To some, Hailey Bieber fits the classic “mean girl” trope. Her ongoing alleged feud with Selena Gomez, and reported instances of mean behavior (laminated eyebrows are quite contentious, I guess), can paint her in a less than flattering light. And, to others, she’s a contrite wife subject to Justin Bieber’s vacillating moods. While these supposed glimpses into her life craft a convincing narrative, we don’t know her in reality. Yet, many remain rapt.
Although some brush off frivolous things like “personal brand identity,” placing them in an ephemeral and intangible realm, Bieber capitalized on hers by launching her beauty and skincare brand Rhode in 2022. The brand focuses on the nexus between skincare and make-up, with hit products including the “peptide lip treatment” and “Glazing Milk.”
Perhaps attributable to the broader consumer sphere, where companies extract extreme profits due to consumers’ distorted understanding of the costs of production and goods’ subsequent value, Rhode boasts exceptional gross profit margins. While the products’ prices range from $20-$40, the average cost per product is substantially lower. Ultimately equating to an approximate 80% profit margin. To illustrate this in simple terms, if you buy the “peptide lip treatment” for $20, it actually only costs Rhode approximately $4 to produce.
Despite the products not rationally necessitating such a high price, consumers are still eager to get their hands on them, displaying little to no price-related purchase hesitation. I attribute this to the powerful brand of Bieber. Her much-revered, effortlessly cool vibe is enough to elicit a purchase response from consumers, who perceive themselves as paling in comparison to this supposed “cool girl.” As unbelievable as it may seem, this distance from a purported ideal is enough to create tension in the consumer, motivating and prompting purchase. Despite the undeniable allure of a clean, “bare” faced model with perfectly glazed skin, I’d like to hope that we can recognize that no product is really going to make our inner-self feel any closer to some fickle and often false ideal.
The power of brand image is far from a new phenomenon. However, given consumers’ increased awareness of the cogs in the marketing machine, it’s impressive to see this long-applied strategy still working so exceptionally for Rhode. This success hinges on the brand selling an image, narrative, and lifestyle as opposed to merely a product. Hailey’s influence is apparent. In fact, in 2024 Rhode was the number one skin care brand in Earned Media Value (EMV). EMV essentially conveys how much free publicity Rhode benefits from, largely by virtue of having Hailey Bieber at its helm.
Quantifying the value of Hailey Bieber’s brand image isn’t a science. However, its 2025 acquisition by Elf Beauty elucidated the substantial value attributable to this brand image. Elf Beauty acquired Rhode for $1 billion. This purchase price consisted of $800 million in cash and Elf Beauty stock, alongside a potential $200 million earn-out, dependent on Rhode’s post-acquisition performance.
Given Rhode’s net sales for the year ended March 31, 2025 at $212 million, this transaction represents an Enterprise Value / Last Twelve Months Net Sales multiple of 3.8x. Meaning that, for every dollar of sales Rhode generated, Elf Beauty was willing to pay $3.80. While payment in excess of a company’s actual sales figures is expected, the excess paid for Rhode is in-part due to the value-additive nature of Bieber’s personal image. Undeniably, the brand is backed by an impressive marketing strategy, as their newest campaign launch features Sarah Pidgeon, the actress playing Carolyn Bessette Kennedy in FX’s new hit series “Love Story.” Much like Bieber, this effortlessly cool and classy character encapsulates and re-enforces Rhode’s valuable brand image.
Of course, deriving pleasure from purchasing can be an enjoyable pursuit. Still, we should look beyond the veil of Hailey Bieber’s glazed skin, holding the mirror up to the reality of what is simply an excellent marketing strategy.