Celebrity-Owned Retail: The Real Business Behind the Big Wins

The Rise of the Celebrity Entrepreneur

Once upon a time, a celebrity “brand” meant a generic perfume deal. Today, stars are launching, funding, and even running companies that generate hundreds of millions in revenue.

According to CB Insights, celebrity-owned brands have pulled in over $2.5 billion in venture funding in the past five years. But money isn’t enough—execution matters.

SKIMS by Kim Kardashian is valued at $4 billion, with projected $750 million in revenue this year. In 2021, Gal Gadot and co-founder Jen Zeszut created GOODLES, a nutrient-dense boxed mac-and-cheese brand & they netted $13 million in series A funding, which was used to expand its C-suite team and boost its U.S. production capacity. Launched in 2020, Teremana Tequila by Dwayne “The Rock” Johnson is pulling in USD 83.3 million annually. Blake Lively launched her sparkling beverage line Betty Buzz, designed to enjoy with or without alcohol- a year after Reynolds sold his brand, Aviation American Gin, to Diageo for $610 million in 2021. Drew Barrymore has dabbled in a little bit of everything from a line of kitchen tools and appliances at Walmart to a cruelty-free cosmetics line called FLOWER Beauty.

Celebrity makeup brands accounted for four percent of the market pre-pandemic but have now grown to seven percent, according to Larissa Jensen, Vice President at the market research company, The NPD Group.

Rare Beauty by Selena Gomez - Launched in 2020, Rare Beauty champions self-acceptance and inclusivity, which is totally in line with Gomez’s personal advocacy for mental health. With USD 600 million in revenue and 3.3 million searches annually, Rare Beauty is a movement. Fenty Beauty by Rihanna clocked in over $600 million in revenue in 2022, thanks to its 40+ foundation shades that disrupted beauty inclusivity. Kylie Cosmetics, LLC by Kylie Jenner hit $420 million in sales in 18 months, proving that Instagram influence converts. Ariana Grande’s entry into the beauty world was twofold: she made waves by launching r.e.m. beauty by Ariana Grande as well as her body care line, 'God is a Woman' - together, these two ventures bring in USD 84 million annually, with 592.9K searches. Scarlett Johansson’s The Outset launched in 2022 is already generating USD 153 million annually, though it has lower search visibility with 25.8K searches.

After examining the trajectories of four leading actor-entrepreneurs — Ariana Grande, Issa Rae (Hilltop Coffee + Kitchen and Sienna Naturals), Gabrielle Union (Flawless) and Blake Lively (Betty Buzz) — measurement firm The Q Scores Company determined that their name-recognition spiked anywhere from 8% to 66% since launching their respective businesses.

& now, India is growing to be prominent on this map too!

HRX by Hrithik Roshan crossed ₹1,000 crore ($120M) in revenue in 2023, making it India’s first homegrown fitness brand to go mainstream. Virat Kohli’s One8 Select just hit ₹200 crore ($24M), competing with Adidas and Nike. Deepika Padukone 's 82°E collaborated with Tira for a pan-India presence. Alia Bhatt's Ed-a-Mamma is stepping into new territory with a fresh range of planet-friendly toys and accessories for children. Known for its sustainable and imaginative products, the brand is now bringing plush toys, sling bags, hair accessories, and more to the market, all designed to spark creativity and nurture a love for the planet. ARKS by Ranbir Kapoor is all the rage today - After a decade in making, ARKS is more than simply a brand; it is an expression of his individual style, passion for sneakers, and commitment to premium fashion basics. Multihyphenate Priyanka Chopra Jonas's current business ventures include Anomaly, an eco-conscious haircare brand, and Purple Pebble Pictures, a Mumbai-based production studio. And then we have Mira Kapoor's Akind, Kriti Sanon's HYPHEN, Shraddha Kapoor's PALMONAS and Ranveer Singh's SuperYou.

Ari Bloom , CEO of the brand incubator A-Frame Brands says, “We have many global retailers and operators reaching out to us on a regular basis with interest to jointly develop celebrity-led brands that solve unaddressed problems for their increasingly diverse customer base. We see a very bright future in proprietary, talent-led brands that help existing sellers to develop more authentic relationships with consumers who demand products that are made for them and reject traditional one size fits all offerings.”

But it’s not always a smooth ride—Sonam Kapoor’s Rheson and Anushka Sharma’s Nush struggled to break through the ultra-competitive fashion market. Even globally, the wealthiest celebrity brands — such as the Honest Co. and Goop — have faced their share of controversies and legal woes.

The Hype vs. Longevity Debate: Can These Brands Outlive the Celebrity?

Most celebrity brands follow a pattern—explosive launch, sky-high demand, and then… decline. But while celebrity name recognition often can quickly lure first-time customers, but to get the repeat purchase, the product has to work. That’s what’s going to determine success.

To be actually number-wise successful, the founders of these brands must identify potential strategic advantages, turn them into competitive advantages, and develop expertise in areas vastly different from the ones in which they earned their fame.

The ones that survive do these things right:

Build Beyond the Face – Skims thrives because it solves an actual problem. Study, develop, test and repeat. Before releasing the Skims line of bras, designers spent three years developing them and an additional year conducting fitting trials with consumers of various body types.

Dream Team - None of these brands are built by celebrities in silos. The foundation of these teams is strong. For example, in the Indian scenario, Arks is being built with Abhinav Verma, 82E was co-founded with Jigar K Shah, Superyou was co-founded with Nikunj Biyani, the Edamama team has roots within the Reliance Brands Limited ecosystem, so on and so forth. Celebrities collaborate with sharp minds who drive the business, operationally and strategically, along with them!

Smart Retail Moves – DTC is great, but most billion-dollar brands still rely on impeccable retail distribution. Skims is at Nordstrom, Fenty Beauty is in SEPHORA, and HRX is on Myntra.

Consistency – Many celeb brands lose steam when the founder gets bored. Jessica Simpson’s label worked wonders because she stayed involved for 20+ years. Also, celebrities are often defined by their expertise, unique perspective, signature style, or distinct way of living. The key to a successful brand lies in consistently translating that identity into the business—making it feel like a natural extension of who they are.

Leveraging the Undeniable Power of Social Media - Scarlett Johansson, despite having no personal social media presence, is a great example of how celebrities navigate brand-building in the digital age. She has openly spoken about avoiding social media for her mental health. Yet, when she launched her skincare brand, The Outset, in 2022—partly inspired by her own struggles with acne—she recognized the need for an online presence to connect with consumers. Instead of managing a personal account, she chose to engage through The Outset’s official social media channels, where all content remains brand-focused. Today, The Outset’s Instagram account has amassed 300,000 followers, while an unofficial fan-run page dedicated to Johansson boasts over 4 million followers—highlighting the power of her star appeal, even without direct online engagement.

Why be a Spokesperson when you can be the CEO

According to a September report by JLL Research Services Ltd, nearly 60% of all celebrity-owned brands—spanning beauty, fashion, wellness, home goods, and other retail sectors—have been launched between 2019-2023. Notably, over one-third of these brands debuted in 2020 or later.

Olav Sorenson, who holds the Joseph Jacobs Chair in Entrepreneurial Studies at UCLA’s UNM Anderson School of Management, remarked that it’s surprising this trend didn’t take off sooner. “There’s obviously a lot of power in celebrity endorsements,” he noted. “So why not use that influence to promote your own products?”

For celebrities, building a business from the ground up isn’t just about making money—it’s about creative control. Instead of lending their name to a brand they have no say in, many are now opting to create their own companies, ensuring they have full oversight of the product, the messaging, and the long-term vision. It’s also a way to avoid the PR nightmares that come with endorsing a company that later misbehaves or a product that doesn’t live up to expectations. When it’s their brand, they dictate the quality and the values behind it.

Paul Yoo, Head of Ventures and Licensing at United Talent Agency, said the starting point for all of their clients who want to launch a business is passion. 🌱

And then, of course, there’s the financial upside. Why settle for a one-time endorsement deal worth a few hundred thousand or even a few million dollars, when they’re often the reason a product sells in the first place? Instead of getting a pay-check and moving on, they’re taking equity stakes—sometimes 60%, 70%, or even 80% ownership—so that if the business takes off, they’re reaping the full rewards. Sure, there’s risk involved, but the potential payoff is exponentially higher.

In an interview, 'The Sister, Sister' star reflected on her time hosting Tia Mowry at Home on the Food Network, recalling how she wasn’t allowed to feature certain recipes because they didn’t align with the network’s audience. Now, with her web series Tia Mowry’s Quick Fix and her lifestyle brand 4U, she has the creative freedom to cater directly to her own audience.

"Having my own brand means I get to make decisions based on what I know my audience will love," she shared, emphasizing how that independence has translated into greater success.

"I've been in this industry for so long," Mowry added. "When you’re working for someone else, you’re stuck in a box."

Likes, Shares, and Sales: Creator-Led Brands for the Win

It didn’t take long for influencers to realize that if they could successfully drive sales for other brands, they could do the same for their own, much like the actor circles.

What started as a rare move—creators launching their own brands—has now become a dominant trend in the business world. From beauty and fashion to wellness and tech, influencers are leveraging their highly engaged audiences to build businesses that bypass traditional marketing expenses and customer acquisition hurdles. Unlike traditional startups, creator-led brands start with a built-in, loyal customer base, giving them an edge in an oversaturated market.

With direct access to consumer insights, these creators aren’t just selling products; they’re shaping industries and redefining modern entrepreneurship.

Let's talk about REFY by Jess Hunt- She might not always embrace the influencer label, but she fully recognizes the impact of social media in shaping her brand and connecting with a devoted audience. Her journey began at 18 while she was in college, launching a fashion-centric Instagram account that quickly gained traction. Today, that account boasts over 2 million followers. Just two years later, she co-founded a brow-focused cosmetics brand, initially launching with Brow Sculpt. What started as a niche product soon evolved into a collection of over 40 beauty essentials. Riding on that success, Hunt introduced Refy, expanding the brand’s product range to meet growing consumer demand. Refy's success on Instagram is driven by a distinct content strategy—seamlessly blending high-fashion editorial aesthetics with genuine customer testimonials and compelling before-and-after transformations.

In January 2022, MrBeast introduced Feastables, a snack brand deeply intertwined with his YouTube persona and cast of collaborators. By leveraging his massive online following, social media influence, and partnerships with other creators, he generated immense excitement around the brand’s debut. The launch featured interactive marketing campaigns, including a Golden Ticket Sweepstakes, which kept fans engaged and eager to try the products. Within just a few months, Feastables reportedly pulled in $10 million in revenue, and with an expanded product lineup, the brand is projected to surpass a $200 million valuation in its second year.

And then we have the famous Nelk Boys, a Canadian-American YouTube collective, who skyrocketed to fame in 2015 with their outrageous prank videos and wild vlogs. Originally founded in 2010 by Kyle Forgeard and Jesse Sebastiani, the group later expanded to include members like Steve Deleonardis and Salim Sirur. Known for their high-energy, boundary-pushing stunts, the Nelk Boys built a fiercely loyal following, particularly among young male audiences. Their content—an unfiltered mix of humor, risky antics, and bold social experiments—set them apart in the digital space. In 2021, they capitalized on their immense online influence by launching Happy Dad Hard Seltzer & Tea, a hard seltzer brand. The venture took off almost instantly, becoming one of the top-selling seltzers in 2022.

In the India context, case in point - Nish Hair by Parul Gulati, Mrucha Beauty by Mrunal Thakur, Underneat by Kusha Kapila- about to launch but already has over a 100K followers, Youthiyapa by Bhuvan Bam, Deeclothing by Diksha Khurana, Arabella by Juhi Godambe, Anam C and Her Makeup Brand Wearified, Malvika Sitlani – Makeup Artist and Entrepreneur Behind Malvika Sitlani Beauty, indē wild by Diipa Khosla and BeastLife by Flying Beast aka Gaurav Taneja.

“If artists nurture and improve their business acumen, these labels have the potential to become full-fledged brands,” says Hitesh Rajwani, CEO of Social Samosa Network, an influencer marketing agency.

Decoding Retail: Your Insider Glossary

'Halo Effect'

The Halo Effect is when a celebrity’s positive public image boosts their brand’s appeal, even if the product itself isn’t the best.

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