Endorsement /-\ Influence :: Why #celebled businesses are facing losses?

The current offering by #swiggy seems one for quick #gains as more consumers pick up on that brand as more of #iconfollowers

Amitabh Bachchan, Karan Johar, Madhuri Dixit, Rahul Dravid have stake in it beware of the #bigbang IPO to hit the street soon.

https://www.financialexpress.com/market/ipo-news-swiggy-ipo-invester-celebrities-stake-amitabh-bachchan-karan-johar-madhuri-dixitt-vc-funding-ipo-news-3622611/

A lot of times a #brand may not genuinely represent the celebrity's interests albiet only an investment #SPV.

A recent analysis of celeb-led brands finds a large majority of them are facing losses or struggling to stay afloat.?

Deepika Padukone’s skincare brand #82°E showed a loss of??25.1 crore at the #EBITDA level during the first nine months of FY24.

Virat Kohli’s #WROGN got a #revenue decrease by 29%.

Shahid Kapoor’s #Skult,

Anushka Sharma’s #Nush,

#Rheson by Sonam Kapoor

All Got diminishing returns and market presence.

But all is not lost for celebrity-led brands, as per #analysis . For instance,

Alia Bhatt’s #EdaMamma saw its revenue increase four-fold before it was acquired by #RelianceRetail.

Hrithik’s #HRX and Katrina’s #KayBeauty are able to get some sunshining making #profitableventures. Katrina Kaif’s?Kay Beauty?has acquired 15 lakh customers in partnership with #Nykaa and is expected to grow at a rate of 62%.

The biggest success story, perhaps, has been Hrithik Roshan’s HRX, which has witnessed more than five-fold growth and recently crossed the revenue mark of??1000 crore.

HRX and Kay Beauty’s success came with a stong #identity and a connect with the core #userbase, something the other brands lacked.

What's your observation on Successfully Lead Celebrity Brands ?

1. Align Values: The celebrity’s personal values and public image should align with those of the brand. For example, a sports product would be more credibly endorsed by a well-known athlete whose lifestyle and values resonate with the brand’s ethos.
2. Relevance and Fit: Select celebrities who have a natural connection to the brand’s products and target audience. This relevance ensures that the endorsement feels genuine and persuasive.
3. Long-Term Viability: Evaluate the long-term compatibility of the celebrity with the brand. Choosing someone likely to maintain a positive image and remain relevant to the brand’s audience over time can lead to more sustained benefits.
4. Continuous Monitoring: Regularly monitor the celebrity’s public image to ensure it remains consistent with the brand’s values. This proactive approach can help mitigate any potential negative impacts from scandals or shifts in public perception.
5. Overexposure can also be a killer : if a celebrity endorses too many products, it impacts to dilute their #credibility and the brand's #impact.

Is there more in your insight/s ?

#nasarhetorics

#preipovaluations

#celebrityendorsements