Why some brands are choosing slower, more expensive growth on purpose

When Rare Beauty, Bogg, and Goodles arrived in stores, they had to vie for shelf space with well-established brands making beauty products or beach bags or boxes of macaroni and cheese. But these brands quickly amassed cult-like followings by being very intentional with their missions to foster a sense of loyalty with customers.

Although her legions of fans might have lined up to try the beauty products in Selena Gomez’s line, Rare Beauty, the company was founded with a bigger mission baked in...