Why do Celebrity Brands Fail?

What Can We Learn From The Celebrity Branding Dilemma

Shahid Kapoor → Skult

Sonam Kapoor → Rheson

Sachin Tendulkar → True Blue

Anushka Sharma → Nush

No, this is not gibberish; these are the names of famous Indian celebrities and the brands they have launched in recent years.

Now I'm sure you haven't heard of most of them, and that's precisely my point. Crores have been spent on brands owned by your favorite celebs, yet today, many of them are lost in oblivion.

Shocking, isn't it, especially considering there is no dearth of resources for them? Believe it or not, out of this celeb-brand frenzy in the past 2-3 decades, only a tiny handful have managed to stand the test of time in India.

Why the Celebrity Brand Boom?

In India, celebrities are synonymous with the latest trends in fashion, lifestyle, and are often revered as mega-stars with massive followings. These stars mostly emerge from industries such as movies, television, music, fashion, and sports, notably cricket.

Beyond their core professions, celebrities leverage their fame to expand their income streams through advertisements, investments, or launching their own ventures.

With social media at its peak, now is the perfect time to capitalize on their popularity.

Celebrities aren't just faces; they're walking, talking marketing machines! Armed with millions of followers and substantial financial resources, they appear to have it all.
Their celebrity status alone can often entice customers to buy into their brands. But is it that simple?

Data tells otherwise. Now, let's unravel the mystery. Not about the magic ingredient for a smash-hit brand, but about what should not be done and what these people are doing wrong.

Why Do Celebrity Brands Fail?

1. Product is King:

One basic mistake that almost every celebrity team behind the brand makes is putting all their hopes into marketing and ditching the actual product.

Sure, having a famous face plastered all over your product might reel in the initial customers. But here's the kicker: relying solely on celebrity appeal can only take you so far.

After the novelty wears off, what's left? A lackluster product that just can't stand on its own.

2. Incorrect Positioning:

Many celebrity-backed brands make a significant mistake by targeting the high-end market and positioning themselves as luxury brands. The problem with this approach is that it takes time for any brand to truly attain luxury status.

Fact check: almost all luxury giants like Chanel and Gucci have been around decades and some even around 1-2 centuries!

It's as if these brands are reaching for the stars when their audience doesn’t belong in that financial tier. Those who truly fit into this segment often prefer well-established luxury brands. Consequently, such brands find themselves in a state of limbo, neither here nor there.

That’s the reason why 82 East, a skincare brand launched by Deepika Padukone, faced intense criticism for pricing even basic products in four figures. The audience can't even be blamed. With cheaper alternatives offering the same quantity and ingredients, why opt for an expensive, yet-to-be-established brand?

3. Too Much Clutter in the Same Domains:

One downside of being a celebrity is getting stuck in certain categories like fitness, beauty, skincare, health, and wellness.

But also, we can't imagine celebs like Shilpa Shetty and Deepika Padukone endorsing real estate projects right?

That's why we keep seeing new clothing and skincare brands popping up every year.

And let's be honest, when everyone's doing the same thing, it's tough to stand out.

4. Unmet User Research:

In 2017, Rihanna revolutionized the beauty industry with the launch of Fenty Beauty and its inclusive range of shades. For the first time, someone addressed the needs of women with diverse skin tones, marking a significant moment. No prizes for guessing that is a global leader in the industry today.

Unfortunately not all brands try to innovate; some just follow trends blindly. It's like being a copycat, hoping for success without doing the homework.

5. Lack of Authenticity

When a brand is launched, it often feels like a celebrity suddenly wakes up with an idea and decides to bring it to life without much thought or backstory. It can feel abrupt, lacking a genuine connection to the brand's essence or the celebrity's persona.

A success story

However, there are exceptions to this trend, for example lets take HRX by Hrithik Roshan, which stands out as a celebrity brand worth emulating. Since its inception in 2012, it has steadily grown into a million-dollar success story. How did they achieve this?

• HRX was launched in 2012 in the athleisure segment to leverage the gap of any notable players in the Indian market.

• From the beginning they offered high-quality products at competitive prices. showing their commitment to quality and affordability.

• Collaborating at the right time with Myntra, Cult.fit and leveraging Hrithik's persona, particularly his fitness enthusiast image, hit the right spot with the audience too.

So, what's the bottom line? Well, brands like Kay Beauty seem to be on the right path, but surely, it's a tough road. Before unveiling their yet another ‘revolutionary brand’, celebrities need to do some serious soul-searching in order to bring what people really want.