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Despite many influencers having loyal followings, creator-led brands often fail when the hype from first-time buyers dies down and doesn't translate into repeat purchases.
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Findings
Additional insights we found via Yahoo Finance
After years of being paid hefty sums to prmote other brands' products, many top influencers decide to start their own consumer companies. Think: Emma Chamberlain's Chamberlain Coffee, or MrBeast's snack line Feastables.
But from Arielle Charnas' Something Navy to Addison Rae's Item Beauty, many creator-led brands have failed to reach profitability or shut down in recent years.
"Ninety-seven percent of creators and celebrities should not be launching their own brands," one influencer brand VC investor recently told Business Insider, explaining that once a brand loses its initial buzz, influencers become less motivated to promote their products and focus more on the revenue they can make from promoting external brands instead.
However, some creator-led brands have proved successful, such as Kim Kardashian's SKIMS clothing company.
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