Does the red carpet really affect the bottom line for brands?

Billie Eilish has made a name for herself with her moody yet forceful music, almost as much for her unique, androgynous, street-centric dressing style. Recently at the Golden Globes, the singer—nominated along with bandmate brother Finneas for their What Was I Made For? song from Barbie—reimagined feminine style on the red carpet. Her oversized menswear look garnered a lot of attention, driving home the importance of celebrity endorsements for fashion brands, especially during awards season. With the 2024 red carpet awards season in full swing, certain luxury labels have emerged, leading to celebrity-centric publicity, though bottom-line impacts remain elusive. However intangible it is to quantify sales effects, luxury brands still consider a star’s appearance wearing their offerings to be the holy grail of press. FashionNetwork.com looks at the phenomenon for this latest season ahead of the industry’s most prestigious event, the Oscars.
 

Thus far in the season, brands leading the pack in terms of celebrity media impact read like the line-up at prestigious luxury shopping centers. According to Launchmetrics, the data and technology company that measures a brand’s media value online, among other services, each event draws different leaders in the luxury sector—using their patented Media Impact Value™ (MIV®), which is a single measurement standard allowing brands to assign monetary value to every post or article, measuring its impact to brand performance and providing insight to strategies that create the most media impact across print, online and social media.
 
For example, at the Golden Globes, which kicked off the season on January 7, Dior topped the women’s fashion brands at $15M in MIV; Armani for men’s fashion at $13.5M, Tiffany & Co. for watches and jewelry at $3.6M and Christian Louboutin for accessories at $3.2M. Next up, for the Emmy awards, Dior took the top spot for fashion overall with $7.3M, Alexandre Birman for accessories at $1.8M, and Tiffany & Co. retained its top spot for watches and jewelry at $1.3M. Jenna Ortega dressed in Dior and Pedro Pascal in Valentino ranked as the top celebrity engagement, ranking $5.6M and $1.2M, respectively. Runners up were The Bear castmates Ayo Edebiri in Louis Vuitton at $3.3M and Jeremy Allen White in Armani at $998K, respectively. The Critics’ Choice Awards saw Prada take the top spot for fashion with over $5.1M, with Tiffany and Louboutin retaining their spots with $1.9M and $662K, respectively. Top-ranking celebrities for this ceremony included Barbie’s Margot Robbie dressed in Balmain, earning $2.5M, and Charles Melton in Valentino, earning $751K in MIVs. Still, this does little to connect the dots between these appearances and the retail cash registers.
 
Other brands that also rank favorably for the three events include Gucci, Schiaparelli, Fendi, Dolce & Gabbana, Chanel, Cartier, Bulgari, De Beers, Manolo Blahnik, Jimmy Choo, and interestingly enough, Dr Martens, which ranked at the Emmys.
 
 

According to Launchmetrics CMO Alison Bringé, bottom-line synergy isn’t often the point; rather, it’s a brand positioning exercise. “Red carpet events are moments of ultimate glamour and widespread visibility, so it offers a platform for brands to generate awareness rather than solely focusing on driving sales. The public’s interest in following the Red Carpet appearances of their favorite stars creates an opportunity for brands to align with the cultural narrative strategically, strengthening brand credibility and cultural resonance,” said the CMO, citing the Dior Jenna Ortega Emmy appearance. “By aligning with current trends through an endorsement such as Ortega, the brand effectively engaged a younger audience and strategically capitalized on their interest in pop culture.”
 
The younger audience draw was undoubtedly a win for designer Willy Chavarria, responsible for the look Eilish wore to the Golden Globes. While a seasoned designer himself, his namesake label is still building momentum; thus, a red-carpet placement is impactful but not related to the sales bottom line.
 
“We saw a lot of activity in increased foot traffic to our channels, including our social and website. There hasn’t been an impact on sales, but we have been receiving inquiries as the style that Billie wore is not yet available for purchase. Talent placements generally don’t affect sales in a significant way. Our appearances on red carpets have all been organic and from genuine relationships. Though they don’t move sales, these placements do help us gauge interest in different markets because they are from a genuine place. For example, we’ve started seeing K-pop stars incorporate pieces that they personally acquired, which is a great way to see that the brand is resonating more and more in Asia,” said Chavarria over email.

Organic placements and genuine relationships are the exception, not the rule, for most red-carpet appearances. According to luxury PR veteran and Wilyfoxx branding agency co-founder Karen Duffy, brands invest heavily to get awards show placements. To demonstrate, Duffy broke down the potential costs of making magic on the red carpet.

1.    Production/Award Gown Curation:
o   Production/Award Custom Gown $15,000 – $100,000+ (hard costs)
o   Accessories and Jewelry (if provided by the designer): $5,000 – $50,000+

2.    Logistics and Shipping:
o   Shipping Designer looks to the event location $2,000 – $5,000
o   Pop-up showroom at a hotel: $10,000 – $20,000
o   Local messengers and car services for fittings $1000 – $4,000

3.    Support Staff:
o   Tailor and fitting Team: $5,000 – $10,000+
o   Talent glam team (Hair and Makeup, if provided by the designer): $5,000 – $30,000+ generally underwritten by makeup/haircare brands

4.    Promotion and Publicity:
o   PR and marketing expenses  $10,000 – $50,000+

5.    Legal and Contracts/Misc.:
o   Legal Fees (contracts and agreements with celebrity team): $2,000 – $5,000
o   Insurance (travel): $2,000 – $5,000

“This rough estimate budget can vary significantly, but it could potentially cost five or six figures for a brand to dress a celebrity,” she said, noting the costs were money well spent. “The enduring partnership between celebrities and the fashion industry, exemplified through red carpet appearances, highlights a strategic alliance that has resonated deeply with consumers for years. Despite the associated expenses, these investments in genuine relationships create unforgettable moments, proving invaluable for driving sales and elevating brand awareness.”

As important as the high-profile red carpet events are, it’s not the only event Bringé feels is essential. “To build brand loyalty, seeing celebrities on the red carpet is not enough. Having celebrities wear the brand in day-to-day settings or showcasing them through branded content appears more natural and relatable to a regular consumer, which ultimately builds a more authentic sense of loyalty.” 

Seeing Hailey Bieber decked out in Alo Yoga pants carrying a Saint Laurent bag for Erewhon stops for the umpteenth time resonates with a younger generation next in line to become clients. Still, one retailer says these award season looks impact their eveningwear offerings and more.
 
Tiffany Hsu, chief buying officer at Mytheresa, says it’s a touchpoint for special events dressing. “We definitely see an uplift in evening wear during awards season as a lot of events are happening during this period. For our HNW clients, it is also an important category as they have many festivities to attend throughout the whole year, and they love to get inspired,” she said, adding, “Moreover, it coincides with the beginning of wedding season, which is why we see a spike in interest too.” That tracks as one’s nuptials are usually the closest civilians get to feeling like a star.