Celebrity brands: Why fame alone isn’t enough to keep them afloat anymore

Date:

Share post:

By Omar H. Fares

Over the past decade, there has been a significant rise of celebrity brands. Recent data from NielsenIQ, a global marketing research firm, shows just how significant this boom has become. 

Celebrity beauty brands collectively achieved $1.1 billion in sales from November 2022 to November 2023. Interestingly, these brands experienced a growth rate of 57.8 per cent, far outpacing the overall beauty category’s growth of 11.1 per cent during the same period. 

Celebrity brands are products or services created, endorsed or owned by famous individuals who leverage their fame to influence consumer decisions. With the rise of social media and the emergence of digital celebrities, these celebrity brands have become increasingly prominent

On the surface, the appeal seems straightforward for both celebrities and consumers. Celebrities use their influence to develop brands that bypass the typical awareness stage, entering consumers’ consideration immediately upon launch. 

Consumers, in turn, expect that a celebrity they admire will offer high-quality products that resonate with their preferences and values. However, this trust can quickly erode when 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 brands, are successful, not all manage to maintain their initial momentum. 

A notable example is beauty influencer Jaclyn Hill’s cosmetics brand, which faced major backlash when her 2019 lipstick launch was filled by complaints of defective products, leading to a recall and long-lasting damage to her brand’s reputation. Hill has since announced the brand will be shutting down, highlighting how even celebrity brands can falter when quality and consumer trust are compromised. 

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

A close up of a young woman with shoulder-length hair in glamourous makeup
Selena Gomez poses at the Rare Impact Fund Benefit, on Oct. 4, 2023, at Nya Studios in Los Angeles. Her makeup brand, Rare Beauty, is one of the most successful celebrity beauty brands, making $350 million in 2023. (AP Photo/Chris Pizzello)

Consumers expect that products endorsed by their favourite celebrities will live up to a high standard. When this expectation is not met, trust is quickly eroded. This falls in line with the expectation confirmation theory, which suggests consumer satisfaction is shaped by the relationship between initial expectations and the actual performance of the product.

An example of this is Kylie Jenner’s skincare brand, Kylie Skin, which came under fire shortly after its launch for promoting a walnut scrub. Skincare professionals and consumers criticized the product, for being too harsh for the skin and potentially causing microtears. This raised questions about the product safety and hurt the brand’s reputation early on. 

Consumers expect products to deliver on promises, and if quality is lacking, no amount of celebrity endorsement can save the brand.

The value of authenticity

Younger consumers especially value authenticity in celebrity brands. Consumers are increasingly drawn to brands that feel like a true extension of the celebrity’s personal brand and values. 

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

For example, in the case of Millie Bobby Brown’s Florence by Mills, the brand faced early challenges, particularly regarding its authenticity and the quality of its marketing. 

Shortly after its 2019 launch, Brown was criticized for faking a skincare routine video in which she appeared to mimic applying her products without actually using them. This misstep raised doubts about her involvement in the brand and its authenticity, leading to public backlash.

Brown later apologized, saying she was “still learning” about the beauty space. Although the brand has since recovered, and Brown has recently announced that she is launching a fashion brand, this sort of hurdle can be a breaking point for other brands. 

Misalignment with target market

Misalignment between what celebrities think their target market wants and what the market actually desires can severely impact a brand’s success. An example of misalignment in brand positioning is Jessica Alba’s Honest Beauty

Initially launched as part of the Honest Company, which focuses on safe, non-toxic baby products, Honest Beauty faced challenges when it expanded into skincare. Issues like the 2015 sunscreen backlash where consumers reported sunburns despite using the product, and other allegations of misleading product claims, eroded trust. 

Additionally, while the brand was positioned as eco-conscious and affordable, some premium-priced products alienated a portion of the target audience, creating a disconnect between its mission and consumer expectations. 

In essence, successful brands must align their positioning — how the brand is perceived in the minds of the consumers — with the celebrity’s image and their audience’s expectations to avoid such challenges.

The future of celebrity brands

As the market continues to evolve and consumers become more discerning about the products they buy, the success of celebrity brands requires more than just star power these days. The era of slapping a famous name on any product and expecting it to sell is over.

Many consumers are also experiencing “celebrity fatigue” due to the oversaturation of celebrity brands. This year alone has seen the launch ofBeyoncé haircare brand Cécred, Dwayne Johnson’s skincare brand Papatui and Wiz Khalifa’s Mistercap’s mushroom growing kits.

With the market becoming increasingly competitive, longevity is now a critical measure of success. While some brands may enjoy an initial boost of interest upon launch, the real challenge lies in sustaining 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 a commitment to social responsibility. Celebrity brands must work to prove their worth and longevity to consumers. 

As we move forward, the focus will shift from the sheer number of celebrity brand launches to which ones are truly deserving of consumers’ trust in a space that continues to be increasingly competitive.

Omar H. Fares is a lecturer of Marketing in the Lazaridis School of Business and Economics, Wilfrid Laurier University.

    Other “The Conversation” Article: What makes a retail street ‘cool?’ These Canadian cities have the world’s coolest streets

    LEAVE A REPLY

    Please enter your comment!
    Please enter your name here

    RELATED ARTICLES

    Subscribe to the Newsletter

    Subscribe

    * indicates required

    RECENT articles

    Equifax survey finds one in four Canadians expect to make only minimum credit-card payments

    The findings point to growing financial pressure among some households, with 40 per cent of respondents saying they are spending more overall than they were a year ago, compared with 18 per cent who are spending less.

    Plaza Retail REIT reports higher second-quarter profit

    The Fredericton-based real estate investment trust said that profit and total comprehensive income rose 31.2 per cent to $16.6 million in the three months ended June 30, compared with $12.7 million in the same period a year earlier.

    Daily Synopsis: Aug 7, 2026

    New concept liquor store opens at Winnipeg Save-on-Foods, vintage retail concept opens on Dundas St in Toronto, FreshCo opening stores, Calgary food stall opening first brick-and-mortar location, and other news.

    From The Desk: Navigating Growth and Resilience in Canadian Retail

    This week in Canadian retail, growth initiatives, rising real estate demands, and strategic leadership shifts highlight sector resilience amid market challenges.

    Retail Insider “Policy & Regulation Report”: Affordability Promises Collide With Retail Costs

    Retail Insider’s Q2 2026 policy report finds affordability promises colliding with rising compliance, trade, labour and public-safety costs, while grocery property controls and public-store proposals expose how government action is reshaping Canadian retail operations today.

    Crombie REIT Reports Strong Rent Growth Driven by Grocery-Angled Retail

    Crombie REIT posted a seventh consecutive quarter of double-digit renewal rent growth as demand remains strong for grocery-anchored retail space across Canada.

    How Quarks Built a Canadian Footwear Business Over Nearly Five Decades

    Winnipeg-based Quarks is approaching its 50th anniversary while continuing to expand across Canada. Retail Insider examines the family-owned footwear retailer's growth strategy, merchandising approach and plans for the future.

    Tim Hortons Targets Stronger Canadian Growth With New Stores, Beverages and Loyalty

    Tim Hortons is opening 80 Canadian restaurants while expanding cold beverages and loyalty initiatives after same-store sales growth slowed to 0.1%.

    Canada’s Freight Market Is Shifting Unevenly. Here’s What Retailers Should Watch

    TFI International’s latest results and analysis from supply chain strategist Gary Newbury suggest Canadian retailers should prepare for uneven freight conditions, changing transportation capacity and evolving logistics costs.

    Jamieson Wellness enters into definitive agreement to be acquired by Kirin in C$2.5 billion transaction

    The transaction values Jamieson at approximately C$2 billion on a fully diluted equity value basis and approximately C$2.5 billion on an enterprise value basis.

    Slate Grocery REIT reports second-quarter results, citing leasing gains and rent growth potential

    Completed more than 569,000 square feet of leasing activity during the period as it continued to see rental growth across its U.S. grocery-anchored real estate portfolio.

    Premium Brands reports record second-quarter revenue and earnings, revises 2026 outlook

    The specialty food producer and distributor said second-quarter revenue reached a record $2.4 billion, up 26.3 per cent, or $495 million, from the same period a year earlier.

    SmartCentres reports steady leasing gains in second quarter as occupancy rises, FFO unchanged

    The Toronto-based REIT said occupancy reached 98.1 per cent as of June 30, up from the previous quarter.

    Daily Synopsis: August 6, 2026

    Retail Insider published 12 articles today on Canadian retail including Birks’ market move, Mattel’s strategy shift, Realm Fitness’ community, and McDonald’s new beverage platform.

    Leon’s Furniture reports higher net income in second quarter despite lower sales

    Revenue declined by $12.9 million from a year earlier, with furniture delivered sales down 4.2 per cent against what the company described as a strong prior-year comparison.

    Retail Insider “Marketing & Media Report”: Live Events Shift Attention to Dynamic OOH

    Major cultural events are redirecting Canadian retail marketing toward physical spaces. The Q2 2026 report examines how motion-based DOOH, local sports activations, loyalty platforms and measurable sustainability practices are shaping competition for consumer attention across Canada.

    Birks to Leave NYSE American as Canadian Jeweller Reshapes Finances

    Birks Group will leave the NYSE American for the OTCQB as the Canadian jeweller reports stronger sales, refinances debt and continues retail investment.

    What Mattel’s Strategy Says About the Future of Canada’s Toy Market

    Canada's toy market is evolving, and Mattel's latest strategy shows how Hot Wheels, building sets, collectibles and Barbie are shaping the industry's next chapter.

    Realm Fitness Builds 2,500-Member Community Inside Calgary Industrial Property

    Realm Fitness has grown to 2,500 members in Calgary, combining fitness, retail, recovery and community inside a 44,000-square-foot industrial space.