Celebrity Brands Under Review: Hrithik Roshan HRX Thrives While Deepika 82°E Faces Losses
A recent analysis of celebrity-led brands in India revealed stark contrasts in financial performance among various ventures. While Hrithik Roshan’s fitness brand HRX continues to thrive, Deepika Padukone’s skincare line, 82°E, is grappling with significant losses. This report, conducted by Storyboard 18, sheds light on the challenges and successes faced by Bollywood celebrities venturing into entrepreneurship.
Main Points
Hrithik Roshan’s HRX: A Success Story
Launched in 2013, Hrithik Roshan’s HRX has emerged as a powerhouse in the fitness and lifestyle market. The brand recently crossed the ₹1,000-crore revenue mark, showcasing a remarkable growth trajectory. This success can be attributed to several factors:
- Strong Brand Identity: HRX is closely tied to Hrithik’s image as a fitness icon, resonating with consumers who aspire to a healthy lifestyle.
- Diverse Product Range: The brand offers an extensive lineup of products including fitness apparel, shoes, and accessories.
- Strategic Partnerships: Collaborations with major platforms like Myntra have significantly enhanced HRX’s market visibility.
Experts suggest that the brand’s clear identity and connection with its target audience have been pivotal to its success. As noted by Ambika Sharma, Founder and Chief Strategist of Pulp Strategy, “When a brand genuinely represents the celebrity’s interests, it resonates more with consumers.”
Deepika Padukone’s 82°E: Facing Financial Struggles
In stark contrast to HRX’s success is Deepika Padukone’s 82°E. Despite her global celebrity status and active promotion efforts, the brand has reported a staggering loss of ₹25.1 crore at the EBITDA level during the first nine months of FY24. Several challenges contribute to this underperformance:
- High Pricing: The luxury positioning of 82°E has limited its accessibility to a broader audience.
- Market Penetration Issues: Despite Deepika’s star power, the brand has struggled to establish itself in the competitive skincare market.
- Consumer Perception: Initial criticism regarding product efficacy may have deterred potential customers.
The report highlights that while Deepika has made efforts to improve her product offerings, these changes have yet to translate into profitability.
Challenges for Other Celebrity Brands
The struggles are not limited to 82°E. Other celebrity-led brands also face significant hurdles:
- Virat Kohli’s WROGN: This fashion brand has experienced a revenue decline of 29%.
- Shahid Kapoor’s Skult and Anushka Sharma’s Nush: Both brands are witnessing diminishing returns and struggling to maintain market presence.
- Sonam Kapoor’s Rheson: This venture is facing challenges related to return on investment.
The analysis suggests that many of these brands lack a clear identity or connection with their core audience, leading to poor performance. Overexposure can also dilute a celebrity’s credibility if they endorse too many products.
Success Stories Amidst Challenges
Despite the struggles faced by many celebrity brands, there are notable successes:
- Katrina Kaif’s Kay Beauty: Launched in collaboration with Nykaa, this beauty line has garnered over 15 lakh customers and is projected to grow by 62%. Its success is attributed to innovative product offerings and effective marketing strategies.
- Alia Bhatt’s Ed-a-Mamma: This children’s apparel brand saw its revenue increase four-fold after being acquired by Reliance Retail, demonstrating how aligning brand values with personal branding can lead to success.
The landscape of celebrity-led brands in India showcases a mix of triumphs and tribulations. While Hrithik Roshan’s HRX stands out as a beacon of success, Deepika Padukone’s 82°E serves as a reminder that celebrity status alone does not guarantee profitability. As Bollywood stars continue to explore entrepreneurial ventures, understanding market dynamics and consumer preferences will be crucial for future success.
