Hailey Bieber’s beauty brand Rhode surpassed US$10m in beauty sales at Sephora US within the first two days of its highly-anticipated launch.
Rhode made up almost 40% of sales at Sephora on the day of its debut (4 September) at the retailer’s nearly 2,000 stores and websites in the US and Canada, according to market research and analytics firm YipitData.
“The brand immediately reshaped Sephora’s sales mix, driving outsized momentum in prestige beauty,” the data company said in a new report: From DTC Darling to Retail Disrupter: Rhode’s Breakthrough at Sephora.
“This unprecedented lift underscores the ability of social-first brands to translate hype into instant retail demand, moving the needle for an entire retailer in a way few single brands can.”
Rhode’s launch in Sephora US and Canada marks the brand’s first foray beyond selling directly to consumers through its own website rhodeskin.com.
Around 60% of Rhode's Sephora buyers were already loyal shoppers at the LVMH-owned retailer, YipitData’s analysis found.
However, an estimated 40% redirected their beauty spend from other retailers, including Ulta Beauty, Target and Rhode’s own direct-to-consumer (DTC) site.
“This dynamic shows Rhode was not just additive for Sephora’s existing base, it also acted as a competitive win, pulling wallet share away from rival channels and reinforcing Sephora’s position as the go-to retailer for buzzy, social-first beauty brands,” the report said.
Rhode took market share from brands Summer Fridays, Laneige and Caudalie in the prestige skin care space, according to the report, as they are the three brands that new Sephora shoppers were spending money on prior to Rhode’s launch.
“By competing head-on with brands that resonate with young, trend-sensitive consumers, Rhode’s entry heightens competitive pressure in a segment already defined by fast-moving innovation and cultural relevance,” the report said.
Meanwhile, in make-up, shoppers were spending heavily on Sephora-exclusive brands, such as Selena Gomez’s Rare Beauty, Huda Beauty and Patrick Ta, as well as high-end brands such as Dior and Charlotte Tilbury.
Rhode’s Sephora debut gives e.l.f. Beauty – which acquired the brand in a blockbuster $1bn deal in May – its first foothold in the prestige beauty market.
For Sephora “Rhode delivers a viral, celebrity-backed exclusive that enhances its differentiation in beauty retail” the report said.
However, the challenge for both is turning that initial hype into long-term brand loyalty.
“What happens next will be critical,” read the report.
“Sephora’s challenge is to convert Rhode’s launch-day buyers into repeat, multi-category shoppers, while Rhode must strike a balance between rapid scale and brand integrity.
“Retail expansion offers unmatched reach, but it also risks overexposure and dilution of its carefully built identity.”
Rhode’s Sephora launch day success also places more pressure on rival brands in the same space, however.
“For competitors, Rhode’s debut is a stark reminder of how quickly cultural relevance can translate into market share in prestige beauty,” YipitData added in the report.
“This is not just a sales spike, it is a case study in how social capital and celebrity influence can fuel retail disruption.
“Whether Rhode can convert early hype into durable loyalty will determine not only its trajectory but also the competitive landscape of skin care in the years ahead.”
Rhode is set to launch at Sephora in the UK later this year, although an exact date has not been revealed yet.
Related content:
-
Analysis: Is e.l.f. Beauty’s $1 billion Rhode deal a bid to become the next L'Oréal?
-
Will e.l.f. Beauty’s Rhode deal make $1 billion the new brand acquisition standard?
-
Hailey Bieber’s Rhode expands into Europe amid major brand milestones
-
e.l.f. Beauty named among most influential companies in Time 100 listing
-
Sephora to launch ‘shoppable storefronts’ where influencers can curate beauty product buys