Uniqlo's financial report shines with first-time breakthrough of 3 trillion yen, aspiring to become the world's number one affordable fashion brand.

Uniqlo's parent companyFast Retailing announced its comprehensive financial report for August 2024, with Uniqlo's sales reaching 3.1038 trillion yen, marking a historic high in net profit exceeding 3 trillion yen for the first time. While the COVID-19 pandemic ravaged China, Uniqlo focused on expanding its retail footprint in North America and Europe, reaping a bountiful harvest this year.

According toReuters Tokyo report, analysts from the London Stock Exchange (LSEG) stated that Uniqlo's annual revenue as of August grew by 24% compared to the same period last year, surpassing Uniqlo's internal forecasts for the third consecutive year and soaring to a historic high. The analysts also noted Uniqlo's strong performance in Europe and America, but with the overall retail sector in mainland China struggling and consumer purchasing power declining, bringing Chinese consumers back to shopping will be Uniqlo's biggest challenge going forward.

Uniqlo's Greater China CEO admitted that post-COVID-19, the waning shopping interest among mainland Chinese consumers has impacted Uniqlo's performance in China. With over 900 stores in mainland China, Uniqlo is now implementing strategies to downsize its store footprint and revamp underperforming stores after scrapping them.

Uniqlo's products in China have been heavily counterfeited, with knockoff versions being popularized by TikTok influencers, posing a significant threat to the authentic Uniqlo brand. Uniqlo has recently taken legal action against the trending Chinese fast-fashion brand Shein, accusing Shein of copying Uniqlo's popular crescent-shaped single-shoulder bag style and gaining popularity on social media.

Despite Uniqlo's underperforming business in mainland China and facing multiple challenges, Uniqlo has gained popularity in Europe and America by sponsoring the creative arts industry and emphasizing the functionality and utility of its clothing, attracting the attention of young people and trendsetters.

US-Japan Tech Collaboration, Suima Cotton Made in the USA

Uniqlo's cotton products are made using Suima, which is manufactured in the western and southwestern United States. The cotton is known for its durability, resistance to wear and pilling from long-term wear and washing, and strong elasticity that helps the clothing maintain its shape. Uniqlo promotes its clothing by using cotton produced locally in the USA, showcasing support for American agriculture and reducing production costs associated with overseas transportation.

Uniqlo Designs and Materials Popular in Europe and America

Japanese industry analysts believe that many consumers consider Uniqlo clothing a daily essential. Uniqlo's products stand out from Zara and H&M by emphasizing functional and practical everyday wear. The founder of Uniqlo positioned clothing as LifeWear, tools for daily life that can be worn casually to work, developing light down jackets and breathable AIRism technology shirts. This Casual Smart style has created a highly competitive series.

Uniqlo Supports Art and Cultivates the Cultural and Creative Industries

Uniqlo's flagship store on Fifth Avenue in New York is close to the Museum of Modern Art (MoMA). Uniqlo has long sponsored MoMA, offering free entry to art enthusiasts on the first Friday evening of each month from 4 to 8 pm to view the museum's exhibitions, and collaborating with MoMA on commemorative T-shirts. Uniqlo's LifeWear art and culture magazine shares stories of daily wear from various historical cultures, artists, and designers.

Founder Aims to Become the World's Top Affordable Fashion Brand

Fast Retailing founder Tadashi Yanai aims to surpass Zara and H&M to become the world's top fashion brand. Yanai believes that consumers care more about the quality and price ratio of the products rather than just luxury fashion. Yanai is taking the concept of LifeWear globally, emphasizing material quality, craftsmanship, and functionality, targeting the outdoor leisure market in Europe and America.