Actress and singer Selena Gomez has amassed a fortune worth US$1.3bn, according to Bloomberg, thanks to her brand Rare Beauty.
Revenue in its latest financial year is believed to have reached more than $300mn with the brand reporting phenomenal growth, according to the RetailX Global Beauty 2024 report.
Rare Beauty is the fastest growing celebrity cosmetics brand on social media where it attempts to break down unrealistic beauty standards empowering followers with “makeup made to feel good in, without hiding what makes you unique.”
Rare Beauty has 7.4mn followers on Instagram and 3.9mn on TikTok. It is also one of the best selling brands at Sephora. In March 2024, Rare Beauty started exploring future options with financial advisors regarding the sale of the brand which could see it valued at $2bn.
Gomez appears to have been hands-on with the brand, not just appearing at product launches. Transparency about her own mental health has driven the brand’s Rare Impact Fund which aims to raise $100mn over ten years to support people in this area. 1% of the brand’s sales go to the fund along with money donated by other organisations. To date, it has raised more than $5mn and invested $3mn.
The brand also has an accessibility initiative to make products easy to open and apply. It plans to use information from a partnership with Casa Colina Research Institute when designing future products and to share these findings with other brands in the industry.
Rare Beauty’s ecommerce site is localised in terms of currency to multiple countries with consumers offered a discount on their first order if they spend over a certain amount. This is £30 in the UK.
Wellness and self care feature heavily on the site, with videos leading consumers in meditation, showing them how to massage their scalp or unwind with yoga. This Comfort Club is given as much prominence in the site’s navigation as a shade finder quiz, the impact fund and ‘shop’. Clicking through to the shop, gives further options to shop all, new products, best sellers, products for the face or body.
The RetailX Global Beauty Sector 2024 Report, authored by Emma Herrod, examines the digital developments and trends in the cosmetics and beauty industry, how products are being sold online and the impacts of other technologies on ecommerce.
Other retailer profiles include Allies of Skin, Charlotte Tilbury, Douglas, Estée Lauder, Glow Recipe, Haus Labs and Milk Makeup.
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