Drug Scandal: Are Bollywood stars losing their brand value?

The ongoing drug controversy involving Bollywood actors Deepika Padukone, Shraddha Kapoor and Sara Ali Khan has become a national obsession of sorts. For hours on end, TV news studios are beaming minute-by-minute updates on their alleged involvement in drug abuse. Every evening, new information about their alleged involvement surfaces. Social media is abuzz with conversations about the debauchery in Bollywood. How is the current situation affecting the brand value of these stars?

The price of star power
Out of the three actors, Deepika Padukone leads the tally with her total endorsement value ranging between Rs 125 crore and Rs 150 crore, say industry insiders. Padukone has over 20 brands in her kitty, including some leading names like Britannia, L'Oreal, Vistara Airlines, Axis Bank, MedLife, Epigamia Yogurt, Kellogg's, Oppo and others. Shraddha Kapoor has been the face of brands like The Body Shop, Vogue Eyewear, Lakmé, Veet, Lipton Green Tea, Secret Temptation, Vaseline and Hershey's. Her collective brand endorsement value is pegged between Rs 25 and Rs 40 crore. Sara Ali Khan, the youngest of the three, has been the face of brands like Maybelline, Puma, Garnier India, Vivo and Fanta. Industry insiders estimate that her total brand endorsement value is between Rs 8 crore and Rs 15 crore.

Time to wait and watch
In the ongoing investigation however none of the three stars under the scanner has been arrested or proven guilty. They have been cooperative with the investigating authorities, and therefore brands are not hitting the panic button yet. “Brands will wait for the verdict to come out before they take any call. So far no agency has given conclusive proof of their involvement, so their brand endorsements are safe for now,” notes a celebrity manager who doesn’t want to be named.
Speaking about the impact of the ongoing controversy, Amit Khanna, Founder Chairman of Reliance Entertainment and Former President of the Producers Guild of India, remarks, “It depends on how this story plays out in the next few weeks. Advertisers are always cautious whenever a brand endorser gets into a controversy. Whoever gets implicated finally will lose out.”
While the three Bollywood stars have their endorsements secure for now, advertisers will wait and watch to see the final outcome of the ongoing proceedings. Experts add that this episode presents an important learning for brands – to include new provisions in the celebrity contract that can address these controversies without compromising the brand identity.