Why fame alone isn’t enough to keep you afloat

Over the last decade, there has been a significant the rise in popularity of celebrity brands. Latest data from NielsenIQglobal market research firm, shows just how significant this boom has become.

Celebrity cosmetics brands collectively achieved $1.1 billion in sales from November 2022 to November 2023. Interestingly, these brands saw growth of 57.8 percent, significantly outpacing the overall cosmetics category’s growth of 11.1 percent during the same period.

Celebrity Brands are products or services created, endorsed, or owned by eminent people who exploit their fame to influence consumer decisions. With the rise of social media and the emergence of digital starsthese celebrity brands have become more and more visible.

At first glance, the appeal seems basic for both celebrities and consumers. Celebrities exploit their influence to develop brands that bypass the typical stage of consciousnesswhich attract consumers’ attention immediately after their premiere.

Consumers, in turn, expect the celebrity they admire to offer high-quality products that align with their preferences and values. However, this trust can quickly evaporate when the products fail to meet expectations.

Why do some brands fail?

While some celebrity brands, like Selena Gomez’s Rare Beauty AND Rihanna’s Fenty Beauty Not all brands manage to maintain initial momentum.

A significant example is Jaclyn Hill’s cosmetics brand, influencer in the beauty industrywho was met with huge criticism when her lipstick launch in 2019 was filled with complaints about defective productswhich led to a product recall and long-term damage to her brand’s reputation. Hill later announced, the brand will be closedshowing that even well-known brands can fail when quality and consumer trust are compromised.

There are three main reasons that often lead to the failure of these ventures: product quality, authenticity and misalignment of positioning with the target market.

Consumers expect products endorsed by their favorite celebrities to meet high standards. When that expectation is not met, trust quickly erodes. This is consistent with Expectation Confirmation Theorywhich suggests that consumer satisfaction is shaped by the relationship between initial expectations and actual product performance.

An example of this is Kylie Jenner’s skincare brand, Kylie Skin, which has come under fire from critics shortly after its launch to promote its nut scrub. Skincare professionals and consumers criticized the product for being too harsh on the skin and potentially causing micro-tears. This raised questions about the product’s safety and damaged the brand’s reputation early on.

Consumers expect products to deliver on the promises made to them, and if the quality is indigent, no celebrity endorsement will save the brand.

The value of authenticity

Especially younger consumers appreciate authenticity in celebrity brandsConsumers are increasingly turning to brands that feel like a true extension of a celebrity’s personal brand and values.

When a brand feels insincere or disconnected from the celebrity, it often results in a robust backlash. Given the heightened expectations surrounding celebrity-backed ventures, any perceived inauthenticity tends to amplify negative word-of-mouth, even more so than with conventional brands.

For example, in the case of Millie Bobby Brown “Florence” by MillsThe brand faced challenges at the beginning, especially around authenticity and quality of marketing.

Shortly after its 2019 release, Brown was criticized for a video about faking a skincare routine in which she seemingly pretended to apply her products without actually using them. The mistake raised questions about her commitment to the brand and its authenticity, leading to a public backlash.

Brown later apologized.saying she’s “still learning” about the beauty space. Although the brand has since recovered, and Brown recently announced she was launching a fashion brandthis type of obstacle could be a breaking point for other brands.

Mismatch with target market

A mismatch between what celebrities think their target market wants and what the market actually wants can seriously impact a brand’s success. An example of a mismatch in brand positioning is The honest beauty of Jessica Alba.

Originally founded as part of Truthful Company, which specialized in safe and sound, non-toxic baby products, Truthful Beauty faced challenges when it expanded into skin care. Issues like the sunscreen criticism in 2015 where consumers reported sunburn despite using the product, and other allegations of misleading claims about the product, which damaged trust.

Moreover, although the brand positioned itself as ecological and affordable, some products offered at higher prices scared off part of the target group, creating a gap between the brand’s mission and consumer expectations.

In brief, successful brands need to align their positioning—the way the brand is perceived in consumers’ minds—with the celebrity’s image and the expectations of their audience to avoid these challenges.

The Future of Celebrity Brands

As the market evolves and consumers become more discerning about the products they buy, celebrity brands now require more than just star power to succeed. The era of slapping a eminent name on every product and expecting it to sell is over.

Many consumers also experience “celebrity fatigue” due to the surfeit of celebrity brandsOnly this year witnessed the launch Beyoncé’s hair care brand Cécred, Dwayne Johnson’s skin care brand Papatui and Mistercap Mushroom Growing Kits by Wiz Khalifa.

As the market becomes increasingly competitive, durability is now a critical measure of success. While some brands may enjoy an initial surge of interest after launch, the real challenge is maintaining that momentum over time.

To stand out in today’s crowded marketplace, celebrity brands must demonstrate substance, quality, and purpose. Today’s consumers are looking for brands that go beyond the surface, offering consumers real value, authenticity, and commitment to social responsibility. Celebrity brands must work to prove their value and durability to consumers.

As we move forward, the focus will shift from the sheer number of brands being launched by celebrities to those that actually deserve the trust of consumers in an industry that is increasingly competitive.