At the age of 32, Selena Gomez became the youngest self-made billionaire in the US with a net worth exceeding the $1 billion mark (according to Bloomberg). This financial milestone helps Selena Gomez closely follow her best friend Taylor Swift, who joined the ten-digit “club” in 2023. While Taylor Swift’s billion-dollar empire comes largely from music, the cosmetics brand Rare Beauty has contributed significantly to Selena Gomez’s huge fortune. The unexpected success of this brand comes not only from a methodical marketing strategy but also from the humanity of the brand story behind it.
Rare Beauty and its inspiring brand story
Launched on September 3, 2020, Rare Beauty is a young cosmetic brand compared to its competitors in the market. First appearing in the North American beauty market, just 1 year later, in the summer of 2021, the brand expanded to markets across Europe, the Middle East and Asia-Pacific. From the desire to make women more beautiful and confident, the brand made its mark thanks to the spirit of “Love yourself” connecting with the focus on mental health for users. The name “Rare Beauty” is the guiding principle for all products of the brand: to eliminate unreasonable standards of perfection. The brand focuses on the message: Makeup can help you feel happier and more beautiful, but not to cover up what is most unique to you; because Rare Beauty means you, not someone else.
For Selena Gomez, Rare Beauty is more than a cosmetics brand, because it is also her manifesto and encouragement to those with mental health problems. Becoming a Disney child star at the age of 7, Selena was familiar with makeup, press, media and crowds of fans from a young age. Having to maintain her image and make herself perfect in the public eye haunted her for a long time. As a result, she was diagnosed with lupus in 2015 along with a series of mental illnesses such as bipolar disorder (a disease that causes mood swings and difficulty controlling emotions). Coming out of her psychological trauma, Selena “conceived” Rare Beauty with the desire to inspire women to have the opportunity to live as themselves.
Speaking about the brand, Selena Gomez said: “I think Rare Beauty can be more than just a cosmetics brand, it can have a positive impact on people. I hope we all stop comparing ourselves to others and embrace our own uniqueness. The word Rare means being comfortable with yourself. I stopped trying to make myself perfect. I just want to be me.”
With that dedication, Rare Beauty quickly became a “phenomenon” in the cosmetics industry despite launching right at the difficult time of COVID. According to Time magazine, Rare Beauty is the best-selling product at Sephora and is available in 36 countries. Annual sales increased 100% from 2021 to 2022 and 200% the following year; reaching $400 million in the 12 months to May 2024.
The brand’s most popular product is a liquid blush that costs only $23. This item alone has brought in $70 million in sales for Rare Beauty. According to Piper Sandler’s Taking Stock with Teens survey, Rare Beauty is currently the second most popular cosmetics brand among Gen Z , behind only Elf Cosmetics and above Maybelline. According to the report, more than 80% of Selena’s assets come from this cosmetics brand. Rare Beauty’s unexpected success is considered a journey from zero to a “billion-dollar empire” and helped Selena Gomez become the youngest self-made billionaire in the United States at the age of 32.
Humanistic Marketing Strategy, Outstanding for Emphasizing Community Values
A different Marketing Mix strategy helps Rare Beauty stand out despite being a young “rookie”
A – Product – “Multi-purpose” healthy vegan product
According to The NPD Group, in 2020, healthy cosmetic brands recorded a 27% growth in retail sales in the US luxury cosmetics industry, despite the COVID-19 pandemic – an impressive figure showing that consumers increasingly prefer natural cosmetics. Grasping this trend, Rare Beauty’s products are all 100% vegan, paraben, sulfate and phthalate free, meeting the criteria of clean cosmetics, so they are safe for everyone, including those who are sick. In particular, Rare Beauty also scores points for being “not tested on animals”, in line with the trend of sustainable and responsible beauty, meeting the desires of consumers who love to protect the environment and animals.
What really makes Rare Beauty stand out and differentiate itself is the careful research into product features such as using a soft, spongy tip to apply liquid blush and highlighter, making it easy to blend and contour without too much pressure. Or even Rare Beauty’s eyeshadow (Stay Vulnerable Liquid Eyeshadow) is produced in liquid form for easy use – something other brands rarely think about.
Notably, Rare Beauty’s product lines also stand out with their rich color range, especially with foundation and concealer products, with 48 different shades, suitable for all skin types from light to dark, including tones that are often difficult to find in other cosmetic lines. This seems to be the brand’s commitment to respecting diversity and meeting the needs of all customer groups. In particular, many products can also maximize their uses, such as liquid blush (Soft Pinch Liquid Blush) that can be used on both cheeks and lips, or eyeshadow products that can be used as highlighters, increasing convenience and minimizing the amount of cosmetics needed during the makeup process.
The product researched as “Multi-functional” is one of the reasons why Rare Beauty is always “top of mind” in consumer choices and has received many prestigious awards. 2020 was a “bumper year” for Rare Beauty on beauty forums, when the brand won Allure Best of Beauty (for blush, foundation, mascara products) and Time’s 100 Inventions of 2020 (Top 100 most creative inventions of 2020). The brand was also awarded the best cosmetic brand by Temptalia – one of the most prestigious beauty blogs – thanks to its comprehensive product quality and unique philosophy in 2021.
B – Price – High-end segment but average price
Although considered to be in the same segment as high-end products, the prices of Rare Beauty products are somewhat “softer” than competitors such as: Fenty beauty by Rihanna, Kylie beauty by Kylie Jenner or REM by Ariana Grande… Rare Beauty products range from 15 – 30 USD.
This can also be considered a “rare” thing when most celebrity brands have expensive prices. From there, Rare Beauty has the ability to widely reach many different customer groups. At the same time, keeping prices lower than competitors in the high-end segment also helps Rare Beauty maintain its competitiveness in a fierce cosmetics market and attract customers who are looking for a brand with a reasonable price but still ensuring high quality.
C – Place – Multi-channel distribution on a global scale
Rare Beauty has embraced the internationalization trend by partnering with major global distribution partners. In particular, Rare Beauty has “joined hands” with Sephora – one of the world’s largest multi-brand retailers, which focuses on high-end cosmetic brands, present in more than 35 countries through more than 2,000 stores. This is also Rare Beauty’s main distribution channel, contributing to the $60 million in revenue that the brand achieved in just the first year of launch. The appearance of Rare Beauty products on Sephora’s shelves is a way to maintain a quality and trustworthy image, reaching middle and high-end customers who are willing to spend on valuable and quality products.
Rare Beauty also does not forget to make the most of the online sales channel, which is an important factor in the distribution strategy, especially in the context of the increasingly strong online shopping trend. Through Rare Beauty’s official website, Sephora’s website and a series of e-commerce platforms such as Amazon (USA), Tmall Global (China), Shopee and Lazada (Southeast Asia), Harrods and Selfridges (UK), Rare Beauty’s presence on online sales channels is extremely widespread and strong. From there, the brand increases its ability to reach a large number of customers globally for its products.
D – Promotion: Diverse, creative and timely communication
First global campaign “Every side of you”
Rare Beauty has recently expanded its marketing power with its first global marketing campaign, “Every Side of You.” The campaign is centered on a 60-second TVC called “Love Your Race.” As the narrator, Selena Gomez recounts the journeys of the girls, with their ups and downs, as diverse as the diversity of Rare Beauty products – a variety of colors with contrasting light and dark tones. The video concludes with the message “To be Rare is to love every version of yourself.” The campaign is being rolled out globally across multiple platforms including social media, digital advertising, and promotions at Sephora stores, giving fans the opportunity to interact and access exclusive content.
Through this first global campaign, Rare Beauty aims to celebrate the unique and multifaceted beauty of each person, encouraging self-acceptance and authentic self-expression. Featuring Selena Gomez, the TVC has received strong engagement and support from global fans. In particular, early reports show that the campaign has resonated with Gen Z, who value brands with social commitments such as mental health.
Leverage the influence of KOL/KOC
As the founder of Rare Beauty, Selena Gomez herself is an effective media channel with global reach and influence. The singer directly participates in promoting the brand widely by taking advantage of her huge following on social media platforms: 423 million followers on Instagram, 88 million followers on Facebook, and 58.3 million followers on Tiktok . Selena Gomez actively shares related content as a way to promote Rare Beauty. The singer often records her product experience in her daily life, making the brand more approachable and authentic to her fans. She also uses her voice to share about mental health, which not only fits the philosophy of Rare Beauty but also helps her connect more deeply with her fan community.
In addition to Selena Gomez, Rare Beauty also collaborates with major KOLs in the beauty industry such as Manny MUA, NikkieTutorials, Jackie Aina, Bailey Sarian… These are all makeup experts, beauty vloggers, and influencers on platforms such as YouTube, Instagram, and TikTok, with millions of followers. Their shared content often revolves around authentic and objective reviews of product experiences. Rare Beauty’s strategy is not only to cooperate with KOLs in the US market – the birthplace of the brand, but also to reach out globally by “joining hands” with many influencers from many countries and cultures.
Rare Beauty also does not forget the KOC (Key Opinion Consumers) in the same field. The brand encourages them to share their experiences with the products through hashtags such as #RareBeauty or #RareRoutine, allowing the community to freely express their feelings about the products in a natural and authentic way. Recent figures show that #RareBeauty has reached about 76.3K posts and #RareRoutine has also attracted a large number of users sharing related content. This has helped Rare Beauty not only reach a wide audience but also strengthen its connection with the consumer community.
“In addition to traditional PR strategies, our entire team really values beauty bloggers and content creators, so we all talk and engage directly with them to hear their opinions on products,” says Katie Welch, the company’s CMO.
Focus on developing communication on TikTok platform
Rare Beauty was launched in 2020, coinciding with the rapid growth of TikTok, and the brand has differentiated itself from other beauty empires by prioritizing advertising on the emerging platform. Of Rare Beauty’s social media accounts, TikTok has the largest following (4.1 million). Rare Beauty focuses on providing valuable content, including makeup trends, reviews, and tutorials from Selena and other global influencers.
The brand effectively leverages creator-generated content, with metrics showing a 16% increase in average view time on TikTok for these videos, and ads featuring Selena Gomez generating 770% more complete views than the brand’s other ad content.
Rare Impact Fund & Community Activities and Mental Health Promotion are closely linked to Rare Beauty’s image
As part of Rare Beauty’s commitment, Selena Gomez and the brand founded the Rare Impact Fund – a charity launched in 2020 to support initiatives and non-profit organizations working in the field of mental health, with the goal of raising awareness and improving access to mental health care services for the community.
The Rare Impact Fund will donate 1% of Rare Beauty product sales, along with fundraising from other charities and partners, to reach its goal of raising $100 million over 10 years for mental health care. The fund also partners with many organizations and experts in the field of mental health care, including co-creating free mental health content and sharing that content through the website, social media and events. To date, the Rare Impact Fund has donated more than $5 million to mental health organizations and initiatives – an impressive number considering the time span of more than 4 years since the fund was established.
In addition to fundraising, Rare Beauty has also launched many impressive meaningful campaigns, including the collaboration with Mental Health First Aid to launch the “Your Words Matter” campaign in response to Mental Health Awareness Month in May 2022. The campaign was launched with the goal of educating about the impact of language on mental health. Accordingly, the campaign provides specific guidance on communication language on social media platforms, where words can greatly affect the mental health of others.
Changing language appropriately can help reduce the discomfort felt by listeners when talking about sensitive issues, especially those who are struggling with mental health. Sharing on her personal page, Selena said: “Words can be a barrier to people seeking help and add to the stigma around mental health. Many words have been normalized and accepted for too long, but it’s time we raise awareness about the words we use… because they matter.”
The launch of “Your Words Matter” is in line with Rare Beauty’s long-term vision of raising awareness and supporting mental health. The campaign has further cemented the brand’s role as not just a cosmetics brand but also a socially responsible organization, aiming to create a positive impact in the community.
Community responsibility is always promoted by Rare Beauty through every very delicate detail of the product. For example, the “unique” packaging of Rare Beauty cheek cream is famous for its purpose of supporting the use of people with Lupus erythematosus. The reason is that people with the disease often have difficulty opening bottles and jars, so Rare Beauty’s products have solved that problem with unique packaging, making it more convenient for users during use. The product can also be easily spread by hand, supporting patients with hand tremors. In particular, before launching the product on the market, a number of steps will be taken to ensure that their products are suitable for people with disabilities. In addition to these specific product features, Rare Beauty also partners with organizations such as the Disability Rights Education & Defense Fund (DREDF) to ensure that their products are truly accessible and meet the needs of people with disabilities.
Conclusion:
Rare Beauty is not only a story about cosmetics but also Selena Gomez’s inspiring journey in building a brand that goes beyond the norm. By prioritizing community values and mental health, Rare Beauty not only beautifies women’s appearance but also touches the hearts of millions of users. This methodical, humane marketing strategy not only helps the brand grow strongly but also turns Selena Gomez from a talented artist into a billionaire with far-reaching influence.
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