You may know Jessica Simpson for her funny antics, tabloid news, or perhaps her singing career. However, you may not realize how remarkably successful she is as a fashion brand. I first became aware of how well her brand was doing a few years ago, as revenues for her brand were exceeding $300 million annually. Then, I exclaimed to a fashion-savvy coworker "how could this be?," and her response was simply "Jessica's clothes and shoes look nice and are very comfortable. In fact, I have on a pair of her shoes right not." Well, the appeal of all things Jessica has paid off, as retail sales of her brand is now totaling $750 million this year. Perhaps the funny part is that Jessica doesn't typically present herself as a style icon, especially in the same way that other celebrities and pseudo-celebrities often market themselves. Instead, she uses her girl next door charm and drives her Rolls Royce straight to the bank. A few years ago, she was on The Apprentice, and she mentioned that the dumb blond routine is just an act and that she is really quite business savvy. Well, now that her fashion brand alone is on track to gross a billion, is the joke on all of her dissenters?
Obviously, Jessica does not occupy this space alone. I have previously reported that no other than Britney Spears is also an endorsement powerhouse. Yes, Brit is another southern bell who has manage to create a sizable fortune for herself outside of music. In fact, I found it so interesting that during the point when things were Toxic in her life a few years ago, she was still pulling in over $700,000 a month without working, partly due to strong sales of her fragrances and investments. The distributor of her fragrances said that sales did not diminished during this troubled time. Perhaps you wonder just how successful the pop princess has been in fashion. Well, Spears is the number one celebrity perfume endorser of all-time with global sales of 1 billion and gross revenue in the U.S. of $2 billion. In addition to Jessica Simpson, Brit's brand also beat out other major celebrity brands including Céline Dion, Mariah Carey, Usher Jennifer Lopez, P. Diddy, Paris Hilton, and Hilary Duff. According to the SEC filings of Elizabeth Arden, the company behind her fragrance, sales for her fragrances increased by $10.5 million for the last three months ending December 31, 2009. Although I was unable to find the revenue from her current high-profile Candies' campaign, let's assume Kohl's is bringing her back for altruism. With a personnel net worth exceeding $100 million and an income of at least $64 million, Britney doesn't show any sign of slowing down.
Perhaps Britney and Jessica's success is even more notable given the fate of another celebrity brand I follow. I'm speaking of no other than the original domestic diva, Martha Stewart. Martha Stewart is still plugging, cooking, knitting, and crafting along. Martha Stewart Omnimedia initially "meant your basic multimedia: television, books, a magazine, and retail deals with the likes of K-Mart. Now it's all that plus a website, satellite radio, an iPad app, a Twitter feed (2-million-plus followers), the MarthaBlog, and a host of merchandising deals that would make Disney jealous." Presently, the market capitalization of her company stands at about $255 million, but the problem is that it is down from about $1 billion four years ago. Yikes!!! She is still compensated nicely though. She (and a entity she controlled) received roughly about $12 million in 2009. Additionally, even at these depressed stock prices, the value of her shares (she owns about 50%) of her company is well over $100 million. However, it just shows that even powerhouse brands like Martha Stewart can falter.
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Thought Questions: What Do You Think About The Preponderance of Celebrity Brands?
Now, it's time to do the weekly Uncommon Money News and Yakezie Round Up.
Uncommon Money News and Round Up
In preparing to write my posts, I often come across noteworthy and sometimes bizarre financial and business news. Below are links to some of these sites. Enjoy!
To my readers: I am so honored by your support. Together, we are telling thousands of the importance of financial literacy. I absolutely could not do it without you: you are vital! Thank you sincerely.
Personal Finance (Yakezie and other PF bloggers)
Christmas Experiences During The Great Depression at Money Reasons - Don challenges you to experience true gratitude and greater appreciation for history this season as he recounts stories from his grandmother
Sometimes Saving Money Isn’t Worth It – Items I Refuse To Buy Generic at Everyday Tips and Thoughts - Kris teeters on the brink of blasphemy with this irreverent post.
Is Uncle Sam the New Bank of Mom and Dad? at First Generation American - Sandy reshapes the discussion to the role of government in our economy and welfare.
The Grouch's Billionaire Challenge at The Biz of Life - After reading about the proliferation of billionaires taking the plunge of giving away at least 50% of their wealth upon their death, The Grouch comes up with his own humorous challenge
Mainstream Financial Media vs. PF Bloggers: 401K loans at 101 Centavos - Who provides you with the best financial info? 101 Centavos uses 401K loans as a case study.
Importance of Financial Literacy Education at Invest It Wisely - Jesse gives you a chance to win the popular personal finance book I Will Teach You To Be Rich
Business
Facebook CEO Zuckerberg Agrees to Donate Fortune to Charities
Halliburton may pay $500 million to keep Cheney out of prison:
How Color Affects Our Purchasing Habits [Graphic]
PayPal admitted it suspended payments to WikiLeaks after an intervention from the US State Department
Economy
China sees inflation jump to 5.1%, a 28-month high
Entertainment Money News
Jessica Simpson $750 Million Fashion Empire
Is Martha Stewart’s Business Still a Good Thing?
Offbeat Money News
How Much Is a Tweet Worth? $500, Says Toyota
Carnivals that I've participated in:
- Carnival of Personal Finance at Mighty Bargain Hunter- Am I A Financial Hypocrite
- Festival of Frugality at Passive Family Income - Toyota Millionaires vs. Mercedes Millionaires
- Kevin at Invest It Wisely-Weekend Reading: Snow Edition
- Don at Money Reasons- Year End Holiday Traditions
- Kris at Everyday Tips and Thoughts- Get Coffee and A Pastry And Enjoy Some Great Posts
