E.l.f. Beauty Empire: How e.l.f. Wins Over Gen Z Consumers

E.l.f. Beauty Empire: Winning Over Gen Z

Affordable beauty brand e.l.f. Beauty is capturing the hearts of Gen Z like few other companies have managed. Through a combination of low prices, high-quality products, and clever marketing, the brand has become a leader in the beauty industry.

With 28 consecutive quarters of sales growth, the brand’s strategy is proving successful. But the real test comes from its bold $1 billion acquisition of rhode, a makeup and skincare brand founded by Hailey Bieber — the kind of brand e.l.f. usually imitates.

Building a Gen Z-Focused Beauty Empire

Tarang Amin, CEO of the beauty giant, is steering the company toward a 21st-century beauty empire: inclusive, trend-setting, and fully designed for Gen Z.

“We want to be a different kind of beauty company,” Amin told CNN at the Oakland headquarters. “We’re going to build brands that disrupt norms, shape culture, and connect communities.”

The company emphasizes a strong internal culture, hosting biweekly town halls where its mostly Gen Z staffers, nicknamed e.l.f.z, participate in communal breathing and stretching exercises. Employees are encouraged to test new products, giving Amin real-time insight into what consumers want.

TikTok, Dupes, and Viral Success

One of e.l.f. Beauty’s biggest breakthroughs has been its viral product dupes. By offering affordable alternatives to high-end brands, such as the $11 Poreless Putty Primer compared to Tatcha’s $55 version, e.l.f. quickly gained a loyal online following.

The rise of TikTok became a turning point. Initially unfamiliar with the platform, Amin relied on his team to navigate it. “If that’s where Gen Z is, absolutely. Now, what’s TikTok?” he joked, highlighting his trust in the younger workforce.

The company’s clever campaigns, including the $14 Halo Glow Liquid Filter, positioned the brand as more than a makeup line: a form of entertainment that resonates deeply with Gen Z.

Challenges and Opportunities Ahead

Despite its success, e.l.f. faces potential obstacles, including tariffs and a challenging regulatory environment. As growth from affordable dupes begins to slow, the company’s future increasingly depends on the success of rhode.

The acquisition is more than a business move; it’s a strategic effort to evolve e.l.f. from a follower of trends into a creator. By combining high-energy campaigns, social media engagement, and community-driven product development, e.l.f. aims to redefine the beauty market for a new generation.

A New Era for e.l.f. Beauty

Since 2019, e.l.f. has transformed its business model. It closed 22 physical stores, reallocating resources to marketing and partnerships with major retailers like Target and Walmart. This pivot helped amplify its viral products and secure its position as a go-to brand for Gen Z shoppers.

Virality is the common thread that ties rhode and e.l.f. Beauty together, and it’s a key ingredient in building a modern beauty powerhouse.

Launched by Hailey Bieber in 2022, rhode became an instant sensation, reaching $212 million in net sales in its most recent fiscal year with fewer than 10 products. The brand’s viral hits, including the Glazing Milk facial essence, combined with Bieber’s own star power, sparked massive fan enthusiasm, with devotees camping overnight at pop-up events just to get their hands on the products.

That’s why Tarang Amin believes e.l.f. Beauty can thrive in both Dollar General and Sephora, where rhode recently made its debut. Amin revealed that e.l.f. is reviewing a list of 120 potential brands for acquisition, signaling that his vision extends far beyond the company’s signature “holy grail” dupes and into building a full-fledged beauty empire for Gen Z.

“The goal is to shape culture while selling beauty products,” Amin said. With a combination of smart acquisitions, viral campaigns, and a Gen Z-first mindset, e.l.f. Beauty is building an empire that could define 21st-century beauty.

Sources:

CNN > https://edition.cnn.com/2026/02/14/business/elf-beauty-ceo-dei-tariffs-risk-takers