Thursday, May 27, 2010

Nadal Endorses Mille Watches

One of the marketing ideas that I have found to be based mostly on assumptions is the view that sales for certain products can be raised based on an endorsement from an individual with a high profile. I have questioned the idea that sports stars can endorse products not just out of the required skepticism for all marketing mumbo-jumbo but especially out of the view that the endorsement fees should be derived out of the real rise in sales that come from the endorsement.

Eric Wilson of NYT reports that Richard Mille, a designer of super-exclusive Mille watches brand has concluded an endorsement deal with Rafael Nadal to promote that brand of watches. To see Rafael Nadal as a compelling figure for endorsement of watches may make sense but I still wonder how the contract is structured. To my mind, the fact that the watches under consideration here are priced in the half a million US dollar range lads to the question whether popular sorts figures are able to push sales for such exclusive items.  

Undeniably, more people will be aware of the fact that the brand exists and that Rafael Nadal wears one during tournament play. Whether that drives further sales is another matter because the guys who can afford that much money for a watch may be reached in alternative ways. After all, how many people would leave a tennis match at the French Open and go straight to a dealer and take one home immediately. So I agree that Nadal is one of those who can afford and should have the exclusive time pieces but I am trying to understand how that translates into cash for the watch corporation. Perhaps it is one instance where the distinction between marketing and sales is clear.

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