rise of Rhode: A Case Study in Celebrity-Backed Beauty
Rhode has emerged as a powerful example of how influencer marketing can transform a personal vision into a successful business. Founded by Hailey Bieber, the beauty brand gained rapid traction through strategic branding and social media engagement. Its journey from an influencer’s idea to a major player in the beauty industry is a testament to the changing landscape of consumer trends and brand building.
The Vision Behind Rhode
In 2022, Hailey Bieber launched Rhode with the goal of creating a line of beauty products that catered to those who preferred a minimalist makeup look. This concept resonated with a growing segment of consumers who value simplicity and authenticity. The brand quickly found its footing, thanks to a combination of factors that contributed to its early success.
Key Strategies for Success
Three key strategies played a significant role in Rhode's early success:
- Personal Branding: As a model and partner to Justin Bieber, Hailey already had a strong public presence. This helped Rhode gain immediate attention and credibility.
- Viral Product Launches: Rhode leveraged buzzworthy collaborations and mass media to create viral product launches. For instance, the Peptide Lip Treatment sold out within hours of its release, showcasing the brand's ability to generate demand.
- Social Media Strategy: By targeting Gen Z and millennial consumers, Rhode created content that deeply resonated with these audiences. Social media videos featuring Hailey helped her amass over 50 million followers, further boosting the brand's visibility.
These strategies not only drove initial sales but also established a loyal customer base, proving that Rhode was more than just a celebrity project—it was a well-branded and sustainable business.
The Sale of Rhode: A Major Milestone
In late May 2025, e.l.f. Beauty announced the acquisition of Rhode in a deal worth $1 billion. This sale sent shockwaves through the beauty industry, signaling a shift in how celebrity-backed brands are perceived.
According to reports, e.l.f. Beauty will pay $800 million in cash and stock, with the remaining $200 million contingent on future sales targets. Despite the sale, the leadership structure of Rhode remains unchanged, with Hailey Bieber continuing as chief creative officer and co-founders retaining their positions.
Why Investors Are Taking Notice
The sale of Rhode is more than just a financial transaction—it's a sign of the growing recognition of celebrity-backed brands as viable investment opportunities. Once considered risky or gimmicky, these brands are now seen as valuable assets due to their strong social media presence and ability to connect with consumers.
Over the years, numerous celebrities have ventured into business, ranging from beauty products to fashion lines and even entertainment ventures like online casinos. Some have collaborated with influencers to develop games, with many of these figures having a significant presence in cities like Toronto.
For example, Drake partnered with Stake, a crypto casino and sports betting platform, in 2022. However, this partnership ended after a dispute with the company. These examples highlight the complex relationship between celebrities and the businesses they endorse.
The Broader Impact of Celebrity Influence
Rhode is not the only celebrity-backed beauty brand to achieve significant success. Rihanna’s Fenty Beauty and Kim Kardashian’s SKIMS are also prominent examples. These brands have shown that while celebrity influence can drive interest, long-term success depends on business acumen and genuine consumer connections.
Rihanna’s performance at the Superbowl LVII in 2023, for instance, helped solidify her brand’s connection with fans. Similarly, Kim Kardashian’s SKIMS has built a loyal following through its focus on comfort and inclusivity.
The Future of Celebrity-Backed Brands
As the market continues to evolve, the sale of Rhode signals a potential increase in mergers, acquisitions, and venture capital interest in celebrity-backed brands. Investors are increasingly looking for brands that combine viral traction, strong business prospects, and compelling long-term storytelling.
With the right strategy, these brands can continue to thrive, proving that the power of influence extends beyond social media and into the world of business.