Tuesday, Hailey Bieber’s cult beauty brand Rhode announced its long-anticipated move into retail. The brand will debut in US Sephora stores and online this autumn, with Canada and the UK to follow. As Rhode’s first retail partner, the Sephora deal promises growth for the currently direct-to-consumer (DTC) brand. It also raises the stakes.
Since launching in June 2022 with three core products (the Peptide Glazing Fluid, Barrier Restore Cream and Peptide Lip Treatment), Rhode has scaled strategically through a mix of product drops, viral marketing and Bieber’s powerful personal brand. Campaigns like ‘glazed doughnut skin’, partnerships with creators like Matilda Djerf, and Claudia Schiffer’s appointment as bodycare ambassador have strengthened its relevance. Product launches — from Peptide Lip Tints to the Pineapple Refresh Cleanser — have consistently sparked social buzz, with waitlists topping 200,000 and 400,000 for the Lip Phone Case and tints, respectively.
According to influencer marketing tool CreatorIQ, Rhode generated $248 million in earned media value (EMV) in 2024, up 366 per cent year-on-year, while Bieber herself drove $400 million in EMV, with a 3.75 per cent engagement rate (outpacing the 3.6 per cent industry benchmark). Her blend of polished GRWM content and behind-the-scenes brand storytelling continues to build loyalty, making her Rhode’s most valuable marketing asset. (EMV is the equivalent advertising spend required to generate the same number of impressions gained via social media.)
“This transition [to retail] marks a shift from cult DTC brand to global beauty player. It [Rhode] is maturing from celebrity-focused to brand-first,” says Queenie Lo, president of spatial design at brand-led strategy and design company Futurebrand.
But can a brand that built its identity outside of conventional retail hold its own on shelves already teeming with legacy names and TikTok breakout stars?
A mutually beneficial partnership
Industry experts agree: the Sephora and Rhode partnership is smart and strategic.
“For Rhode, Sephora helps with exposure; it will likely drive awareness and sales, and that will help the brand grow,” says Neil Saunders, managing director of retail at data analytics firm Globaldata. “Sephora is seen as an expert in beauty and as a place to discover interesting brands, so this fits with the position of Rhode.” Allison Collins, co-founder and managing director of advisory firm The Consumer Collective, agrees. “The retail partnership opens the doors to more people [for Rhode]. It will broaden their reach beyond consumers who already know about the brand because they follow Hailey in some capacity,” she explains.
Rhode’s launch in Sephora is also well timed. In April, it was reported that the brand had enlisted JPMorgan Chase and Moelis to explore a potential sale. However, experts said its primary setback was whether its explosive growth could stand the test of time and maintain longevity outside of Bieber’s own pull. A successful global Sephora rollout could be the credibility boost needed to solidify its valuation and scale, shoring up its attractiveness to buyers who will also no doubt be watching the brand’s retail performance come autumn. “Flopping at Sephora could cause an issue if the brand wants to raise money,” says Collins.
For Sephora, onboarding Rhode strengthens its cultural cachet. “Sephora will certainly benefit from Rhode’s cool-girl status and from the consumers who come into the store to try the products and feel the formulas IRL. Rhode is buzzy, but it’s also driven massive sales numbers on its own, which suggests it will do well in Sephora, too,” Collins continues. “Reputationally, in the beauty landscape, it’s a win for Sephora. It offers them an additional edge.” Saunders adds that the partnership will also be important for the beauty retailer to remain relevant and drive sales. “Sephora has to keep things fresh and interesting as its customers want newness,” he says.
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In a tougher climate, that relevance matters more than ever. Retailers, Sephora included, are competing with fast-moving social commerce channels like TikTok Shop and Amazon. Inventory cuts, economic headwinds and dupe culture have only intensified the pressure — a problem that beauty CEOs like Sue Nabi of Coty have highlighted to investors. Sephora parent company LVMH’s first-quarter earnings reflected that reality, reporting a 1 per cent dip in its selective retailing category. For Futurebrand’s Lo, Rhode could bring a scrappy, social-first buzz, with access to a new Gen Z, luxury-adjacent customer that has been missing from Sephora’s retail mix.
“While Sephora has been a convenient and safe choice for many customers, it has struggled recently to maintain cultural relevance as effectively as smaller, more agile brands like Rhode, and so there are benefits for both within the transition,” she says.
Could Rhode lose its cool?
For all the upsides, retail brings risk. Rhode has thrived on operating with total brand control, exclusivity and a flexible merchandising framework, all of which can be tested in a structured retail environment. “Sometimes, when brands enter retail, they become subject to the whims of that retailer — along the lines of ‘We’re going to make highlighter happen’ — and then you see every brand launch a highlighter because the retailer asked them to,” says Collins.
She says that Rhode must stay disciplined with a tightly edited, intentional assortment, while resisting the pressure to overextend or over-assort. “It’s dilutive to the spirit of the brand, and that could be damaging,” Collins says.
In-store, the brand’s identity must be palpable. “A lot will come down to in-store presentation. Rhode needs to ensure its status and brand ethos come through in shops and online; it should not be merchandised like a mass brand,” says Saunders. Lo recommends that Rhode treats Sephora as a physical platform. “[Rhode] should look to integrate pop-up and experiential moments, limited-edition SKUs and tightly curated displays to help maintain the luxury-adjacent positioning it has worked hard to build since the brand’s infancy — the consistency will be crucial in building a long-standing legacy with Sephora as part of its operation,” she says.
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On Sephora’s side, the challenge will be to preserve Rhode’s cult appeal at scale. “The retailer will need to find ways to preserve exclusivity at mass for Rhode. They could consider lower-density shelving options to help products appear scarcer, with the flexibility to expand when drops occur to help boost Sephora’s cultural capital,” says Lo.
Rhode could consider a two-pronged distribution strategy to maintain its buzzy drops on its own site, while seeding a more consistent edit to Sephora. This way, shelves stay stocked, while the brand still benefits from virality and quick-to-sell drops.
If Bieber can maintain Rhode’s cultural cachet while expanding reach, she may reignite the influencer-to-retail (to acquisition) pipeline the industry hasn’t seen for a few years. But if the balance tips too far towards mass appeal, Rhode risks becoming just another name on the shelf. “The advantage is visibility. The disadvantage can come from the brand becoming a little less special if it is too ubiquitous,” concludes Saunders.
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