Rhode sells, Glossier ghosts, & girlbosses 2.0

"Money and power can be seductive. But let’s not forget what it cost us last time."

Hi.

I hope you’ve all had a beautiful first week of June. Mine’s been lovely. I have a lot to say this week. So, let’s dive right in.

Agenda for today’s letter:

1. The Rhode acquisition has me thinking about Glossier

2. Girl bosses are back

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The Rhode acquisition has me thinking about Glossier

And the state of the DTC brands of that era

In news that seemingly broke the internet, Rhode was acquired for $1b. But of course, you know that by now.

The sale, for me, wasn’t that interesting. Impressive? Yes. Interesting? Not really. After all, Rhode was dubbed the “Skims of beauty” for a while now. And with Skim’s $4b valuation, I figured their number would be up there.

What has been interesting is the commentary on how this impacts the rest of the industry. Specifically: Glossier. My personal kryptonite. I’ve heard whispers (okay, read lots) about how the brand’s been seeking an exit for a while now. Puck News have been doing some really great reporting on this. So of course, it was only natural to think about the ripple effects this deal would have on that one.

Glossier… oh, how everyone went crazy for their stickers & pink bubblewrap packaging

For those who aren’t deep in the lore of beauty M&A, Glossier has been seeking an exit for a while now. So far, it’s been futile – thanks to decreasing sales, slowing growth, and declining cultural relevance. Back in 2021, Glossier was valued at $1.8b. In April of this year, it was supposedly valued at “south of $1 billion”. Still a high number – but almost half of what it was 4 years ago. The Rhode sale only reaffirms its waning influence.

I find this interesting because I’m forever fascinated with the status of the once-booming DTC brands of the 2010s. (Again, Puck’s Sarah Shapiro’s recent piece on this was big highlight for me). I was a sucker for them. Glossier and Reformation in the States. Frank Body and Triangl closer to home. As someone who used to own a DTC start-up, the impact of that era on fun, consumer-forward brands was once-in-a-lifetime. A moment in time that, in many ways, can’t be replicated.

(L-R) Triangl, Frank Body, Reformation (these images bring me back)

I love the insight Erika Geraerts has (elusively) shared over the years. Erika – previously the co-founder of Frank Body, now the founder of Fluff – has spoken candidly about just how singular that period was…

How easy it was, back then, to mistake the founders of that era as “revolutionary” when they may have just been in the right place at the right time to capitalise on emerging technologies.