Celebrity beauty commands billions

E.l.f. paid up to $1 billion for Hailey Bieber's Rhode, Coty paid $600 million for Kylie Cosmetics, and Shiseido spent $450 million on Dr. Dennis Gross Skincare.

ZO Skin Health targets $2 billion

Blackstone is exploring a sale of ZO Skin Health that could value the company at around $2 billion, according to Reuters. Unlike celebrity brands, ZO built its business through dermatologists and medical-aesthetics practices.

Founded by a dermatologist in 2007

Dr. Zein Obagi created ZO in 2007 and initially launched at Nordstrom, but quickly shifted away from department stores to focus on physicians and medical practices.

Doctor recommendations carry weight

When a dermatologist recommends a skincare routine for acne or aging, patients trust that advice more than a TikTok creator's endorsement. ZO embedded itself in treatment rooms by pairing products with procedures like lasers and chemical peels.

“For consumers already seeking help with a skin concern, that recommendation can carry considerably more weight.”

Revenue sharing keeps doctors invested

In 2012, ZO launched physician affiliate programs that let doctors earn commissions when patients replenished products through physician-linked virtual stores, creating financial incentive to promote the brand.

Tight control protects premium pricing

ZO sells only through its official website and authorized providers, avoiding department stores and unauthorized sellers. This restricted distribution maintains exclusivity and justifies higher prices.

Strong patient loyalty drives repeat sales

Nearly 40% of ZO customers at medical-aesthetics practices made repeat purchases in 2025, the highest retention rate among leading professional-grade skincare brands, according to Guidepoint Qsight's analysis.

“Nearly 40% of ZO Skin Health customers at medical-aesthetics practices made a repeat ZO purchase in 2025”

The model explains the valuation

ZO's physician network, controlled distribution, premium pricing, international reach and strong repeat purchasing justify a $2 billion valuation despite lacking social media fame or celebrity backing.