The ‘magic formula’ developed by celebrityowned brands
Guess who is hitting the jackpot on India’s startups? Their films might be a hit or miss, but Bollywood celebrities are finding huge success with the brands they are cocreating.
Take Katrina Kaif, who teamed up with beauty and lifestyle retailer, Nykaa, to unveil Kay Beauty in 2019. Almost 1.5 million consumers have bought the products of this brand so far. Earlier this month, Falguni Nayar, Executive Chairperson, Founder and CEO of Nykaa, pointed out Kay Beauty was the “thirdmost searched” directtoconsumer brand on the platform and also among “the top three brands at Nykaa’s stores. Kay Beauty is expected to grow at the rate of 62% after a robust year of expansion into new doors (retail stores).”
Ms. Nayar said the brand was created by Katrina Kaif and Nykaa, to “bridge the gap between high glamour and care.” With a 1.4 millionstrong Instagram community, the brand’s lip oils were sold out in one day demonstrating its prowess in bringing international trends to the forefront, she added.
Winning partnerships
Equally sweet has been the brand outing of Kareena Kapoor Khan. Last year, she formed a strategic partnership with SUGAR Cosmetics founders Vineeta Singh & Kaushik Mukherjee to introduce a premium Korean skincare brand, Quench Botanics.
Kaushik Mukherjee, Director, Quench Botanics told brandline, “When the superstar and beauty icon Kareena Kapoor Khan loved the Quench products, she came on board as a coowner and investor, affirming faith in the brand. Sales have more than doubled since last quarter. A substantial increase in the follower base was also observed on our Instagram platform. Associating with her has helped step up the brand’s awareness and reach significantly amongst consumers.”
Mr. Mukherjee pointed out that Quench Botanics’ proposition of accessible Korean skincare tailored for Indian skin and weather conditions resonated well with consumers.
According to Sukhleen Aneja, CEO, Good Brands Co., Good Glamm Group, celebled brands are thriving in today’s beauty market and gaining instant recognition and recall. “We partnered Manish Malhotra in 2018 to create and launch Manish Malhotra Beauty by MyGlamm, which has become one of the largest luxury makeup brands of India. These kinds of partnerships enable us to tap into diverse consumer segments and engage with them in innovative ways gaining access to their loyal fan bases,” she says.
Besides cocreating a brand, the beauty major has also come up with celebanchored limitededition collections and exclusive launches. “Our most recent launch of the MyGlamm POUT collection in partnership with Karan Johar in December 2023 was a huge success and has gone on to be the No 1 bestselling lipstick for MyGlamm on platforms like Amazon,” she added.
For film stars, it’s natural to segue into the booming beauty industry and the associations with new age startups is paying off.
Ms. Nayar said as India’s per capita income rises from $2,500 today to $5,500 by 2030, it is projected the BPC (beauty and personal care ) per capita spend will rise from $15 now to $50 by 2030.
Business acumen
The projects are raking in the moolah, backed by large communities of loyal fans. In fact, some of these ventures are backed by VCs and angel investors. Take for instance, Deepika Padukone’s “selfcare” brand 82°E, which raised $7.5 million in seed funding in early 2022. DSG Consumer Partners and IDEO Ventures along with other angel investors participated in the round. And just last month, the brand — which has a presence in the body care and women skincare segment — expanded into men’s skincare category.
Globally celebrities have had a great track record of creating winning brands thanks to their OG influencer status. Actor Ryan Reynolds, who owns a stake in the Alpine F1 team, successfully sold a stake in Aviation American Gin and few other brands to Diageo at over $600 million valuation. It wouldn’t be a surprise if we see a celebowned brand emerging as a unicorn soon in India. (The writer is with The Hindu businessline)