Influencers 2.0: From brand ambassadors to owners

Brands and influencers seem to be no longer relying on one-time paid promotions. Today, a more realistic approach is emerging, where influencers are emerging as co-creators, actively participating in product development to create offerings that resonate with their audiences.

Freakins, an Indian denim brand known for collaborations with influencers like Tarini Shah, The Rebel Kid, and Apporva, is a prime example of this trend. These influencers don't just promote products — they also create limited-edition collections that reflect their distinct styles.

Content creators like Masoom Minawala and Komal Pandey are acing it too. Masoom's co-created jewellery business reflects her distinct fashion sense, while Komal has designed exclusive collections for fashion brands, reinforcing her connection to her audience.

YouTuber Gaurav Taneja, also known as "Flying Beast," pitched his health and nutrition brand, Beast Life, on season 4 of Shark Tank India.

Bhuvan Bam, one of India’s first digital stars, has not only entertained millions through his YouTube channel BB Ki Vines but has also ventured into the fashion space with Youthiyapa, a brand offering quirky and relatable merchandise.

Similarly, Prajakta Koli, popularly known as MostlySane, turned her creativity into a business with Merch Garage, providing trendy and relatable merchandise for her fans. Ashish Chanchlani recently launched brand OG Beauty.

In the beauty and lifestyle domain, Mumbiker Nikhil, a prominent YouTube vlogger, has launched his clothing line Label MN, catering to fans who resonate with his travel and biking lifestyle.

Globally, influencers like Huda Kattan, founder of Huda Beauty, have embraced the trend. Her skincare journey inspired Huda's brand Wishful, allowing her audience to connect with both her story and the products. Chiara Ferragni is another name who has transitioned from being an influencer to a fashion entrepreneur, co-creating collections inspired by her personal brand.

Sakshi Kalan, Founder & CEO of Savy Click, highlights the trend and says, "As this trend grows, the future of influencer marketing lies in collaboration, with influencers no longer just being the face of a brand but also helping shape the products that resonate most with their followers. Co-creation is more than just a fad; it's the new standard for meaningful, impactful influencer partnerships."

But why not?

Chandan Sharma, General Manager - Digital Media at Adani Group, paints a clear picture of the creator economy with compelling numbers. “With 10.4 million hours of content streamed globally and 6,76,488 posts shared daily on Instagram, it’s evident that 50% of creators are now earning income from their content. However, the reality is that 72% of them earn under $500 a year, while the top 4% bring in over $100K annually. What’s more, monthly earnings have grown by 25% since 2022, reflecting a significant shift in how influencers are monetising their presence.”

"Shoppable live streams on platforms like Instagram and TikTok allow viewers to make instant purchases during real-time interactions. This FOMO-driven strategy is highly effective, with 70% of Gen Z preferring live streams over traditional ads," he adds.

Niche creators are more likely to reach the 100K+ milestone, as 62% of them believe that specialisation enhances engagement. Gen Z influencers, who often start as nano-influencers (under 10K followers) or micro-influencers (10K-100K followers), benefit from higher engagement rates."

"Nano-influencers see a 4.4% engagement rate, compared to just 1.3% for larger influencers. This strong engagement is driving these creators to establish their own brands and businesses, turning their loyal, niche audiences into revenue streams through branded merchandise, coaching services, and subscription models.”
Chandan further notes, “Despite challenges like algorithm changes (46%) and burnout (41%), platforms such as Twitter are offering up to 97% revenue share to attract creators, reinforcing the trend of influencers evolving into entrepreneurs.”

Remember the influencer who sold her “bottled farts” for Rs 25,000 a jar? Yes, the creator industry has some bizarre sides too. Yet, from beauty bloggers launching DIY creams to artists raffling their masterpieces, social media platforms like Instagram and TikTok have become virtual bazaars. The murkiness creeps in when influencers morph into business owners without much consideration. The case pointed out by another influencer in his Insta reel—a fake beard oil scam—exposed how easily some influencers promoted non-existent products for cash. While thousands find new incomes and passions through this booming ecosystem, the risks of deception loom large.

Abhishek Tiwari, Global Business Head, NetSetGo Media, says, "Gen Z influencers are taking their personal brands to the next level, using platforms like TikTok Creator Fund, Instagram Shopping, and YouTube Partner Program to build full-fledged businesses.”

“They're diversifying their income through subscriptions, branded merchandise, and coaching services while expanding their presence across multiple platforms. Along the way, many are setting up personal LLCs, launching coaching ventures, and securing brand partnerships, all while staying connected with their audiences in authentic ways.”

“Nowadays, video games are at the center of the hobby, with YouTube and Twitch making it possible for anyone from almost any background to monetarily support the sport. Partnerships thus are made with Micro and Macro influencers,” Tiwari explains.

Meanwhile, the Advertising Standards Council of India (ASCI) mandates that influencers disclose paid promotions using terms like “Ad” or “Sponsored”. Influencers are obligated to verify the advertiser’s claims to ensure their validity. They must exercise due diligence by reviewing evidence or data substantiating claims, especially those related to benefits, performance, or product efficacy. Misleading claims, exaggerated benefits, or unverified endorsements are strictly prohibited under these guidelines, protecting consumers from deception.

With influencers playing an increasingly important role in shaping products, the distinction between creators and brands is now blurring, resulting in more personalised and consumer-focused offerings.