The Ripple Effect: How Celebrity-Owned Brands Are Changing Endorsements in India

Celebrity-owned brands are reshaping endorsements in India, with stars like Virat Kohli, Katrina Kaif, and Alia Bhatt leveraging their fame to build thriving businesses. As traditional endorsements decline, brands are shifting to influencer partnerships. This shift highlights authenticity, brand control, and long-term financial gains.

Celebrity endorsements have long been a goldmine for brands. From Bollywood stars to cricket legends, familiar faces have helped companies sell everything from soft drinks to luxury watches. But a big shift is happening—celebrities are no longer just endorsers; they’re turning into brand owners themselves.

In India, this trend is gaining momentum. Virat Kohli’s One8 (a sportswear brand), Deepika Padukone’s 82°E (a skincare brand), and Alia Bhatt’s Ed-a-Mamma (a sustainable kids’ fashion brand) are just a few examples of stars capitalising on their massive fan bases. According to a 2023 report, Virat Kohli’s brand value stands at $176.9 million, proving that personal branding is more powerful than ever.

As more celebrities launch their own brands, traditional endorsements are being disrupted. Brands are facing a tough question: should they hire a celebrity who already owns a competing business? This shift is forcing companies to rethink their marketing strategies, leading to the rise of influencer collaborations, equity deals, and a greater focus on digital marketing.

In this blog, we’ll dive deep into how celebrity-owned brands are changing the endorsement landscape and what this means for the future of marketing in India.

The Rise of Celebrity-Owned Brands in India

Indian celebrities are raising their game—no longer the brand faces alone, they're becoming the geniuses behind them! Just take Virat Kohli, for instance. Not only India's most valued celebrity with a brand value of a whopping $227.9 million, but he's also slaying in his own athleisure line, One8, that's storming the market!. And then there's Deepika Padukone, who's caused a splash in the beauty scene with 82°E, a range of self-care products that perfectly capture her own personality. And let's not forget Alia Bhatt's adorable Ed-a-Mamma, a kids' clothing brand that's as cute as it is green.

This trend is not isolated to India; it's worldwide! Celebrities across the globe are using their popularity to establish personal businesses. Rihanna's Fenty Beauty reached an eye-watering valuation of more than $2 billion in 2024, setting a high standard within the beauty market. Kanye West's Yeezy is another fantastic example, combining music and fashion to create a behemoth brand.

By establishing their own brands, celebrities are infusing their own personality and values into products and, in the process, gaining a more intimate connection with fans. It is not just slapping a name on a product; it is creating experiences that individuals actually relate to. And boom! People adore it! Celebrities' beauty brands saw a whopping sales growth of nearly 58% in 2023, demonstrating when celebrities take control, everyone smiles!

Why Celebs Prefer Owning Brands Over Endorsing Them?

Celebrities are increasingly choosing to own brands rather than merely endorse them. Let's explore why this shift is happening:

1. Financial Advantages: Equity vs. Fixed Endorsement Fees

When celebrities endorse a product, they typically receive a one-time fee or a short-term contract. But if they have a brand, they get to retain equity, i.e., they gain directly from the profits and expansion of the organization. For example, Alia Bhatt launched her sustainable kids' apparel brand, Ed-a-Mamma, in 2020. The business had an estimated valuation of ₹300 crore by 2023, for which Reliance Retail picked up a majority stake.

2. More Control Over Branding and Messaging

Ownership provides celebrities with the reins to steer the brand's image and message. This control ensures that the products align with their personal values and public persona, creating a more authentic connection with their audience. Anushka Sharma's clothing line, Nush, launched in 2017, reflects her personal style and commitment to accessible fashion. This control ensures authenticity and a deeper connection with consumers. 

3. Long-Term Wealth Creation vs. Short-Term Endorsement Deals

Endorsement deals often offer immediate, but fleeting, financial rewards. In contrast, owning a brand can lead to sustained income and wealth accumulation over time. Katrina Kaif's Kay Beauty, launched in 2019 in collaboration with Nykaa, has established itself as a prominent player in the Indian beauty market, contributing to her long-term financial growth. By owning brands, Indian celebrities can build lasting legacies, exercise creative control, and enjoy financial benefits that surpass traditional endorsement deals.

How Celebrity-Owned Brands Are Impacting Traditional Endorsements?

The emergence of celebrity-owned brands is revolutionizing the era of traditional endorsements. Let us have a look at how this evolution is affecting the interaction between celebrities and established businesses:

As the celebrity brands increase, the brands are now more vigilant while inducting endorsers who carry rival products as well. The brands don't want their investment to be in vain, and when there is a celebrity own line, they might find themselves in a conflict of interest. Such as if a brand is sponsoring a celebrity's skin care line, they might not want to collaborate with that same celebrity for a competing product. This trend is an extension of growing concerns about authenticity and loyalty. Brands tend to favor endorsers who are committed to selling their products without distraction from their own business.

There have been a few well-known cases where endorsement deals fell apart because of these conflicts. For example, when Kylie Jenner launched her own beauty product line, Kylie Cosmetics, some brands reevaluated their ties to her. Big beauty companies were wary of affiliating with a celebrity whose products could compete directly with theirs. Similarly, when Beyoncé introduced her Ivy Park sportswear collection, former supporters of hers were compelled to re-evaluate the terms of previous agreements. These situations illustrate the way things are evolving, with companies now desiring exclusivity in order to avoid the potential outrage from clients that would feel a celebrity's loyalty is divided.

The Changing Role of Influencers vs. Traditional Celebrity Endorsements

The marketing landscape is witnessing a shift from traditional celebrity endorsements to influencer partnerships. Influencers, who often build their followings through authentic content and personal engagement, are perceived as more relatable and trustworthy. A study highlighted that 61% of consumers trust influencer recommendations, compared to 38% for traditional celebrities. This trend indicates that consumers value authenticity and personal connection, areas where influencers excel. Consequently, brands are allocating more of their marketing budgets to influencer collaborations, recognizing their potential for higher engagement and conversion rates.

How Popular Bollywood Celebrities Are Redefining Brand Partnerships

Virat Kohli’s One8 vs. His Puma Endorsement

Virat Kohli is not just a cricket superstar; he’s also a savvy entrepreneur with his athleisure brand, One8. What’s fascinating is how this brand interacts with his endorsement deals, particularly with Puma. While Kohli has been a prominent face for Puma, promoting their sportswear, his own brand, One8, offers a direct competitor in the athleisure space. This dual role makes brands think twice about how they collaborate with him.

Kohli’s connection with Puma remains strong, with reports indicating that he helped boost Puma's sales significantly. However, with One8 gaining traction—reportedly valued at around $50 million—there’s a delicate balance between being an endorser and a brand owner. Brands now need to ensure their messages align with Kohli’s entrepreneurial ventures, making partnerships more strategic and thoughtful.

Katrina Kaif’s Kay Beauty

Katrina Kaif has made waves in the beauty industry with her own brand, Kay Beauty. Launched in collaboration with Nykaa, it focuses on inclusive and high-quality makeup. This venture has reshaped how she approaches her previous beauty endorsements. Once a go-to face for brands like L’Oreal and brands in similar spaces, Katrina now has to navigate potential conflicts of interest.

As she promotes Kay Beauty, her relationship with other beauty brands may shift. Brands might hesitate to partner with her if they feel her loyalty is divided, especially since Kay Beauty has made a significant impact, racking up impressive sales shortly after launch. In fact, within the first few months, the brand reportedly generated over $1 million in revenue. This success shows how celebrity-owned brands can influence the dynamics of previous endorsements, pushing brands to rethink their strategies.

Alia Bhatt’s Ed-a-Mamma

Play

Alia Bhatt is another shining example of a celebrity stepping into the entrepreneurial space with her kids' clothing brand, Ed-a-Mamma. This brand stands out for its focus on sustainability and ethical fashion, appealing to environmentally conscious parents. As Alia dives into this competitive market, she’s not just another celebrity; she’s positioning herself as a serious player among established kids' wear brands like Babyhug and FirstCry.

Ed-a-Mamma has already made a splash, with reports suggesting it achieved impressive sales figures shortly after launching. The brand's emphasis on eco-friendliness resonates with a growing demographic of parents who prioritise sustainable choices. However, this also means that Alia’s previous endorsements in the fashion space could face scrutiny. Brands may reconsider their partnerships if they feel their personal brand is now in competition with them.

Will Celebrities Still Be the Face of Other Brands?

Indeed! Celebrities will continue to be the face of other brands, but their participation in these collaborations is evolving. Celebrities were primarily endorsers, sharing their face for products earlier. Today, several are taking a more active part, co-creating products and even launching their own brands. For instance, Rihanna's Fenty Beauty revolutionized the beauty industry by providing an inclusive line, while Alia Bhatt's Ed-a-Mamma is sustainable kids' clothing. These companies portray celebrities as entrepreneurs, not just endorsers. This shift in the business does not mean that celebrities are stepping out of endorsing other products. Instead, they're providing a more authentic and engaging role for these partnerships. Brands now seek celebrities with an actual relationship with their product to establish a more natural and successful endorsement. For example, when a celebrity with his/her own line of skincare products endorses another product, there are questions about its authenticity and effectiveness.

In the future, celebrities will continue to be prominent faces for several brands. However, the nature of these endorsements will become participative, as celebrities will take an active role in producing products and brand messaging. The pattern reflects a broader pattern towards authenticity and more participation in marketing campaigns.

How Celebrities Are Changing the Indian D2C Market?

Indian celebrities are increasingly making their mark in the Direct-to-Consumer (D2C) market, transforming industries like beauty, fashion, and wellness. Let's delve into this trend:

In recent years, numerous Indian celebrities have launched their own D2C brands, leveraging their fame and personal brand to connect directly with consumers. For instance, Alia Bhatt's Ed-a-Mamma offers sustainable children's clothing, reflecting her commitment to environmental causes. Similarly, Salman Khan's Being Human combines fashion with philanthropy, with proceeds supporting various charitable initiatives. 

The entry of celebrities into the D2C space has significantly influenced these sectors:

• Beauty: Katrina Kaif's Kay Beauty has set new standards in the Indian beauty market by promoting inclusivity and quality. The brand's success underscores the potential of celebrity-led ventures in capturing consumer interest. 

• Fashion: Hrithik Roshan's HRX and Virat Kohli's Wrogn have made notable impacts in the fashion industry. While HRX focuses on activewear, Wrogn offers casual wear for the youth. These brands leverage the celebrities' personal styles and have garnered significant consumer attention. 

• Wellness: Celebrities are also venturing into wellness, with brands emphasizing health and well-being. For example, The Ayurveda Co. (T.A.C.) has actress Kajal Aggarwal as an investor, highlighting the growing trend of celebrity involvement in wellness-oriented D2C brands. 

Social media has become a game-changer for celebrities looking to market their own D2C brands effortlessly. These platforms allow stars to engage directly with their audience, sharing personal stories and behind-the-scenes moments that humanize their brand. Unlike traditional advertising, social media enables authentic promotion, where celebrities naturally showcase their products in everyday use, making endorsements feel more genuine and relatable. Additionally, the viral nature of digital content helps amplify brand visibility without the need for heavy marketing spending—one well-crafted post or reel can generate massive traction. A great example is Alia Bhatt, who frequently updates her followers about Ed-a-Mamma, sharing new collections and sustainability initiatives, and keeping her audience engaged while reinforcing her brand’s values.

Can Every Celebrity Succeed as an Entrepreneur?

Not all celebrities can easily thrive as entrepreneurs. While fame can give one a head start, the path is dotted with hits and misses. For instance, certain celebrities such as Katrina Kaif with Kay Beauty have been able to use their passion and authenticity to create brands that appeal to consumers. Their participation tends to go beyond just putting their name on it—these businesses reflect personal values and quality, which equates to trust and repeat business.

On the other hand, there have been misses. Overdependence on celebrity popularity without a well-defined business plan can result in brands that do not have a unique identity or do not live up to consumer expectations. Some businesses fail with market saturation, operational issues, or simply not providing enough value beyond the celebrity name.

In short, celebrity can open doors, but long-term entrepreneurial success requires true business skills, creativity, and a quality product offering. It's a hit if it works, but not every celebrity endeavor can become a long-term success.