Rare Beauty: Making a Rare Impact
From creation to potential sale and the impact of a celebrity brand on beauty standards and mental health.
To be clear, Rare Beauty is becoming more than just a celebrity brand, but an independent global entity that represents the voice of a generation.
Nevertheless, in recent years, the landscape of the beauty industry has witnessed a surge in growth and popularity among various celebrity brands.
Notably, figures such as Beyonce with her haircare brand Cécred, and Kylie Jenner introducing her latest fragrance Cosmic have contributed to the ongoing momentum in the beauty sector.
Reports indicate that celebrity beauty brands in the United States alone surpassed $1 billion in sales in 2023, marking a significant 57.8% increase compared to the previous year. Moreover, the overall beauty industry amassed approximately $430 billion in revenue during the same period.
Resonating values
While many celebrities have successfully established themselves as beauty entrepreneurs, not every venture proves equally lucrative.
Some, like Hailey Bieber's Rhode, have achieved remarkable success, while others, such as Ariana Grande's R.E.M., have faced challenges in competing effectively.
What sets certain brands apart, like Rare Beauty, is their unique vision and mission.
With the U.S. Hispanic community wielding significant purchasing power exceeding $2.5 trillion, there's a growing emphasis on brands that resonate with their values and identity.
Selena Gomez's Rare Beauty exemplifies this connection by leveraging social media and collaborating with creators to establish a strong presence within this demographic.
Recent speculations suggest that Selena Gomez is contemplating the sale of Rare Beauty, which has garnered substantial popularity since its launch nearly four years ago. As talks of a potential sale circulate, let's delve into the brand's rapid rise to prominence.
A sky-rocketing success
Rare Beauty made its debut in September 2020, initially available exclusively through its official website and select Sephora stores in North America. Like many celebrity beauty brands, it quickly captivated consumers' attention, emerging as one of the most talked-about brands in its category.
Its success stems not only from Gomez's association but also from its refreshing approach to beauty standards.
Rare Impact Fund
Rare Beauty's impact extends beyond its product offerings. The Rare Impact Fund, established to raise $100 million over a decade, aims to expand access to mental health services and education globally.
Through partnerships with various organizations, the fund has already provided substantial support to initiatives promoting mental well-being.
A voice of a generation
Rare Beauty and Rare Impact speaks to the Gen-Z more than other brands do because of their spokesperson (Selena) but mostly due to the attainable and realistic approach to beauty, which many older brands seem to miss out on whilst still pushing unrealistic standards on a generation of consumers that isn't buying into that as millennials did.
Potential sale
Reports of Rare Beauty exploring a potential sale have stirred interest among industry insiders, with discussions ranging from acquisition possibilities to holding an initial public offering.
While the brand's future remains uncertain, its remarkable success trajectory has positioned it as a coveted asset within the beauty industry.
Selena Gomez's impact extends far beyond her celebrity status with Rare Beauty. Through her brand, she has championed inclusivity, self-acceptance, and mental well-being in the beauty industry.
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