Hi there,

When Hailey Bieber famously wore a "Nepo Baby" t-shirt in 2023, she knew exactly what she was doing.

The daughter of actor Stephen Baldwin, niece to Alec Baldwin, and wife of global superstar Justin Bieber wasn't running from the criticism. She was owning it. And honestly? The audacity was kind of brilliant. Three weeks ago, that ownership paid off spectacularly: e.l.f. Beauty acquired her skincare brand Rhode for $1 billion.

Yes, you read that right. A brand launched in 2022 just sold for ten figures.

So was it the connections? The celebrity status? Pure genius? Or something far more sophisticated than critics ever gave her credit for?

The answer reveals everything about how modern brands actually get built — and why our obsession with tearing down "nepo babies" might be missing the bigger picture entirely.

The Numbers That Made Beauty Executives Do Double Takes

The numbers tell the real story. Zero to $212 million in net sales in under three years. Direct-to-consumer only. Only 10 products.

Industry veterans who've watched thousands of launches called it impossible. And let's be honest — most of us probably rolled our eyes when another celebrity announced a beauty brand. We've seen this movie before, right?

Wrong.

Here's the reality: Only 26 of nearly 1,000 beauty brands tracked by Nielsen clear $100 million in retail sales. Rhode hit $212 million without a single physical store. While legacy brands with decades of R&D and distribution networks struggle to break through, a 27-year-old built something that made billion-dollar corporations write checks.

The deal structure reveals everything about confidence in the brand's future:

• $600 million in cash

• $200 million in stock

• $200 million future earnout based on performance

At a 4.7X revenue multiple, Rhode became "the youngest beauty brand to achieve that outcome" — beating established players with decades of market presence.

Beyond the Celebrity Smokescreen: What Actually Drove Value

Here's what the "just another celebrity brand" critics missed entirely.

The Influence Infrastructure Was Unprecedented

Bieber commands 55 million Instagram followers and 15 million on TikTok. But here's the thing, influence without strategy is just noise. We've all watched celebrities with massive followings launch products that disappear faster than a TikTok dance trend.

Under her direction, Rhode became the No. 1 skincare brand in earned media value in 2024, with 367% year-over-year growth. That's not luck. That's systematic content creation, community building, and cultural timing executed with precision.

Product Development That Actually Worked

While the beauty industry doubled down on maximalist everything-everywhere strategies, Rhode read the room differently. The "clean girl" aesthetic represented a fundamental shift away from the glam-obsessed culture that had dominated for years.

Where most celebrity beauty lines chase maximum visibility, Rhode pursued strategic restraint.

Take the lip gloss phone case, a product that shouldn't work on paper but the community spoke with 200,000 people joining the waiting list and selling out repeatedly. Rhode moved one million lip glosses in a single year. I swear I have bought close to that many Lucas Paw Paw in my life. IYKYK.

Now lets also consider their peptide lip treatment — a product that became a phenomenon not because of complex ingredients, but because of smart positioning. It was in the name, the story, the feeling it promised. "Clean girl" authenticity captured in a tube, perfectly timed for a generation exhausted by the Instagram filter industrial complex.

Why does it work? Because it wasn't designed to sell anything. Its strategic marketing that understands what people want to feel about themselves when the world feels increasingly performative.

The Strategy Behind the Success

The Power of Restraint — Building a Brand Without Bloat

Most brands think success starts with scale. Launch everything. Be everywhere. Shout louder. Rhode didn't. They launched with only three products. No big rollout or excess. Just confidence in the few things they knew were ready.

💡 Takeaway: One unforgettable product with clear identity beats ten forgettable ones built in a rush to scale.

Beyond Celebrity — The Real Founder Behind Rhode

Most people assumed Rhode was just another celebrity brand that would ride purely on Hailey's face, fame, and follower count.

It wasn't.

Hailey wasn't just the face of Rhode — she was the engine. Brand architect. Aesthetic director. Product co-creator. Marketing brain. She wore all the hats that most founders don't even know exist.

She worked directly with chemists on formulas. Helped design every piece of packaging. Shaped the tone, the textures, the entire world of Rhode like she was running a design studio, not staging a photoshoot.

She built a brand that felt like her, because it was her. And maybe that's the real lesson here — you can't fake authenticity as a marketing strategy.

Yes, celebrity status opened the door. But grit, vision, and obsession with detail made Rhode valuable.

💡 Takeaway: Fame is a spark, but only craft keeps the fire burning.

Aesthetic = Strategy

In an industry where looking good drives sales, Rhode became a masterclass in embodying what it preaches.

Soft design, minimalist visuals, neutral fonts, vintage tones — every product line carries the same signature: cosmetic glamour with unwavering consistency.

Rhode's visual identity tells you exactly what kind of brand it is before you read a single word.

It's soft, clean, minimal. You instantly connect it with premium care — curated and calm. That visual clarity cuts through the noise of an oversaturated market.

From product packaging to Hailey's own Instagram posts, everything shares the same energy. Same tone. Same mood. Same world.

This kind of coherence isn't just good design — it's strategic thinking. When every touchpoint reinforces your brand promise, you build trust faster and deeper.

💡 Takeaway: A strong visual identity isn't about looking good — it's about thinking clearly. Rhode shows how consistent aesthetics can align a team, attract the right audience, and signal brand values without saying a word.

Community First, Growth Second

Some people assume that if you've got 55 million followers, building community is easy.

I'd argue it's actually harder.

When your audience is that big, you're speaking to a crowd — not a crew. Building trust across that kind of scale takes clarity, consistency, and real intention. Most influencer brands treat their followers like walking wallets. Rhode treated theirs like people worth respecting.

The response to Rhode's community building was remarkable with some customers camping out overnight in line to attend.

They didn't try to please everyone or flood the market with stock. Instead, they let momentum build naturally. Sold-out products weren't a problem — they became part of the strategy. This scarcity created want. Curiosity. A sense of being in on something before it exploded.

That's how you build loyalty: not by showing up everywhere, but by showing up in the right way for the right people.

💡 Takeaway: Don't race to scale. Build a group that cares, then grow from there. If they love what you're doing, they'll wait. And they'll bring their people with them.

Modern Teams Look Like This

It honestly surprised me to discover that Rhode runs on a remote model — especially considering how strongly we advocate for this way of working at Lento.

COVID-19 marked the beginning of both our journeys. Like many modern teams, we learned to work through Zoom calls, long-distance collaboration, and building trust with remote allies.

Rhode is now a remote-native brand, built by experts scattered across cities and time zones. Operators, consultants, designers — many of them work outside LA. Yet the work feels unified, intentional, and sharp.

They didn't compromise by going remote. They chose it — and turned it into a competitive advantage.

💡 Takeaway: Being "always on" doesn't guarantee results. But working with freedom, intention, and the right tools? That creates better communication, stronger processes, and collaborations that actually move the needle.

Identity Is the Asset

Rhode's brand has a heartbeat — minimal, cozy, aspirational, and quietly confident.

As the mind behind the brand, Hailey Bieber stayed intentional about keeping it simple and accessible while speaking to Gen Z's post-glamour craving: realness, but with refinement.

When you build a brand with clear creative direction — and ensure it runs through every touchpoint — you don't just sell products. You shape perception. And that's what lasts.

It's not an easy journey. But when the identity is solid, every move compounds.

💡 Takeaway: Don't just ask "what are we selling?" Ask: "What do we let people feel like when they buy from us?"

Why This Deal is a BIG Deal

It Validates the New Celebrity Entrepreneur Model

The days of celebrity-as-decorative-face are ending. Rhode proved that modern celebrity brands need operational substance, product innovation, and sustainable community building to reach billion-dollar valuations.

It Proves Digital-Native Can Scale

After years of industry skepticism about celebrity-owned brands and their ability to secure strategic buyers, Rhode's success signals renewed confidence in digitally native, community-driven businesses. The acquisition validates what many suspected but few could prove at this scale.

It Sets New Valuation Benchmarks

The $1 billion price tag reflects more than strong revenue multiples. It shows the market's appetite for brands that combine authentic brand equity with genuine cultural influence. We're witnessing the financialization of cultural relevance, and it's fascinating to watch unfold.

What Rhode Actually Proves (And a Reality Check)

Rhode proves you can build a brand from scratch and sell it for a billion dollars in three years. Sounds impossible, but it happened.

More importantly, it shows what actually drives these valuations: brand clarity, deep audience understanding, and cultural authenticity that creates genuine loyalty; not just fleeting attention.

The numbers back it up. Twenty percent aided brand awareness reveals massive untapped potential. High repeat purchase rates prove genuine product-market fit. And $212 million in DTC-only sales demonstrates serious pricing power.

But before this sounds like a complete love affair with Hailey Bieber, let me add some perspective.

I once went to a Justin Bieber concert and got caught up wayyy into the moment. The screaming. The tears. The absolute devotion. I looked around at thousands of screaming teenage girls and realized these Beliebers would defend literally anything he touched.

And in that moment… so would have I. Pathetic I know. But that level of blind loyalty is real. And it's powerful.

When you have access to that kind of community and financial resources, the possibilities are endless.

So while Hailey deserves full credit for what she built, let's pump the brakes on thinking this changes the acquisition game forever. Don’ launch a billion-dollar fashion label in three years.

Hailey leveraged opportunities most founders can only dream of. She had advantages that would make any entrepreneur salivate. The difference? She didn't squander them.

The real lesson isn't that anyone can build Rhode. It's that if you do have unique advantages — whatever they might be — don't run from them. Lean into them strategically, execute with precision, and build something that lasts.

That's worth celebrating. And honestly, it's more accessible than most people think.

Ad Vault: Dollar Shave Club

Another killer startup built for greatness: Dollar Shave Club.

Back in 2012, founder Michael Dubin shook up the razor industry with a $4,500 video that did everything right — fast, funny, and brutally clear.

“Our blades are f*ing great.”**

A simple, sharp response to overpriced and overcomplicated razors — delivered with wit and swagger.

In just 48 hours, the ad went viral, racking up 12,000 orders and crashing the site. It would go on to earn over 27 million views and ultimately fuel a $1 billion acquisition by Unilever in 2016.

Brands War: Rhode vs. Fenty

Let’s be clear: Rihanna could sell me sand in the desert. She’s my GOAT. But for the sake of comparison, let’s pit two beauty heavyweights against each other - Rhode vs Fenty.

Rhode

Hailey’s Rhode is the poster child for minimalist skincare. All beige everything. Science-led formulas. Packaging so clean it practically ASMRs you to sleep. It’s a brand that lives in a perfectly lit bathroom and drinks iced matcha daily. Skincare, but make it soft-glow serious.

Fenty

Fenty, on the other hand, came out swinging. Rihanna didn’t build a brand, she built a movement. Forty shades on launch wasn’t a flex—it was a correction. Bold colours, unapologetic tones, and a “you’re either in or in the way” attitude. Fenty doesn’t whisper refinement. It roars representation.

Lento Vibes

A bit of random inspo from around the grounds:

• Gen Z Doesn’t Trust Your Brand (Yet)
  Turns out, younger generations don’t buy it—literally. Gen Z and Millennials trust brands the least and are quickest to call BS on anything that feels fake. 👉 Read the breakdown

• Meta’s AI Ambitions (and Industry Shrugs)
  Meta’s betting big on AI-led ads by 2026. But creative leads? They're not exactly sold. A quiet stand-off is brewing between automation and originality. 👉 Meta’s game plan

• Reddit Wants to Monetize Your Hot Takes
  New AI tools from Reddit aim to turn your rants and deep dives into ad revenue. It’s a bold move—but will it mess with what made the platform great? 👉 See the rollout

• Currys Is Quietly Owning Social
  No gimmicks, no stunts—just good community management. The UK electronics brand has quietly built one of the strongest brand voices on Twitter. 👉 Behind the campaign