Bubble about to burst? Here's what the future may have in store for Selena Gomez and Hailey Beiber's beauty brands

Hailey Bieber and Selena Gomez are rumored to be considering selling their beauty ventures—Rhode and Rare Beauty—amid talks valuing the brands at $1 billion and $2 billion. Backed by major financial advisors, the potential deals could redefine celebrity-driven beauty empires. However, industry experts question whether the valuations reflect sustainable growth or fleeting hype, according to a recent Jing Daily report.

Celeb beauty brands at a crossroads

Rhode and Rare Beauty emerged during the pandemic, leveraging their founders’ star power and social media savvy. Rare Beauty, launched in 2020, aligned with Gomez’s mental health advocacy and charity goals, resonating deeply with Gen Z. Rhode, known for viral products like the “glazed doughnut” skincare aesthetic, built buzz through minimalist branding.

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Yet, analysts urge caution. Mario Ortelli, a luxury goods M&A strategist, noted that celebrity brands often face a “make-or-break” phase where they must transition from hype to enduring appeal. While $2 billion for Rare Beauty and $1 billion for Rhode signal rapid success, Ortelli emphasized that long-term survival hinges on product quality and loyal customer bases—not just star power.

Zarina Kanji, a marketing director, suggested that exiting now could be a hedge against economic uncertainty, particularly given U.S.-focused brands’ exposure to tariffs. However, she acknowledged the difficulty of pricing “hype,” stressing that these valuations rely heavily on the founders’ fame.

Beauty insights director explains concept behind Bieber and Gomez' plans

Celebrity influence is undeniably central. Hwee Chung, a beauty insights director, explained that stars like Bieber and Gomez embody aspirational lifestyles, allowing their brands to skip traditional marketing. Rare Beauty’s charitable angle and Rhode’s viral drops exemplify this strategy. Still, Chung warned that standalone brands face steep challenges in markets like China, where local partnerships are critical for compliance and logistics.

Rhode’s recent stunt in Shanghai—where Bieber made street food at a glittery pop-up—highlighted the potential (and pitfalls) of global expansion. While the event trended online, experts like Chung argue that replicating Rihanna’s Fenty Beauty success in China would require institutional support, given regulatory and competitive hurdles.