Selena Gomez, former Disney star, has hit billionaire status thanks to her beauty brand Rare Beauty.
The Only Murders in the Building actress has amassed a fortune worth US$1.3bn, according to Bloomberg, which recently added Gomez to its Billionaires Index.
This is mainly from make-up player Rare Beauty, which the 32-year-old founded five years ago.
Rare Beauty’s annual revenue was $350m in 2023, according to the publication.
Bloomberg’s analysis also estimates that Gomez holds a 51% majority interest stake in the company worth more than $1.1bn.
Rare Beauty is best-known for its liquid blush hero product, which sold 3.1 million units in 2022.
According to financial journalist Diana Li, who broke the Bloomberg story, Rare Beauty had a major marketing boost thanks to Gomez’s substantial social media presence.
“Naturally her more than 400 million followers on social media helped create buzz for the products,” Li said in a LinkedIn video.
Gomez is one of the most beloved celebrities on social media.
In August this year, her combined total of followers across all platforms was 688 million, with footballer Cristinao Ronaldo the only star out-scoring her for followers.
Rare Beauty, meanwhile, boasts 7.6 million followers on Instagram and 4.1 million on TikTok, where it has also amassed 73.6 million likes.
Fiona Glen, Director of Projects at beauty consultancy The Red Tree, described Selena Gomez as “the perfect brand ambassador – beautiful, well-known and relatable”.
She added: “Rare Beauty has a uniqueness which means that it stands on its own two feet as a beauty brand.
“From its distinctive packaging to the Rare Beauty Fund, the management team have approached this brand creatively, which has led to an authentic and different brand.”
Gomez set up the Rare Impact Fund in 2020 to raise $100m over ten years in support of mental health services for underserved communities in the US.
1% of every Rare Beauty sale goes to the fund, which is also topped up by partner donations from foundations and non-profit organisations.
Another feather in Rare Beauty’s cap, according to Glen, is the brand’s embracing of the experiential.
“The activations of the brand have amplified the brand essence and notoriety well, including pop-up cafes and coffee shops,” she says.
“The role of experience has been executed highly effectively to foster great relationships and trust with retail partners.”
When Rare Beauty launched in the UK in 2022 it opened a cafe and bar in London’s Oxford Street, selling coffee and confectionery alongside its make-up.
It is also beloved by influencers, according to influencer marketing platform Traackr.
Based on Traackr’s Brand Vitality Score metric, which measures the “visibility, impact and trust” of influencer content mentioning a brand, Rare Beauty scored 791,000 in the US for the first half of 2023 – a 163% year-on-year increase.
Upon the release of its report, Traackr’s Head of Sales, Therese Little, told Cosmetics Business that Rare Beauty’s success in influencer marketing “ties to its strong mission-driven branding”.
Rare Beauty has built its brand around mental health, and during Mental Health Awareness Month in May 2023 the brand offered a unique opportunity to engage with influencers and their communities.
“Rare Beauty hosted influencers at its first Mental Health Summit in May, reinforcing its mission and empowering creators to share its brand message.”
Gomez joins a select list of celebrity beauty billionaires which includes Fenty Beauty founder Rihanna and reality TV star and entrepreneur Kylie Jenner.
Bloomberg reported earlier this year that Gomez was exploring a potential sale of the brand.
However, in a subsequent interview with Time magazine, Gomez denied plans to sell Rare Beauty, stating: “I don't have any plans on that, genuinely.”
