In the rapidly changing world of beauty, one newcomer has quietly but rapidly acquired a following. Rhode, a minimalistic skincare and hybrid makeup brand was founded in 2022, has generated both consumer and investor interest.
Its understated aesthetic and focus on everyday essentials have resonated with a broad audience, helping fuel an explosive growth trajectory that few had foreseen. Yet, the complete story of Rhode’s rise and its implications for the beauty market remain to be told.
Rhode’s Reach Expands
Rhode’s influence is not confined to niche markets, it extends coast to coast and the company has doubled its customer base in a little over a year. With $212 million in sales in the year ending March 2025, the brand is expanding rapidly, setting the stage for a major industry shift.
This growth demonstrates a wider customer appetite for accessible luxury and authenticity in the beauty products, marking Rhode as a significant force in the national beauty landscape.
From Humble Beginnings to Industry Game-Changer
The dream started with a simple vision: to create essential skincare and makeup products that could be used daily. Named after Hailey Bieber’s middle name, it quickly became a social media sensation, propelled by viral products like the Peptide Lip Treatment and Pocket Blush.
It was this nostalgic simplicity, combined with modern marketing savvy, that set Rhode apart in a very crowded marketplace.
The Path to Success
Behind Rhode’s rapid rise were early challenges that tested the brand’s resilience. Founder Hailey Bieber has been vocal about the importance of embracing mistakes, such as initial packaging color mismatches, as part of the growth process.
This willingness to learn and adapt, has been fundamental in shaping the brand’s identity and product offerings, ultimately contributing to its robust market position.
The $1 Billion Deal
The defining moment came when e.l.f. Beauty revealed it would acquire Rhode for up to $1 billion in a deal composed of $600 million in cash, $200 million in e.l.f. stock and an additional $200 million earnout based on future performance.
This deal represents e.l.f.’s biggest acquisition yet and reinforces Rhode’s value as a fast-growing disruptor in the beauty sector.
Local and International Expansion Plans
With e.l.f. Beauty’s support, Rhode is set to grow substantially, including the introduction of products in Sephora stores in the United States and the United Kingdom.
The move into physical retail is a significant strategic pivot that widens Rhode’s accessibility, enhancing its global presence. The partnership will allow Rhode to reach more people with its pioneering products, expanding its reach outside of digital channels.
Vision and Leadership
Hailey Bieber is also set to continue in her active role as Rhode’s chief creative officer and head of innovation, alongside CEO Nick Vlahos.
This continuity ensures the brand’s original vision and creative direction remains intact, even as it scales. Bieber’s position serves as a testament to the significance of authentic leadership in staying true to brand identity amidst explosive growth and acquisition.
Competitive Landscape and Market Positioning
Rhode’s acquisition by e.l.f. Beauty places it within a portfolio of brands known for merging quality with affordability.
The deal positions Rhode to compete strongly with prestige and mass-market beauty brands, capitalizing on trends toward inclusivity and innovation.
This strategic alignment is expected to fuel Rhode’s growth and help it capture a larger share of the evolving beauty market.
Consumer Trends Driving Rhode’s Success
The brand’s success reflects broader shifts in consumer behavior, where buyers seeks not just products but meaningful stories and authentic connections.
Rhodé’s emphasis on everyday use, combined with Hailey Bieber’s influencer-driven marketing, taps into desires for relatability and lifestyle aspiration. This approach has allowed Rhode to break through the noise and build a loyal following.
The Future of Rhode and Beauty Innovation
As Rhode embarks on this new chapter with e.l.f. Beauty, the industry is watching. The deal is the latest example of a new kind of acquisition in which the founders remain actively involved, blending entrepreneurial spirit with corporate resources.
The question remains whether Rhode can sustain its rapid growth and coninue innovating in a competitive market, but its trajectory suggests a promising future fileld with potential for further disruption and expansion.
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