Tuesday, December 17, 2019

One8 : By Virat Kohli

Brand: One8
Company: Virat Kohli

Brand Analysis Count: 591

One8 is a brand owned by the cricketing icon Virat Kohli. The brand is an interesting one in the perspective of the business model. Brands created and owned by sports stars are nothing new. There are very well-known and successful brands like CR7, KF and the like. One8 owned by Virat Kohli is special because of the star himself. 
One8 brand whose name is derived from the jersey number of Virat was created in 2017. Virat Kohli signed a long-term 8-year contract with the sports brand Puma for a whopping 130 crore, and it is said that the idea of One8 brand grew to fruition from that partnership. Soon Puma launched the One8 range of sports shoes endorsed by Virat Kohli.
 Just like the brand owner, the brand began to aggressively extend itself into multiple categories. The business model is basically a licensing arrangement. Now One8 has launched products under the following categories

Sportswear - Puma
Fragrance - Scentials
Innerwear - Artmas Fashions ( Lux)
Footwear - Aeon Sports
Energy Drink - O'cean
and probably many more to come in future. 

As one can observe, the brand has been expanding into a wide range of categories. The question is whether a new brand like One8 has the equity to spread itself too far across multiple unrelated categories. 

The brand derives its equity from the celebrity owner himself. All the products under this brand are endorsed by Virat himself. While many sports personalities launch their labels close to retirement, Virat was wise enough to launch his brand much early in his career and there is a lot of years of cricketing left in him. 
Different categories of products require different story-telling and narratives. When one tries to capture multiple categories with a single brand, it creates a huge amount of strain for the brand's equity and personality. For a personality-driven brand like One8, having too much endorsement also reduces the exclusivity of the celebrity and has the risk of brand-dilution. 
In a profitability or revenue point of view, getting into maximum licensing agreement make sense. It is like make hay while the sun shines. However, too many extension that too in many unrelated categories is bound to have its price.