When e.l.f. Magnificence acquired Rhode Pores and skin in a blockbuster $1 billion deal, it despatched shockwaves by means of the creator economic system. Observers had loads of questions: What did the deal imply for considered one of magnificence’s hottest up-and-coming manufacturers? Does this sign a return to a sturdy magnificence M&A market? Which magnificence manufacturers had been the subsequent sizzling acquisition targets? And was Rhode actually well worth the value?
However for individuals who have been following the momentum of creator-led manufacturers like Rhode, these shockwaves weren’t all that stunning.
The historic context behind Rhode’s breakthrough
Rhode’s acquisition didn’t occur in a vacuum. It got here on the heels of a number of current acquisitions, all of which concerned manufacturers that had elevated their cultural footprint and bottom-line income by constructing neighborhood by way of creators.
Wanting on the final 5 years alone, we’ve seen the next offers for standout magnificence manufacturers:
- Charlotte Tilbury, acquired by Puig in 2020 for $1.5 billion.
- Paula’s Alternative, acquired by Unilever in 2021 for $2.2 billion.
- Byredo, acquired by Puig in 2022 for an estimated €1 billion (roughly $1.07 billion on the time).
- K18 Hair, acquired by Unilever in 2023 for an estimated $700 million.
- Deciem, acquired by the Estée Lauder Firms in 2024 for an estimated $860 million.
And this isn’t simply taking place in magnificence. Poppi, one other model that constructed its popularity on a savvy creator program with Alix Earle as a content material and fairness accomplice, was acquired by PepsiCo in 2025 for $1.95 billion.
These manufacturers didn’t simply exhibit spectacular development previous to their acquisition; they’ve continued rising ever since. Evaluating their Earned Media Worth (EMV) totals within the 12 months they had been acquired versus 2024, these manufacturers have averaged a 94% development charge, justifying their mother or father organizations’ preliminary investments and additional demonstrating the sustainable energy of creator advertising.
The numbers behind Rhode’s rise
Since launching in June 2022, Rhode has been one of many fastest-growing manufacturers not solely within the skincare business but in addition in the whole creator economic system.
In a current 12-month evaluation, Rhode ranked because the No. 1 skincare model by EMV each within the U.S. and globally, and the No. 5 skincare model by EMV in Europe. Amongst our high 10 U.S. skincare manufacturers, Rhode ranked No. 1 in each year-over-year EMV and engagement development.
Translation? It’s not simply that extra folks than ever are conscious of Rhode. They’re liking, commenting on, and sharing content material concerning the model at a report tempo. They’re seeing the way it feels to be on the planet of Rhode. All of that is indicative of the Gen Z enchantment that made Rhode such an attractive goal to e.l.f. Magnificence, who noticed a standout model in a standout vertical, with a passionate fanbase amongst a demographic it was trying to break into, and made a deal.
Whereas this deal may need appeared excessive at first, it’s truly on par with current historical past and presents additional validation of creator-led manufacturers. In case you mixed CreatorIQ’s metrics for Rhode and e.l.f. Magnificence—like by way of an acquisition—would end in our database’s No. 1 model in all of magnificence.
What high-growth, creator-led manufacturers have in frequent
What are a number of the different shared traits we see throughout creator-led manufacturers that drive huge worth creation at scale?
Early funding in creators. One of many predominant creator advertising tenets I preach to manufacturers, from small-scale corporations to multinational enterprise manufacturers, is that one of the best creator applications develop with their creators. By investing in creators and partnering with them early of their careers, you’re not solely fostering loyalty but in addition giving your model a chance to reap the rewards of an expanded neighborhood as that creator grows over time.
Recognition of creators as tradition builders. The savviest manufacturers perceive that creators aren’t simply commenting on or reacting to tradition, they’re shaping it. The zeitgeist strikes quick, and for digital shoppers, creators are a useful, reliable hyperlink to understanding what’s occurring and assembly the second.
Momentum, momentum, momentum. Previous to its acquisition in 2021, Paula’s Alternative noticed a 161% EMV enhance from 2018 to 2019, and a two-year neighborhood development of 143% from June 2019 to Could 2021. Earlier than Unilever acquired it in December 2023, K18 Hair elevated EMV by 117%, engagements by 222%, and elevated its creator neighborhood by 108%, from January to November 2023. The image is obvious: Conglomerates are listening to manufacturers which can be drastically increasing their market share by way of their digital presence, and creators are completely important to this growth.
Range and scale of creator content material. A sturdy creator neighborhood is one purpose why Rhode was capable of transcend its well-known founder and obtain the lasting development that usually eludes celebrity-founded manufacturers. CreatorIQ information discovered that simply 15% of Rhode’s EMV during the last 12 months got here from posts that talked about Hailey Bieber by title. As an alternative of relying solely on title recognition and hype from Bieber’s movie star energy, Rhode expanded its attain by way of a various, scalable vary of content material produced by creators at totally different levels of their journeys.
Loads of potential. Bear in mind how Rhode ranks No. 5 in Europe regardless of rating No. 1 each within the U.S. and globally? Meaning, for all its achievements, Rhode nonetheless has room to develop. In the meantime, it presents e.l.f. Magnificence with its first entry level into Sephora—an indication of the deal’s mutual profit. With white house on each side, Rhode’s acquisition confirms the significance that untapped potential performs in high-profile acquisitions.
Placing all of it collectively
We’ve entered a brand new period for enterprise manufacturers, one wherein creators have emerged as architects of each cultural capital and enterprise valuation. If a string of billion-dollar acquisitions weren’t proof sufficient of this shift, contemplate Unilever’s dedication to spending 50% of its advertising funds on creator-first methods.
So as to meet this second head on and never danger being left behind, right here’s what entrepreneurs want to know:
- Creators are basic to model fairness: Now not a facet channel, creators are actually core to constructing model worth and cultural relevance.
- Creator-led methods drive huge worth creation: E.l.f. Magnificence’s acquisition of Rhode, alongside different current high-valuation offers, demonstrates that manufacturers with sturdy creator applications are extremely engaging acquisition targets, thanks largely to their highly effective development trajectory and dedication to community-building.
- Creators’ authenticity and cultural fluency are important for achievement: In at the moment’s fractured media ecosystem, manufacturers that acknowledge creators as tradition builders and grant them inventive freedom to inform their tales authentically stand a larger probability of connecting with fashionable shoppers.
Whereas we’ll look again on Rhode’s acquisition as a sign second within the historical past of the creator economic system, the traits behind this occasion have been brewing for fairly a while. With creators providing manufacturers unmatched authenticity and a deep understanding of digital shopper conduct, there’s no telling simply how excessive the creator economic system will soar.
