The Rise of Influencer Brands

Written by Jessica Hua (W’26), Edited by Nina Rawal (W’27)

For years, the startup playbook was straightforward: build a great product, spend on performance marketing, and hope customer acquisition costs stay manageable. Then came the creator economy. Influencer-led brands quickly flipped that formula: start with a community and culture, let attention drive distribution, and expand only after the brand identity is firmly established. These brands have outgrown their niche roots, now steering M&A decisions, retail positioning, and competitive dynamics.

Take Rhode, launched in 2022 and acquired by e.l.f. Beauty for $1 billion in May 2025. The deal valued a three-year-old brand that reportedly generated $212 million in net sales over the prior 12 months, with retail expansion into Sephora recently. Rhode clearly shows how a focused product line, consistent brand voice, and smart timing can drive growth more effectively than trying to do everything at once.

Beyond Rhode, a similar playbook is unfolding everywhere. Kylie Cosmetics set the template when Coty bought a majority stake for $600 million in 2019, valuing the business at about $1.2 billion. Rare Beauty has since become one of Sephora’s top performers, surpassing $400 million in annual sales and building a loyal following around authenticity and accessibility. In 2025, reports surfaced that LVMH is exploring options for its stake in Fenty Beauty, which generated roughly $450 million in sales last year, evidencing that influencer-founded labels now sit firmly within the luxury ecosystem.

At the heart of every successful influencer brand are a few key ideas: the first being that community is its strongest defense. These brands start with a built-in audience that already trusts the founder’s taste and values, turning their attention into a structural marketing advantage. Second, restraint matters. The most successful launches like Rhode’s minimalist skincare and Rare Beauty’s curated complexion range build depth before breadth. Third, operational expertise turns attention into longevity. Behind every recognizable face is a team ensuring supply, retail alignment, and disciplined growth. 

Distribution is just as strategic. Most influencer brands start as direct-to-consumer, using scarcity and drop culture to generate buzz, then move into retail once demand is proven. Rhode’s Sephora expansion follows that path, aiming to balance exclusivity with accessibility.

Still, there are real risks. Hype can fade quickly, and brands built too closely around a single personality may struggle if that figure steps back or faces controversy with cancel culture. Scaling from social media to store shelves also brings new challenges: managing inventory, pricing, and retailer expectations is far more complex than sustaining online virality.

At their best, influencer brands fuse storytelling with entrepreneurship and commerce. They’ve turned authenticity into business strategy and cultural influence into competitive advantage, redefining how companies are built in a digital age where identity and product are often the same thing.