Inside Uniqlo's Fascinatingly Intentional Approach to U.S. Success

Last week, Uniqlo hosted a rare event for press and influencers in Los Angeles: an omakase dinner at a minimalist Japanese restaurant, to celebrate its (honestly pretty chic) Fall 2024 LifeWear collection. Coincidentally, just a few days prior, I was indulging in a similarly decadent omakase dinner in Tokyo during a press trip for Uniqlo’s sister brand GU (more on that to come). One of my biggest takeaways from the trip was how wildly popular Uniqlo is in its country of origin, and how comparatively minuscule its store footprint is in the United States: 58 total, at press time.

As the brand nears the end of its first decade in the U.S., that’s beginning to change: The retailer, which has seen consistent North American revenue growth over the last several quarters, is in the midst of a significant U.S. retail expansion process that reflects the fascinatingly intentional and prudent way in which it caters to American shoppers.

“We’re seeing a lot of fans asking on social media, ‘When are you going to open in my town?’ It’s very huge momentum for the brand right now,” Nicolas Cessot, a Frenchman who heads up the retailer’s U.S. brand and product marketing, told me during the event. Right now, the focus is on Texas, where Uniqlo is opening its first five stores in Dallas and Houston; and California, where it already operates 19 stores and is in the process of opening six more between L.A. (at Westfield malls in Century City and Sherman Oaks), San Jose, Sacramento and San Diego. A total of 20 store openings are planned for North America this year. And there’s more to come: “We want to continue to open more stores in new markets in the future,” Cessot shared.

These locations were chosen thoughtfully based on customer comments, demand and e-commerce data. In general, the retailer understands that what works in its thriving Japanese market might not work in the American one. It puts significant resources into tailoring its approach to the region at hand, considering how and where people there shop, brand awareness and the types of products they’re most likely to gravitate toward. Even sizing and fit differ country by country. (Since I know you’re listening, Uniqlo, any chance you could start offering an assortment of Japanese-sized clothing for us petite folks?)

“My goal, obviously, is accelerating the growth of the business, but also the brand,” Cessot explained. “My ultimate goal is to get everyone to understand the LifeWear concept, who is Uniqlo, and what do we stand for… Ultimately, we want people to understand that we are a unique retailer.” (Fun fact: Uniqlo was originally called Unique Clothing.)

In an increasingly competitive retail landscape, especially for affordable clothing, setting oneself apart is crucial. One way Uniqlo does this is through its commitment to timeless wardrobe staples and uncomplicated, functional design, which is fairly unique in a market filled with disposable items tied to a rapidly changing trend cycle. 

“It’s really about designing clothing that is made for everyone’s life. And that’s a very simple way to explain it, but the clothing is very simple, very thought-through, simple design with the Japanese DNA, the Japanese craftsmanship,” said Cessot. “We are about versatility, we are about comfort, convenience and, I would say, utility.” As parent company Fast Retailing prepares to expand GU, a similar but slightly younger and trendier brand, into the U.S., defining what makes Uniqlo unique will be even more important.

Another priority is “designing and producing products that are more locally relevant for the U.S.,” he noted. “We are learning on the way, and sometimes we fail, sometimes we succeed. But this company has a very quick way to react to the markets.” It employs a local “Voice of Customers” department dedicated to looking at customers’ feedback, which is then factored into the design process. The company also recently established a headquarters in New York with its own research and development center.

This approach has generated some recent viral hits in the U.S., specifically, like the TikTok-famous Mini Round Shoulder bag and the cropped built-in-bra tops; the brand’s equally simple oversized crew-neck T-shirts have been a number-one seller for over a year. “Now we’re designing new colors, new patterns, new fabrics based on [these products’] success,” said Cessot. “We have several products that we are also creating for the U.S. market. But we take our time to really understand first what the market, the demand is, and then we expand it.”

The brand has especially high hopes for a couple of fall launches, like under-$100 cashmere sweaters offered in more than 30 colors. “We are seeing actually a big opportunity for this type of fabric, which used to be seen as [being for] older customers, very expensive,” Cessot explained. The hope is “that we can bring it to everyone [including] younger customer like Gen Zs and millennials.” The second is a line of lightweight-yet-insulating outerwear called “Pufftech,” a new innovation based on its famous Ultra Light Down range, using a non-feather down alternative that’s easier to wash.

A special Pufftech product will soon be offered via an upcoming (unknown) design collaboration — another area where Uniqlo has successfully set itself apart. It focuses on long-term partnerships with well-aligned designers that have devoted cult followings, despite not necessarily being household names. A very chic third Uniqlo : C collection by Clare Waight Keller (featuring menswear for the first time) drops on Sept. 5, complementing ongoing collabs with Christophe Lemaire (Uniqlo U) and JW Anderson.

“We know Uniqlo could work with many designers of course, but I think Uniqlo is very particular on the authenticity, the value. Our founder, Mr. Yanai, is really attached to that,” shared Cessot. “Those are not necessarily the names you hear everywhere every day, but he feels like they actually really care about the brand. They’re really trying to listen to the voice of the customers as well. So it’s all about value sharing before the talent.” As for who could be next, I asked Cessot if an American designer might end up on the roster, and he brought up Helmut Lang, which is owned by Uniqlo’s parent company Fast Retailing, and with which Uniqlo has released a couple of small collaborative denim drops in the past. Helmut Lang is also in the midst of a buzzy revival led by New York-based Peter Do. Nothing new is confirmed, so we’ll have to wait and see.

Uniqlo has also been investing in its retail environments — both digital and physical. While the website and app are seen as a resource for shoppers who “already understand our brand,” the “core of the business” is physical retail, Cessot explained. “That’s really where we are spending a lot of effort. We are spending a lot of time with our merchandising team, our operation team and store team, to create a space that is easy to navigate, to really feel the brand, really understand the functionality of the product.” To this end, stores tend to feature a lot of signage. “That’s very important for us to explain that this is more than just a T-shirt, and this is more than just a jacket, and there is some secrets behind it.” Another highlight is the futuristic self-checkout offered at some locations, where you simply dump all your items into a basket, and each one is automatically rung up, seemingly by magic. (It’s RFID.)

As it continues to expand, the brand hopes to develop more unique services, tailoring stores even more specifically to their locations within the U.S. — a massive country with a uniquely diverse range of communities. “I think people are expecting from brands like Uniqlo, more [of a] local aspect, feeling like this is their neighborhood store. So that’s the idea we have, but now we need to scale it at the size of the U.S. market.”

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Source: Fashionista.com