Babolat announced last week a five-year exclusive contract with the French Tennis Federation as the official supplier of tennis balls, racquets, strings and bags for the important Roland-Garros tournament. In this role, the French brand replaces Dunlop, which had the contract for balls and racquets for 25 years, and Tecnifibre, which had the contract for strings. Adidas and Lacoste remain sponsors for technical and lifestyle apparel, respectively.
With more than 1 billion households watching the French Open at Roland-Garros every year, the deal is expected to boost the visibility of Babolat, which continues to spend about 10 percent of sales on marketing in a bid to take the No. 1 position for racquets, balls and shoes in six key markets. Estimates indicate that it already ranks first in racquets by value in France, Italy, Spain and Japan. It recently took the first place in France for balls. Among the tennis-specific brands, it is No. 1 for shoes in France and Spain. As for strings, it is No. 1 in France but No. 1 in Germany. It is No. 3 in the U.S., where its racquets dominate the specialized trade.
Babolat's first licensed Roland-Garros products will become available in the stores in May. They will also be marketed in Japan by Sumitomo Rubber, alongside its Dunlop balls. Beyond the sale of these licensed products, for which no figures are available, the deal should also contribute somewhat to boosting Babolat's total turnover.
The company has set out a goal of reaching annual average growth of 15 percent over the next three years, partly through product extensions and expansion in new markets such as China. The recent economic crisis caused Babolat to record lower average increases in the past few years. For the present financial year, ending next June 30, its total sales are expected to go up by less than 8 percent, partly because of a tough comparison. In the past year, they jumped by 18 percent to €116 million, largely because of a change in the seasonality of its shipments.
The brand continues to grow by double digits in the U.S. and China, among other markets. Sales in Italy and France are flat or slightly higher. The growth is higher in Germany, but the British market, which is structured differently, remains rather weak for Babolat.
