Jessica Simpson, Britney Spears Round Up and Uncommon Money News
By: Roshawn Watson
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.
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
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
I personally don't have a problem with her succeeding either. Perhaps that's just my thing, but I just celebrate the success of other people with the hopes that people will celebrate my success.
I think there are few people on earth who come close to matching Jessica's success including Nich Lachey or her current beau (unemployed). Even though her entertainment career isn't as strong as it used to me, she has successfully transitioned into a brand with what appears to be some staying power. I would not be surprised to see her on Forbes list in the future.
What Jessica Simpson akin to Sarah Palin!!!!! I never made the connection but I can see your point though. For example, if someone were to ask if whether the appeal of Sarah Palin was closer to that of Hilary Clinton or Jessica Simpson, I think many people would choose the latter.
My recent post Jessica Simpson- Britney Spears Round Up and Uncommon Money News
The girl can sing, but she can't sing like Aguilera. That said, Aguilera doesn't have a show or shows "her" in a personal light, flaws and all.Jessica does, and so does Britney. People who show more of themselves tend to do better, and even Palin shows all of her flaws as well which makes her likable to many Americans who aren't "perfect". I think as long as they're making the money legally, being smart about it, then kudos 🙂 Milk it, I say. But don't forget to save it for when times get rough.
Not sure what I think about it. If people are willing to pay them then why not? It's a voluntary exchange, and people like them enough to pay for their brands and give them value.
Yes Kevin,
Since it's definitely a voluntary exchange, it is hard to fault these celebrities from benefiting from their fame. I do think it is interesting from a business standpoint.
My recent post Jessica Simpson- Britney Spears Round Up and Uncommon Money News
It's funny you comment on a brand post on the same day that your generics versus brand post went live 🙂
Anyway, I can understand why you don't care about the brand or the opinions of celebrities. I think their target demographics is often wider than you would think. Clearly, Candies is for little girls, but I'm always amazed by how many non-target demographics friends are singing to, dancing to, and purchasing products that are endorse by these celebrities.
My recent post Jessica Simpson- Britney Spears Round Up and Uncommon Money News
Yes, Brit Brit is an industry all too herself. Even during her troubled time, Forbes estimated her income as over $40 million. Note, her net worth was already over $100 million. Britney makes a ton of money directly from the music industry too as well as endorsement; however, Jessica Simpson's brand now transcends and perhaps even overshadows her musical talents.
Thanks for the mention. Maybe one day I can share some Chicken of the Sea with Jessica. That is chicken, right, because I don't like fish.
When I had my store I carried the Jessica Simpson brand shoe and believe me, people loved them. Not because of her per se but the shoes. It's like Carlos Santana the musician. What does he have to do with fashion? Just ask the women buying his shoes.
Jessica very stealthily built a powerhouse brand carried in Macy's which is a major retailer at a price point that is desirable to your every day shopper. An entire generation grew up with Britney so there is no surprise there. I give these women credit because they might be celebrities, but they are business people as well.
My recent post Dealing with My Tenant from Hell
Jessica Simpson a fashion maven? I need to get out more, I guess…
Thanks for the mention, Shawn.
You are welcome!
You know that tuna incident probably wasn't her finest moment, but it was funny. I guess that's the whole point. Would most people be willing to expose their flaws to an unforgiving society if it meant $10s of millions of dollars to your net worth if not more. Additionally, there does appear to be some evidence that she is exaggerating her flaws…straight to the bank 🙂
My recent post Jessica Simpson- Britney Spears Round Up and Uncommon Money News
Yes, my experience with my fashion-savvy friend was similar. This wasn't someone who I would consider a fan of the person as much as someone who was a fan of the fashion. I think Jessica Simpson's name recognition just gave her brand the exposure it needed to go from obscurity to big money.
Britney has definitely had an uncommon longevity in her prominent career. The interesting thing is: so has Christina Aguilera. While obviously, neither one is a pauper by a long shot. I just think Britney seems so much more marketable than most celebs partly because of her charm as well. She comes across as authentic, and people had/have high expectations of her with respect to entertainment & keeping her personal life straight. It is clearly a business though, and the interesting thing is it's not solely based on their persona. That's good news, given the shelf-life of most celebs (not the case here though).
My recent post Jessica Simpson- Britney Spears Round Up and Uncommon Money News
As a male, my opinion may be meaningless! I do not listen or follow celebrities except for entertainment. I avoid designers who flaunt their logo on the outside of clothes. Unfortunately, I can not avoid company logos on some clothes. I know I am in the minority, since this a celebrity driven society. I wish her luck in her business, her career may not last a lifetime.
My recent post What is your New Year’s Resolution
Of course your opinion has value. I agree that this is a celebrity-driven society because entertainment is big business, hence the article focus. It's one thing to pay someone a few dollars for tap dancing and singing, but it is another thing entirely when they reach such a high level of celebrity and monetization that their brands generate hundreds of millions a year.
My recent post Jessica Simpson- Britney Spears Round Up and Uncommon Money News
Can't argue with those numbers. They must be doing something right. If not them, then they should be credited with surrounding themselves with the right people. Interesting question, would you rather be perceived dumb, but filthy rich or perceived smart, but just doing ok? 🙂
It's certainly an individual question, and hopefully you can have money and the perception of brains, but for the question at hand, I do think being rich has more value than people thinking you are smart.
You’ve produced some decent points there. I looked around the web to find out more concerning the issue and found most individuals will go along with your views on this website.
Wow, great blog format! How lengthy have you been blogging for? you make blogging glance easy. The overall glance of your website is fantastic, let alone the content material!
Thanks once more for your post.Really thank you! Will study on…
I personally don't have a problem with her succeeding either. Perhaps that's just my thing, but I just celebrate the success of other people with the hopes that people will celebrate my success.
I think there are few people on earth who come close to matching Jessica's success including Nich Lachey or her current beau (unemployed). Even though her entertainment career isn't as strong as it used to me, she has successfully transitioned into a brand with what appears to be some staying power. I would not be surprised to see her on Forbes list in the future.
What Jessica Simpson akin to Sarah Palin!!!!! I never made the connection but I can see your point though. For example, if someone were to ask if whether the appeal of Sarah Palin was closer to that of Hilary Clinton or Jessica Simpson, I think many people would choose the latter.
My recent post Jessica Simpson- Britney Spears Round Up and Uncommon Money News
The girl can sing, but she can't sing like Aguilera. That said, Aguilera doesn't have a show or shows "her" in a personal light, flaws and all.Jessica does, and so does Britney. People who show more of themselves tend to do better, and even Palin shows all of her flaws as well which makes her likable to many Americans who aren't "perfect". I think as long as they're making the money legally, being smart about it, then kudos 🙂 Milk it, I say. But don't forget to save it for when times get rough.
Not sure what I think about it. If people are willing to pay them then why not? It's a voluntary exchange, and people like them enough to pay for their brands and give them value.
Thanks for mentioning the giveaway!
My recent post Importance of Financial Literacy Education – Get Some Here with Ramit Sethi’s Book- I Will Teach You To Be Rich
It's amazing the market power celebs have! I wouldn't have guessed that Jessica is such a financial powerhouse (let along Brittney)!
Thanks for the mention, I had a lot of fun doing that post! Good memories at Christmas 🙂
My recent post Frugally Fight Higher Gas Prices
Yes Kevin,
Since it's definitely a voluntary exchange, it is hard to fault these celebrities from benefiting from their fame. I do think it is interesting from a business standpoint.
My recent post Jessica Simpson- Britney Spears Round Up and Uncommon Money News
It's funny you comment on a brand post on the same day that your generics versus brand post went live 🙂
Anyway, I can understand why you don't care about the brand or the opinions of celebrities. I think their target demographics is often wider than you would think. Clearly, Candies is for little girls, but I'm always amazed by how many non-target demographics friends are singing to, dancing to, and purchasing products that are endorse by these celebrities.
My recent post Jessica Simpson- Britney Spears Round Up and Uncommon Money News
Yes, Brit Brit is an industry all too herself. Even during her troubled time, Forbes estimated her income as over $40 million. Note, her net worth was already over $100 million. Britney makes a ton of money directly from the music industry too as well as endorsement; however, Jessica Simpson's brand now transcends and perhaps even overshadows her musical talents.
You are welcome for the mention. I liked the post.
My recent post Jessica Simpson- Britney Spears Round Up and Uncommon Money News
Thanks for the mention. Maybe one day I can share some Chicken of the Sea with Jessica. That is chicken, right, because I don't like fish.
When I had my store I carried the Jessica Simpson brand shoe and believe me, people loved them. Not because of her per se but the shoes. It's like Carlos Santana the musician. What does he have to do with fashion? Just ask the women buying his shoes.
Jessica very stealthily built a powerhouse brand carried in Macy's which is a major retailer at a price point that is desirable to your every day shopper. An entire generation grew up with Britney so there is no surprise there. I give these women credit because they might be celebrities, but they are business people as well.
My recent post Dealing with My Tenant from Hell
Jessica Simpson a fashion maven? I need to get out more, I guess…
Thanks for the mention, Shawn.
You are welcome!
You know that tuna incident probably wasn't her finest moment, but it was funny. I guess that's the whole point. Would most people be willing to expose their flaws to an unforgiving society if it meant $10s of millions of dollars to your net worth if not more. Additionally, there does appear to be some evidence that she is exaggerating her flaws…straight to the bank 🙂
My recent post Jessica Simpson- Britney Spears Round Up and Uncommon Money News
Yes, my experience with my fashion-savvy friend was similar. This wasn't someone who I would consider a fan of the person as much as someone who was a fan of the fashion. I think Jessica Simpson's name recognition just gave her brand the exposure it needed to go from obscurity to big money.
Britney has definitely had an uncommon longevity in her prominent career. The interesting thing is: so has Christina Aguilera. While obviously, neither one is a pauper by a long shot. I just think Britney seems so much more marketable than most celebs partly because of her charm as well. She comes across as authentic, and people had/have high expectations of her with respect to entertainment & keeping her personal life straight. It is clearly a business though, and the interesting thing is it's not solely based on their persona. That's good news, given the shelf-life of most celebs (not the case here though).
My recent post Jessica Simpson- Britney Spears Round Up and Uncommon Money News
Yep, Jessica did that on the sly! Anyway, you are welcome for the link!!!
My recent post Jessica Simpson- Britney Spears Round Up and Uncommon Money News
As a male, my opinion may be meaningless! I do not listen or follow celebrities except for entertainment. I avoid designers who flaunt their logo on the outside of clothes. Unfortunately, I can not avoid company logos on some clothes. I know I am in the minority, since this a celebrity driven society. I wish her luck in her business, her career may not last a lifetime.
My recent post What is your New Year’s Resolution
Of course your opinion has value. I agree that this is a celebrity-driven society because entertainment is big business, hence the article focus. It's one thing to pay someone a few dollars for tap dancing and singing, but it is another thing entirely when they reach such a high level of celebrity and monetization that their brands generate hundreds of millions a year.
My recent post Jessica Simpson- Britney Spears Round Up and Uncommon Money News
Can't argue with those numbers. They must be doing something right. If not them, then they should be credited with surrounding themselves with the right people. Interesting question, would you rather be perceived dumb, but filthy rich or perceived smart, but just doing ok? 🙂
It's certainly an individual question, and hopefully you can have money and the perception of brains, but for the question at hand, I do think being rich has more value than people thinking you are smart.
There are janitors (no offense to any janitors) who are brilliant, yet their influence is significantly less than a filthy rich entertainer with little brains.
My recent post Jessica Simpson- Britney Spears Round Up and Uncommon Money News
You’ve produced some decent points there. I looked around the web to find out more concerning the issue and found most individuals will go along with your views on this website.
Wow, great blog format! How lengthy have you been blogging for? you make blogging glance easy. The overall glance of your website is fantastic, let alone the content material!
Thanks once more for your post.Really thank you! Will study on…