Elf beauty buys Hailey Bieber’s Rhode in $1 billion deal – India Today
A Game-Changing Move in the Gen Z Skincare and Makeup Industry
In a major move shaking up the beauty world, E.l.f. Beauty has announced the $1 billion acquisition of Rhode, the skincare and cosmetics brand founded by Hailey Bieber. This powerful merger not only strengthens E.l.f.’s hold on the Gen Z market but also helps diversify its supply chain beyond China.
Key Highlights of the E.l.f. x Rhode Acquisition
- Deal Value: $1 billion total, including $600 million in cash and $200 million in E.l.f. stock.
- Potential Bonus: Up to $200 million more based on future performance.
- New Role for Hailey Bieber: Strategic Adviser, Chief Creative Officer, and Head of Innovation at Rhode.
Rhode Cosmetics: A Gen Z Beauty Sensation
Founded in 2022 by Hailey Bieber, Rhode Cosmetics quickly became a trending beauty brand known for minimalist skincare and affordable makeup. With viral products like:
- Pocket Blush – $24
- Lip Tint – $18
Rhode’s clean aesthetic and focused product line earned it $212 million in sales in just one year, ending March 31. The brand is set to launch in Sephora later this year, a move expected to significantly boost its retail footprint.
Why This Beauty Merger Matters
1. Expanding Influence with Gen Z
Both E.l.f. and Rhode are beloved by Gen Z and millennials for their affordability, quality, and social media buzz. The combined brand power strengthens their cultural relevance and digital reach.
2. Supply Chain Diversification
Currently, 75% of E.l.f.’s products are made in China, exposing the brand to steep tariffs (now at 55%). This acquisition helps mitigate that risk, as many of Rhode’s suppliers are based in the U.S., Europe, and Asia—offering a more flexible global supply chain.
3. Product Innovation Ahead
With Hailey Bieber now driving creative direction and innovation, fans can expect fresh, influencer-backed launches across skincare and makeup categories.
What This Means for E.l.f. Beauty’s Growth
CEO Tarang Amin praised Rhode as “one of the most beautiful businesses” he’s ever seen. The brand’s rapid growth and unique positioning make it a valuable addition to E.l.f.’s expanding beauty empire.
To offset rising production costs and tariffs, E.l.f. has raised prices slightly:
- Camo Liquid Blush – now $7
- Squeeze Me Lip Balm – now $4
This acquisition positions E.l.f. to deliver long-term value while staying competitive in the fast-evolving clean beauty and skincare market.
Hailey Bieber’s Vision for the Future
Hailey Bieber expressed excitement about the partnership:
“We can’t wait to bring Rhode to more faces, places, and spaces.”
Her continued involvement ensures the brand stays authentic to its founding values of minimalist beauty, skin health, and inclusive pricing.
Conclusion: A Bold Move in the Billion-Dollar Beauty Industry
The E.l.f.-Rhode merger signals a strategic evolution in the beauty sector. By combining cutting-edge skincare with influencer branding and smarter manufacturing, this deal is poised to set new standards in the Gen Z beauty market.
#HaileyBieber #RhodeBeauty #ELFBeauty #GenZSkincare #CleanBeauty