The star transformed the consumer market landscape, as Rare Beauty’s sales reached over $2 billion powerhouse, setting a new operational benchmark for celebrity-led enterprises. Launched in 2020, Rare Beauty bypassed traditional endorsement models by placing product performance, inclusivity, and mental health advocacy at the core of its corporate strategy. The brand generates over $400 million per year. The soft pinch liquid blush, along with the brand’s extensive range of shades, became a hit among the customers and allowed Gomez to address a significant number of consumers with different skin tones.
Unlike other celebrities, who engaged in vanity projects, Gomez built a different business, giving away the majority stake. She could control the production process, as she collaborated with cosmetics executives in order to design a rare beauty supply chain. Direct sales allowed Gomez to reach an extended audience, as Sephora distributed her brand globally. Moreover, Gomez generated tremendous profit due to her active participation in developing the product, testing it, and engaging in marketing activities. The star was involved in every stage of the Rare Beauty’s development, addressing a wide range of customers without spending much on advertising.
An essential part of the Rare Beauty’s business model is the impact fund, which allocates 1% of direct sales to support mental health initiatives. This program allows Gomez to help those who cannot afford treatment, as the impact fund raised over $13 million so far. Thus, the celebrity not only addressed the demand for products for people with different skin tones but also managed to position Rare Beauty as a profitable and socially responsible business.
