Is Naomi Osaka Set To Be Asia’s Next Endorsement Darling?

Japanese automobile giant Nissan is the first to announce a global endorsement deal reportedly in the US$1m+ range with the eye-catching Naomi Osaka. Besides Nissan, she also has deals with the following Japanese brands:

• Citizen Watches (a global endorsement deal, ~US$200k, which was activated in Aug’ 18, it will also launch the timepiece she wore during the US Open final across the world soon)
• Pay-TV channel Wowow (official broadcaster for all Grand Slams in Japan, saw a 500% rise in subscription inquiries on the day Osaka won her semi-final against Madison Keys, ~US$210k)
• Yonex (Osaka’s equipment supplier since 2008, will increase production of the Ezone 98 racket, which she used at the final, and has decided to expand sales of tennis gear as part of its new plan, ~US$200k before win bonuses)
• Popular noodle brand Nissin (deal since 2016, ~US$210k; the company enjoyed a modest 3% rise during the US Open competition but expects higher sales soon through the endorsement)

Insiders in the sponsorship industry estimate that Osaka could now demand three or more times her present rate. It has been reported she currently earns about US$1.5 million a year from her various sponsors, still a long way from the US$18 million earned by her idol Serena Williams. But this figure was before the Nissan deal.

Her choice to represent Japan is also likely to propel her endorsement fees, given the desire of Japanese companies in the global marketplace to back a world-beating, local hero as the countdown to Tokyo 2020 beckons.

With far fewer women than men among the Japanese medal contenders for the upcoming Summer Olympics, Osaka’s rise will certainly be a boon to brands targeting female consumers.

Tennis is popular with sponsors in Japan, with companies backing the nation’s star male player Kei Nishikori (who has yet to win a Grand Slam title) to a tune of US$33m in endorsements from Q217 to Q218, as they make him the face of Toyko 2020…And it would be no wonder when Ozaka gets a slice of this pie and creates a commercial impact that hasn’t been seen since Li Na’s French Open triumph in 2011.

This could mean her current stable of sponsors have to significantly increase their payments or risk losing the exposure they get from a rising global star. Rivals are already circling, especially in Japan. Adidas’ contract for her footwear estimated to be in the US$232k range expires at the end of the year and a new deal would likely be over US$900k (almost a whopping, four-fold rise). Nissin is already deciding if it should continue backing Osaka after examing the merits and potential rise in fees, according to the Nikkei Asian Review.