Overview of Hailey Bieber, AI and fast launches: how e.l.f. Beauty is winning
This episode (WaitWhat / Rapid Response) features Tarang Amin, CEO of e.l.f. Beauty, interviewed by Bob Safian. Amin explains how e.l.f. combines fast product development, community-led demand, platform experimentation (TikTok, Twitch, Roblox), AI-enabled operations, broad retail distribution and values-driven policies (sustainability, DEI) to grow market share and launch new brands like Hailey Bieber’s Rhode into prestige channels while staying accessible.
Key takeaways
- Speed and cultural timing are core advantages: e.l.f. moves rapidly to capitalize on moments (Super Bowl ad, TikTok challenges, fast product launches driven by community feedback).
- Community-driven product development reduces risk: social listening and TikTok Live feedback let e.l.f. validate demand before committing to long production runs.
- “Democratized prestige” is e.l.f.’s positioning: deliver prestige-level performance at accessible prices (example: a $5 concealer positioned against a $32 prestige alternative).
- Omnichannel accessibility matters: e.l.f. sells successfully across Dollar General, Target, Sephora, Ulta, Walmart, Amazon, and new partner H&M — tailoring execution by channel but keeping the core brand consistent.
- Values are operational, not decorative: sustainability (Fairtrade, cruelty-free, vegan) and inclusive hiring are embedded in hiring, product and marketing choices, and Amin argues this composition is a competitive advantage.
- Pragmatic experimentation with AI: e.l.f. uses AI to automate routine tasks (e.g., community manager workflows) and scale engagement, while testing and learning quickly.
- Supply chain diversification is essential given tariff volatility: China remains a major source, but e.l.f. also manufactures in the U.S., Thailand, Italy and South Korea and raised prices modestly to absorb tariff shocks.
Topics discussed
Super Bowl ad and cultural agility
- e.l.f. produced a Melissa McCarthy Super Bowl spot that leveraged a cultural moment (Bad Bunny halftime) and ran on multiple platforms including Univision. The ad delivered both cultural resonance and immediate sales lift.
Partnership with Hailey Bieber (Rhode)
- Amin praises Hailey Bieber as a founder and describes Rhode’s fast growth: reportedly scaled from zero to ~$212M net sales in under three years DTC with a very small SKU set.
- e.l.f. acquired Rhode to add an entry-level prestige brand that complements e.l.f.’s mass-accessible positioning and helps expand into Sephora, UK, and Australia/NZ.
Pricing strategy and product development
- Intentional strategy: identify category-leading formats, build “e.l.f. twist,” and price significantly below prestige equivalents to democratize access (example: $5 concealer vs. $32 prestige).
- Product pipeline is responsive and compressed when community demand is vocal — e.l.f. accelerated bronzing drops from an 18-month roadmap to a 6-month launch after TikTok feedback.
Supply chain & tariffs
- Amin reports sustained tariff pressure since 2019 and cited an elevated effective tariff level (he referenced ~60% for a fiscal year), prompting partial price increases and more supply diversification.
Gen Z/millennial workforce & customer engagement
- e.l.f.’s workforce skews young (Amin cites ~74% Gen Z/millennial; ~76% women; ~44% diverse) and he credits this composition with deep insights into younger consumers.
- The brand experiments across platforms: early TikTok campaigns (e.g., Eyes.Lips.Face song challenge with billions of views), first beauty channel on Twitch and a top branded experience on Roblox.
AI experimentation
- AI has been used to automate repetitive tasks for community managers and scale direct communication; e.l.f. treats AI as an enabler and is willing to test/fail fast.
Channel strategy and partnerships
- Channel-agnostic but tailored: e.l.f. customizes execution to retailer needs while keeping brand DNA consistent.
- Dollar General launch reached underserved “beauty deserts” and brought many new cosmetics buyers to the retailer; Target remains a dominant partner with e.l.f. holding a large share of its category.
Sustainability and DEI as strategic choices
- e.l.f. is Fairtrade certified across factories, cruelty-free (PETA & Leaping Bunny), vegan, and positions these commitments as demanded by consumers rather than purely political statements.
- Amin defends visible diversity on board and in staff, citing it as a competitive advantage and part of the company’s core identity. He framed collaboration with partners as a matter of shared priorities rather than absolute alignment on all issues.
Rapid-fire leadership lessons
- From Duke’s Coach K: teamwork analogy (five fingers stronger together) and the importance of candid, specific feedback.
- From family experience running a motel: break large problems into solvable parts, keep forward motion, manage panic.
- Misunderstanding about beauty: it’s not just superficial—appearance ties to identity and self-worth.
Notable stats & examples
- Rhode reportedly reached ~$212M net sales in <3 years as a DTC brand.
- e.l.f. concealer example: $5 e.l.f. product vs. a $32 prestige counterpart.
- e.l.f.’s workforce composition cited: ~76% women, ~74% Gen Z/millennial, ~44% diverse.
- Company performance: 28 consecutive quarters of net sales and market-share gains (per Amin).
- Channel wins: largest Sephora North America launch for Rhode; Sephora UK launch ~5x bigger than prior best.
- Digital reach examples: TikTok campaigns generating multi-billion views (e.g., one campaign ~3–4B; a later challenge ~15B).
- Dollar General: 60% of buyers purchasing e.l.f. there were first-time cosmetics buyers at that retailer.
Notable quotes
- “We’re for every eye, lip, and face.” — on inclusivity and brand purpose.
- “The composition of our team is the biggest competitive advantage we have.” — on diversity as business advantage.
- “Our model is going to our community and seeing what they want.” — on community-led product development.
- “We’re always testing and learning. We’re not afraid of failing somewhere and basically learning from it.” — on experimentation culture.
Actionable lessons for leaders
- Test in public and move fast: use social channels as market research to validate demand before large capital or manufacturing commitments.
- Embed values operationally: make DEI and sustainability part of hiring, sourcing and product decisions rather than marketing afterthoughts.
- Diversify supply chains: mitigate geopolitical/tariff risk with multi-country manufacturing and diversified channels (international expansion can offset tariff impact).
- Use AI pragmatically: automate repetitive community and service tasks first to free human teams for higher-value work.
- Tailor channel execution: keep core brand consistent while customizing assortments and experiences to succeed in diverse retail partners.
Why this episode matters
Tarang Amin’s approach demonstrates how a commodity-facing, mass-accessible brand can leverage culture, speed, community signals, and values to scale rapidly and enter prestige retail without losing its identity. The episode is a practical case study in combining rigor (supply-chain diversification, metrics) with sustained experimentation (platforms, AI, fast product iterations).
Episode credits: host Bob Safian; guest Tarang Amin, CEO of e.l.f. Beauty.