.
Image: Rhode
Every beauty founder dreams of accomplishing what Rhode just achieved: a billion-dollar valuation, a cultural following, and a brand that seems to dominate every platform it touches.
Of course, Rhode’s explosive growth is rare. Not every brand can rely on a high-profile founder or massive social presence. But while Rhode may look like a celebrity influencer-driven success, the truth is, Hailey Bieber didn’t just launch another product line; she created a thoughtful, curated brand rooted in an ecosystem of wellness, beauty, and simplicity. Backed by her authenticity and a deep understanding of her audience, Rhode stands for more than just beauty. Rhode is Hailey and all that she embodies, her fame, look, and lifestyle all of which resonate with today’s consumers. The big question for e.l.f. is what happens next? What follows are some thoughts on how they might capitalise on their investment, as well as risks that brands often face in the pursuit of online momentum.
Balancing momentum and meaning is key to maintaining authentic engagement. Momentum gets your brand noticed. It’s about gaining traction, sparking conversations, and connecting with your audience. On the other hand, meaning keeps your brand loved. It’s the depth of the relationship your customers have with your brand, built on brand identity, consistency, and cultural integration.
The problem arises when momentum takes precedence over meaning. It is understandable that acquirers who have paid top dollar feel the need to take quick action. Who doesn’t want to see an immediate return on their investment?
This said, knee-jerk reactions to sign an influencer or flood the feed with user-generated content can leave one’s core consumers feeling confused, even alienated. To avoid missteps, it is critical to socialise the new employees and third parties to the key tenets of the brand to ensure that teams lean more into “play” than “playbook.”
Once the narrative is clear and the actions defined, the next step is knowing where and how to deploy them. As a brand matures, it is important to show up for your community where they live, not just where they scroll.
For direct-to-consumer brands, the question of optimising one’s website and digital platforms remains paramount. This said, one piece of advice I often give to young companies once they’ve achieved a certain critical mass is to get offline as quickly as possible.
It’s psychological. TikTok screams, “We’re the hot, young thing,” while physical stores, brand partnerships, events, installations, makeup artist appointments, and old world media say, “We’re here to stay, whenever and wherever you may need us.”
Acquirers have a tendency to shy away from these offline actions, viewing them as low-profit-margin areas or even cost centres. However, by shoring up the brand across every channel and touchpoint, you signal to the market that the brand is solid and trustworthy.
Let’s talk about what allows beauty brands to cut through the noise, because it’s not just another double cleanse. “MILK girls do their make-up in the backs of cabs,” is a tagline I still remember almost a decade later.
Just when we thought it was impossible to talk about novel ways in which to apply cosmetics, along comes MILK with a bold campaign, replete with funky models and iconic product packaging, that reflected its edgy, downtown NYC ethos.
Like everything MILK does, it was authentic to its roots.
Year after year, this constant creativity and calculated risk-taking have helped MILK to cut through the noise of what is arguably the world’s most saturated industry. That’s the power of investing early in strong positioning.
The temptation when scaling is often to try to do everything at once. Years ago, an adviser taught me about Igor Ansoff, the father of strategic management, and his famous Ansoff Matrix. With this simple tool, Ansoff outlines the four ways in which a company can grow: market penetration (selling more to your existing audiences), market development (entering new markets), product development (creating new products), and diversification (entering new lines of business). With Rhode’s scale and cultural relevance, they can execute across all four. The key is doing so strategically and methodically.
With the Ansoff Matrix in mind, e.l.f’s has a clear path to structured growth. Top of Hailey’s to-do list will be to open up new markets. A wellness line feels inevitable, perhaps at Erewhon, the deal negotiated over a Hailey smoothie. And given Rhodes’ neutral aesthetic, it could develop a men’s line. First product, “Crashed Ferrari”? A Rhode capsule collection at Alo seems a no-brainer, and thinking laterally, how about a move into wellness and travel publishing (“On the Rhode”, anyone?), or designing the first Rhode retreat?
Rhode’s success is proof that standing for something beyond products pays off. So define that identity early and stick with it uncompromisingly. The balance between momentum and meaning isn’t a one-time act; it’s a discipline, and it’s what will sustain brands for years to come.
ABOUT THE AUTHOR
Geoff Cook is a partner at global branding agency, Base, and a strategic advisor to beauty conglomerate Waldencast.
FAST COMPANY