India's Social Media Stars Launch Businesses as Industry Soars

The Rise of Influencers in India’s Creator Economy

Preeti Sarkar, now 24 years old, began her journey on YouTube at the age of 18. Over the years, she has grown her presence to include a following of about 1.6 million on both Instagram and YouTube. Her success has led her to launch her own clothing brand, showcasing how many influencers in India are leveraging their social media presence to build their own businesses.

This trend is part of a broader movement among creators in India who are transitioning from content creation to entrepreneurship. Many top names in the industry have taken this path, including Nitibha Kaul with her beauty brand, Kusha Kapila with her shapewear line, and Gaurav Taneja with his sports nutrition brand. These individuals are not just creating content—they are shaping consumer behavior and driving significant economic activity.

Amiya Swarup, who leads marketing advisory and is a partner at EY, noted that this shift is relatively new in India. Historically, successful entrepreneurs have often become influencers, but now the reverse is happening. According to a May report by Boston Consulting Group (BCG), India's creator economy has seen a massive surge, with over 2 million monetized content creators influencing more than $350 billion in consumer spending.

The direct revenue from the creator ecosystem is expected to grow significantly, rising from about $20 billion in the 2024 fiscal year to over $100 billion by the end of the decade. By 2030, the ecosystem is projected to drive more than $1 trillion in "creator-influenced" consumption.

Authenticity as a Key Driver

Sarkar started creating YouTube videos in 2018, focusing on skincare, fashion, and other topics. Based in Kolkata, most of her content is in Bengali. At the time, YouTube was not widely known in her town, and people were unfamiliar with the potential of content creation.

Her initial setup was simple: a bucket used as a tripod for her phone. She spent eight to 10 hours daily editing videos for five years without much success. However, a change in approach transformed her career. She decided to be authentic, removing her makeup and filters, and simply speaking to her audience. This genuine approach became the foundation of her brand.

"People connect with me because they see themselves in me," she said. "I am that clumsy girl... So I would say that my personal brand is all about being genuine, and whatever flaws I have, I just show it to the world."

This strategy of authenticity has helped her build a loyal following. Today, she applies the same philosophy to her clothing brand, Preetizen. Instead of hiring professional models, she launched a social media campaign inviting her followers to apply as models. The response was overwhelming, with over 60,000 comments and calls from interested individuals. She selected 10 people to represent her brand, emphasizing inclusivity and community-driven values.

The Role of Influencers in Marketing

Influencers in India are playing an increasingly vital role in marketing campaigns. Their audiences trust their recommendations, making them powerful tools for brands. Swarup explained that influencers create personalized content that resonates with specific regions and local preferences, something traditional media struggles to achieve.

Brands have recognized the value of authentic and transparent influencer engagement, which can significantly benefit their image and sales. This trend is growing rapidly, fueled by increased smartphone and data accessibility in India. From 2008 to 2024, the number of registered mobile SIM cards in India more than tripled. Data usage has also surged, rising from about 12 gigabytes per month in 2020 to around 27 gigabytes per month in 2024.

The growth of the influencer economy has been further accelerated by the pandemic, which pushed many people online. This shift created new opportunities for engagement and interaction, leading to a surge in the industry.

Expanding Opportunities for Creators

As influencers gain more visibility and income, they are exploring new avenues for monetization beyond their original platforms. This natural progression has led to a vibrant and dynamic creator economy in India.

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Additionally, joining newsletters and exclusive communities can provide valuable tips and connections, helping individuals grow their networks and advance their careers.