Could Gisele Bundchen Become the World’s first Billionaire Supermodel?
So far, the multiyear contract signed with Under Armour Sport Wear might be biggest at Gisele´s 20 year’s career.
Although the terms of the contract were not disclosure, Forbes magazine’s speculates that the sums involved are similar to those recently offered to Oklahoma City Thunder’s Kevin Durant, when Under Armour tried to lure the NBA star away from rival Nike with a reportedly $275 million, for a 10-year contract.
According to American Markets, Under Armour's stock climbed 4% following the news that Gisele signed to represent the brand. The pre-share gain added $591.6 million to Under Armour's market value.
Aside from being the world’s top-earning supermodel for the 8th year in a row, Gisele Bundchen is also a great investment. That is according to American economist Fred Fuld, who created, in 2007, a stock index, which charts the performance of companies represented by Bundchen in comparison with the Dow Jones Industrial Average.
The Brazilian model is the King Midas of fashion
Everything she touches turns to gold and companies that have invested in her have reaped the rewards. After Brazilian clothier C&A hired her to started their TV commercials, the sales had an increase of 30%. An Esprit public awareness campaign featuring the top model helped raise consumer awareness of the Esprit liquor brand, with a 9 percent rise in Germany, and a 19 percent rise in China. The lingerie brand "HOPE" increased turnover by 40% after contracting her as its representative. Procter & Gamble's Pantene shampoo sales, also increased 40% in Latin America after she started representing the product. On the other hand, when Bundchen terminated her agreement with Victoria's Secret, which Limited Brands Inc. owns, the company´s stock declined in 31.5% after the news came out.
Aside from being a fashion icon and starring in high-profile campaigns, Bundchen is in the process of branding herself - licensing her name to products ranging from jewelry to eco-friendly cosmetics and lingerie. Her line of sandals with Grendene, one of the world’s leading makers of synthetic footwear, is a success both in Brazil and abroad. According to Grendene’s annual report, the Ipanema line accounts for 63% of the company’s annual exports R$ 394.8 million, circa $250 million), with 25 million pairs sold in 2013 alone. The international success of Bundchen’s shoe line, made the Ipanema brand the most sold Brazilian flip-flop in the world, surpassing the legendary Havaianas.
However, Bundchen’s biggest potential moneymaker is yet to come. Eyeing Brazil’s growing women’s wear market the model launched her own lingerie company in a joint venture with Hope (Brazil’s version of Victoria‘s Secret), where she’s already a spokeswoman.
Instead of licensing her name to the company, as most celebrities do, she created her own brand, Gisele Bundchen Brazilian Intimates, which sold exclusively at Hope’s stores. She will also own a stake in the company, a perceptive move few celebrities make. According to a recent report in Brazilian newspaper Folha de Sao Paulo, Gisele could add as much as R$ 30 million ($19 million) per year to her annual income.
Bundchen also founded of her own skincare product line, Sejaa Pure Skincare, an eco-friendly cosmetics company based in Phoenix, AZ. It rumored that the major cosmetics companies, including Shiseido, is courting the brand for acquisition.
Investing in Real Estate have been the models hobbies since she was 18 years old. Bundchen claims modeling is only 40% of what she does and the rest is contracting. Among her properties acquisitions, it reports the Palladium Executive Flat, a hotel in the south of Brazil, a land in an upper-crust region of Bahia and villa in Costa Rica. In US, she owns a condominium in New York and the Brentwood, Calif., estate that she and Brady purchased for $11 million (for the land alone) and reportedly are spending another $20 million to develop.
The top model has estimated total earnings over the last 10 years have passed the $386 million mark. If corrected by US inflation based on the buying power of the dollar over time, that sum goes to some $427 million. That does not include management, agent and attorney fees.
The business-savvy bombshell is well on her way to becoming the world’s first billionaire supermodel and the first Brazilian female self-made billionaire. To borrow a term from Brady's game, touchdown!