Frank Rondel
Affordable beauty brand E.l.f. Beauty has mastered the art of appealing to Gen Z through low-cost, high-quality products and TikTok-viral dupes of luxury brands, reporting 28 consecutive quarters of sales growth, reports customreceipt.com via CNN. Last May, the company made a significant $1 billion acquisition of rhode, a makeup and skincare line founded by Hailey Bieber, marking a pivotal step in CEO Tarang Amin’s vision to transform E.l.f. into a 21st-century beauty conglomerate that sets trends instead of following them.
Since becoming CEO in 2014, Tarang Amin has driven E.l.f.’s success by combining innovative marketing with a focus on inclusivity and Gen Z culture. Born in Kenya with Indian roots, Amin immigrated to the United States as a child and has built a company culture that encourages openness, creativity, and collaboration. He hosts biweekly town halls where employees, mainly Gen Z staffers dubbed e.l.f.z, participate in communal exercises and product testing sessions. Amin emphasizes relying on the younger workforce to gauge consumer preferences, stating that marketing is as critical as product development in a world where beauty hacks spread rapidly on social media.
E.l.f.’s transformation began in 2019 when the company closed its 22 brick-and-mortar stores, redirecting resources into marketing campaigns and strengthening partnerships with major retailers including Target and Walmart. The brand’s affordable dupe products, such as the $11 Poreless Putty Primer and $14 Halo Glow Liquid Filter, quickly went viral on TikTok, offering accessible alternatives to luxury products like Tatcha’s $55 primer and Charlotte Tilbury’s $50 Hollywood Flawless Filter. Amin describes the company as “an entertainment company that happens to sell beauty products,” highlighting how the virality of these products fuels engagement with Gen Z.
The acquisition of rhode represents a shift toward creating original, trendsetting brands. Launched in 2022 by Hailey Bieber, rhode quickly achieved $212 million in net sales in its last fiscal year with fewer than ten products. Its viral Glazing Milk facial essence and other items generated immense consumer demand, including overnight lines at pop-up events. Amin believes that rhode’s success demonstrates E.l.f.’s potential to thrive across retail landscapes, from Dollar General to Sephora, and the company is reportedly evaluating around 120 other brands for possible acquisitions. Rhode’s price points position it as “affordable luxury,” with products ranging from $20 lip treatments to $38 Caffeine Reset sculpting cream masks. In the third quarter, rhode contributed $128 million to E.l.f.’s sales growth and is projected to reach $265 million in net sales this year, a 70% increase, while the original E.l.f. brand grew just 2% in the same period.
E.l.f. continues to navigate political and economic pressures. In response to tariffs under the Trump administration, the company raised prices by $1 on select products while transparently communicating the changes to consumers via social media. Approximately 75% of E.l.f.’s products are manufactured in China, highlighting the impact of trade policies on pricing. Concurrently, the company has reinforced its commitment to diversity, equity, and inclusion (DEI) despite external pressures to scale back such initiatives. The E.l.f. workforce comprises 76% women, 74% Gen Z or millennials, and 44% from diverse backgrounds, with all employees granted equity stakes. In 2024, the company launched a provocative ad campaign, “Soooo Many Dicks,” critiquing corporate board gender disparities and reinforcing its dedication to inclusivity.
E.l.f. Beauty’s strategy underscores Amin’s commitment to building a modern, culturally aware beauty conglomerate that combines viral marketing, inclusivity, and innovative brand acquisitions to capture Gen Z’s attention and loyalty.
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