The Indian cricket team captain Virat Kohli has just struck a Rs 110 crore endorsement deal with German multinational company, Puma.
With Kohli on board, Puma intends to launch a signature line of sports lifestyle products with a special logo and brand identity.
When compared to brand endorsers from diverse professions, Kohli is only second in the ranking to Shah Rukh Khan.
Experts believe that it is an unusual deal as it spans for eight years – till 2025 – when the actor will turn 37. They say that the brand is taking a gamble because one cannot predict the shelf life of any celebrity. But, it is a calculated risk taken basis his current performance, fitness, age, and consistency.
Previously, Puma had signed Ussain Bolt for their international campaign, suggesting that they are looking for someone who is completely at the top of their game, at the pinnacle of achievement.
Some experts say, for Virat, the gain will primarily be financial and to a lesser extent, it’s a validation of the fact that he is India’s No.1 sportsperson.
While some argue that probably Kohli or his team might have asked for a certain amount and Puma negotiated that they will give that amount for a longer period of time – 8 years here.
Further, some believe that an association with Virat Kohli will enhance Puma’s imagery. This will get Puma recognition but might not translate into reputation. For a brand to get salience, design, product features which make the brand stand out should have been communicated. The brand should have taken extra efforts to explain this to the average consumer.
Now it’s time to see who benefits more, Kohli or Puma!