Hailey Bieber's Rhode: From Idea to Billion-Dollar Brand

The host recalled meeting Hailey Bieber approximately eight years ago for a magazine cover shoot. At the time, Bieber was around 20 years old and just beginning her modeling career. The host mentioned they were working on a profile for a male magazine.

Hailey Bieber always knew she wanted to build her own business and venture beyond the modeling industry. She viewed her modeling career as a stepping stone, providing opportunities and insights that would later contribute to her entrepreneurial journey. Her desire was to forge a career path that departed from the traditional modeling world, focusing on her long-term vision.

Hailey Bieber grew up in a household where both her mother and grandmother were deeply passionate about beauty. This strong generational interest in beauty was instilled in her from a very young age, shaping her personal fascination with skincare and cosmetics.

During her modeling career, Hailey Bieber made a conscious effort to absorb knowledge from the diverse professionals she worked with, including makeup artists, stylists, and photographers. She described herself as a "sponge," actively learning about the industry from those who were experts in their fields. This hands-on experience provided invaluable insights into product development, branding, and consumer preferences.

The forced pause provided her with the necessary time and focus to hone in on the brand's identity and vision. Her goal was to create a curated line of essential skincare products, distinguishing Rhode as a focused and purposeful brand.

To bring her vision to life, Hailey Bieber reached out to Michael and Lauren Ratner, who became her co-founders for Rhode. Lauren Ratner, in particular, brought a strong background in marketing, which was crucial for developing the brand's strategy. Bieber aimed to combine her personal vision and industry experience with their business expertise to build a robust foundation for the brand.

Hailey Bieber conceptualized Rhode's product line around the idea of a "skincare wardrobe," likening it to essential fashion items such as the perfect white t-shirt, jeans, or leather jacket. Her approach focuses on perfecting one definitive version of each essential skincare item, mirroring her personal obsession with finding the ideal foundational pieces. This philosophy aims to provide users with carefully curated, high-quality staples for their daily routine.

Hailey Bieber made a deliberate decision to self-fund Rhode and avoid traditional incubator models to preserve creative control and ensure she remained the majority owner. She thoroughly explored all available avenues but was resolute in her desire to invest her own money and maintain significant ownership. This strategy allowed her to guide the brand's growth organically from the ground up, forming partnerships that supported her vision without compromising her autonomy.

Hailey Bieber places significant emphasis on following her gut instincts in her business decisions, viewing it as a crucial element for long-term success. She believes her intuition, particularly as a woman, has strengthened with professional experience and age. This trust in her inner compass serves as a key driver in navigating the complexities of business growth and making strategic choices for Rhode.

By rejecting over-consumption, the brand acts as a direct reflection of her personal routine and lifestyle, ensuring that every product offered aligns with her values and actual usage.

Hailey Bieber emphasizes that marketing choices for Rhode, particularly when selecting brand representatives, are largely based on intuition and synergy rather than solely on metrics. She believes in identifying individuals with whom the brand can establish a natural connection. Bieber prefers to feature multiple faces, ensuring that the brand resonates with and speaks to a diverse range of audiences.

Claudia Schiffer was chosen as a brand ambassador for Rhode due to her timeless elegance, chic appeal, and ability to resonate with multiple generations. Hailey Bieber highlighted Schiffer's global recognition and universal appeal as key factors in her selection. This strategic choice underscores the brand's aim to project a classic and enduring image that transcends age and demographic boundaries.

From the outset, Hailey Bieber intended Rhode to have a unisex appeal, reflected in its branding which uses neutral colors like eggshell and gray and maintains a sporty aesthetic. The inclusion of Harris Dickinson as the brand's first male representative further solidified this vision. The aim is to create products that are accessible and comfortable for anyone to use, including significant others, fostering a sense of universal inclusivity within the brand.

Hailey Bieber consistently emphasizes hydration as the constant "through line" and core philosophy guiding all of Rhode's product development. She stated from the beginning that "hydration is key." The brand's product evolution is driven by personal needs across various life stages and changing seasons, prioritizing essential items like mists and cleansers based on their fundamental role in her own skincare routine.

Pop-up experiences quickly demonstrated to Hailey Bieber and her team how much customers valued the opportunity to physically touch, feel, and interact with the products. This strong customer demand for in-person engagement made a strategic shift to physical retail a logical and necessary evolution for the brand.

Despite the move into retail partnerships, Hailey Bieber affirmed that brand-led pop-up experiences will definitely continue, as they are integral to Rhode's identity. She expressed her deep enjoyment in creating these unique events, emphasizing that they are a crucial part of the brand's engagement strategy and will not stop. The brand plans to maintain both a strong retail presence and its distinctive direct experiential initiatives.

Hailey Bieber differentiates herself from typical celebrity founders by emphasizing her profound involvement and authentic passion for her business. She describes herself as a "beauty lover through and through," deeply immersed in the skincare community and intricate business operations. For Bieber, Rhode is not just a venture but a personal project brought to life, and learning the technical aspects of the industry, such as profit margins, has been a significant source of empowerment.

Hailey Bieber states that running Rhode does not feel like a traditional job to her; instead, it's a source of passion and practical learning. She finds immense joy in building the brand and highlights that the hands-on experiences and knowledge gained through this process could not have been acquired elsewhere. Learning about critical business metrics like margins offers a stark contrast to her career five years ago, underscoring her genuine commitment to expanding her role and understanding within the brand.