SRK, Ranbir only celebs in $100 mn Club

04 Nov,2014

 

By Ratna Bhushan

 

Bollywood A-listers Shah Rukh Khan and Ranbir Kapoor emerged the only two celebrities in the country with more than $100-million valuation in perhaps the first ever celebrity brand valuation study in India.

 

Cricketers MS Dhoni and Virat Kohli took the next two positions, though well below Khan and Kapoor, according to valuation done by US consultancy firm American Appraisal. The total value of the Top 15 celebrity brands in India is over $820 million, or about Rs 5,025 crore, said the study that calculated celebrities’ brand valuation based on the individual’s reputation, credibility and ability to generate income from endorsements, as well as the adjusted average annual endorsement revenue they earned after deducting relevant costs including taxes. The top 15 celebrities in 2013-14 generated over Rs 1,100 crore in endorsement fees, which accounted for close to 50% of their annual income, the report said.

 

“We found that brand value changed dramatically based on performance and delivery in the celebrity’s area of core competence. A string of failures impacts celebrity value very rapidly,” American Appraisal India managing director Varun Gupta said. This means that Dhoni’s lean patch on the cricket field may have taken a toll on his brand valuation.

 

The Indian cricket captain’s brand valuation at $72 million, or Rs 441 crore, is less than half of table topper Shah Rukh Khan’s. Riding on more than 10 top-notch endorsements including Hyundai, Nerolac Paints and Royal Stag, SRK has a brand valuation of $165 million, or a little over Rs 1,000 crore.

 

Founded back in 1896 in Milwaukee, Wisconsin, American Appraisal specialises in valuation. The company entered India six years ago and did a brand valuation of the Indian Premier League, or IPL, this year.

 

Only three women – actresses Deepika Padukone, Katrina Kaif and Kareena Kapoor – figure in the top 10 list of the American Appraisal report, which said the average endorsement fee for a oneyear contract for female A-listers at about Rs 5.5 crore is almost half of their male counterparts’ Rs 10.5-crore average annual fee. Top cricketers on an average get approximately Rs 8 crore as endorsementfee.

 

“This remains a very male-driven industry and actors get paid significantly more,” said Anirban Das Blah, founder of talent management firm Kwan, which represents Ranbir Kapoor. “This is something we are not comfortable with. Hopefully things will change,” he added.

 

Times Celebex, a monthly rating index of Bollywood stars based on box-office performance, endorsements and popularity on social media, among other parameters, ranked Salman Khan at the top for the month of September, followed by Hrithik Roshan, Priyanka Chopra and Deepika Padukone in that order.

 

Salman Khan anchors popular reality television showBigg Boss and endorses seven highly advertised brands. In American Appraisal’s report, cricketer Virat Kohli has bettered superstars such as Salman Khan, Aamir Khan and even Amitabh Bachchan.

 

But only three sportsmen – all cricketers-made it to the Top 15 league, while globally big sports stars like David Beckham, Lionel Messi and Roger Federer rule the endorsements space ahead of big Hollywood stars.“Movie stars are probably a more stable source of celebrity value, with higher longevity,” Gupta said.

 

Analysts said Indian celebrities have yet to catch up with their western counterparts.  “Most global celebrities have ownership of scalable brands – whether it’s Beckham or Messi or Angelina Jolie. Here, we are still evolving and hopefully will get there soon,” said Afsar Zaidi, chief executive officer at talent management firm Carving Dreams, which represents actor Hrithik Roshan.

 

Mr Zaidi said at least two brands created by celebrities – HRX apparel by Hrithik Roshan and Salman Khan’s Being Human-had global scale potential.

 

Source:The Economic Times

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