How Hailey Bieber Quietly Built a $1B Brand While Everyone Was Watching Kylie

Celebrity brands aren’t rare anymore. What is rare? A celebrity brand that actually scales.

Rhode Skin just sold to E.L.F. Beauty for a jaw-dropping $1 billion. Meanwhile, Kylie Cosmetics — the blueprint for viral beauty — is still hovering under $50M in annual revenue.

Both had fame. One had fundamentals.

Let’s break down why Rhode outpaced Kylie — and what it teaches us about building enduring brands in 2025.

1. Solve Real Problems > Chase Flashy Trends

Kylie rode a cultural wave: overlined lips, influencer packaging, viral scarcity drops. But viral is not the same as valuable — and once the trend faded, so did the growth engine.

Rhode did the opposite.

It launched with just three deeply functional SKUs: lip treatment, glazing milk, barrier repair cream. No fluff. No filler. Just formulas people actually needed — and reordered.

2. Founder Presence Still Matters

Kylie’s brand was hot — until she sold to Coty. After that, her involvement dropped, and the brand started feeling like just another licensed play.

Rhode, on the other hand, doubled down on authenticity.

Hailey didn’t just endorse the product — she is the product. Ingredient callouts, tutorials, skin routines, GRWM content — she’s embedded in the brand DNA. That builds trust. And trust drives lifetime value.

3. Smart Growth > Splashy Launches

Rhode did $10M in 11 days. Not because it over-engineered the moment — but because it executed the fundamentals: clear value prop, great launch content, owned distribution, and real customer excitement.

Kylie? Dozens of product drops, constant collabs, short-term surges — but little compounding value.

This is the difference between a brand and a content calendar.

4. Distribution Strategy Built for Retention

Kylie started in DTC but never quite nailed the transition to retail. Rhode launched DTC-first, but priced between $16–$30 — perfect for repeat purchases, easy gifting, and social virality.

Rhode wasn’t trying to be everywhere. It focused on being where it mattered — and let customers do the marketing.

What E.L.F. Actually Bought

This wasn’t a skincare acquisition. It was a customer acquisition machine.

Rhode came with:

• A highly engaged community

• Low CAC via organic and social

• Repeatable hero SKUs

• High retention

• A founder still deeply involved

This is what makes a billion-dollar brand in 2025.

Not hype. Not fame. Just smart, surgical execution — and an audience that sticks around.

TL;DR:

Don’t just build something that goes viral. Build something people use twice. Then build systems that scale the second order effects.

That’s how Rhode beat Kylie at her own game — and walked away with the exit.