The End of the Founder-Led Era

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Founder-led brands might have an explosive start, but their path to scaling can be slower-moving.

Very few best-selling beauty brands are less than 20 years old — only 29 lines out of 206 (14 percent) that generated $250 million or more in annual beauty retail sales in 2024 were founded in 2005 or after. That drops to just 9 percent for brands making over $650 million. As for brands with retail sales greater than $1 billion, only five were founded in the last two decades.

Of these five brands, three are considered founder-led — Fenty Beauty by the multi-hyphenate singer Rihanna, which is powered by LVMH-backed incubator Kendo; The Ordinary, which was co-founded by Brandon Truaxe and Nicola Kilner; and Charlotte Tilbury’s namesake label. (A fourth founder-led brand, actor and singer Selena Gomez’s Rare Beauty, founded in 2019, has also achieved strong growth with annual sales approaching $1 billion.)

While a prominent celebrity and influencer can generate early traction, building a billion-dollar brand is a full-time and long-term endeavour that requires laser-focused dedication. Brands that rely too heavily on the visibility of their founders may struggle to sustain momentum — especially in a market where attention is constantly shifting and consumer loyalty must be earned, particularly through strong product performance.

Founder-led brands need to tap into the beauty customer zeitgeist

A strong underlying value proposition can help nurture a brand’s identity beyond the founder’s personality over time. For example, in consumer social media discussions about Rare Beauty, founder Selena Gomez is mentioned just 8 percent of the time despite her celebrity status. While Gomez appears in some marketing materials and attends select press and influencer events, the brand has leaned into messaging around mental health and sets trends with differentiated products that resonate beyond the founder’s personality.

Implementing a strong operational team that can identify where a founder’s authority lies is essential. Being stylish or visible in the media can make a founder seem aspirational, but that does not always translate to credibility in the beauty realm.

To maximise a founder’s potential, brands must ensure close fit and a distinct point of view

Fame is undeniably a powerful marketing springboard, often bringing immediate awareness, potential authority and a built-in audience. But beyond the founder, brands must put consumer needs first and use creative strategies to deepen brand equity.

A founder’s impact is maximised when their identity credibly lends itself to the brand. For example, a celebrity who is known for dramatic makeup looks on the red carpet could seem like a natural founder for a bold cosmetics brand, but if fans perceive that the founder’s looks are created by a makeup artist and the celebrity has a more passive role, that could diminish their authority. Likewise, an influencer known for talking about how to minimise exposure to skin irritants could arguably bring a fresh perspective to categories as disparate as fragrance, skincare and even bath and body, providing they can also deliver superior products.

Maogeping

Mao Geping, the brand’s founder, is a well-known makeup artist in China. Products are designed to help everyday users achieve more professional-looking results. For example, its skincare-primer hybrid aims to achieve longer-wearing looks.

Kayali

Founder Mona Kattan lends credibility to the Middle Eastern heritage referenced by the brand. It emphasises the local tradition of layering perfume, with a vast array of playful gourmand scents.

Go-To Skincare

Founded by Australian former beauty editor Zoë Foster-Blake, the label references her beauty authority in a straightforward style. Many products feature whimsical names and simple formulas.

Consumers want to feel seen, but what makes a brand ‘for them’ is having their needs met

Consumers value brands that offer something that works for them, but there is no clear prioritisation of brands exclusively focused on a specific demographic. More than twice as many people feel like a brand is “for them” if it offers products that credibly meet their needs even if part of a broader assortment, than brands that focus exclusively on their ethnicity and gender. This pattern remains similar across ethnicities.

Some challenger brands have gained traction by specifically targeting groups considered underrepresented. This branding approach will likely see less success in the future, as it restricts the total addressable market (meanwhile, larger-scale brands have diversified their offerings across skin tones).

Globally, it is most important for brands to resonate with consumers around a shared beauty philosophy, whereby the brand shares the consumer’s definition of beauty.

This does not mean that brands should not celebrate their differences: instead, focus first on product excellence and appropriate pricing and then build a brand universe with a distinct philosophy and attitude.

Product quality and efficacy matter most to consumers

Shoppers are most interested in a product’s overall quality, results and how pleasurable it is to use. Price, affordability and aspirational qualities are more motivational than a founder being someone shoppers are familiar with or admire. Demographic similarities between a founder and shoppers matter least to consumers surveyed.

This upends what is often thought of as best practice for modern founder-led brands, many of whom target first through the demographics of the founder. Instead, consumers are more open to being introduced to products that meet their needs and fit their budgets, rather than a brand being designed in their own image. Instead, a shared beauty philosophy can help a brand resonate emotionally.

There are global differences — India exhibits a spike in celebrity founder influence (5 percentage points above the global average, especially in colour cosmetics). Meanwhile, India, the UAE and KSA have a marked preference for skincare brands founded by doctors (7 percentage points above the global average).

How should executives respond?

• Ensure a strong and differentiated brand voice with standalone brand assets that address consumer needs.
• Anchor the brand’s identity in a distinctive point of view and approach to beauty over targeting a specific demographic.
• Leverage a founder’s strengths only where relevant — whether to lend credibility, style or reach.

This article first appeared in The State of Fashion: Beauty Volume 2, an in-depth report on the global beauty industry, co-published by BoF and McKinsey & Company.