The Rhode That Led To A $1B Acquisition From E.L.F Beauty
A Case Study On The Business Strategy, Bieber Influence & Billion Dollar Blueprint
Rhode, a direct-to-consumer skincare and makeup brand founded by Hailey Bieber in 2022 has seen impressive growth, generating $212 million in net sales over the past 12 months with a focused 10-SKU (Stock-Keeping-Units) product portfolio.
Known for their clean, hydration focused and accessible skincare formulas, such as the Peptide Lip Tint, Peptide Glazing Milk, and Pocket Blush, Rhode has successfully captured consumer attention within the beauty market.
Their innovative products like the viral phone case, which generated over $9 million in revenue, and celebrity collaborations with cultural figures like Tate McRae, Harris Dickinson and Alexandra Saint Mleux have solidified the brand’s appeal among Gen Z and Gen Alpha, driving both brand visibility and long-term loyalty.
On May 28, 2025, e.l.f. Beauty acquired Rhode for $1 billion, a strategic move in a fast-moving beauty landscape. The acquisition allows Rhode to tap into e.l.f.’s expansive retail footprint and digital strength, while e.l.f. benefits from Rhode’s premium skincare positioning to broaden its portfolio.
While challenges like celebrity reliance and integration remain, the deal sets Rhode up for global expansion and long-term cultural relevance. Rhode also announced its plans to launch their first physical in-store partnership in all Sephora US and Canada stores later this year, and in Sephora UK by the end of 2025.
This case study is in partnership with Tracksuit, a brand tracking platform that’s currently tracking 10,000 of the world’s most iconic brands. Today, we explore Rhode, examining the business and marketing strategies that shaped its recent acquisition deal.
Data insights are supported from Tracksuit’s Premium Beauty dashboard (US, Nov 2024–Apr 2025). They collect this data through continuous surveying of real consumers in-market.
Rhode’s Business Model
Rhode’s business model focuses on driving growth by prioritising authenticity, leveraging strategic marketing, and a lean supply chain within the competitive beauty industry.
Over 6 months from Nov 2024 - April 2025, the brand saw a 6% lift in awareness, now at 18%. In their key demographic of 25-34 year olds, awareness increased by 10 percentage points (vs. competitor average of +5 points).
Rhode products are priced between £18 and £38 and target Gen Z and affluent consumers with a premium, curated aesthetic, leveraging Hailey Bieber’s 15.4 million TikTok and 55+ million Instagram followers.
Its social-first strategy, driven by Bieber’s influence, creative PR packages, celebrity partnerships and viral marketing, including campaigns like “glazed donut skin” and the lip gloss phone case, generated Rhode $248 million in Earned Media Value in 2024, up 366% year-on-year, delivering a 3.75% engagement rate, surpassing the industry’s 3.6% benchmark (CreatorIQ Data).
According to Tracksuit, among 25–34-year-olds aware of Rhode, 47% agree that it is a “premium brand,” positioning it as a standout in a crowded beauty category.
Whilst purchase intent and brand loyalty is strong, only 30% feel that Rhode “is for people like me”, highlighting a key opportunity to strengthen this emotional connection with the brand.
Distinctive brand associations such as “Innovative,” “Celebrity,” “Lip,” and “Cool” continue to reinforce Rhode’s unique market position, building the kind of intangible brand equity that drives valuation well beyond financial performance alone.
Common themes (shared with other brands in the category) further described Rhode as “Good”; “Expensive” and “Trendy”.
Usage reflects the percentage of consumers within the Premium Beauty Products category who claim they have used the brand and can be used as a proxy for customer base growth.
Among 25–34-year-olds, claimed usage of Rhode has increased by 5 percentage points—a notable uplift—while competitor averages have remained stable, showing no statistically significant change.
This growth signals Rhode’s rising relevance and traction within a key demographic.
Strategic Marketing Campaigns
Much of rhode’s success can be credited to their marketing strategy which is driven by Lauren Ratner (President & Chief Brand Officer), Kelsey Bidel-Niyat (Vice President of Global Marketing) and Hailey Bieber (Creative Director & Founder).
From viral pop-ups and collaborations with iconic female figures to limited-edition products and the creation of a ‘rhode world,’ the brand has established themselves as an effortlessly cool, must-have name in the beauty industry.
They’ve built an immersive world that customers want to be a part of. Purchasing a rhode product means buying into an effortlessly desirable lifestyle.
Their social media reflects this, curating content from beach escapes, handbag flatlays and tapping into sensory marketing. Alongside this, Rhode partners with influencers and celebrities who share the same values as the brand.
Beyond Instagram, rhode’s pop-up events bring this curated lifestyle to life, offering exclusive, limited-time experiences that allow customers to engage with the brand in a tangible way.
The $1B Acquisition With Strategic Timing
On May 28th, 2025 e.l.f. Beauty announced a definitive agreement to acquire rhode in a $1 billion deal. As per the official press release:
“The deal is comprised of $800 million of consideration payable at closing in a combination of cash and stock, subject to customary adjustments, and an additional potential earnout consideration of $200 million based on the future growth of the brand over a three-year timeframe.”
E.l.f. Beauty, renowned for its affordable, high-quality cosmetics and highly engaged community, saw strong strategic value in acquiring Rhode.
Rhode’s appeal among Gen Z and affluent consumers made it a compelling addition to E.l.f.’s portfolio, offering access to their loyal audience and reinforcing its position at the intersection of cultural relevance and beauty innovation.
The deal is expected to close in the second quarter of Fiscal 2026, where Hailey Bieber will continue her role as Founder and Chief Creative Officer, Head of Innovation, and e.l.f.’s strategic advisor.
Last year rhode became the No. 1 skin care brand in Earned Media Value, representing a 367% year over year EMV growth.
Key Takeaways
This case study solidifies the commercial power of brand health.
Rhode joining e.l.f’s portfolio (e.l.f Cosmetics, Naturium, Keys Soulcare) is a reminder that strong brand health directly impacts company valuation and M&A attractiveness.
Rhode gives e.l.f Gen Z visibility, Hailey’s global celebrity and influence whilst e.l.f beauty gives Rhode retail expansion, product development acceleration and scaled infrastructure.
For entrepreneurs and marketers, it’s important to:
Stay niche as a Founder-led brand and global celebrity
Invest in a ‘Hero’ product which can be fundamental to rapid growth and recognition
Focus on your distinctiveness and brand authenticity to avoid commoditisation in saturated categories
Prioritise disciplined brand-building activities that grow awareness and consideration in commercially important segments
Track not just who knows your brand, but what they associate with it, and how personally ‘relevant’ it feels to them. A brand tracking tool like Tracksuit can help you do this
As rhode puts it:
“Our philosophy is to make one of everything really good”
and that they have certainly delivered on.
This partnership could redefine the beauty market, proving the power of influencer-led brands, a high-velocity product engine, niche SKU portfolio, backed by strategic corporate acquisition.
This article is in partnership with Tracksuit. Tracksuit is an affordable, always-on brand tracking dashboard that helps marketers and agencies prove the impact of their work on brand metrics over time, benchmarked against their category and competitors.
I’ve seen this headline on three different platforms today (I’m a beauty writer IRL) and each time I’ve thought, damn that’s a good pun 🤣