Celebrity brands: How Katrina bested Anushka and Deepika at the checkout counter

Within days of the launch, however, ‘Nush’ was accused of plagiarism and copyright violation. It was alleged that the brand had lifted some designs from various Chinese online retailers. Soon, Sharma’s business partner Pawan Agarwal issued a statement acknowledging that there were “discrepancies in some designs” and that they would be discontinued. He also made it clear that Sharma was never part of the designing process.

It was not an auspicious start. And things didn’t get much better thereafter. The controversy aside, Nush has not been able to make a mark in the market.

In 2014, three years before Nush came into existence, Virat Kohli, who is now married to Sharma, had launched Wrogn, a casualwear brand for youth. The label played with a straight bat and Kohli didn’t end up with egg on his face. But after posting some solid scores, raking ₹361 crore in FY23, Wrogn’s parent company Universal Sportsbiz Pvt. Ltd—backed by a wholly owned subsidiary of Aditya Birla Fashion and Retail Ltd—saw its revenue plunge nearly 27% to ₹264 crore in FY24. A decade on, its bottom line languishes in the red, with losses widening from ₹44.2 crore in FY23 to ₹56.7 crore in FY24.

Sharma and Kohli’s labels are on a much-travelled road littered with many stragglers, including Rhea and Sonam Kapoor’s ‘Rheson’, Shahid Kapoor’s ‘Skult’, Salman Khan’s ‘Being Human’ and ‘YouWeCan’ by Yuvraj Singh. Backed by these icons, the brands all started out with a bang but barely make a whimper today.

But on the other side of that same road are successes, albeit just a few, and far in between, such as actress Katrina Kaif’s Kay Beauty. So, what is it that makes most celebrity brands sink and a few soar?

Rare successes

Consumer brands associated with celebrities have high perceived value, especially in a country like India, where Bollywood cinema and sports are considered highly influential, said Sumanto Chattopadhyay, an independent brand consultant. These prominent personalities not only lend their reach and attract wide media attention, but also help build authenticity with consumers. “When the celebrity’s image dovetails with the brand, it’s a match made in heaven,” Chattopadhyay said.

One such example is Kaif’s cosmetics brand Kay Beauty. Launched in 2019 in partnership with e-commerce outfit Nykaa, the brand has grown steadily over the last six years.

The numbers tell Kay Beauty’s story. Thanks to consistent growth and customer adoption, its annualized gross merchandise value (GMV) run rate crossed ₹330 crore in the October-December quarter of FY25, a 4x jump from ₹95 crore in the same quarter of FY22. GMV is a key metric in retail that indicates the total value of all goods sold during a period of time including discounts and other expenses.

Actor Alia Bhatt’s kids’ clothing and maternity wear brand Ed-a-Mamma was launched in 2020. With its prospects appearing bright, it was acquired by Reliance Retail in 2023, reportedly for ₹300-350 crore. In FY23, the firm’s operating revenue had doubled to ₹32 crore, but it was still in the red with a loss of ₹11 crore.

Another brand showing some promise is Hyphen, a skincare label co-founded by actor Kriti Sanon in partnership with Pep Brands in 2023. In a press release last July, the company said it had achieved revenue of ₹100 crore in its first year of operations. It aims to increase that to ₹500 crore within three years on the back of double-digit growth in sub-categories such as lip balms.

According to Vaishali Gupta, co-founder and chief growth officer of Hyphen, nearly 60% of its sales represent repeat purchases, which has helped it see rapid growth across channels, including on its website, e-commerce and quick commerce platforms. “We have seen 5x traffic on our website in the last six months and have been focusing on expanding our distribution channels as much as possible,” Gupta told Mint.

On Sanon’s association, Gupta said, “Kriti’s involvement goes far beyond being the face of the brand—she’s deeply engaged in every step, from product development to consumer feedback. She brings her own skincare insights, tests every product herself, and stays in close touch with customers to ensure we’re always in tune with their needs.”

One brand that is often touted as a success is HRX, a fitness-inspired brand co-owned by Bollywood actor Hrithik Roshan and online fashion retailer Myntra. Launched in 2013, HRX offers a range of fitness gear, including gym wear and training equipment. Various media suggest that the company is close to crossing ₹1,000 crore in revenue. However, Mint has not been able to find any data or filings to back this claim. The company did not respond to Mint’s queries seeking clarity on its financials.

“HRX has managed to pull in young consumers who want celebrity-like apparel and equipment at reasonable prices,” said an early-stage consumer investor requesting anonymity.

The brand has tied up with Cult.fit, which owns gyms and fitness centres across the country. Last year, it also joined hands with The Good Bug, a nutraceuticals brand backed by Marico founder Harsh Mariwala’s family office Sharrp Ventures, to launch a probiotic supplement aimed at weight management.

Aside from Hyphen, none of the brands Mint reached out to for this story responded to our queries.

Globally, data from consumer intelligence company Nielsen IQ shows that celebrity beauty brands make for a big business, with labels such as Fenty Beauty, Rare Beauty, and Kylie Cosmetics achieving high sales and recognition. In 2023, for instance, 43 of the celebrity beauty brands tracked by NIQ surpassed $1 billion in sales for the first time.

In 2023, 43 of the global celebrity beauty brands tracked by Nielsen IQ surpassed $1 billion in sales for the first time in 2023.

Fenty Beauty is backed by singer Rihanna and sells in India through Nykaa. Rare Beauty, singer Selena Gomez’s brand, retails in India through online beauty marketplace Sephora. Kylie Cosmetics is backed by Kylie Jenner, otherwise known for her appearances in reality show Keeping up with the Kardashians.

Unlike in India, celebrity brands have performed better in the US. Nearly a third of American consumers in a 2023 survey by global market intelligence company Morning Consult said they had purchased a product from a brand founded by a personality with social media influence, while an overwhelming 80% of the respondents expressed a willingness to buy again.

How Kay connected

“Product is king,” Kaif told Mint in an interview last year, repeating a line written in almost all entrepreneurship and marketing books. “You can attach a big name to it, advertise it, market it as much as you want; but if it’s not good, it won’t work.”

Kay Beauty owes much of its success to the perception of quality around it, which has helped the brand build a legion of fiercely loyal customers. Take the case of Priya Shah, a 27-year-old baker based in Mumbai’s Mulund area. Shah has enjoyed experimenting with makeup since the age of six. Today, her loyalties lie with only a couple of brands. Her latest obsession is the Hydra Creme Lipstick made by Kay Beauty. “With Kay, I always pre-order. That’s how excited I am about their new launches. In fact, my mother-in-law’s wedding gift to me was a Kay Beauty gift hamper,” gushed Priya.

Anjali, a 26-year-old marketing professional based in Mumbai, also owns almost every product launched by the brand, right from its Eye Kanvas eyeshadow palette to Illuminating Primer Drops. “I have learned makeup from Kay Beauty. I am only scratching the surface in terms of artistry but I find the products easy to use and forgiving,” Anjali told Mint, adding that the brand’s instant Lip Plumper is next on her list.

I have had my share of frustration with buying some best-selling product and later regretting it.
—Katrina Kaif

“I have had my share of frustration with buying some best-selling product and later regretting it because it didn’t suit my skin,” Kaif said in the interview with Mint last year. “Before starting Kay Beauty, I was very clear that I wanted to build a product that works on all Indian skin tones. That’s why we ended up spending more time than anticipated creating our products; it took two years to complete the launch range.”

Judging by the impact she has had on Priya and Anjali, Katrina’s association with the brand seems to have resonated with customers. “A lot of celebrities launch brands but only a few of them are successful. Kay Beauty’s journey is interesting simply because the joint venture between Nykaa and Katrina Kaif has manifested into something consumers have managed to connect with easily, thereby creating loyalty,” explained Satish Meena, advisor at market research firm Datum Intelligence.

Kay Beauty also stands out thanks to its comfortable price point and a strong connection with the celebrity endorsing it. “Kay’s products aren’t expensive but they aren’t cheap either. With premiumization picking up well across segments, an average product price of ₹1,000-1,200 is a good place to be,” said Meena.

The brand was online beauty marketplace, Nykaa’s first celebrity label, and has grown to become one of its top-performing labels. “Today, it is actually one of the fastest-growing brands on the platform, and we feel excited about having built this brand completely from scratch,” Adwaita Nayar, chief executive officer of Nykaa Fashion, said during the company’s Q3 FY25 earnings call.

India’s beauty and personal care (BPC) market is expected to grow from the current $21 billion to $34 billion in the next four years, making it the fastest growing in the world, according to Nykaa’s beauty trends report, released in September last year. Judging by how they are performing at the moment, Kay Beauty and Sanon’s Hyphen appear well placed to surf that wave.

Out of sight

Being Human, an apparel and accessories brand, was launched by Salman Khan in 2007. The proceeds of Being Human were meant to provide education and healthcare services to the underprivileged. Back then, the Bollywood actor was fighting court battles involving five homeless people being run over on a Mumbai road and the killing of blackbucks in Rajasthan.

Deepika Padukone, another prominent Bollywood star, has turned into a venture investor in recent years and also launched her own brands. In 2015, for instance, she tied up with Myntra in 2015 to launch women’s wear brand All About You. However, in 2020, Padukone sold her stake in the company to the Walmart-owned Myntra for an undisclosed sum.

In 2022, Padukone decided to try her hand at skincare, launching a company called 82°E. The young company is still finding its footing—82°E’s total income touched ₹23.6 crore in FY24 while its bottom line remained in the red with a loss of ₹23.4 crore, according to data accessed from business intelligence platform Tofler. It could still succeed, but 82°E has some issues to address. One of the challenges the company has faced in scaling up is the perception that even its basic products are overpriced.

So, why do so many celebrity brands struggle? “Unlike in the US, we are unlikely to see users flock to buy products launched by celebrities only because of the appeal. Sure, the aspirations exist but Indian consumers are slowly seeking a lot more than just the brand name,” said Datum Intelligence’s Meena.

If they get it right, celebrity endorsements and backing can play a key role in helping brands scale up in India, especially in the mass category. This is thanks to the spread of e-commerce, which has opened the market beyond the urban landscape into lower-tier towns and cities across the country. But given the plethora of options available today, especially cheap knock offs, a brand needs to stand out if it is to succeed.

“Any celebrity-led brand has an inherent advantage of awareness when launching, but for long-term success, the brand identity needs to stand out independently for its own USP or positioning,” said Zoeb Ali Khan, investor at early-stage venture capital firm Sauce.vc. “Only the fittest will survive, which means only brands that differentiate and continue to innovate will stick around.”