Rhode’s retail debut is finally here.
One of the most rumored, speculated about and anticipated retail partnerships of the year is finally coming to fruition, as Rhode, the beauty brand founded by Hailey Bieber in 2022, heads to all Sephora doors in the U.S. and Canada Thursday.
“Rhode has disrupted the beauty industry with a curated line of skin care essentials, which have driven unprecedented demand and inspired category and culture shifts at large,” said Priya Venkatesh, global chief merchandising officer of Sephora, in August. “This will be our largest North American launch yet, and we see tremendous growth potential as we work together to bring the brand to more consumers around the world.”
It will no doubt benefit both parties, as Rhode — which made $212 million in net sales for the 12 months ending March 31 without any retail partnerships — and Sephora saw 2 million organic searches for the brand on Sephora’s website.
As for what it means for fellow Sephora brands that will have to compete with that level of demand, however, the jury is still out.
“I think it will increase the competition, but I expect it to drive a new consumer into that store. People shop across brands, and I think it will be more additive than competitive,” said one source. “The price point is good, too. I don’t think it’s gonna f–k anybody over. A rising tide lifts all boats, and if more people are going to store because that brand is there, it’s going to be beneficial for the other brands, too.”
That source posited that while both Sephora and Ulta Beauty have ceded market share to Amazon, now beauty’s largest U.S. retailer, it could also give the retailer — and other brands on shelf — a boost.
“They should be growing brands the way they used to be able to. They did it for Summer Fridays, they did it for Drunk Elephant and Tatcha. Maybe Rhode is the new one,” the source mused.
Others think it could cannibalize buzzy brands in both the skin and makeup categories, where Rhode plays.
“It will hurt the makeup businesses before it hurts the skin care businesses, since that’s where Rhode’s newness and marketing is coming from — lip and blush shades,” said another source. It’s worth noting that prestige skin care slid 1 percent in the first half, while makeup grew only 1 percent, per Circana.
“The reality is people are buying more skin care on Amazon and that’s what’s hurting the Sephora skin business,” that source said, noting that the impact on other brands is “going to depend on whether or not Rhode ever launches on Amazon.”
Regardless, the source reasoned, “If Rhode brings more people into Sephora, that is going to be a bellwether for the future and how brands should think about launching. Retailers are going to need to woo brands a lot more, especially hot ones.”
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