The acquisition of Rhode, Hailey Bieber’s skincare line, by e.l.f. Beauty is a major development in the beauty industry, potentially reaching a staggering $1 billion valuation. This deal, announced on May 28, 2025, signals a significant bet on the power of celebrity skincare and the strategic synergies between the two brands. But what are the key factors driving the substantial increase in Rhode’s net worth following this acquisition? We’ll break down the driving factors behind this surge in value.

Hailey Bieber’s Enduring Influence: The Creative Engine

Hailey Bieber is not just the face of Rhode; she’s its heart and soul. Her continuing role as “pimpinan kreatif” (creative leader) and head of innovation is absolutely crucial. Her personal brand, authenticity, and appeal to Gen Z and millennials are major assets that e.l.f. Beauty is banking on. This connection provides a strong foundation for the brand’s continued success and significantly contributes to its overall valuation. The strategic importance of Bieber’s direct involvement cannot be overstated, solidifying Rhode’s position within a competitive market.

Rapid Growth and Market Validation: Rhode’s Meteoric Rise

Launched in Los Angeles in the summer of 2022, Rhode quickly captured the attention of skincare enthusiasts. The brand’s success can be attributed to its focus on creating high-quality, functional skincare products that are both effective and accessible. Their Peptide Lip Treatment and Glazing Milk became instant hits, demonstrating a keen understanding of consumer desires and generating substantial revenue. Rhode’s ability to rapidly establish a loyal customer base in a relatively short period is a testament to its strong brand identity and effective marketing strategies.

Strategic Alignment and Market Expansion: e.l.f. Beauty’s Vision

e.l.f. Beauty’s acquisition of Rhode is part of their broader strategy to expand into the lucrative celebrity skincare market. This move follows the success of other celebrity-backed brands, such as those launched by Rihanna and Selena Gomez. The acquisition allows e.l.f. Beauty to leverage Rhode’s existing brand recognition and customer base, while also providing Rhode with access to e.l.f. Beauty’s extensive distribution network, marketing resources, and expertise. This synergy creates a powerful combination that is expected to drive significant sales growth and expand the reach of both brands. Rhode’s initial vision was to provide accessible skincare with high functionality, matching e.l.f.’s vision of innovation and accessibility.

Branding and Digital Marketing Mastery: Capturing the Online Audience

Rhode’s success is intrinsically linked to its effective branding and digital marketing strategies. Hailey Bieber’s personal branding and her savvy use of social media have been instrumental in building brand awareness and engaging with customers. The brand’s online presence is carefully curated to reflect its values of inclusivity and accessibility, resonating with a wide audience. This digital marketing prowess has not only fueled Rhode’s initial growth but will likely play a crucial role in its continued success under e.l.f. Beauty’s ownership.

While the acquisition of Rhode presents significant opportunities, it’s important to acknowledge the potential risks and challenges. Concerns regarding potential overvaluation must be carefully considered. Furthermore, the brand’s value is heavily tied to Hailey Bieber’s image. Maintaining consistent product quality, fostering continuous innovation, and upholding authentic brand communication are crucial for ensuring the long-term success of Rhode. Transparency and sustainability in the supply chain are also essential considerations for maintaining consumer trust.

The Future of Rhode: Building a Lasting Legacy

The acquisition of Rhode by e.l.f. Beauty is a significant step for both brands. As Rhode continues to evolve under e.l.f. Beauty’s umbrella, the focus should remain on maintaining its core values, fostering innovation, and building a strong and sustainable brand that extends beyond its celebrity association. The real test will be in building a legacy brand that transcends the “celebrity” label and establishes itself as a long-term player in the skincare market. Only time will tell if Rhode can realize its full potential, but the foundation for success is undeniably in place.