Indian celebrities benefit from brand boom in 2023: Virat Kohli tops the list, Ranveer Singh records steady growth

NEW DELHI:India’s top 25 celebrities, a mix of Bollywood stars and sports figures, have amassed an estimated $1.9 billion in brand value in 2023, growing 15.5% year-on-year, with notable recoveries and steady gains for key figures such as Virat Kohli, Ranveer Singh and Shah Rukh Khan.

This growth underscores the strong market demand for celebrity advertising and, despite some fluctuations and portfolio changes, leads to significant increases in brand value and advertising fees.

The top performer was cricketer Virat Kohli, who has made a strong recovery after a slump in previous years. Kohli’s brand value rose from $176.9 million in 2022 to $227.9 million, a remarkable increase of 28.9%, according to the latest Celebrity Brand Valuation report by corporate intelligence and risk advisory firm Kroll. However, his current valuation is still below his pre-pandemic peak of $237 million.

Kohli’s diverse portfolio includes over 40 brands and spans various industries, including his recent signing as a brand influencer for HSBC India.

Bollywood icons

The report entitled “Brands, Companies, Bollywood Celebrity Brand Valuation Report 2023‘, highlighted the steady growth of film actor Ranveer Singh’s brand value over the last four years. Singh’s value has almost doubled, rising from $102.9 million in 2020 to $203.1 million in 2023. Although Singh slipped one rank this year, Singh’s brand value crossed the $200 million mark for the first time.

Singh, known for his storytelling skills, has a robust portfolio of 50 brands, including Tiffany & Co. and Zomato during the ICC Men’s Cricket World Cup 2023. His brand churn rate remained low at 2.9%, with significant shifts like the move from Coca Cola’s Thums Up to PepsiCo’s Pepsi. Singh also ventured into investments and recently became a major shareholder in boAt.

Veteran actor Shah Rukh Khan recorded the highest growth rate among his peers, with his brand value increasing from $51.1 million in 2020 to $120.7 million in 2023, a staggering increase of 116.6%.

Meanwhile, actor Akshay Kumar saw a decline, with his brand value falling by over 23% to $111.7 million in 2023. Despite this, 60% of Kumar’s advertising portfolio has remained stable since 2020. Alia Bhatt also saw significant growth, with her brand value increasing by 110.6% in three years, remaining at a similar level to the previous year.

Aviral Jain, managing director of valuation consultancy at Kroll, noted a 14% increase in endorsement deals for the top 20 celebrities, with overall brand value driven primarily by the top 10. “We see a sustained growth trajectory in both overall brand value and endorsement fees, with endorsement fees for the top 10 celebrities increasing by 6-7% on average.”

Despite some fluctuations, the market remains robust. Two-thirds of the top 25 brands by sales are dominated by Bollywood stars, 28 to 29 percent are sports stars, and the remaining few percentage points are represented by South Indian celebrities.

“We also don’t really expect many sports personalities outside of cricket to break into the top 25,” Jain said, adding that celebrity endorsements help many established players gain customers faster, while newer companies or startups gain visibility faster through this endorsement.

Recommendations increase market reach

The method for evaluating celebrity endorsed products takes into account two main factors: the average fee for advertising and the number of endorsement deals, which are adjusted across all brands. This produces a rating that reflects each brand’s ability to capitalize on the recent popularity and success of its endorsement.

The impact of celebrity endorsements on long-term sales is significant, as evidenced by Bonn Nutrients Pvt. Ltd.’s recent signing of Katrina Kaif for its bread and ‘Americana’ biscuit brands.

“Signing a celebrity may not necessarily give us an immediate sales boost, but it is the best route to market when a company needs to reach the masses,” said Dawinder Pal, Marketing Director at Bonn Nutrients, when signing the Indian celebrity.

Kaif entered the list of India’s most valuable celebrity brands at number 25 with a value of $27.1 million.

The report also examined the television presence of the top 25 celebrity brands and found that they were advertised for 311 products across 22 industry segments in November 2023. The leading brands on television included Harpic toilet cleaner endorsed by Akshay Kumar, Lux soap endorsed by Anushka Sharma and Virat Kohli, and Sara Ali Khan’s Veet.

The year 2023 saw a rise in Indian “celebrity entrepreneurs”: Akshay Kumar launched his athleisure brand Force IX, Kareena Kapoor Khan launched her Korean skincare brand Quench Botanics, and Deepika Padukone unveiled her luxury skincare brand 82°E.

In addition, Indian celebrities expanded their international presence, for example through alliances between Katrina Kaif and Etihad Airways or Alia Bhatt as the first Indian global ambassador of Gucci. On the other hand, global celebrities joined Indian brands, marking a significant shift. Infosys, for example, signed up tennis champions Rafael Nadal and Iga Świątek, while Zomato partnered with cricket star Chris Gayle.

“In 2024, we will see the first approaches to using artificial intelligence in mainstream advertising, where AI is used along with a celebrity to market products. This can help drive better ROIs for advertisers,” Jain added.

India’s media and entertainment sector witnessed a growth of 11.4% in 2023, reaching $28 billion, driven by digital media, online gaming and animation. The sector is expected to reach $34 billion by 2025, growing at a compound annual growth rate (CAGR) of 10.5% from 2022 to 2025.