Uniqlo’s tie-up with Roger Federer shows just how well-matched they are
The Japanese company seems to be paying a lot for a sportsman who is not far from retirement, but a less cursory look tells a different story, writes Alex Webb
At first glance, it seems like something of a mismatch. Uniqlo, the Japanese fast fashion brand, is paying $300m over 10 years to replace Nike as the kit sponsor for Roger Federer. The Swiss might be the greatest male tennis player ever, but at 36 his best years are behind him. From a commercial perspective, he seems to have aced it. And Uniqlo looks like it is paying an awful lot for a sportsman who is not too far off from retirement. A less cursory look tells a different story. Uniqlo parent Fast Retailing is enduring slowing growth in its home Japanese market, which accounts for more than half of all revenue. It is therefore accelerating a push into both international markets, which it wants to overtake Japanese sales this year, and e-commerce. The problem for the $18bn-revenue company is that, as much as it wants to present itself as a big-data whiz-kid, the price it charges for its products rules out a fully digital response. It can cost about $25 to acquire a new customer with...
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