What goes wrong? Why most entertainment, sports celeb brands fail, struggle to make profits - These might be key reasons
Celebrity brands often attract attention, but turning that interest into profit is harder. Fans may celebrate a launch without becoming regular customers. A famous name helps people notice products while quality decides whether they return. Experts say fame alone cannot build a lasting business.
According to Renu Prasad – COO of owned brands at Genesis Colors, celebrities mainly speed up acceptance during the first few years. After that, products must compete on their own strengths.
“Long-term success will remain the same whether you have a celebrity or not. A celebrity will only hasten the acceptance in the first couple of years,” Prasad told Outlook Business.
Brands need reliable quality, sensible prices and reasons for shoppers to buy again. Without repeat purchases, excitement can fade before the business becomes profitable.
High prices create another problem when customers do not see sufficient value. Deepika Padukone’s skincare brand, 82°E, illustrates this risk. Its revenue fell 30% to ₹14.7 crore in 2025. Losses stood at ₹12.26 crore, according to the Deccan Chronicle.
Its pricing drew criticism, according to the report. Nykaa is now taking a majority stake in the brand.
“Gen Z consumers, in particular, can spot inauthenticity instantly. They look for the sync between the celebrity’s persona, the product quality and the brand story. Celebrity is the starting point, not the entire narrative,” Radhika Ghai, founder and CEO of Kindlife, told the publication.
Competition has also increased, making it harder to secure customer attention. India had around 9,800 brands when mCaffeine launched, according to the Hollywood Reporter India. By Hyphen’s launch, that number had reached 71,000.
In 2024, a YouGov survey found 45% distrusted celebrity beauty endorsements. Only 28% trusted endorsements for brands owned by the celebrity.
Running a company also requires skills beyond public popularity. Teams must manage sourcing, pricing, supplies and the movement of money. Many brand consultants believe that celebrities should represent brands while managers handle business operations. Limited expert advice and weak research into India’s varied markets can create further difficulties.
Fitness brands face strong competition from established global sportswear companies. Shahid Kapoor’s Skult faced tough competition and reportedly suffered losses. For cricketers, public interest can also change with performance, age and retirement.
MS Dhoni’s Seven started with strong recognition. Reports suggest that it now attracts less public excitement than before. Virat Kohli-backed WROGN's revenue increased 9% to ₹243.9 crore. Its loss increased 17% to ₹88 crore in FY26 from the previous year's ₹75.5 crore.
Expansion can make these challenges more expensive. Opening shops involves high property costs while advertising and discounts increase spending.
Sales alone cannot ensure profits if customer acquisition continues to cost too much. Businesses struggle when buyers need repeated offers before making another purchase. Some brands gradually reduce launches, visibility or celebrity involvement.
However, success remains possible with the right products and support. Katrina Kaif’s Kay Beauty is often cited as a successful example.
Kay Beauty's revenue rose 45.4% to ₹88.23 crore in FY24. Profits increased 66% to ₹11.3 crore. In FY25, the revenue multiplied to ₹240 crore while reporting ₹11 crore in profit, according to StockGro. Fortune reported that, in FY27Q1, the company recorded an annualised net sales value (NSV) run rate of ₹300 crore.
Experts credit product quality, clear identity and strong retail backing. Its image also aligns with Kaif’s public persona. Ultimately, fair pricing and capable management matter more than launch excitement.
Sounak Mukhopadhyay covers trending news, sports and entertainment for LiveMint. His reporting focuses on fast-moving stories, box office performance, digital culture and major cricket developments. He combines real-time updates with clear context for everyday readers. <br><br> Sounak brings newsroom experience across breaking news, explainers and long-form features. He has a strong emphasis on accuracy, verification and responsible storytelling. His work tracks audience behaviour, celebrity influence and the business of sport and cinema. He helps readers understand why a story matters beyond the headline. <br><br> Sounak has contributed to widely read digital publications. He continues to build a body of journalism shaped by consistency, speed and editorial clarity. He is particularly interested in the intersection of media, popular culture and public conversation in contemporary India. <br><br> At LiveMint, he writes daily coverage as well as analytical pieces that interpret numbers, trends and cultural moments in accessible language. His approach prioritises factual depth, balanced framing and reader trust. The reporting aligns with modern newsroom standards of transparency and credibility. <br><br> Outside daily reporting, he explores storytelling across formats including podcasts, filmmaking and narrative non-fiction. Through his journalism, Sounak aims to document the rhythms of modern entertainment and sports while maintaining rigorous editorial integrity. <br><br> Sounak continues to develop audience-focused journalism that connects speed with substance in a rapidly-changing information environment. His work seeks clarity, trust and lasting public value in every story he reports.
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