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 stepping up their game—no longer just the faces of brands, they’re becoming the masterminds behind them! Just look at Virat Kohli. He’s not only India’s most valued celebrity, boasting a brand worth a cool $227.9 million, but he’s also rocking his own athleisure line, One8, that’s taking the market by storm. Then there’s Deepika Padukone, who’s made a splash in the beauty world with 82°E, a line of self-care products that truly embody her personal vibe. And how could we forget Alia Bhatt’s charming Ed-a-Mamma, a sustainable clothing brand for kids that’s as adorable as it is eco-friendly?

This trend isn’t just happening in India; it’s a global movement! Stars everywhere are leveraging their fame to launch personal ventures. Rihanna’s Fenty Beauty hit a staggering valuation of over $2 billion in 2024, setting the bar high in the beauty industry. Kanye West’s Yeezy is another great example, seamlessly blending music and fashion into a powerhouse brand.

By launching their own brands, celebrities are infusing their personal flair and values into products, creating a more authentic connection with fans. It’s not just about slapping a name on a product; it’s about crafting experiences that truly resonate. And guess what? Consumers are loving it! In 2023, celebrity beauty brands saw a jaw-dropping sales growth of nearly 58%, showing that when stars take the reins, everyone shines!

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. In contrast, owning a brand allows them to hold equity, meaning they benefit directly from the company's profits and growth. For example, Alia Bhatt launched her sustainable children's clothing brand, Ed-a-Mamma, in 2020. By 2023, the brand had an estimated valuation of ₹300 crore, leading to a majority stake acquisition by Reliance Retail. 

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 reshaping the landscape of traditional endorsements. Let's explore how this shift is influencing the dynamics between celebrities and established companies:

As celebrity-owned brands continue to rise, brands are becoming more cautious about hiring endorsers who have their own competing products. Companies want to ensure that their investment yields the best results, and when a celebrity has their own line, it can create conflicts of interest. For instance, if a brand promotes a celebrity's skincare line, they might hesitate to partner with that same celebrity for a rival product. This shift reflects a growing concern about loyalty and authenticity. Brands are looking for endorsers who can wholeheartedly promote their products without distractions from personal ventures.

There have been notable cases where endorsement deals fell through because of these conflicts. For example, when Kylie Jenner launched her own beauty line, Kylie Cosmetics, some brands reconsidered their partnerships with her. Major beauty companies became wary of associating with a celebrity whose products could directly compete with their own. Similarly, when Beyoncé announced her Ivy Park activewear line, brands that previously endorsed her had to think twice about ongoing contracts. These situations highlight how the landscape is shifting, with brands now prioritising exclusivity to avoid any potential backlash from consumers who might 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

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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?

Absolutely! Celebrities will continue to be the face of other brands, but the way they engage in these partnerships is evolving. Traditionally, celebrities were primarily seen as endorsers, lending their image to products. Today, many are taking on more active roles, co-creating products and even launching their own brands. For instance, Rihanna's Fenty Beauty revolutionized the beauty industry with its inclusive range, and Alia Bhatt's Ed-a-Mamma focuses on sustainable children's clothing. These ventures showcase celebrities as entrepreneurs, not just endorsers. 

This entrepreneurial shift doesn't mean celebrities are stepping away from endorsing other brands. Instead, they're bringing a more authentic and hands-on approach to these partnerships. Brands now seek celebrities who genuinely align with their products, ensuring a more natural and effective endorsement. For example, when a celebrity with a personal skincare line endorses another brand, it can lead to questions about authenticity and effectiveness. 

Looking ahead, celebrities will likely continue to be influential faces for various brands. However, the nature of these partnerships will be more collaborative, with celebrities actively involved in product development and brand messaging. This trend reflects a broader shift towards authenticity and deeper engagement in marketing strategies.

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 every celebrity can effortlessly succeed as an entrepreneur. While star power can provide a head start, the journey is full of hits and misses. For example, some celebs like Katrina Kaif with Kay Beauty have successfully leveraged their passion and authenticity to build brands that resonate with consumers. Their involvement often extends beyond just lending their name—these ventures reflect personal values and quality, which translates into trust and repeat business.

On the flip side, there have been misses. Overreliance on celebrity appeal without a clear business strategy can lead to brands that lack a distinct identity or fail to meet consumer expectations. Some ventures struggle with market saturation, operational challenges, or simply not delivering enough value beyond the celebrity name.

In essence, while celebrity status opens doors, sustained entrepreneurial success demands genuine business acumen, innovation, and a strong product offering. It's a hit if done right, but not every celebrity venture can turn into a lasting success.