BizReview Ep5: The Influencer-Brand Economy

For the longest time, glamour and fame were the only terms the common man associated with celebrities. Across categories, be it showbiz, sports or others, fame was just an outcome of one’s work and not a wealth generator - but over the past many decades a new concept emerged, that of a personal brand. ‘Icons’ of pop culture embraced capitalism and how. Being in the public eye was soon seen as a gateway to monetise one’s popularity and create brands which serve as a sustainable income-generating avenue regardless of the relative relevance of the person in-question, and the wave of personal brands of celebrities has only grown to be a tsunami with every influencer, actor, sportsperson and even podcaster wanting to a product line of their own, even if it is a small one - a merchandise line for instance.

Easily one of the earliest and most popular examples of a celebrity-led product line is the Nike x Michael Jordan collaboration which we all know and love as ‘Air Jordan.’ Jordan, being a breakout star, was given a 5-year contract worth $2.5 million by Nike back in the day, with a royalty of 5% of the earnings of the Jordan brand. The collaboration was a landmark deal for Nike not only because it was their first-ever royalty deal but also because it shaped the shoe dog’s future for the coming many years. While he earned only $94 million from his playing contacts over the 15 seasons he featured in the NBA, he earned $256 million from his Nike royalties in 2022 alone - with his lifetime earnings to date from the Jordan line being around $1.6 billion. 

Another popular example is Jessica Alba’s “The Honest Company” which started in 2011 aiming to create healthy and innovative baby products without any harmful or inorganic ingredients. While Alba’s hollywood career might have stagnated over the years, she did do more than just decently on the business front driving $314 million in sales for the financial year ended 2023 and Alba exited the company in 2024 after 12 years of association making a casual $400 million along the way. 

The Kardashians too made most of their money through ventures like Kim’s skims and Kylie’s Kylie beauty. Selena Gomez ventured into the beauty industry with Rare Cosmetics, with Rihanna and Hailey Bieber joining the party with Fenty Beauty and Rhode Skin respectively. The beauty of these brands, irrespective of what quality of products they offer, is that the following of the faces behind these brands guarantee initial sales and sustainable income over several years due to the hype bubbles, and become a significant contributor to the wealth of these celebrities if not becoming the largest piece of the pie. 

A similar trend emerged in India in the mid-2010s with Hrithik Roshan and Virat Kohli at its forefront. HRX, introduced by Hrithik Roshan and Exceed Entertainment in 2012, was India’s first celebrity led brand in fashion (barring the likes of Being Human which is now borderline defunct.) In 2013, Myntra gained an exclusive contract to sell HRX products and today owns a majority stake in the brand. With a Rs. 920 crore revenue in FY 2023, HRX likely surpassed the 1000 cr revenue mark in 2024 challenging the likes of many global brands in the country. Virat Kohli too, entered the scene with a double weaponed artillery - Wrogn and One8. Puma, in 2017, signed a 8 year deal with Virat worth a solid 110 crores and made good returns considering how they became the largest lifestyle/sports brand in the country outpacing the giants Adidas and Nike and the One8 line contributed to a healthy 10-15% of its revenue. Wrogn, also in an exclusive agreement with Myntra, reportedly generated 1400 crores in Revenue in 2023, up 3.5X from 393 cr in 2022 - both contributing to Virat’s net worth significantly. 

Katrina Kaif, with her brand Kay Beauty - which is now in an exclusive agreement with Nykaa achieved a Gross Merchandise Value (GMV) annual revenue run rate of INR 130 crores in December 2023 within just 4 years of operation. The brand emerged as a top seller in both online and offline markets and survived the challenges posed by the pandemic, becoming a brand with a positive customer image. 

Alia Bhatt led Ed-a-mama also emerged as a unique brand in the toddler to children fashion category, and in 2023, the company was reportedly acquired by Isha Ambani led Reliance Brands for a whopping 300-350 Crores. Similarly, Deepika Padukone’s 82E reportedly aims to raise 50 crores this year from existing and new shareholders, and is doing considerably well despite its high prices. Priyanka Chopra’s Anomaly Haircare and Shraddha Kapoor’s Palmonas seem to be doing well too. At this rate, it seems evident that the market will soon be flooded by celebrity-led brands, and the dynamics of the influencer economy will change faster than we imagine.