The Uniqlo Phenomenon: How a Misspell Changed Fashion Forever
The story behind Uniqlo's humble beginnings and rapid ascent to household name
Despite its global presence, Uniqlo remains a mysterious brand. Look no further than its almost blank about us page, or the fact that few people know Uniqlo’s name originated from a misspelling.
Despite its shrouded past, Uniqlo has become a modern behemoth. Uniqlo earns $15 billion USD in revenue per year, making it the 2nd largest fashion retailer in the world (just behind Zara/Inditex), and on track to become the first. Its founder, Tadashi Yanai, is Japan's richest person with an estimated net worth of $35B.
Uniqlo’s meteoric success belies its humble origins as a small family shop. In 1949 in Ube, a coal-mining and manufacturing city in Japan’s southwest region, a gentleman’s clothing store named “Ogori Shoji” opened its doors.
WWII had ended a few years prior, and Japan was still reeling from its economic aftermath. Cash-strapped locals were seeking good deals, and Ogori Shoji grew in popularity given its high quality garments at reasonable prices. By the time Tadashi inherited the family business in 1972, it had expanded to 22 shops across Ube.
In the following years, Tadashi would expand the business beyond his hometown to the 1st store in Hiroshima, renamed Unique Clothing Warehouse. This would later be shortened to “Uni-Clo” and then “Uniqlo” after a typo by government staff, and the edgier name stuck.
Tadashi had grand ambitions for Uniqlo - he desired not a chain of small stores, but a global empire. He especially admired how Gap had become the “it” brand for American consumers by making basics cool.
Tadashi would adopt a similar playbook and focus on 3 core principles:
Uniqlo would not be a fashion company, but a clothing company. It would not focus on trends, but instead on stylish and affordable basics.
Uniqlo would achieve quality and low cost by owning the supply chain end-to-end (the specialty-store of private label apparel, or SPA, strategy), a then-novel practice now central to the success of modern titans like Apple and Amazon.
Uniqlo would offer “LifeWear” - clothing that was wearable by anyone, anywhere, at any stage of life, with universal and timeless appeal.
The strategy worked. Uniqlo began producing original pieces, leading to the opening of hundreds of stores across Japan by the 1990s. By 1998, Uniqlo had taken residency in Tokyo’s trendy Harajuku district. By the 2000s, Uniqlo had gone global with stores in huge markets like the UK and USA.
Uniqlo’s success was buoyed by early hits. Their most successful release: the fleece campaign in 1998 - offering high quality sweaters in 15 different colors for $20 versus Patagonia’s $100 - would sell 40M units in only 3 years.
Moreover, Uniqlo’s 2003 HeatTech line, launched with Toray Industries (a cutting-edge synthetic chemistry company), would sell 130M units in less than a decade.
All was not rosy as there were plenty of missteps along the way. When Uniqlo first expanded internationally, it did so too quickly and the clothes were not made to fit Western body types, leading to widespread store closures. Uniqlo also has faced several high profile product recalls which has carried on to the modern era.
Most challenging of all, early Uniqlo struggled to overcome its cheap image and become a cool brand. To overcome this, Uniqlo would team up with popular designers like Jil Sander (+J in 2009), Jun Takahashi (UU in 2012, running for only 2 seasons and still the most coveted Uniqlo collab to date), and Nigo of BAPE (UT in 2014).
Uniqlo’s top collaborations and endorsements now include Joseph Gordon Levitt, Pharrell, and Roger Federer, firmly cementing its respect in the global fashion scene. Today, Uniqlo operates in 25 countries, has over 1900 stores worldwide, and retains a market cap of $70B USD.
While Uniqlo doesn’t consider itself fast fashion given its penchant for quality and minimalism, it’s been snagged by several controversies characteristic of the space (including its environmental impact and worker’s rights).
Nevertheless, one cannot dismiss Uniqlo’s swift rise, seemingly prescient business strategy, and unwavering commitment to affordability. It was once a single unique clothing warehouse. Now, Uniqlo’s a global phenomenon.
Stay tuned for part 2 of this series where I dive into Uniqlo today - its business strategy, creative experiments, and the technology behind it all.
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