Celebrity endorsements and sponsorships are nothing new to the world of business and marketing. In fact, such collaborations between celebrities and businesses have been prevalent for decades. However, in recent years, we have seen a surge in celebrity entrepreneurship where top-notch celebrities have turned from mere brand ambassadors to business people.
One of the main reasons for the increase in celebrity entrepreneurship could be attributed to the changing dynamics of the entertainment industry, particularly when it comes to revenue streams. With the rise of streaming services such as Netflix and Hulu, and the decline of traditional television, celebrities are finding themselves with less lucrative opportunities for acting and singing roles. Thus, for many, building a brand and investing in entrepreneurial opportunities has become a more profitable and sustainable option.
A great example of celebrity entrepreneurship can be seen in the successful makeup brand, Fenty Beauty, founded by superstar Rihanna. Rihanna’s brand launch in 2017 made waves throughout the industry for its unparalleled inclusivity, with 40 shades of foundation catering to a vast array of skin tones. The Fenty Beauty line has seen tremendous success, raking in an estimated $570 million in just its first year. Aside from Fenty Beauty, the singer-songwriter has ventured into other business ventures such as her luxury fashion brand Fenty, as well as Savage X Fenty, a line of lingerie.
Another celebrity entrepreneur who is changing the cosmetics game is Kylie Jenner. The youngest member of the Kardashian-Jenner clan started her beauty business, Kylie Cosmetics, in 2015 with just a line of lip kits. Since then, the business has grown into a multi-million-dollar empire, with Kylie Jenner being named the youngest self-made billionaire ever by Forbes in 2019. Her products are highly sought after and endorsed by supermodels and celebrities alike.
Other celebrities who have invested in different business purposes include Jay-Z, whose Roc Nation company is home to various entertainment businesses, including a vast music label, and Sean “P Diddy” Combs, who has invested in everything from restaurants to tech startups to a clothing line. Additionally, actress Jessica Alba founded The Honest Company, a subscription-based service delivering eco-friendly and sustainable household and baby products. Tony Hawk, one of the world’s most celebrated skateboarders, has his hands in several entrepreneurial ventures, such as his clothing line, Skateboards and the Ride Channel, among others.
While celebrity entrepreneurship may be trending now, it’s not all sunshine and rainbows. Many celebrities often receive criticism for supposedly using their fame to further their business ventures, something which can be seen as a shortcut to success. Detractors have said that these mega-stars are given more opportunities and benefits compared to regular entrepreneurs who don’t have the same wealth of resources and access to a large fanbase. However, these perceptions can also be seen in a more positive light. To a degree, it could be argued that celebrities have worked hard to build their brand image and reputation over the years, and it’s these qualities that they can leverage to make their business ventures work.
Another important part of celebrity entrepreneurship is the increased exposure their businesses’ benefit from due to their star power. A marketing campaign that features a celebrity endorsement will naturally have a more significant reach than it would without it. A product or service endorsed by a popular celebrity could reach a vast audience in mere seconds, potentially resulting in hundreds of thousands of dollars in sales. Furthermore, many celebrities use their significant followings to gain valuable feedback on their products – feedback that can help improve their offerings further.
In conclusion, celebrity entrepreneurship is a game-changer that has taken the world by storm, primarily those in the creative industries. From makeup lines to fashion brands, celebrities are venturing into launching brands that cater to their fans. Regardless of the criticism, it would seem the opportunities offered by celebrity entrepreneurship will keep drawing more stars to invest their time and money into new ventures. Their powerful influence and personalities give them a head start, especially during the marketing phase of a product or service launch. Nonetheless, the success of celebrity businesses would depend on the quality of the product and the brand’s ability to resonate with the target audience. After all, if the product doesn’t work, it doesn’t matter how big a celebrity founders’ name might be – the venture will not be profitable. Celebrity entrepreneurship may be a relatively new trend, but it is here to stay, and we can expect even more stars to step outside their comfort zones and dive into entrepreneurship in the future!
