Swiss international tennis player Roger Federer has signed a $300 million deal with Japanese clothing brand Uniqlo after 20 years of using Nike. His deal with Nike has already expired in March and people thought that he would renew his deal. But on Monday, at this year’s Wimbledon tournament Federer came out with his unique appearance of Uniqlo by wearing a brand new all white Uniqlo outfit. Uniqlo has confirmed the deal by tweeting on Monday morning Said that it has been such an honor for Uniqlo to have Roger Federer as a new Global Brand Ambassador.
Before signing his deal with Uniqlo 36-year-old Federer was looking to negotiate with Nike for more money reported by ESPN. A clause is allowing Federer to collect even if he doesn’t play that is the arrangement of worth $300 million which is guaranteed over 10 years per ESPN and The Wall Street Journal.
On Monday’s tournament, Federer was spotted wearing Nike sneakers as well with the Uniqlo clothing. Currently, tennis footwear is not made by Uniqlo. The “RF” logo is still owned by Nike.
Tadashi Yanai, Uniqlo Founder, and Chairman has mentioned that Roger Federer is one of the greatest champions in history and his respect for Federer goes beyond tennis. He has also added that their partnership will be about innovation and their goal must be of making a positive change in the world, and he believes that together they will bring the highest quality of life to the numerous numbers of people around the globe. According to Yanai, Uniqlo will also help Federer to take tennis to a new level by exploring innovations in a number of areas including new technology and design.
At the age of 36, Roger Federer’s deal with Uniqlo makes his all the previous golden years look null. He seems to have aced it from a commercial perspective. Uniqlo is also paying a great number of sportsperson who isn’t too long from taking retirement.
Half of all the revenue is endured by Uniqlo, the fast retailing company with this strategy of making a slowing growth in the Japanese market. Therefore, Uniqlo has already pushed into the international market as well. But there is also a problem for the $18 billion revenue company is that the price it charges for its products rules out a fully digital response as much as it wants to present itself as a big data.
For acquiring new customers it can cost about $25 with a digital advertisement push or paid search results. There are some few other brands whose costs are higher like HUGO Boss AG’s cheapest t-shirts can cost $40.
Therefore, Uniqlo can change the retailing strategy as well as their markets by giving everyone the best brand at affordable prices. Roger Federer’s deal with Uniqlo adds a great flavor to the market. Roger Feder’s $300 million Uniqlo deal is really worth. People can now think why has done it.