FRCOY Fast Retailing Company Ltd (PK)

Japanese company signs player to big deal, though sports attire isn't its thing

By Khadeeja Safdar 

This article is being republished as part of our daily reproduction of WSJ.com articles that also appeared in the U.S. print edition of The Wall Street Journal (August 23, 2018).

Weeks after it signed Roger Federer to a $300 million endorsement deal, Uniqlo is explaining why a company not known for sports attire is making such a big commitment to a tennis player in the twilight of his career.

The Japanese apparel giant said the tennis player will provide input on product designs, appear in ads and dress in the brand's clothes both during matches and at charity and other public events off the court. He will don their latest collaboration, a line of polo shirts and shorts, at the U.S. Open later this month.

"The collaboration is much bigger than sports," said John Jay, Uniqlo's global creative director. "We develop high-performance clothes for everyone off the court, and we'd like to think the technology is good enough for an athlete."

The deal will cost Uniqlo roughly $30 million a year for the next decade, raising questions around why the Japanese brand picked Mr. Federer as an ambassador. He just turned 37 and is widely considered to be near retirement, though he recently won his 20th Grand Slam title this year at the Australian Open.

Uniqlo is mostly known for basics, not sports attire. It previously outfitted tennis player Novak Djokovic, who is now with Lacoste.

Mr. Federer ended weeks of speculation about his deal with Nike Inc. this summer when he stepped onto the court at Wimbledon wearing a white shirt that bore a little red square reading "Uniqlo" instead of Nike's swoosh. The tennis star has been representing Nike for about 20 years, collaborating on shoe designs and wearing the brand's gear at matches. A plaza at Nike's Oregon headquarters is named after him.

Signing the athlete as an off-the-court representative could present some complications for Uniqlo because he is a relatively private person outside of tennis.

Mr. Jay said that was part of the attraction. "There's a certain level of being discreet and private that we cherish," he said. "Of course, we're running a business, but we very much respect that part of his life."

Besides, Mr. Jay said, the company doesn't expect Mr. Federer to disappear. "One day he will retire from tennis, but he's not retiring from life," he said.

Mr. Federer said his love of fashion and travel, and his affinity for Asia, position him to be a global ambassador for the brand.

"What really resonated with me when we were speaking to UNIQLO was that they respected me not just as an athlete but also as a person with interests and passions beyond the sport," Mr. Federer said in an email. "I have to eventually think about life after tennis and Uniqlo was a great match for that."

The rights to the iconic "RF" branding that he wore on his uniform still belong to Nike, but are expected to revert to Mr. Federer after the company sells through remaining inventory, according to a person familiar with the deal. Nike didn't immediately respond to a request for comment.

Uniqlo, which has a large presence in Asia, has been trying to raise its profile in the U.S. The company once planned to add hundreds of U.S. stores and considered buying U.S. apparel retailer J. Crew Group Inc. in 2014, but talks eventually broke down.

In an interview with the Journal last year, Tadashi Yanai, chairman and CEO of Fast Retailing Co., the parent company of Uniqlo, said there is still room for the chain in a crowded U.S. apparel market. He said the company will focus on growing Uniqlo's presence rather than making acquisitions.

Uniqlo has been boosting its visibility in the U.S. with temporary shops, large stores in major cities and vending machines in airports.

Write to Khadeeja Safdar at khadeeja.safdar@wsj.com

(END) Dow Jones Newswires

August 23, 2018 02:47 ET (06:47 GMT)

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