Rs 1,000-crore behemoth reveals huge losses on Deepika’s 82 degrees East: Celebrity-led brand report card §ion=Entertainment&subSection=bollywood&impression=true” width=”100%” height=”0px” style=”display: block” Frameborder=”0″ scroll=”no”>
September 30, 2024 01:18 PM (IST)
A recent analysis of celebrity-driven brands revealed that only a handful are profitable and do not struggle to survive.
Bollywood celebrities have been turning entrepreneurs for years, maybe even decades. First it was a film production company and then a more diversified business. Today’s A-list stars run businesses in a variety of fields and sectors, backed by their star power. But are these businesses profitable or even breaking even? A new study of some of these star-driven business ventures has revealed a surprising trend. (Also read: Money is not my motivation, says Hrithik Roshan)
Martial Arts co-stars Hrithik Roshan and Deepika Padukone’s business ventures have contrasting fates
Most celebrity-driven businesses are facing losses
A recent analysis of celebrity-led brands by Storyboard 18 found that the majority are facing losses or struggling to survive. Deepika Padukone’s skincare brand 82°E posted a loss of Rs 251 crore at EBITDA level in the first nine months of FY24. The report also pointed out that Virat Kohli’s WROGN also saw a 29% decline in revenue. In addition to these, Shahid Kapoor’s ‘Sukrut’, Anushka Sharma’s ‘Nush’ and Sonam Kapoor’s ‘Reson’ also saw a decline in their revenue and market presence.
“Consumers can tell when a brand doesn’t truly represent a celebrity’s interests or appears to exist solely to make a quick profit. Overexposure can also be fatal. Ambika Sharma, Founder and Chief Strategist at Pulp Strategies The statement was quoted on Storyboard 18.
Hrithik’s HRX and Katrina’s Kay Beauty are the only commercial ventures.
But all is not lost for celebrity-driven brands, the analysis found. For example, Alia Bhatt’s Ed-a-Mamma saw its revenue quadruple before being acquired by Reliance Retail. Similarly, Katrina Kaif’s Kay Beauty, in partnership with Nykaa, has reached 1.5 million customers and is expected to grow at a rate of 62%. Perhaps the biggest success story is Hrithik Roshan’s HRX. HRX has grown more than five times and recently crossed the Rs 100 billion mark in revenue.
Experts cited in the report say HRX and Kay Beauty’s success lies in having a clear identity and connection to their core user base that other brands lacked.
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