Hailey Bieber closes 1 billion dollar deal-but does she have allergy problems?

Hailey Bieber closes 1 billion dollar deal-but does she have allergy problems?

Justin Bieber is currently supposed to fight with financial difficulties, while his wife, Hailey Bieber, is an important partnership with E.L.F. Beauty has been received. According to Krone, the agreement on the rights to your skin care label Rhode includes a total value of $ 1 billion, which is a significant success in your career. The agreement includes an immediate payment of $ 800 million in cash and stocks as well as another $ 200 million within the next three years, depending on the growth of the Rhode.

Hailey Bieber had only founded Rhode in June 2022 and the products were so far only available online and often sold out. In the wellness and beauty industry, which is to grow by 6% per year by 2027, according to McKinsey, this expansion for Bieber could be a decisive step in its career. Growth in the field of skin care is particularly predicted, which is to increase from $ 190 billion to $ 260 billion.

allegations and challenges

However, Rhode also faces challenges. There were allergies about allergy warnings: some lip contour pens contain Bockshorn clover extract, which can trigger allergic reactions in people with peanut allergies. In 2023, a Rhode product already led to allergic reactions among buyers. However, a company spokesman rejected the allegations because the ingredients are not listed on the FDA's tree nut allergy list.

Hailey Bieber itself announced the partnership with E.L.F. Beauty recently on Instagram. She will act as Rhode’s Chief Creative Officer and Head of Innovation, where she is responsible for creative processes, product innovation and marketing. In addition, as a strategic consultant for E.L.F. Beauty. In her role, she hopes for a global expansion of Rhode and estimates the partnership as an aggregation of creative forces for disruption and product innovation.

growth strategies in the beauty industry

The beauty industry is known for its resilience, even in economically difficult times. In the course of this realignment, according to McKinsey there are some important trends. New sales markets, such as India and the Middle East, are increasingly becoming the center of attention. In particular, sales of $ 47 billion will be predicted for retail in these regions by 2027.

The market also has an increasing demand for wellness products that serve both aesthetic and health needs. 45% of consumers prefer shopping in business while 40% buy online. Sustainability is also an increasingly important factor, with buyers increasingly paying attention to products without harmful ingredients and animal test -free production.

In summary, it can be said that Hailey Bieber's successful partnership with E.L.F. Beauty not only is a promising future for your label Rhode, but is also part of a wider trend in the cosmetic industry, which is strongly changing. In view of the financial challenges that Justin Bieber currently has, it will be shown how the dynamics will develop in the family.