Uniqlo wants to replicate "the next China" in Europe and the United States.

Text | He Zhexin

Editor | Qiao Qian

Walking into this Uniqlo store located in the popular tourist area of Koningsplein in Amsterdam, what catches the most attention is not the in - store furnishings, but the huge mural by local artist Sandy Van Helden that covers the walls of three floors: young people of different skin tones are walking, cycling, or walking their dogs under the huge tulips. The figures, scenery, and animals in the artist's works always seem disproportionate, and this is exactly her characteristic.

"This building itself is in the Jugendstil style (a kind of Art Nouveau style in Germany and Austria with a more restrained use of decoration), and it happens to be located in the former flower market. So I combined these tulips with the hustle and bustle of the city, which is reflected in the scenes of Amsterdam people cycling or walking upstairs," Van Helden described to 36Kr.

Uniqlo Koningsplein store, photo by 36Kr

In Europe, Uniqlo is establishing a good first impression by collaborating with local artists and opening large flagship stores near prime locations to "win the respect of local consumers". This is very different from the strategy Uniqlo used to win the Chinese market in the first two decades of the 21st century. In China, Uniqlo did not rely on integrating into the local culture but chose to transplant the "Japanese style".

After the growth rate of the Chinese market slowed down, Uniqlo significantly increased its investment in other regions, with Europe and the United States being the focus. This market contributes about 20% of Fast Retailing's annual revenue, and this figure is still growing.

Yanai Tadashi once described running Uniqlo as a business with "one win and nine losses". Will his plan to enter the European and American markets succeed this time?

Second Landing

At 3 p.m. on a weekday, there is a constant stream of customers in the Koningsplein store. The new season's C series, which is not yet available in the domestic market, is prominently displayed at the entrance, and there are several discounted down jackets hanging in the corner on the first floor. There is a question written on the wall: "What makes our lives better?"

Uniqlo Koningsplein store, photo by 36Kr

In terms of the number of stores, Paris is undoubtedly Uniqlo's "Shanghai". However, testing the waters in Amsterdam can better predict whether Uniqlo's long - term business in Europe is viable: the fashion here is not as avant - garde and aggressive. The English proficiency rate is high, and there are many young people. Ordinary people also have their own understanding of dressing beyond the algorithm. Uniqlo hopes to provide a new choice for the already rich wardrobes of local people.

According to 36Kr's observation, in addition to tourists, local residents also visit the Koningsplein store, with age groups ranging from 20 to 60 years old. Most customers who enter the store have a strong purpose, which at least proves that Uniqlo's popularity has been established in the local area.

In the latest financial report, the overseas business represented by the European and American markets has driven growth. Okazaki Ken, the senior executive director and chief financial officer (CFO) of Fast Retailing Group, said: "Opening stores in new regions in Europe and the United States has been a great success, and Uniqlo's popularity has been improved." Fast Retailing also expects that the equipment investment in Uniqlo's overseas business in the fiscal year 2025 will increase by 76% compared with the previous fiscal year, reaching 101.2 billion yen.

Few people know that Uniqlo first entered the European market at the same time as it entered China. At the beginning of the new millennium, Uniqlo first tried to open a store in London. At first, Yanai Tadashi hired a large number of experienced luxury industry practitioners as managers, but they soon left one after another due to "differences in concepts". Yanai Tadashi had to replace them with Japanese people, but the integration between the Japanese management and local employees has always been a problem. Uniqlo quickly opened 50 stores in the UK, but all of them were losing money, and only 5 were left after 4 years.

After this battle, Yanai Tadashi simply outsourced the business in France and the UK to local distributors and "opened the next store after making a profit from one store" in other parts of Europe. For nearly 10 years, Uniqlo only did business in four countries: the UK, Germany, Italy, and France.

The story in North America is even more bumpy. In September 2005, Uniqlo opened its first store in New Jersey but withdrew due to poor performance. In 2006, it opened its first global flagship store in the Soho area of New York and re - entered the United States, but the performance was still mediocre. In 2012, Uniqlo re - entered the United States by acquiring a local brand, but it is still far from making a formal profit.

"There are usually three key points to judge whether the timing of entering a market is mature: whether consumers welcome us, whether the macro and micro environments are the most suitable, and whether we are ready to serve the new market." In 2019, a Uniqlo executive in charge of the overseas market told the media.

There is no group of consumers in the European and American markets who will accept the "Uniqlo style" without question. The three Nordic countries have their own fast - fashion brands. People in Paris and Milan once disliked its monotonous style, but it was not even in line with the German aesthetic. Americans are used to shopping in large - scale supermarkets and prefer the old - fashioned European style, at least at the beginning.

The turning point came in the spring of 2020 when the COVID - 19 pandemic spread. Europe implemented strict restrictive measures including lockdowns. Against the background that many retail stores had to close, "e - commerce (EC) achieved a growth significantly exceeding expectations".

In the fiscal year 2019, the proportion of e - commerce in Uniqlo's European operating income was only 20%, but it increased to 30% in the fiscal year 2021. Most e - commerce customers were first - time buyers.

Morikawa Taku, the CEO of Uniqlo Europe, said that in Europe, people have the habit of wearing knitted clothing at home, so the large - scale launch of high - priced cashmere products has helped Uniqlo's revenue growth. The development of e - commerce has laid the foundation for brand awareness. After the pandemic ended, Uniqlo began to accelerate store - opening in Europe, reaching 79 stores in January 2025.

Of course, the macro - situation has also changed greatly. The geopolitical conflicts after the pandemic disrupted the supply chain. The rising crude oil prices drove up the prices of daily necessities. Consumers suffered from inflation and began to cut down on various optional consumption expenditures, including clothing.

In terms of local purchasing power, Uniqlo is quite competitive in Europe and the United States. In the United States, Uniqlo is described as the "GAP for Generation Z", partly because of its low prices: the retail price of jeans is $40, the hoodie is $30, and the brand's signature down jacket is $70. Although the prices are similar to those of H&M and Zara, it is "more durable", which also means saving expenses.

There are few customers in the COS store just across the wall from the Koningsplein store. Looking at the price tags, the unit price of tote bags is over 200 euros. With the same price, you can buy at least 10 dumpling bags in Uniqlo - the latter is also an IT bag selected by the famous fashion list LYST. Not far away, Arket, also a brand under the H&M Group, has started selling bagels and coffee on the first floor.

A Good Start

Uniqlo has been operating in Europe for many years. Although it has not made rapid progress, after the initial failures, it has been making steady progress step by step. In contrast, the North American market, which has suffered repeated failures, has always been a headache for Yanai Tadashi.

In the period ending August 2017, the loss - making Uniqlo business in the United States finally began to get on the right track under the leadership of the fourth - term CEO Takigawa Hiroshi. The loss was halved. After hard work, there was finally a glimmer of hope. In the period ending August 2018, the loss of Uniqlo in the United States was halved again, and it was expected to turn profitable in the period ending August 2019.

Although the pandemic hit Uniqlo hard, it brought about the revival of casual wear. The "dumpling bag" became very popular in the European and American markets, and "logo - free" became the new fashion. Yanai Tadashi seized the opportunity to accelerate store - opening, aiming to "open 30 stores each in North America and Europe every year" to accelerate the growth of international business. Tsukada Daisuke, the former CEO of North America, was promoted to the global CEO of Uniqlo, highlighting the importance of the European and American markets to Uniqlo once again.

In 2024, Uniqlo opened 11 new stores in the United States, 6 in California and 5 in Texas, all in areas with a concentrated Chinese population.

However, this does not mean that Uniqlo is only popular among Chinese people in the United States. People close to Uniqlo once told 36Kr that Uniqlo's store location selection refers to e - commerce transaction data. California has a developed technology industry, and Texas has a vast territory. Both rank among the top three in e - commerce penetration in the United States.

Not long ago, Uniqlo set a goal of opening 200 stores in the United States by 2027 (currently there are 72). Analysts believe that e - commerce will continue to be the key to achieving this goal. Considering that competitors such as GAP and A&F are local brands with more offline stores, richer channels, and smoother cooperation with local operators in all aspects of e - commerce than Uniqlo. Currently, the online transaction volume of the above two groups has reached more than 50% of their total revenue. For Uniqlo, this figure is estimated to be about 10%.

Of course, Uniqlo also has its own moat. For example, the unified sizing and fewer style changes make it more convenient to place orders online; more regular discounts make it easier for consumers to compare prices. To promote online transactions, Uniqlo also offers the service of online ordering and in - store pickup in the United States, and free delivery is available regardless of the order quantity.

Uniqlo's store furnishings are also quite distinctive. "Spacious, bright, and well - organized," a local consumer in New York commented. Collaborations with local artists are also a feature. "The first impression when entering the store is that this brand is communicating with me." The more mature the market, the more detailed changes the brand needs to make according to local tastes.

Uniqlo store in the United States

It seems that Uniqlo is doing well in the United States and Europe, but there are also challenges.

In an interview with the Nihon Keizai Shimbun last October, Yanai Tadashi clearly stated that he refused the "China + 1" strategy, which means transferring more production links to regions outside the Chinese mainland, such as India and Vietnam. "We at Fast Retailing have always grown together with the Chinese textile industry, and the importance of China or its factory management has not changed."

"There are tens of thousands of young workers in the factories there (referring to the Chinese mainland), while there are only about 100 workers in Japanese factories. It is not easy to build large - scale factories to replace those in the Chinese mainland. We have had many years of exploration and trial - and - error in China. Vietnamese factories cannot be as good as Chinese factories unless we send a large number of Japanese employees there."

Among Fast Retailing's 397 partner clothing factories, 211 are located in the Chinese mainland, followed by 61 in Vietnam and 26 in Bangladesh. It also cooperates with 155 fabric factories around the world, 75 of which are in China.

Currently, the United States has increased the tariff on "all Chinese goods" to 20%. If the so - called "100% tariff" mentioned by former US President Trump is implemented, as Yanai Tadashi insists on "Made in China", price increases for Uniqlo will be inevitable.

In 2021, the US Customs intercepted a batch of Uniqlo shirts due to the so - called "Xinjiang cotton issue". At that time, the sales volume in the US market only accounted for 5% - 7% of Uniqlo's total, and the impact was still acceptable. As Uniqlo's dependence on the US market increases, the consequences of any minor "hiccups" will be very different.

Maybe it won't be long before Uniqlo will face the situation of "one win and nine losses" again. Yanai Tadashi is well aware of the risks, but he still firmly believes that "going global" is the only way for Uniqlo to survive. "(Japanese companies) should realize that Japan lacks resources. Therefore, we can only make money around the world... We can only survive in open countries."