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Is DTC Dead? Not To Emerging Beauty Brands

En route to Sephora, Hailey Bieber's Peptide Lip Tint-powered brand Rhode generated $90 million in revenue from its website in the final two months of 2024, according to figures YipitData provided the publication Puck, which broke the news of the brand's retail launch later this year. While Rhode's future at Sephora shows …
Rachel Brown·February 4, 2025·2 min read
The 30-second read
En route to Sephora, Hailey Bieber’s Peptide Lip Tint-powered brand Rhode generated $90 million in revenue from its website in the final two months of 2024, according to figures YipitData provided the publication Puck, which broke the news of the brand’s retail launch later this year.

While Rhode’s future at Sephora shows that even the hottest beauty company understands its growth will be hindered if it doesn’t enter brick-and-mortar retail, which commands nearly 60% share of beauty sales in the United States, per market research firm NielsenIQ, the brand also demonstrates just how meaningful direct-to-consumer distribution can be despite investors downgrading it and constant teeth gnashing over high digital customer acquisition costs.

Of course, for many emerging beauty brands, DTC distribution is their only possibility. Still, retail—and more specifically big chains like Sephora, Ulta Beauty, Target and Walmart—have long loomed large in the imaginations of their founders. Today, though, they’re coming to grips with the realities of what it takes to support retail rollouts.

To get a sense of emerging brand founders’ views on different distribution channels, for the latest edition of our ongoing series posing questions relevant to indie beauty, we asked 30 of them the following: What percentage of your business is wholesale versus DTC? Is that what you want it to be? If not, what strategies are you pursuing now to reach your ideal breakdown?

The players

5 mentioned
Brand

Rhode

Funding StatusAcquired
Primary CategoryMakeup
Top Channels / Retailers
Sephora
Brand

AS Beauty

Founded2019
HQNew York, New York, United States
Revenue Range$150M+
Retailer

Walmart

Retailer

Walmart

Retailer

Ulta Beauty

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