The fusion of technology and social media has reshaped fan-celebrity interactions, opening doors for consumer startups to harness celebrity endorsements. Social platforms offer an intimate view of celebrities’ lives, allowing followers to emulate their choices in fashion, healthcare, and more.
A powerful tool to influence buyer behaviour
The Indian consumer market is reported to be highly dependent on celebrity endorsements, with around 50% of the endorsements being supported by celebrity and VIPs. This is in stark contrast to that of the United States, where celebrity endorsements only account for around 20%. It is clear that digital intimacy has given birth to an incredibly powerful tool for startups with which they can easily influence consumers. They wield a remarkable pull for fans and followers, who are promised authentic engagement and relatability, apart from products and services which they know they can try to be a part of something bigger. Essentially, startups find it very profitable to associate themselves with a well-known figure from a certain field with their product or service, and bank on their fan base for product sales.
Why do consumers follow celebrities into paying for products and services?
The above actually brings us to an important question. Why do consumers or a particular fan base go out of the way to buy products and services by watching a celebrity? Well, studies suggest that there is a combination of psychological and social factors responsible for this influence. Firstly, celebrities are looked at as aspirational figures, owing to their success in their respective field, their sense of style, and overall popularity. For example, if Portuguese and former Real Madrid footballer Cristiano Ronaldo sports a perfume or a pair of shoes, his fans would want to purchase the same in order to emulate him. This is because when a high-profile celebrity endorses a product, consumers follow suit as it creates a sense of validation and social acceptance which comes along with the purchase of the same product or service.
You can also look at examples of some notable Indian celebrities from the field of sports and entertainment. Indian cricket sensation Rishabh Pant, who is renowned for his dynamic style and magnetic presence, has become a sought-after ambassador for brands seeking to connect with younger demographics. His collaborations with major brands such as Boat, Nasher Miles, Boost, JSW Sports, Adidas, and MPL (Mobile Premier League) exemplify how his charm resonates with youth and sports aficionados. On the other hand, Bollywood actors Ranveer Singh and Alia Bhat stand as two of the most widely recognised names, with both boasting a substantial brand presence. While Ranveer endorses more than 40 brands like Adidas, Jack & Jones, Nutella, and Make My Trip, Alia endorses massive brands like Cadbury, Cornetto, Phillips, and MakeMyTrip. These brand endorsements not only infuse their vibrant persona into the marketing landscape but also deeply resonate with their admirers.
Advantages of celebrity endorsements:
For startups, celebrity endorsements are a sure-shot means to sway purchasing decisions in their favor. Buyer behaviour can be influenced by tapping into the emotional connection many consumers may have with famous people in the world of entertainment, sports, business, and others. Although the process of establishing collaborations between consumer startups and desired celebrities entails substantial effort, the outcome often yields promising results. Some of them are as follows:
Enhanced brand awareness for startups:
One of the biggest challenges for a startup entering a specific consumer industry is the awareness of its brand and its products, especially in its nascent stages. Celebrity endorsements offer the perfect solutions to augment brand awareness by leveraging the wide-reaching influence and recognition of celebrities. Startups get access to the enormous fan bases of these celebs, before amplifying their brand message to them.
Better market reach unlike traditional marketing methods:
Startups are able to align their brand alongside the star power and influence of these celebrities to penetrate new markets, which were earlier untapped. The new pool of consumer base not only accelerates the growth at which the brand grows but it also facilitates a wider geographical and cultural footprint.
More credibility and trust for consumer products/services
Fans often like to follow in the footsteps of actors, footballers, musicians, and other renowned industry names, and celebrity endorsements are one way to do it. It plays a crucial role in increasing the credibility and trust of consumer products. The inherent trust leads to increased consumer confidence, thereby, bolstering the startup’s reputation.
Source: Financial Express
