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Best known for being married to Justin Bieber, but certainly making a name for herself, Hailey Bieber has just sold her cosmetics brand Rhode to e.l.f. beauty for a huge $1 billion 鈥� making it one of the biggest celebrity beauty exits ever.

And the most impressive part? Rhode is only 3 years old and has only 10 products.

So how did she do it?

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The Growth Of Rhode

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Rhode was founded in 2022 by Hailey Bieber, who wanted to make products that integrated skincare and makeup.

Named after her middle name, the brand quickly rose to success due to Hailey鈥檚 huge social media following, which stands at around 55 million on Instagram.

Boasting just 10 minimalist products, the brand sold directly to consumers, generating $212 million in net sales in the 12 months leading up to March 2025.

Rhode also made some smart creative moves, selling through TikTok and creating their viral phone cases that held Rhode lip glosses 鈥� a move that got them a cult following and coverage in all major magazines like Vogue and Cosmopolitan.

And now, just 3 years later, Hailey has sold the brand to e.l.f. beauty for $1 billion, showing just how powerful celebrity influence can be in the world of business.

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A Big Deal For e.l.f.

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e.l.f. beauty, known for affordable, cruelty free, Gen-Z focused makeup, acquired Rhode in its biggest deal to date.

The deal includes $600 million in cash, $200 million in stock and an extra $200 million in performance-based pay-outs over the next 3 years.

But the deal doesn鈥檛 mean that Bieber is off the hook. In fact, as part of the agreement, Hailey has agreed to continue as Founder, Chief Creative Officer and Head of Innovation 鈥� overseeing ongoing product development.

Commenting on the deal, Hailey said:

鈥淔rom day one, my vision for Rhode has been to make essential skin care and hybrid makeup you can use every day. Just three years into this journey, our partnership with e.l.f. Beauty marks an incredible opportunity to reach more of our community with even more innovative products and widen our distribution globally.鈥�

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The Rise Of Celebrity Beauty Brands

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But Hailey Bieber isn鈥檛 the only celebrity at the helm of a successful beauty brand. In fact, a number of A-listers have used their platforms to build beauty empires.

And they鈥檙e successful too, analysis by Nielsen IQ in 2024 revealed that celebrity beauty brands collectively surpassed $1 billion in sales in 2023 鈥� and it鈥檚 only growing year on year.

Some examples of famous celebrity beauty brands include:

Rhianna鈥檚 Fenty Beauty, which stands out for its inclusive range of foundation shades, with over 40 currently on its roster.

Kim Kardashian鈥檚 SKKN, which boasts luxury skincare for a number of complexions.

Ariana Grande鈥檚 r.e.m beauty that releases cruelty-free products that mimic some of Ariana鈥檚 iconic makeup looks.

Kylie Jenner鈥檚 Kylie Cosmetics, which pioneered the celebrity beauty brand space, showing how powerful influencer marketing can be.

Selena Gomez鈥� Rare Beauty, which focuses on self-love and breaking down unrealistic beauty standards.

Lady Gaga鈥檚 Haus Labs which allows users to enjoy a range of bright and bold colours, without damaging their skin.

Florence by Mills, Millie Bobbie Brown鈥檚 makeup brand that focuses on clean ingredients.

Beyonc茅鈥檚 C茅cred 鈥� a haircare brand that focuses on protective shampoo and scalp products.

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Why Is The Beauty Industry So Hot At The Moment?

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With such a big deal secured, many might be wondering: why now?

With US markets experiencing some economic turbulence, and treasury yields on the up according to Yahoo Finance, it might seem like a strange time to invest into a product that is a luxury buy.

After all, as people鈥檚 pockets get tighter, they鈥檙e less likely to spend money on lipstick 鈥� right?

Actually, it turns out the inverse is true. The 鈥榣ipstick effect鈥� is a theory coined by Leonard Lauder, chairman of the board of Est茅e Lauder, who noticed that sales of affordable luxury goods like makeup actually increase during times of economic stress. This is because consumers spend more money on 鈥榣ittle luxuries鈥� rather than bigger, more expensive purchases.

As the US faces economic headwinds in the face of tariffs and other changes, this might be a smart move by e.l.f. to get ahead of that sales peak.

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The Road Ahead For Rhode

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Whilst the deal is certainly a huge milestone in Rhode鈥檚 rise from a startup to $1 billion company in just 3 years, it isn鈥檛 the end of the story.

Now, e.l.f. will hold the reigns, and it will be interesting to see how the brand evolves with a new major stakeholder involved.

But for Hailey Bieber, this will certainly go down as a major milestone, solidifying her as a successful business woman in the world of celebrity beauty.