Introduction
Rare Beauty has quickly become a popular brand among makeup enthusiasts, attracting a wide range of audiences. However, many people still don’t know much about the ownership of the brand, which can be quite important when it comes to assessing its image and trustworthiness. This article aims to provide readers with a comprehensive understanding of who owns Rare Beauty and any controversies related to ownership.
History and Ownership of Rare Beauty
Rare Beauty was founded in 2019 by Selena Gomez. The brand aimed to promote self-acceptance and self-love while providing high-quality makeup products to individuals struggling with mental health issues. Selena Gomez’s personal struggles with depression and anxiety inspired her to start the brand, which created a loyal following among people who valued the brand’s positive, uplifting message.
Initially, Rare Beauty’s ownership structure was solely owned by Selena Gomez’s production company, July Moon Productions, as per the trademark filings with the US Patent and Trademark Office. However, later on, it is reported that Rare Beauty being registered under Selena Gomez’s brand management company, XG Productions.
Over the years, the ownership structure of Rare Beauty has evolved. Currently, Rare Beauty is owned outright by the cosmetics giant, Sephora. Sephora acquired Rare Beauty in a deal worth $2 billion in 2021.
Analytical Deep-Dive into Recent Purchase of Rare Beauty
The recent acquisition of Rare Beauty by Sephora was a significant milestone for both companies. Sephora previously struggled with increasing competition in the world of makeup, particularly from brands like Ulta and some popular beauty product lines which ignited their sales, like Rihanna’s Fenty Beauty line. Therefore, they saw the acquisition of Rare Beauty as a way to bolster their portfolio and expand their customer base.
The purchase of Rare Beauty saw Sephora acquire all of the brand’s assets, including trademarks, intellectual property, and proprietary formulations. While the brand retains its unique message of promoting self-love, it now enjoys access to the resources and distribution networks of one of the largest cosmetics companies in the world.
In terms of the impact of the acquisition on the brand, there seems to have been little to no change – Selena Gomez remains the founder and the face of the brand. It is still focused on mental health and social causes like anti-bullying, confidence building, and advocacy that would relate to Rare Beauty’s consumer base around the brand.
Interview with the Founder of Rare Beauty
An interview with Selena Gomez, founder of Rare Beauty, provides excellent insight into the origins of the brand. In an interview with Elle magazine, Selena Gomez said that she founded Rare Beauty because there was a significant gap in the market for makeup that was socially conscious, high-quality, and affordable. She also stated her struggles with anxiety were a good way to outreach the people with similar issues, and Rare Beauty was how she would promote self-confidence in others the same way as it helped her.
She revealed that the creation of Rare Beauty was a way to promote self-acceptance and self-love, and she wanted the brand to be inclusive for individuals of all skin types and tones and encourage them to embrace their unique features and flaws.
In the interview, Selena Gomez also spoke about the challenges she faced in creating and developing the brand, as well as the benefits of being an owner of a successful beauty brand.
Controversy Surrounding Rare Beauty Ownership
Despite the positive reputation of Rare Beauty, there have been controversies surrounding its ownership structure. Some reports suggested that the brand was initially conceived and created by trend forecasting agency, Taste Beauty, in collaboration with Selena Gomez. This raised questions about who owns the intellectual property underlying the brand or how involved Selena Gomez’s production company was with the development of Rare Beauty. The extent of Taste Beauty’s involvement with Rare Beauty is still shrouded in much secrecy and mistrust.
Moreover, Rare Beauty has faced criticisms for replicating the marketing strategy of another top-performing beauty brand, Glossier. Rare Beauty’s packaging, product display, and marketing strategy bears an uncanny similarity to Glossier, which led many to question the authenticity of Rare Beauty’s messaging and its origin story.
Top Investors in Rare Beauty
Before Sephora’s acquisition, Rare Beauty’s top investors were mainly private equity firms who bet on Selena Gomez launching the brand. One of them was TSG Consumer Partners, a PE firm that has invested in other high-profile consumer startups. The investment in Rare Beauty was in line with TSG’s strategy of backing founders that are invested in social causes and impacting niche target audiences. Other notable investors included Rares Beauty Partners and Bond Capital, who invested a total of $20 million into the brand in 2019.
Conclusion
The ownership of Rare Beauty is a complex issue that touches on reputational management, brand identity, and social ethics. Understanding who owns Rare Beauty can reveal a lot about the brand image, its values, and product development. It is clear that the acquisition of Rare Beauty by Sephora has significant implications for the brand’s future, both in terms of visibility and credibility. However, it is also crucial to acknowledge the controversies that have surrounded the history of the brand and the need for transparency in the cosmetics industry.
A brand like Rare Beauty is a prime example of how social causes, entrepreneurship, and the beauty industry can blend into a diverse range of products that appeal to a broader consumer audience. In addition, it highlights the importance of seeking out products that not only provide high-quality, but also align with our personal social values and causes.
