Shah Rukh Khan makes king-size return; Bollywood-South India fusion speeds up in brand world

Shah Rukh Khan made a comeback in the list of top five most valuable celebrities in India.

After a four-year hiatus, Shah Rukh Khan returned to the big screen with a bang. From 2018's Zero that failed at the box office to successes like Jawan and Pathaan in 2023, the king of Bollywood not only won back the hearts of the audience but also of brands.

Khan's endorsement portfolio expanded by 60 percent with more than 20 brands last year and endorsement fees also strengthened by 20-25 percent in his comeback year, Aviral Jain, Managing Director, Valuation Advisory Services, Kroll, told Moneycontrol.

Some notable brands added to his portfolio include D’YAVOL, Everest, Myntra and Sunfeast. Everest Spices' latest ad campaign, featuring iconic actors Amitabh Bachchan and Shah Rukh Khan, had graced Times Square’s largest screen.

"Shah Rukh Khan secured third position with a brand value of $120.7 million on the back of three blockbuster hits in 2023. This marked his return to the top five club of stars in the list of most valuable celebrities since 2020," Jain said.

The actor, popularly known as King Khan, jumped up seven ranks last year from a brand value of $55.7 million in 2022.

Last year not only emerged as a pivotal turning point for Khan but also for Bollywood. The industry reclaimed its glory due to the influence of the 'King of Bollywood' and also because of a diverse array of stars from across India steering Bollywood back to its former eminence.

Bollywood gathers pace

Bollywood stars accounted for 68 percent of total brand value among India’s top 25 celebrities in 2023, up from 67.6 percent in 2022. In terms of the number of celebrities in the top 25, Bollywood's share increased to 68 percent in 2023 from 64 percent in the previous year.

The South Indian movie industry had overshadowed Bollywood in 2022 with blockbuster hits like RRR and K.G.F: Chapter 2 having box office collections of more than $150 million each. The year after, the average worldwide collection by the top five Bollywood movies saw an increase of 169 percent from $38.3 million in 2022 to $102.8 million in 2023. On the other hand, top five South Indian films' worldwide collection dropped 40 percent from $54.8 million in 2023 versus $91.7 million in 2022.

Jain pointed out that the average box office collections for the top five South Indian movies released in 2023 were around $50 million as compared to $100 million for the top five Bollywood movies. This is a contrasting outcome as compared to 2022, he said.

"While there is a significant difference in the average box office collections for the two regions, the brand values of South Indian celebrities seem to be in a consolidation phase with 3.5 percent share in brand values of top 25 celebrities in both 2022 and 2023. Further, a couple of South Indian stars like Tamannaah Bhatia and Samantha Ruth Prabhu are knocking doors to enter into the top 25 club in the near future," he added.

South India and Bollywood fusion

Moreover, the trend of collaboration between South Indian and Bollywood actors in Pan India movies has been gaining momentum both on the big screen and in the brand world.

This collaboration of Bollywood and South Indian celebrities in brand endorsements started taking pace in 2022 with 20 brands. These fusion endorsements witnessed a significant rise, reaching 36 brand endorsements in 2023.

"There has been a rise in movies starring celebrities from both Bollywood and South Indian cinema such as Animal, featuring Ranbir Kapoor and Rashmika Mandanna and Jawan, starring Shah Rukh Khan and Nayanthara. Similarly, South Indian movies such as Jailer and Leo featured Bollywood celebrities like Jackie Shroff and Sanjay Dutt, respectively. Simultaneously, brands have also taken a cue and are increasingly launching campaigns involving Bollywood and South India cinema stars," Jain said.

The recent instance is when Fastrack signed Ranveer Singh and Vijay Deverakonda as brand ambassadors last year. Similarly, Pepsi signed Ranveer Singh and Samantha Ruth Prabhu in 2023.

Also, Sara Ali Khan had started endorsing Fiama in 2019 and Rashmika Mandanna signed the same brand in 2023.

Female stars gain

Last year, the brand value of female stars constituted about 25 percent of the total brand value of top 25 stars, up from 23 percent in 2022.

"Some of the major brand value movements included Kiara Advani, whose brand value increased by 70 percent to $66.0 million in 2023, improving her rank from 16 to 12. Similarly, Rashmika Mandanna’s brand value increased by 50 percent to $38.3 million in 2023, improving her rank from 25 to 20," Jain highlighted.

Overall, the product brand endorsements of the top 20 celebrities witnessed a growth of 14 percent, up from 424 in 2022 to 484 in 2023. And the average brand endorsement fees for the top stars increased by 6-7 percent last year.

Luxury, global brands eye Indian stars

Joining the growing list of brands for the top Indian celebrities are international brands who are partnering with both entertainment and sports stars of India.

Shiseido— a Japanese personal care company has signed actor Tamannaah Bhatia as its brand ambassador while star athlete Neeraj Chopra was signed up to endorse the American sportswear company Under Armour in India.

"Partnerships with international brands have a direct positive impact on the brand value of celebrities. Some of these partnerships are in the nature of global endorsements which adds premium-ness in the endorsement roster of a celebrity and act as a catalyst for future growth in their overall brand portfolio," Jain said.

In addition, India’s luxury market is projected to become 3x over the next five years touching $200 billion, led by categories such as personal care, automobiles, real estate, watches and accessories.

"Accordingly, global brands today are increasingly collaborating with Indian celebrities as they compete for market share with the local brands. Some of the notable recent associations include Gucci partnering with Alia Bhatt, Qatar Airways with Deepika Padukone and Jimmy Choo with Ananya Panday," he added.

Jain said that parallelly they are witnessing the emergence of international celebrities as ambassadors of Indian brands like Infosys signing Rafael Nadal as its brand ambassador, Zomato collaborating with Chris Gayle along with Ranveer Singh.