"Affordable beauty brand e.l.f. has unlocked something that's mystified many retailers: how to win over the ever-persnickety Gen Z. E.l.f.'s formula has included low price points for high-quality items, TikTok-viral dupes of products from expensive brands, and popular marketing campaigns that manage not to make its youngest audience cringe. With 28 consecutive quarters of sales growth, the strategy appears to be working."
"Last May, however, e.l.f. Beauty made a huge and hugely expensive bet on an entirely new type of business. The company spent $1 billion to acquire rhode, a makeup and skincare brand founded by Hailey Bieber. It's the type of brand e.l.f. typically copies. The acquisition is a big part of the plan laid out by e.l.f. CEO Tarang Amin, who is trying to build the company into a 21st-century beauty conglomerate: inclusive, built for and by Gen Z."
"We want to be a different kind of beauty company, Amin told CNN at the company's Oakland headquarters. We're going to build brands that disrupt norms, shape culture and connect communities. But e.l.f. faces a few raspberry-jelly-tinted flags, including looming tariffs and an administration hostile to even a whiff of DEI efforts. And as sales growth around its dupes begins to wane, the company's future as a powerhouse hinges on rhode's success."
Affordable beauty brand e.l.f. built rapid growth through low price points, high-quality items, TikTok-viral dupes, and campaigns that resonate with Gen Z, producing 28 consecutive quarters of sales growth. In May, e.l.f. paid $1 billion to acquire rhode, a makeup and skincare brand founded by Hailey Bieber, shifting from copying to owning a trend-setting brand. CEO Tarang Amin aims to build an inclusive, Gen Z–focused conglomerate that creates trends. E.l.f. faces risks from looming tariffs, political backlash against DEI, and slowing dupe-driven sales, making rhode's performance critical. Amin fosters internal Gen Z input through town halls and product testing.
Read at www.cnn.com
Unable to calculate read time
Collection
[
|
...
]