The Decline and Future of Rodan + Fields: What Happened?

Rodan + Fields, once the darling of the skincare industry and direct sales world, has experienced a notable decline in recent years. Founded by dermatologists Dr. Katie Rodan and Dr. Kathy Fields, the company soared to become the number one skincare brand in North America by 2017. However, what happened to Rodan and Fields since then has been a story of challenges, market shifts, and strategic missteps that offer valuable lessons for the beauty industry and direct sales businesses alike.

The Rise of Rodan + Fields: A Direct Sales Success Story

Before understanding the decline, it's important to recognize the company's meteoric rise. After initially selling to Estée Lauder in 2002, the founders repurchased the brand in 2007 and pivoted to a direct sales model. This strategic shift proved immensely successful, with the company reaching over $1.5 billion in sales by 2018, empowering thousands of consultants (primarily women) to build businesses selling premium-priced skincare products.

The company's success was built on several pillars:

• Dermatologist-created products with clinical credibility
• Premium positioning with higher price points than mass market alternatives
• A social selling model that leveraged personal networks and testimonials
• Multi-level marketing structure that rewarded recruitment and team building

Market Challenges and Competitive Pressures

By 2019, Rodan + Fields began facing significant headwinds. The skincare market had evolved dramatically, with several factors contributing to the company's challenges:

Direct-to-Consumer Brand Explosion

The rise of digital-first skincare brands like The Ordinary, Glossier, and others offered consumers effective products at lower price points without the markup associated with multi-level marketing structures. These brands connected directly with consumers through social media, much like successful independent brands such as Ouai, which built loyal followings through authentic engagement rather than sales pressure.

Changing Consumer Preferences

Consumer preferences shifted toward transparency, sustainability, and clean beauty. Younger consumers especially became more ingredient-conscious and price-sensitive, researching formulations rather than relying solely on brand promises or consultant recommendations.

Business Model Issues and Consultant Exodus

As market conditions changed, the company's business model began showing strain:

Consultant Saturation and Turnover

By the late 2010s, many markets had become saturated with Rodan + Fields consultants, making it harder for new recruits to build sustainable businesses. This led to increased turnover and declining morale among the sales force. Similar challenges have affected other direct sales companies, as seen in the questions about whether Monat is still operating amid its own controversies.

Social Media Fatigue

The social selling approach that initially drove growth began experiencing diminishing returns. Friends and family networks became exhausted, and social media feeds saturated with sales pitches led to what many termed "MLM fatigue." This mirrors broader trends in consumer behavior, similar to how traditional service models like milk delivery declined when consumer preferences and retail options evolved.

Research from various industry analysts suggests that direct sales companies need to continuously innovate their approach to remain relevant. According to studies examining consumer purchasing patterns across different retail channels, brands that rely heavily on person-to-person sales must adapt to changing consumer expectations around convenience and digital engagement.

Product Controversies and Legal Challenges

Beyond market and business model challenges, Rodan + Fields faced specific controversies:

Lash Boost Lawsuit

In 2018, the company faced a class-action lawsuit regarding its popular Lash Boost product, which allegedly caused adverse reactions for some users. The company ultimately settled for $38 million in 2022 without admitting wrongdoing, but the controversy damaged consumer trust.

FTC Scrutiny

Like many multi-level marketing companies, Rodan + Fields has faced increased regulatory attention. The Federal Trade Commission has strengthened its oversight of income claims made by direct sales companies, forcing more transparency about the realistic earnings potential for consultants.

Future Prospects: Can Rodan + Fields Regain Its Position?

Despite these challenges, Rodan + Fields remains a significant player in the skincare industry, though smaller than at its peak. Several factors will determine its future trajectory:

Digital Transformation

The company has invested in digital tools and e-commerce capabilities, acknowledging that today's consumers expect seamless online shopping experiences. This shift mirrors broader trends seen across retail sectors, including how major consumer brands are adapting their business models to changing market conditions.

Product Innovation

Rodan + Fields continues to leverage its dermatological heritage to develop new products. Its success will partly depend on whether these innovations can compete effectively against both established brands and nimble startups like Once Upon a Farm that have disrupted traditional retail categories.

Consultant Value Proposition

Perhaps most crucially, the company needs to revitalize the value proposition for its consultants. In a world where side hustles and entrepreneurial opportunities abound, Rodan + Fields must demonstrate that its business opportunity remains viable and rewarding.

For Rodan + Fields to reclaim its former glory, it will need to balance honoring its direct sales heritage while adapting to modern consumer expectations. The company's story serves as both a cautionary tale about the challenges of scaling a direct sales business and a case study in how established brands must continuously evolve to remain relevant in a rapidly changing marketplace.