Uniqlo’s parent firm shifts focus on simplicity with its ‘LifeWear’ concept

This approach will position the company to further expand its customer base and revenue, especially in line with the global sustainability trend.

This shift follows the recent announcement of Fast Retailing’s third consecutive year of record-breaking performance and Uniqlo International’s revenue surpassing half of the group’s total revenue for the first time.

Tadashi Yanai, the company's CEO and founder, puts this robust sales growth to a shift in consumer behaviour. In the face of rising living costs, consumers are becoming increasingly price-conscious, elevating the importance of value over luxury.

Yanai said the LifeWear product line, known for fleece jackets and other basics, is well-received worldwide, especially in Europe.

Fast Retailing’s annual report, released last week, revealed remarkable gains in Uniqlo Europe’s revenue and profits. Its revenue surged by 49.1%, reaching 191.3 billion yen (46.58 billion baht), while its operating profit rose by 82.5% to 27.3 billion yen.

European consumers are showing a growing affinity to the LifeWear concept, contributing to a larger, more loyal customer base.

“Our goal is to boost global recognition of the Uniqlo LifeWear concept,” Yanai said.

LifeWear is embodied by the concept of simple, high-quality clothing designed with a practical sense of beauty and affordability in mind. Crucially, it is developed with a commitment to ethical manufacturing practices, low-environmental impact and a focus on circularity or repair, recycle and reuse.

Apart from underscoring its commitment to sustainability, the company also attributes its growth to innovation embedded in everyday clothes, such as HeatTech, Airism and AirSense.

For the fiscal year ending August 31, 2023, Fast Retailing has reported impressive growth across all regions where it operates, namely:

• Greater China: 620.2 billion yen revenue, 104.3 billion yen operating profit.
• South Korea, Southeast Asia, India and Australia: 449.8 billion yen revenue, 78.2 billion yen operating profit.
• North America: 163.9 billion yen revenue, 21.1 billion yen operating profit.
• Japan: 9.9% surge in revenue at 890.4 billion yen, 9.2% surge in operating profits at 117.8 billion yen. In-store sales surged 7.6% year on year, while online sales rose 2.3% year on year to 133.8 billion yen, accounting for 15% of total revenue.

Fast Retailing’s total consolidated revenue surged by 20.2% to 2.77 trillion yen for the fiscal year, while operating profit rose by 28.2% to 381 billion yen.

Profit before income tax rose by 5.9% year on year to 437.9 billion yen, while profit increased 8.4% to 296.2 billion yen, setting a new record for the third consecutive year.

To sustain its growth trajectory, the company has set an ambitious target for fiscal year 2024: revenue growth of 10.2% to 3.05 trillion yen, with operating profit rising by 18.1% to 450 billion yen.

Daisuke Tsukagoshi, president of Uniqlo, said the company aims to take an aggressive stance towards accelerating global growth while refocusing on core principles and strengthening management platforms.

Takeshi Okazaki, Fast Retailing's chief financial officer, said the company also plans to expand its portfolio of high-quality stores primarily through its Uniqlo International operations.

“We anticipate having 3,660 stores by the end of August 2024, including 800 outlets and franchises in Japan, 1,744 Uniqlo stores overseas, 480 GU stores and 636 Global Brands stores,” Okazaki said.

With a determination to become a leading brand that is essential to daily life, Fast Retailing also plans to transition into a digital consumer retailer to diversify its revenue streams. It also plans to continue championing sustainability as well as expanding the GU business segment alongside Theory and other Global Brand labels in addition to enhancing its human capital.