Beauty Creators, Influencer Brands and Big Deals — 2026-10-23

Top developments

Rhode’s Post-Acquisition Surge and Valuation

Following e.l.f. Beauty’s announcement to acquire Rhode, the brand has demonstrated robust growth, ranking third in Piper Sandler’s latest teen makeup survey. This surge occurred as e.l.f. expanded the brand internationally, leveraging its existing distribution networks. Rhode reportedly achieved $390 million in net sales, positioning itself as a key driver in e.l.f.’s strategy to reach $1 billion in growth. The acquisition, announced on October 20, 2026, involves a total consideration of up to $1 billion, implying a valuation of roughly 4.7x revenue based on prior net sales figures.

South Korea’s Undisclosed Advertising Crackdown

In a significant regulatory development, South Korean media reported that over 100,000 cases of undisclosed advertising ("back-door ads") were identified between 2021 and 2025. These cases, where influencers claimed to purchase products themselves ("my own money") while receiving payment, highlight the ongoing tension between creator authenticity and commercial obligations. This data underscores the global trend of regulators tightening oversight on influencer marketing practices.

FTC Enforcement on TikTok Shop Creators

The Federal Trade Commission (FTC) continues to aggressively target non-compliant beauty creators on TikTok Shop. With penalties reaching $53,088 per violation in 2026, the FTC has issued over 150 warning letters to creators in the past year. The "Paid Partnership" label on TikTok is deemed insufficient for health-related claims, requiring more rigorous substantiation from creators and brands.

Investor Shift Toward Smaller Beauty Brands

According to a new study by Kearney, investors are increasingly favoring smaller, niche beauty brands over large, established conglomerates. This shift reflects a global market dynamic where agility and specific value propositions are prized over scale. This trend supports the valuation multiples seen in recent acquisitions, where breakout brands command premium prices.

Local view

In France, Le Temps discusses the potential "exhaustion" of celebrity beauty brands, noting that only products with genuine added value will survive long-term. Meanwhile, RTBF questions whether influencer-led brand launches are a "false good idea," highlighting the risks of creators transitioning from content to entrepreneurship without sufficient business infrastructure. In South Korea, Hankyung focuses on the systemic issue of undisclosed ads, emphasizing the need for stricter enforcement to maintain consumer trust.

Context & numbers

• Rhode Valuation: e.l.f. Beauty’s acquisition of Rhode is valued at up to $1 billion, with a reported multiple of ~4.7x EV/revenue.
• Undisclosed Ads in Korea: 108,709 cases of undisclosed advertising were monitored in South Korea from 2021 to 2025.
• FTC Penalties: Current FTC penalties for non-compliance are set at $53,088 per violation.
• Sephora Prize: At SEPHORiA London, Sephora awarded its first "Sephora Prize" to three innovative brands, including a French sunscreen brand and a Belgian hair care brand.

On the radar

• TikTok Shop Compliance: Creators should monitor FTC guidelines closely, as enforcement actions increased by 40% in 2025 and remain high in 2026.
• Celebrity Equity Trends: Celebrities like Justin Timberlake and Jessica Biel are increasingly seeking equity in brands rather than just endorsement fees, signaling a shift in how talent monetizes their personal brand.
• AI Influencers: Platforms are beginning to debate where to draw the line on AI-generated influencer accounts, a topic gaining traction in creator economy discussions.