Japanese clothing retailer Uniqlo, founded forty years ago, now boasts over 2500 stores worldwide. Its parent company, Fast Retailing Co., recently achieved a milestone with annual sales surpassing $20 billion for the first time. What lies behind Uniqlo’s success and resonates with global consumers?
The name Uniqlo is derived from the combination of “unique” and “clothing”. The chain’s core concept is “LifeWear”, focusing on everyday clothing. Tadashi Yanai, CEO of Fast Retailing Group, recently shared insights during an interview with the Associated Press at their Tokyo headquarters.
Yanai, hailed as Japan’s richest by Forbes with an estimated net worth of $48 billion, reflected on the swift passing of 40 years, feeling as if it were only three. “As the Japanese saying goes: time flies like an arrow. I founded a regional business, then expanded nationwide,” he said.
Uniqlo went public in 1994. Following a trend in wool sweaters, the brand’s revenue doubled within a year, reaching ¥400 billion ($26 billion).
Yanai revealed that when Uniqlo’s revenue hit ¥300 billion ($20 billion), he had been considering global expansion. They opened 50 stores in the UK but faced setbacks, as he candidly admitted: “On the contrary, we were thoroughly defeated.”
Within a year and a half, Uniqlo opened 21 stores abroad, closing 16 and leaving only 5 operating. Yanai noted that currently, Uniqlo’s sales are strongest in London and Paris, gradually making headway in Europe.
Highlighting Uniqlo’s focus on producing durable, reasonably priced, high-quality products, Yanai emphasized the crucial role of sustainability in operations, investing significant effort and time to ensure value for customers.
Reflecting on Uniqlo’s success and global appeal, Yanai explained, “When we say Uniqlo is ‘made for all,’ people might think of mass-market retailers like Walmart or Target.” The goal is to create high-quality products appealing to everyone, including the super-rich, not just those with refined tastes, but also individuals less knowledgeable about fashion, offering well-designed clothing with superior materials.
“We are first a retailer, then a manufacturer and retailer. Now we are a consumer data retailer. This is the key to our success. We cannot succeed if we stay the same,” he said.
As a consumer data retailer, Yanai highlighted leveraging information to shape operations, gathering data on customers, store staff, markets, and more. “Adapting is the only way for us to achieve steady growth, as the world changes every day,” he added.