Fast Retailing, the parent company of Uniqlo, announced its comprehensive financial report for August 2024. Uniqlo's sales reached 3,103.8 billion yen, and the company's net profit hit a record high, exceeding 3 trillion yen for the first time. When the COVID-19 epidemic raged in China, Uniqlo set its sights on expanding its retail footprint in North America and Europe, and it enjoyed a bumper harvest this year.

According to Reuters Tokyo reports, London Stock Exchange (LSEG) financial analysts pointed out that Uniqlo's annual revenue as of August increased by 24% compared with the same period last year, exceeding Uniqlo's own internal forecasts for three consecutive years, soaring sharply to a record. Analysts also pointed out that Uniqlo has performed well in Europe and the United States, but the overall retail industry in mainland China is sluggish and consumer purchasing power has declined. How to attract Chinese consumers to return to shopping will be Uniqlo's next biggest challenge.

Pan Ning, CEO of Uniqlo's Greater China region, admitted that after the COVID-19 epidemic, mainland consumers' shopping interest declined, which affected Uniqlo's performance in China. Uniqlo, which has more than 900 stores in mainland China, is adopting a strategy of reducing store size and scrapping and rebuilding underperforming stores.

Uniqlo products have been copied in large numbers in mainland China and have been popularized by TikTok influencers to promote fake versions. The fake Uniqlo products have done a lot of damage to the genuine Uniqlo brand. Uniqlo is filing a lawsuit against Shein, a popular Chinese affordable brand, for copying Uniqlo's best-selling half-moon shoulder bag style and becoming a viral hit on social media.

Even though Uniqlo's performance in mainland China is poor and there are multiple difficulties, Uniqlo is very popular among young people and literary youth in Europe and the United States by sponsoring the cultural and creative art industry and emphasizing the functionality and functionality of clothing.

U.S.-Japan technical cooperation, using Suima cotton made from American cotton

Uniqlo's cotton products use Suima, which is produced in the western and southwestern United States. The characteristics of cotton are strong and durable, which can resist wear and hair balls caused by long-term wear and washing, and has strong elasticity to prevent clothing from deforming easily. Uniqlo uses local cotton produced in the United States to manufacture clothing, and combines Japanese brands with local American agriculture as a promotion. It can not only show support for American local agriculture, but also reduce overseas transportation and production costs.

Uniqlo design and materials are popular in Europe and America

Japanese industry analysts believe that many consumers regard Uniqlo clothing as a necessary daily accessory. The biggest difference between Uniqlo's product features and Zara and H&M is that it emphasizes "functionality and functionality" in daily wear. The founder of Uniqlo's concept is to position clothing as LifeWear daily tool clothing that can be used for leisure and work, and develop lightweight down jackets and breathable AIRism technology air jackets. A highly industrially competitive series has been launched in the Causual Smart style.

Uniqlo supports sponsoring art and cultivating cultural and creative industries

Uniqlo's flagship store on Fifth Avenue in New York is adjacent to MOMA, the Museum of Contemporary Art in New York. Uniqlo has been a long-term sponsor of the Museum of Modern Art in New York from 4 to 8 pm on the first Friday of each month, allowing art-loving visitors to enter the museum for free. Exhibition inside, and at the same time cross-border cooperation with MOMA to commemorate T-Shirt. Uniqlo founded LifeWear, an art magazine that introduces the history, culture and Uniqlo daily wear stories of artists and designers from various places.

The founder hopes to become the world’s No. 1 affordable fashion brand

Fast Retailing founder Tadashi Yanai aims to surpass Zara and H&M to become the world's No. 1 fashion brand. Yanai Tadashi believes that consumers care more about the quality and price ratio of the product itself, rather than just fashionable luxury goods. Yanai is bringing the LifeWear product concept to the world, emphasizing the material, production technology and functionality of clothing, just in time to enter the European and American markets that like outdoor leisure.

This article Uniqlo’s impressive financial report exceeded 3 trillion yen for the first time, and it hopes to become the world’s No. 1 affordable fashion brand. First appeared on Chain News ABMedia.