Deepika Padukone's Skincare Venture Faces Financial Challenges
Bollywood superstar Deepika Padukone's skincare brand 82°E appears to be navigating turbulent financial waters, having reported significant losses while simultaneously implementing strategic price reductions across its product portfolio. The brand, which launched with much fanfare in 2022, has been facing criticism for its premium pricing strategy from the very beginning.
Financial Performance and Market Response
According to financial reports, 82°E accumulated losses of approximately Rs 37 crore over two years, with last year alone witnessing losses of Rs 25.1 crore. This financial performance has raised questions about the sustainability of celebrity-led brands in India's competitive skincare market. Industry expert Yasin Hamidani, Director at Media Care Brand Solutions, commented on this trend, stating that "star appeal may drive trial but not repeat purchase if the product lacks value."
Hamidani further emphasized the value-conscious nature of Indian consumers, noting that "unless the product justifies its price through superior quality or innovation, this strategy backfires." This insight appears particularly relevant to 82°E's journey, as the brand operated without the backing of an established parent company to validate its efficacy claims.
Strategic Pricing Overhaul
In response to market feedback and financial pressures, 82°E has implemented significant changes to its pricing structure. When the brand initially launched in 2022, it offered 12 products priced between Rs 1,200 and Rs 2,900. The current portfolio has expanded to 14 products with prices ranging from Rs 450 to Rs 2,900, indicating a clear shift toward accessibility.
The brand has introduced multiple mini-versions of its products, seemingly aimed at encouraging customer trial without substantial financial commitment. For instance, the Ashwagandha Bounce moisturiser now offers a 15ml mini version for Rs 960 alongside the full-size 50ml version priced at Rs 2,700. Similarly, the Sandalnut Bloom moisturiser is available in a 15ml version for Rs 670 and a 50ml version for Rs 2,700.
Product Portfolio and Market Positioning
The brand's most expensive product remains the Bakuchiol Slip face oil, with the 15ml mini version costing Rs 1,500 and the full 30ml version maintaining its Rs 2,900 price point. The men's line has seen some restructuring, with the cleanser being discontinued while the moisturiser continues at Rs 2,400 for 50ml.
Additionally, 82°E has expanded into body care with both body care and body milk products priced at Rs 2,500 each for 240ml. This diversification and price adjustment strategy reflects the brand's attempt to find the right balance between premium positioning and market accessibility.
Despite these significant developments and the brand's financial challenges, Deepika Padukone has not made any public statement regarding the company's performance or strategic changes. The industry continues to watch how this celebrity-led venture will navigate the complex dynamics of India's beauty and skincare market.
