By Prerna Aggarwal
In India, celebrities from the film and sporting fraternity enjoy unprecedented adulation from fans. It comes as no surprise that companies in the footwear industry have used celebrity endorsements to drive higher sales and revenues.
There is a good reason why celebrities have become an integral part of brand promotion in India’s footwear segment. Celebrities influence what consumers consider desirable and fashionable. It is this strong subliminal bond that brands are leveraging through celebrity endorsements and associations.
Market overview and projections
As per Invest India, the country is the world’s second-largest producer and consumer of footwear. Statista reveals that India produced more than 219 million pairs of footwear in FY2022, as consumers’ footwear focus transitioned from functional to fashionable. In the same year, the domestic footwear sector’s market size was pegged at $15 billion, which is slated to double by 2028.
Coming to sneakers, Statista projections for 2023 showed India’s sneaker segment would generate revenues of $2.63 billion. These numbers were anticipated to grow between 2023 and 2028 at a CAGR of 6.18%. With consumers looking for novel designs that combine traditional elements with modern trends, the sneaker culture is spreading swiftly across the country.
For a nation that once considered footwear as just part of the sartorial get-up, the transition from a cultural commodity to a new-age symbol of status and athleticism can be attributed in some measure to the potent power of celebrity endorsements. This is particularly true for adolescents and young adults, for whom sneakers express status, especially if the brand is endorsed by their favourite film star or sportsperson. As a result, even teenagers appreciate the value of limited-edition sneakers.
Another welcome trend running into 2023 and beyond is that it isn’t only men who are sneaker fans; women have also joined the bandwagon. Again, this can partly be attributed to female celebs stepping out in sneakers (as well as an array of shoes, stilettos and sandals), irrespective of the occasion. When it comes to comfort, however, most women will choose a nice pair of sneakers over heels. That footwear manufacturers are catering to fashion-conscious women too makes perfect business sense since there is no point in ignoring half of the population.
From icons to collectibles
Given the increasing passion for shoes, some models from Nike, Puma and other global brands have now achieved the status of collectibles, generating huge resell and upsell markets. Herein, the role of celebrity endorsements in shaping the narrative around a footwear brand needs retelling.
The story began in 1984 when the emerging brand Nike signed an unknown basketball player Michael Jordan. By the end of 1985, the Jordan Brand had netted Nike more than $100 million. This game-transforming partnership created the most influential sneaker ever in the history of endorsements, propelling Nike to the position of the largest athletic apparel brand worldwide and turning Jordan into a global cultural and sports icon. The paradigm partnership is credited with spurring the current sneaker culture.
In the case of shoe and sneaker deals, the Nike-Jordan partnership has transformed athlete and celebrity endorsements. Today, the Jordan Brand straddles spheres spanning sports, streetwear ethos, entertainment, fashion and lifestyle.
Inspiring choices with an eye on compliance
Coming back to India, celebrities exert immense influence on creating positive brand perceptions in the public consciousness. Consequently, celebrities inspire the footwear choices of GenZ and other youthful cohorts too. The aspirational value attached to owning specific footwear (or other category products) can lead to a vibrant rise in sales when backed by select celebrities.
Social Media Week reveals that celebrity endorsements can boost sales of products by around 4%. Besides the positive correlation between celebrity endorsements and higher sales, it enhances brand credibility and market perceptions.
However, a word of caution is necessary here. Like other facets of life, celebrity endorsements have a flip side too. Brands should make sure the celebrity endorsement doesn’t seem fake or contrived as this could impact consumer trust and brand perception. Both brands and celebrities must also take care that any product claims and recommendations do not violate regulatory compliance norms.
Moreover, a celebrity’s persona should be compatible with a product’s positioning, otherwise, the credibility and effectiveness of the endorsement will be impacted. When dealing with a nation of more than 1.4 billion people, it’s a risk brands should not take.
Nowadays, social media is also instrumental in boosting product sales via celebrity endorsements. While many popular personalities are allowing fans selective glimpses of their lives, some social media influencers have themselves become celebrities with fan following running into millions. When these celebrities and influencers display and discuss the products they use, adoring fans are eager to buy the same brand because of the vicarious pleasure it offers them.
Finally, as rising disposable incomes, growing fashion consciousness and increasing aspirations drive the demand for sneakers, shoes and other footwear, the symbiotic relationship between brands and celebrities is only bound to become stronger by the day in 2024 and thereafter.
The author is chief marketing officer at Campus Activewear