This Is How Rhode Mastered the Art of Luxury Minimalism

Hola Sugarcups, Rhode just redefined what a successful beauty exit looks like – and E.l.f. knows it.

Okay. Real talk? When Hailey Bieber launched Rhode in 2022, I rolled my eyes hard. I remember scrolling past the announcement, muttering, “Great, another celeb with a skincare line. Because what the world really needed was more hyaluronic acid in beige packaging, right?” I work in brand strategy. I’ve seen this movie before; glamorous founder, high expectations, forgettable products, and a PR team doing backflips to keep it all afloat. So yeah, I assumed Rhode would be another flash-in-the-pan.

But then… the weirdest thing happened.
It didn’t flop.
It flew!

raw-and-toasted-Rhode-Elf-Beauty-Acquisition

And not in that quiet, cult-y, “the internet girlies know” kind of way. I mean sold-out launches, TikTok buzz, glowing reviews from actual skincare snobs, not just Bieber stans. Rhode’s billion-dollar exit proves that building a beauty brand isn’t just about products, it’s about fostering an engaged community that drives sustained love and loyalty. And before I could fully process how the Peptide Lip Treatment became the new it-girl lip balm, E.l.f. Beauty acquired Rhode for a rumored billion dollars. A billion. With a B. In less than 3 years. That’s not hype, that’s Harvard Business School curriculum.

How E.l.f. Beauty Is Supercharging Rhode’s Growth at Lightning Speed

E.l.f. Beauty’s acquisition strategy isn’t about popping a new label on mass-market makeup. It’s about partnering with disruptors to amplify growth. Their Naturium acquisition in 2023 showed they could scale prestige-level formulations under a more accessible, mass-market umbrella.

With Rhode, E.l.f. is banking on:

  • Premium pricing power: Rhode’s products retail between $18-$38, boosting E.l.f.’s profit margins.
  • Sephora expansion: E.l.f. brands typically thrive in Target and Ulta, but Rhode gets E.l.f. its first foothold in Sephora US, Canada, and UK.
  • Global Gen Z market control: Rhode’s engagement-driven strategy complements E.l.f.’s digital-first marketing, including viral Super Bowl ads and influencer partnerships.

So… What Did Rhode Do That Everyone Else Missed?

Basically, here’s the thing: Rhode didn’t come in guns blazing with 40 products, celebrity endorsement, and rainbow packaging. It came in quietly confident, almost minimalist, like it had nothing to prove. And that might be what made it work. Where most brands try to be everything to everyone, Rhode zoomed in on doing one thing really, really well. The brand focused on skin barrier support, proposing hydrating, plumping, dewy skin. And it built that promise into every inch of its identity – from product formulas to brand visuals to Hailey’s now-iconic “glazed donut” look. And when people tried the product? They kept coming back. Because it actually worked.

The Lip Balm That Launched an Empire

Now, let’s talk about the Peptide Lip Treatment. This was Rhode’s Trojan horse. It wasn’t just a balm, but was a whole mood. Such that it made you feel like the girl who drinks 64 oz of water a day, meditates, and has a five-step skincare routine that doesn’t stress her out. And Rhode’s lip balm was equivalent of “I’ve got my life together.”. Every product felt intentional. Just 10 SKUs. No fluff. Each one designed to fit into a specific moment of your routine. Rhode didn’t just launch a brand, it curated a feeling.

Why I’m Now Using Rhode as a Client Case Study

If you’re consulting or sleeping on “Should we launch a new product?” or “Do we need more SKUs to compete?” And now? I tell you to look at Rhode. Because what Rhode proves – beautifully, brilliantly, and with lip gloss on, is that you don’t need a massive catalog or flashy gimmicks. You need:

  • A hero product that solves a real problem,
  • A brand story people want to be part of,
  • And the discipline to say no to distractions.

Let me break down Rhode’s glow-up in boardroom terms:

  • Hyper-Curated Lineup: 10 products. All killer, no filler. Think of Apple, but for skin.
  • Built-in Virality: Bieber + TikTok + “glazed donut skin” = organic demand machine.
  • Retail Credibility: DTC roots, but got on the Sephora shelves in the US, Canada, UK = serious brand clout.
  • Cultural Synchronicity: Rhode didn’t chase trends, it set them. Gen Z saw it, bought it, wore it, tagged it.

And let’s not skip the real headline: acquired by E.l.f. Beauty for a rumored billion. E.l.f., who’s quietly become the Amazon of Gen Z beauty. That’s not hype. That’s a move.

5 Steps To Building the Next Rhode: How to Create a Hero Product That Scales

You want to repeat Rhode’s success? Here’s the cheat code for a beauty brand sitting pretty in skincare, but itching to expand. Before I tell them to whip up another serum (spoiler: don’t), I start with a deep market pulse check.

Cultural + Behavioral Trend Signals
I’m seeing:

  • “Skinification” of makeup – Gen Z wants products that do something for their skin while serving glam. Think of foundations with niacinamide, blush with hyaluronic acid.
  • Quiet luxury – Customers are leaning into minimal packaging, high-efficacy, and “clean girl” aesthetics (thanks, TikTok and Sofia Richie’s wedding).
  • Ingredient-conscious shopping – Consumers care more about what’s in the product than what it promises.
  • Functional formats – Sticks, balms, and hybrid textures are killing it. No one wants fussy anymore.
  • Loyalty-driven by efficacy – One hero product that works = long-term customer acquisition engine.

Market Void Spotted: Hybrid complexion product (like a skin tint or balm) with skin barrier support and glow finish. Clean, science-backed, priced under $35. Rhode doesn’t have this yet. Neither do most prestige-lite players.

1. Find the White Space

Every winning beauty brand starts with a gap in the industry. Rhode capitalized on high-tech skincare at accessible price points, while brands like Patrick Ta Beauty and NARS have recently launched hero products that tap into glow-enhancing formulations.

Ask yourself: What’s missing in the market? What problem does your product solve better than anything else?

2. Nail One Product First

Rhode didn’t flood the market with endless SKUs, it launched just 10 products, with the Peptide Lip Treatment leading the charge. Similarly, Kérastase’s Gloss Absolu Glaze Drops is positioned as a single must-have item for achieving glass-like hair.

Strategy tip: Focus on one product that delivers exceptional results before expanding your lineup.

3. Make It Cultural, Not Just Commercial

“Glazed donut skin” wasn’t a marketing line; it was a lifestyle. Hailey wore it. TikTok named it. Rhode sold it. That’s full-funnel cultural relevance, darling.

Marketing move: Create a trend that aligns with your product—not the other way around.

4. Validate with Retail

Rhode’s expansion into Sephora US, Canada, and UK was a game-changer. Retail partnerships validate a brand’s positioning and drive mass adoption. Fresh Beauty’s latest pop-up campaign is another example of how brands use experiential retail to build credibility.

Retail strategy: Start with direct-to-consumer, then expand strategically into prestige retailers.

5. Scale Through Strategic Acquisition

E.l.f. Beauty’s acquisition of Rhode wasn’t just about Hailey Bieber—it was about scaling a hero product with operational power. Similarly, Victoria Beckham Beauty recently launched luxury makeup brushes, leveraging her brand’s prestige to create a new hero item.

Growth hack: Partner with a larger beauty conglomerate or a strategic investor to scale globally.

Rhode didn’t launch with a library. It launched with a laser. And it hit the target dead-on. Rhode now has the platform to go global without breaking its brand soul. E.l.f. gets cool-girl cachet in a way no internal innovation could match. But the bigger picture? This is the mass-premium launch in action. The hybrid of prestige feel with democratic pricing. It’s the future. And if Rhode and E.l.f. play their cards right, they won’t just ride the wave, they’ll set the next one. So, my friend, next time someone says “it’s just a lip balm,” tell them to call me. There’s a billion-dollar difference between product… and strategy.

From Skeptic to Superfan (Kind Of)

And yeah, Hailey, I owe you an apology. You built something real in a space that’s full of smoke and mirrors. And you reminded people like me, who sometimes get too caught up in data and strategy; that feelings matter. That a good brand doesn’t just sell something; it makes you feel like you belong.

If you’re building something (or advising someone who is), Rhode’s journey is more than an inspiration. Do less. Do it better. Make it beautiful. Make it real.

Until next time,

Love

Jasmin