Rihanna was the first female billionaire to perform a Super Bowl half-time show.
What you probably don't realize is most of her money didn't come from music.
Here are 5 lessons any entrepreneur can learn from the Barbadian icon:
In 2017, Rihanna launched Fenty Beauty, a brand now worth >$2.8 billion.
Fenty's success is mindblowing. Some stats:
• Rihanna's stake is worth $1.4 billion
• $550 million in sales in Year 1
• Doubled revenue in 2022
• #fentybeauty has 2.2 billion views on TikTok
So how did Fenty get so big so quickly?
And how can you apply these learnings?
Keep reading for:
1) Power of deal structure
2) What makes creator brands successful
3) Build for large, forgotten audiences
4) Create a movement
5) Be okay with strikeouts & singles
Rihanna launched Fenty Beauty at 29.
The cosmetics brand was developed with Kendo, LVMH's incubator, and first went on sale in LVMH-owned Sephora stores.
LVMH paid ~$10 million to do the deal & ownership of the brand is split 50% LVMH, 50% Rihanna.
But before we talk about the product, let's discuss the deal structure.
Because of her equity upside in Fenty, nearly 80% of Rihanna's $1.8 billion net worth comes from the beauty brand.
Keep reading for a mind-blowing comparison...
Take Nike's Jordan Brand.
Since 1984, his rookie year, Michael Jordan has pocketed 5% of all Jordan sales.
That's $10-12 per shoe.
In 2022, Jordan did $5.1 billion in revenue, earning him ~$256.1 million.
MJ is doing just fine, but imagine if he had Rihanna's economics!
Okay back to RiRi.
Why did Fenty 📈 when other creator brands 📉?
3 words: creator-market fit.
Rihanna is a fashion icon.
- 2011: announced fashion venture with Armani
- 2014: named Creative Director of Puma
- 2015: named new face of Dior
Fenty is authentically Rihanna.
But here's a spicy take.
Fenty would have succeeded regardless of Rihanna.
Because it's a 10x product for a large, forgotten audience.
Fenty disrupted an underrepresented cosmetics industry by launching products with 40+ shades.
The brand finally offered "Beauty for All."
Fenty didn't just solve a big problem.
It created a global movement: "The Fenty Effect."
Following its "Beauty for All" campaign & launch of inclusive makeup, Fenty created a chain reaction of inclusive beauty.
CoverGirl, Dior, and others began carrying 40+ shades of makeup.
If you're reading this & thinking: "Everything went right, Rihanna must have caught lightning in a bottle."
You would be wrong.
Rihanna has been trying her hand at business since she launched her first fragrance, Reb'l Fleur, in
January 2011.
Don't believe me?
'05: starts Westbury Road
'05: deal w/ Secret
'11: face of Nivea/Vita Coco
'12: first TV show
'13: MAC collab
'15: co-owner of Tidal
'15: starts Fr8me, beauty agency
'16: Puma collab
She's taken many at-bats, some strikeouts, some singles, all of which informed Fenty's success.
Want more?
1) Follow @businessbarista for more fascinating business case studies.
2) Check out The Crazy Ones, where @jspujji & I analyze Rihanna's entire business career & lessons entrepreneurs can learn:
Listen: link.chtbl.com/DYlut_VA
Watch: bit.ly/3Eq5Q7K
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