From Kardashian to Bieber: The Rise of Celebrity Brands Fuels Billion-Dollar Valuations

The market is once again looking to celebrity-driven brands, a segment that just a decade ago was associated with one-off licenses and that is now trading upwards, moving rounds of capital comparable to those of any giant in the sector. The latest operation that has shaken the board has been led by Skims, the intimate fashion company founded by Kim Kardashian and Jens Grede, which has just reached a valuation of $5 billion after raising $225 million in a round led by Goldman Sachs. This leap reinforces the thesis that these companies no longer depend solely on media hype or the success of publications on social networks, but on professionalized management, ambitious collaborations, million-dollar sales forecasts and a global expansion strategy.

The phenomenon, initially driven by the beauty segment, transcends cosmetics and has spread to practically all layers of consumption. From Kim Kardashian’s shapewear with Skims, which has even attracted the attention of sports giant Nike, to Good American, the inclusive denim brand founded by Khloé Kardashian, through Victoria Beckham’s contemporary luxury project or the hybrid proposals that combine fashion, wellness and lifestyle, an ecosystem that is growing steadily.

According to McKinsey, based on data from Euromonitor International, the global beauty and personal care market will exceed $446 billion in 2023, with annual growth expected to be close to 5% until 2030. Adjacent segments, such as activewear and wellness, show similar developments, creating a favorable context for celebrity brands to attract venture capital, raise their valuations and establish themselves as an economic category in their own right.

Skims’ trajectory has also consolidated a new standard within the Kardashian-Jenner family universe, the clan that has best managed to turn cultural influence into business architecture thanks to its media exposure. From Kylie Jenner, whose sale of 51% of Kylie Cosmetics to Coty valued the company at $1.200 million, to Khloé Kardashian’s business expansion with Good American, the family group has professionalized a model based on mass audiences, strategic collaborations and a value-oriented financial vision. Skims represents the most sophisticated phase of that model by attracting global funds and triggering consecutive rounds of investment.

Skims, Kim Kardashian’s brand, has reached a valuation of $5 billion

Founded in 2018 by Kim Kardashian, the second eldest sister of the Kardashian-Jenner clan, Skims launched its first collection in September 2019, which featured 36 references between intimate fashion, bodysuits and T-shirts in nine skin tones, although its flagship product remained shaping girdles. This first bet, which combined size diversity and sex appeal, operated as a statement of intent to expand the brand beyond the influencer phenomenon.

From the beginning, Skims defined its identity around “real women”, a concept that Kardashian used to introduce a campaign based on testimonials about empowerment and self-image. That narrative, in addition to its emotional impact, generated credibility in the first months and reinforced the structure needed to scale the brand beyond the media noise.

In 2020, the company expanded its offering with knit sets, blended cashmere garments and joggers, along with the cozy collection. Range diversification, coupled with the weight of its digital channel, propelled the brand to $145 million in revenue in the first full year of business. This growth confirmed the brand’s transition into the lifestyle segment, where the company now operates with a broad portfolio and a recognizable style narrative.

Nike announced its partnership with Skims earlier this year.

In April 2021, Skims closed its first round of financing, led by Thrive Capital, for $154 million. The deal raised the valuation to $1.6 billion and marked the entry of the first institutional investors, a turning point that confirmed the move from a personal project to a company with global ambition.

In 2021, the shapewear brand raised its valuation to $1.6 billion 

Later that year, the company collaborated with Fendi on a capsule collection co-designed by Kim Jones and Kardashian herself, which sold out in a matter of hours. The capsule operated as an exercise in legitimization within luxury and allowed Skims to position itself in a realm that transcends shapewear to compete in fashion and accessories.

In January 2022, Skims closed a second round of financing for $240 million, led by Lone Pine Capital, which raised the valuation to about $3.2 billion. That capital was earmarked for international expansion and the launch of a swimwear line, which was followed by revenues of $500 million in 2022 and $750 million in 2023, figures that consolidated its competitive position.

Finally, in July 2023, Skims completed a third round of $270 million led by Wellington Management, reaching a valuation of $4 billion. That year, the brand expanded its offering with a men’s line and a new swimwear collection, reinforcing its multi-genre positioning and its ability to compete with global players.

Nike announced its alliance with Kim Kardashian last February

Last year, the company opened its first flagship store at 647 Fifth Avenue in New York, a space of more than 600 square meters that allowed the brand to consolidate its omnichannel strategy. That same year, Skims continued to expand categories with new men’s, swim and capsule collections with celebrities such as Cardi B or Lana del Rey, boosting its turnover forecast to $1 billion.

Skims’ growth also attracted Nike. In February, the two companies announced their partnership to launch NikeSkims, a hybrid fashion/sports collection. The first drop, initially planned for spring, finally came out in September followed by a second launch in November with prices ranging from $68 to $150. The collaboration, beyond visibility, strengthened Skims’ operational structure by integrating it into the value chain of a sports giant.

Last week, Skims closed its fourth round for $225 million led by Goldman Sachs, bringing its valuation to $5 billion and confirming its leap into the club of companies valued at multiples similar to the industry giants.

Innovation, licensing and exits in the Kardashian model

Prior to Skims, Kardashian had already launched her makeup brand KKW Beauty in 2017. In 2021, Coty acquired 20% for $200 million and put the valuation at $1 billion. That same year, the brand temporarily closed to relaunch with SKKN by Kim, focused on skin care. Finally, this year, Skims acquired 100% of SKKN’s capital as part of a consolidation strategy that culminated in the closure of the line.

Kylie Jenner, meanwhile, marked another milestone with Kylie Cosmetics. In 2016, the brand reached $19 million in 24 hours and recorded $420 million in 18 months. Coty acquired 51% in 2019 for $600 million, bringing the valuation to $1.2 billion. Following the deal, the brand was relaunched with vegan and natural formulas.

Coty was the big group to bet on Kylie Jenner’s cosmetics brand.

Likewise, Khloé Kardashian expanded her impact with Good American, a B-Corp certified brand with more than $200 million in annual sales. Her 2022 collaboration with Zara brought the brand closer to the global mainstream. Kourtney Kardashian consolidated Poosh as a wellness platform and model Kendall Jenner launched her premium tequila 818, becoming the only one of the sisters not to own a brand in the industry.

The clan’s operating model has a differential element. Matriarch Kris Jenner manages, coordinates and negotiates deals on behalf of all her daughters. Although there is no formal holding company, Jenner functions as a centralized manager and acts as a key player in the investment agreements and growth of each project.

Rhode and the new wave of DTC

Rhode, Hailey Bieber’s brand, founded in 2022, broke through with just three products and a direct-to-consumer approach. Its minimalist aesthetic and peptide lip treatment, which viralized the brand on TikTok, made it one of the most prominent cases of the new generation of celebrity-created brands.

In less than three years, the company achieved net sales of $212 million with only ten references in its catalog. The formula, based on a star product and a coherent visual discourse, represents the direct-to-consumer model that today dominates the segment.

In 2025, Rhode was acquired by the E.l.f. Beauty group for $800 million plus a further $800 million. Beauty for $800 million plus an additional performance-linked payment. The deal marked the passage of the celebrity phenomenon into the realm of corporate acquisitions.

The Hadid universe and model expansion

The Hadid family of top models has replicated the Kardashian model with a multi-format strategy. Gigi Hadid launched Guest in Residence in 2022, a fashion brand focused on premium cashmere and knitwear. Her bid moves away from beauty to build a lifestyle brand with timeless, long-lasting product.

Bella Hadid, meanwhile, launched Orebella in 2024, focused on skin-perfume fragrances, and is co-founder of Kin Euphorics, specializing in alcohol-free tonics. The two older sisters, Alana and Marielle, operate La Detresse and Hadid Eyewear respectively, in categories ranging from knitwear to accessories.

In addition to digital impact, like the Kardashians, the clan has television exposure that boosts its cultural influence. Matriarch Yolanda Hadid participated in The Real Housewives of Beverly Hills, cementing the family’s presence in the entertainment spectrum and reinforcing the commercial narrative of their brands.

The latest industry success is signed by Rhode, the company recently sold by Hailey Bieber.

Rihanna, Ariana Grande and Pharrell: from makeup to wellness

The incursion of artists such as Rihanna, Ariana Grande, Selena Gomez, Lady Gaga and Pharrell Williams confirms the direct relationship between pop culture and mass consumption. Fenty Beauty, created by Rihanna in 2017 with LVMH through Kendo Brands, revolutionized the sector with more than forty base shades and a radically inclusive approach. To this day, the brand is a top seller at giants like Sephora.

Lady Gaga’s Haus Labs, relaunched in 2019, consolidated $20 million in revenue in 2021 and repositioned itself in clean shades and vegan formulas. Rare Beauty, founded by Selena Gomez in 2020, reached a $2 billion valuation in 2024 thanks to its mental health narrative and accessible packaging.

Pharrell Williams, founder of Humanrace in 2020, bolstered the brand by being named creative director of Louis Vuitton men’s in 2023, amplifying its influence; while Ariana Grande’s R.E.M. Beauty operates in accessible cosmetics and Harry Styles launched Pleasing in 2021 with a unisex approach that responds to the cultural shift around personal care.

Victoria Beckham, from celebrity brand to royal company

Victoria Beckham founded her eponymous brand in 2008 and debuted in New York with a minimalist fashion approach. From 2019 she expanded the project to cosmetics with Victoria Beckham Beauty and launched her first perfume in 2020. The brand, however, went through financial difficulties. In 2018 it recorded losses of £12.5 million and in 2019 of £16.6 million, after, in 2017, Neo Investment Partners invested £30 million in the company.

In 2024, the fund contributed another 6.9 million to restructure the company. After a 52% increase in sales to £89 million, losses were reduced to £200,000. Beckham’s recent Netflix docuseries on Netflix revealed that the company went deep into the red, underlining that celebrity brands can evolve into established businesses, provided they have financial structure, team and a solid operating model. The entry of David Belhassen as a financial partner allowed the company to get back on track and stay in business in a demanding market.

From lifestyle to babycare for actresses like Gwyneth Paltrow and Jessica Alba

Jessica Alba founded The Honest Company in 2011 with Christopher Gavigan and Brian Lee, focused on personal care and baby products. The brand reached $319 million in 2019 and went public in 2021, raising more than $412 million. In 2024, Alba exited as chief creative officer although she remains on the board.

For her part, Gwyneth Paltrow founded Goop in 2008, with wellness, skincare and supplement products, consolidating a premium lifestyle model with a valuation of 250 million in 2024. Stranger Things star Millie Bobby Brown launched Florence by Mills in 2019 after registering the brand in 2018. With a young community at its core, the brand combines cosmetics, fragrances and a discourse aimed at Generation Z.

The success of brand expansion in 2025 is closely tied to the spectrum of influence of those driving them. This influence, once limited to television or cinema, now operates on a planetary scale thanks to social networks, entertainment and the new cultural codes of consumption. Celebrity brands are not accessory projects that complement the careers of the stars, but end up functioning as companies with million-dollar rounds, corporate acquisitions and structures that rival those of the big groups in the sector. Today, those who dominate influence dominate the ability to turn community into brand, and brand into business.