HAILEY BIEBER SAYS RHODE ISN'T DELIBERATELY SELLING OUT. SO WHY CAN'T IT KEEP PRODUCTS IN STOCK?
When a beauty product sells out minutes after launch, is it a sign of extraordinary demand, limited production, or a marketing strategy? Rhode's stock shortages reveal the business challenges behind turning viral popularity into a sustainable beauty brand.
1. THE PROBLEM EVERY BEAUTY BRAND WANTS — UNTIL IT BECOMES A PROBLEM
For many businesses, selling out is the dream.
A product launches, customers rush to buy it, and the entire inventory disappears. Social media fills with videos, reviews, and posts from people who managed to get their hands on it.
Rhode, the skincare and makeup brand founded by Hailey Bieber, has experienced the commercial power of this phenomenon.
Its minimalist packaging, distinctive products, and association with Bieber helped it build a strong online following. Products such as its Peptide Lip Treatment and Pocket Blush became recognizable items within the beauty market.
But popularity creates a difficult operational question: what happens when a brand attracts customers faster than it can supply them?
A sold-out product may generate excitement, but customers who repeatedly encounter empty shelves can eventually become frustrated. Some may purchase a competitor's product instead.
The challenge is turning demand into completed sales rather than simply generating attention.
2. THE REAL PROBLEM: RHODE GREW FASTER THAN ITS SUPPLY CHAIN
Rhode launched in 2022 with just three skincare products. The strategy was deliberate: create a small collection of everyday essentials rather than overwhelm customers with hundreds of options.
The initial response was extraordinary. Products sold out rapidly, and demand continued to grow as the brand introduced new launches and expanded into additional markets.
At the Fortune Most Powerful Women Summit in October 2026, Bieber explained that the company was not deliberately creating shortages to make its products seem more exclusive.
The problem, she said, was that customer demand repeatedly exceeded expectations.
Rhode co-founder Lauren Ratner described an early challenge: during the brand's first six months, products were available for only 11 days before selling out. More recently, the business attracted approximately 160,000 new customers in the three months leading up to its bronzer launch.
That growth made forecasting increasingly difficult. A product that appears likely to sell a certain quantity can suddenly become a viral sensation, leaving the company unable to replenish stock quickly enough.
Rhode's challenge is not simply making products people want. It is predicting how many people will want them, and having enough inventory ready when demand arrives.
3. WHY SELLING OUT IS NOT ALWAYS A SMART STRATEGY
Limited availability can be a powerful marketing tool.
Luxury brands sometimes deliberately restrict production to create exclusivity. Fashion companies use limited-edition releases, while sneaker brands often generate excitement through small drops and highly anticipated collaborations.
But there is a difference between planned scarcity and being unable to fulfil demand.
When a brand intentionally limits supply, it can carefully coordinate the launch, pricing, and customer expectations. When products disappear unexpectedly, the company risks losing sales and frustrating customers who genuinely want to buy them.
Imagine two customers visiting Rhode's website.
The first sees a product advertised, purchases it, and receives it a few days later. The second sees the same advertisement but discovers that the product is unavailable for weeks.
The first customer generates revenue. The second may leave without buying anything.
If this happens repeatedly, customers may stop checking the website or switch to competing brands.
For Rhode, which wants to build long-term customer relationships, reliable availability matters just as much as creating viral moments.
4. THE $1 BILLION ACQUISITION CHANGED THE EQUATION
Rhode's growth eventually attracted e.l.f. Beauty, which agreed to acquire the brand in a deal valued at up to $1 billion in 2025.
The acquisition gave Rhode access to a larger beauty company's experience, distribution infrastructure, and manufacturing relationships.
This matters because scaling a beauty brand requires much more than producing a popular formula.
The business must forecast demand, secure ingredients and packaging, coordinate manufacturers, manage inventory across markets, and deliver products to retailers and customers.
Following the acquisition, Rhode began expanding its distribution capabilities and diversifying its manufacturing partners.
These changes could help the company respond more effectively when a product suddenly becomes popular.
However, a larger supply chain cannot eliminate every shortage. Manufacturing takes time, ingredient availability can fluctuate, and unexpected demand can still exceed forecasts.
The advantage is that Rhode now has access to resources that a smaller independent brand might struggle to build on its own.
5. VIRAL MARKETING CAN CREATE A SUPPLY CHAIN NIGHTMARE
One of Rhode's most recognisable products is its phone case designed to hold a lip treatment.
The concept combined beauty with an everyday accessory, making it particularly suited to social media. Customers could demonstrate the product in videos, show how they used it, and share it with friends.
Bieber acknowledged that she underestimated how popular the accessory would become.
This illustrates a challenge that many modern businesses face: social media can change demand almost instantly.
Traditional forecasting often relies on historical sales, seasonal patterns, and planned marketing campaigns. Viral content introduces a less predictable factor. A product can suddenly attract a much larger audience than the company expected.
That creates a difficult decision.
If Rhode produces too little, it risks shortages and lost sales. If it produces too much, it risks holding excess inventory if the trend fades.
The company must find a balance between preparing for growth and avoiding expensive overproduction.
6. THE BUSINESS NUMBERS SHOW WHY GETTING IT RIGHT MATTERS
Rhode's rapid expansion demonstrates why supply-chain management has become a central issue for celebrity beauty brands.
The company reported approximately $390 million in net sales for its fiscal 2026, representing roughly 80% growth year over year.
That is a substantial business built around a relatively curated product range.
The next challenge is sustaining that growth while making products more consistently available.
A company can attract customers through celebrity influence, strong branding, and viral marketing. But it needs reliable operations to turn that attention into repeat purchases.
If Rhode can improve its forecasting and distribution, it may be able to capture sales that previously disappeared because products were unavailable.
If it fails to do so, competitors could benefit from customers who simply want an alternative they can purchase immediately.
MAACAT PERSPECTIVE
Rhode's story demonstrates that rapid growth creates problems that marketing alone cannot solve.
Hailey Bieber's influence helps the brand attract attention, but the company still needs manufacturers, inventory, distribution centres, and forecasting systems capable of supporting that demand.
Bieber says Rhode is not deliberately creating shortages. The challenge is predicting demand in a market where a single viral product can attract thousands of additional customers.
The company's acquisition by e.l.f. Beauty provides access to resources that could help address the problem, but operational improvements take time.
Creating demand is only half of building a successful business. The other half is making sure customers can actually buy what you have convinced them to want.
