Selena Gomez, the acclaimed American actress and singer, is considering selling her cosmetics brand, Rare Beauty, potentially valued at $2 billion.
Valuation Insights: Rare Beauty’s Booming Enterprise at $2 Billion
Rare Beauty, the brainchild of Selena Gomez, emerged as more than just a makeup brand—it became a beacon of inclusivity, self-expression, and empowerment. From its inception, Rare Beauty transcended conventional beauty standards, embracing diversity in all forms and championing the idea that beauty lies in embracing one’s uniqueness.
Yet, amidst the success, a new chapter beckons for the brand. Selena Gomez finds herself at a crossroads, flirting with the idea of selling the brand she nurtured from its inception. The potential sale of the cosmetic brand has sparked speculation and curiosity, prompting reflection on the future for both the brand and its visionary founder.
As reported by Bloomberg, drawing from insight provided by a source with close ties to the situation, Selena Gomez has engaged advisors to assess potential offers for her rapidly expanding enterprise.
According to Business of Fashion, the brand achieved over $400 million in net sales during the 12 months leading up to February 2024, propelling its valuation to $2 billion.
Business Insider reported that Gomez’s stake in the company is still unknown, but it is most likely significant. The business has no parent company or corporate partner. Besides Gomez, Scott Friedman, Rare Beauty’s CEO, and Nikki Eslami, the co-founder of VC firm New Theory Ventures, are its most well-documented investors.
Rare Beauty: Pioneering Innovation in Cosmetics
In 2022, the brand sold 3.1 million units of its Liquid Blush, priced at $23 per unit. This resulted in a significant increase in the net worth of Rare Beauty Blush, reaching a total of $70 million for the year.
Even though many celebrity-backed cosmetic lines are in the market, Rare Beauty has reached a global worth of $250 million. The brand has also gained significant support for leveraging its popularity on social platforms like TikTok.
What are the outcomes of the Rare Beauty Sale?
If Selena Gomez were to sell Rare Beauty, several potential outcomes could arise:
- Financial Windfall: Selling Rare Beauty at a valuation of $2 billion could significantly boost her personal wealth and provide financial security for her future endeavours. Plus, Rare Beauty could make her the next celebrity billionaire.
- Expansion and Innovation: Rare Beauty might experience further expansion and innovation under new ownership. Currently, Rare Beauty is only available online and at Sephora, limiting the countries where it can be purchased.
- Brand Evolution: The ethos and values of Rare Beauty might evolve under new ownership. While Selena Gomez has been instrumental in shaping the brand’s identity, new owners may have different visions for its direction. This could lead to changes in product offerings, marketing strategies, or target demographics.
- Impact on Selena Gomez’s Legacy: Selling Rare Beauty could impact Selena Gomez’s legacy in the beauty industry. While she will always be credited with founding the brand and championing its mission of inclusivity and self-expression, her involvement may diminish over time if she no longer owns it. However, her contributions to Rare Beauty’s success will likely be remembered positively.
As Rare Beauty continues to thrive and evolve, its impact extends far beyond cosmetics. Rare Beauty’s success underscores the potential for meaningful change within the industry, inspiring future generations of entrepreneurs to prioritise inclusivity, authenticity, and innovation in their endeavours.
