“Fame doesn’t equal success”— this pretty much sums up the Bollywood stars’ entrepreneurial might.
Deepika Padukone’s ‘All About You’, Shahid Kapoor’s ‘Skult’, Anushka Sharma’s ‘Nush’, ‘YouWeCan’ by Yuvraj Singh or ‘Rheson’ by Sonam Kapoor— all once too hyped up in the market, now hardly heard of.
India today hosts more than hundreds of celebrity brands (owned, co-owned, or in partnership), which seem to have experienced mixed successes.
Take for instance Virat Kohli’s youth fashion brand WROGN, which recently disclosed revenue from operations dropped by 29.2% to Rs 243.75 crore during FY24 as compared to Rs 344.3 crore in FY23. Or, Padukone’s latest skincare brand 82°E, which reported a revenue of Rs 22.82 crore from operations in the first nine months of FY24— although a significant increase from the Rs 11 crore operating income in FY23– but a loss of Rs 25.1 crore at the EBITDA level during the same period.
Read more: Virat Kohli-backed Wrogn’s revenue down 29% in FY24
Meanwhile, the likes of Katrina Kaif’s Kay Beauty are delivering box-office hits. The makeup brand in partnership with Nykaa claims to have more than 1.5 million consumers. Recently, Falguni Nayar, Executive Chairperson, Founder, and CEO of Nykaa, shared that Kaif’s Kay Beauty was the third-most searched direct-to-consumer brand on the platform and also among the top three brands at its stores. It is further expected to grow at the rate of 62%.
Alia Bhatt’s kidswear brand, Ed-a-Mamma, whose revenues increased fourfold to Rs 16.2 crore in FY22, had majority of its stake recently acquired by Reliance Retail.
The fitness brand — HRX, which is co-owned by Hrithik Roshan and competes with the likes of Nike, Puma, and Decathlon, has witnessed more than five-fold growth and recently crossed the revenue mark of Rs 1000 crore.
While Kay Beauty and HRX have managed to carve out a niche due to their clear brand identity, product quality, and alignment with their celebrity’s personal image, brands like WROGN and Being Human by Salman Khan, have struggled despite initial buzz mostly due to over-saturation, say experts.
“Kay Beauty’s focus on inclusivity and HRX’s focus on fitness resonate well with their target audience, leading to sustained consumer interest,” says Yasin Hamidani, Director, Media Care Brand Solutions. On the other hand, WROGN’s recent dip in revenue suggests challenges in maintaining brand relevance or evolving with market trends. Similarly, Being Human lost traction due to inconsistent product positioning and market oversaturation.
From red carpet to red flags
According to industry watchers, successful celebrity brands tend to focus on long-term brand building, authenticity, and product quality, while failed ones often rely too heavily on the celebrity association without a solid business strategy.
The challenge of these brands often stems from a lack of authenticity and an over-reliance on celebrity presence rather than a meaningful connection with the product. “When a brand’s identity is overshadowed by the celebrity’s image, it can feel inauthentic to consumers, who are increasingly looking for genuine value and alignment with their needs,” warns Hamidani.
While marketing can drive discovery and paid trials, if the product doesn’t deliver, people won’t stick around.
Ambika Sharma, Founder and Chief Strategist, Pulp Strategy notes that if a celeb brand is not committed to constantly improve the product, no amount of fame will save it.
Experts suggest that the brand must feel like a natural extension of who celebrities are, not just a business venture. Quality should always come first, with a focus on delivering products or services that solve real consumer needs.
For instance, Roshan’s fitness brand HRX connects with consumers because it seems like a natural extension of his own health and fitness-conscious personality. Similarly, in the case of Kaif’s and Kay Beauty.
Failures of stars-backed brands also often stem from an overdose of celebrity hype and lack of differentiation.
In 2017, within days of the inauguration of her first brand—Nush, Anushka Sharma’s clothing line was accused of copying garments from a Chinese retail site and face heavy criticism.
“When a brand doesn’t genuinely represent the celebrity’s interests or seems like it’s just there for quick gains, consumers pick up on that. Overexposure can also be a killer—if a celebrity endorses too many products, it dilutes their credibility and the brand’s impact,” says Pulp Strategy’s Sharma.
Be real
A recent survey conducted by YouGov showed that 45% of consumers (respondents) do not trust celebrities with any beauty brand endorsements and 28% claimed to only trust celebrity endorsements with brands they owned. Further, among those who have tried celebrity-owned beauty brands, 27% claimed they have had a bad experience— the reason being the high price of products, followed by poor quality products and misleading information or false claims.
Deepika Padukone’s venture into skincare via 82°E has come under consumers’ scanner multiple times, who have called it out for being ‘over-priced for basic products’— among other products it has sunscreen priced at Rs 1,800, and moisturiser at Rs 2,700.
While there definitely is a growing demand for premium skin care products in the market (depending on the quality of the products), the mass segment dominated in 2023. The per capita consumption of beauty and personal care stands around $15 in the country where the market size is valued at $28 billion in 2023 and is estimated to reach $ 47 billion by 2033, according to IMARC Group.
Additionally, experts also note that celebrities often leverage their popularity to create an initial buzz, but without a solid product offering or genuine connection to the brand, the excitement fades quickly.
“Consumers are becoming more discerning and can sense when a brand lacks authenticity or substance. If a celebrity’s involvement feels superficial, the brand risks being perceived as a mere cash grab,” remarks Hamidani.
Consumer’s fatigue
There indeed is an oversaturation of celebrity-led brands in the market today— India or globally, and this sure has to led to fatigue among consumers.
With so many influencers and celebrities launching their ventures, it’s becoming harder for brands to stand out and offer something unique. As a result, celebrity-backed brands risk blending into the noise unless they provide real value, authenticity, or innovation, say experts.
“Dropshipping isn’t a volume strategy here—it doesn’t build brand value or loyalty. Celebrity affiliation alone isn’t enough anymore; the product has to carry its own weight,” notes Sharma.
Industry watchers agree that most celebrities today are launching brands just to cash in quickly, without much substance behind them. This short-term mindset leads to mediocre products that don’t build a loyal customer base.
All in all, the excess of celebrity endorsements has become quite cliché lately.
And there seem to be a couple of reasons for this trend, explains Shivashish Tarkas, Founder, The InterMentalist.
First, it can boost their personal brand value, creating hype around their name. Second, there’s often peer pressure or misguided advice from friends and family. Lastly, they may feel the need to stay competitive with unspoken industry standards. Therefore, many of these brands emerge without proper ground-level research or a genuine understanding of India’s diverse market.
“If you (celebrity) have the choice, focus on investing rather than launching a brand. When you invest, let the product take center stage instead of becoming the face of it. This way, the brand’s reputation will be built on its performance and quality rather than just celebrity appeal,” he concludes.