In a recent analysis of celebrity-led business ventures, Hrithik Roshan's athleisure-wear brand, HRX, has emerged as a standout success. HRX has witnessed more than five-fold growth and has recently surpassed the 1000 crore revenue mark, solidifying its position as a major player in the fitness and apparel industry.
HRX: A 1000-Crore Juggernaut
HRX's success can be attributed to its clear brand identity and strong connection with its core user base. The brand has managed to compete effectively with major international brands like Nike, Puma, and Decathlon, highlighting its commitment to quality and consumer engagement.
Contrasting Fortunes for Other Celebrity Brands
While HRX is thriving, other celebrity-led brands are facing significant challenges. Deepika Padukone's skincare brand, 82E, for instance, reported a loss of 25.1 crore at the EBITDA level during the first nine months of FY24, despite a revenue increase from 11 crore in FY23 to 22.82 crore in FY24. This loss is largely due to high pricing and a lack of authenticity perceived by consumers.
Virat Kohli's youth fashion brand, WROGN, also saw a 29% decline in operational revenue, dropping to 243.75 crore in FY24 from 344.3 crore in FY23. Similarly, brands like Shahid Kapoor's Skult, Anushka Sharma's Nush, and Sonam Kapoor's Rheson are struggling to maintain their market presence.
Success Factors for Celebrity Brands
Experts point out that successful celebrity brands, such as HRX and Katrina Kaif's Kay Beauty, are characterized by long-term brand building, authenticity, and product quality. Kay Beauty, in partnership with Nykaa, has acquired over 1.5 million customers and is expected to grow at a rate of 62%. These brands have managed to foster a genuine connection with their consumers, which is crucial for their success.
In contrast, brands that rely too heavily on celebrity presence without delivering quality products or services are likely to decline. Overexposure and lack of authenticity can dilute the brand's impact and credibility, as seen in the cases of WROGN and Being Human by Salman Khan.
Alia Bhatts Ed-a-Mamma: Another Success Story
Alia Bhatt's kidswear brand, Ed-a-Mamma, has also seen significant growth, with revenues increasing four-fold before it was acquired by Reliance Retail. This success underscores the importance of aligning the brand with the celebrity's genuine interests and delivering high-quality products.
