In new driving force growth the European market is highlighted fashionable For Japanese billionaire Tadashi Yanai and his rapidly growing brand, Uniqlo.
In recent decades, Janai’s fast retailing company has emerged as the third largest fashion manufacturer in the world. Today, Europe, with competitors such as Inditex (Zara) and H&M, is transformed not only into a basic growth market but also into the group’s new creative center.
“Europe has a huge potential for us,” says Taku Morikawa (Taku Morikawa), who as the head of Uniqlo in Europe is one of the leading directors of the group. Already Uniqlo, Fast Retailing’s most important brand, is growing much faster in Europe than in Japan and the US. And that must remain like that. “Europe will be the highest growth market for us in the next five to ten years,” he added.
Epirus contributes decisively to the special place of fast retailing in the global fashion industry. While many companies suffer from the pressure of cheap Chinese suppliers such as Shein and US duties, the Japanese continue their almost uninterrupted development, according to Handelsblatt.
Growth rates above average market
A 1% reduction in turnover (turnover) was recorded by H&M in the first half of 2025 and a 28% reduction in profits, while Inditex, Zara owner, from Spain, increased only 1.5% in the last quarter. In fast retailing the image is completely different.
During the first nine months of this year ended at the end of August, the group’s turnover and profits increased by 10.6% and 12.6% respectively. Extension to Europe compensates for problems in China. Thus, with a turnover of 19.7 billion euros, the group could approach the second largest fashion group in the world, H&M.
However, for the head of Uniqlo in Europe, Morikawa, this is just a first -point image, as the European fashion industry is considered a growing market. By 2033, turnover is expected to increase by 4% a year, reaching $ 538 billion, according to market research company market forecasts. This corresponds to an increase of about 40% compared to 2024.
However, Morikawa expects Uniqlo significantly higher growth rates than average. The brand still has a small market share, but high demand from customers and, therefore, huge potential.
In terms of turnover, Europe has surpassed the US in the group’s internal ranking. Currently, the Japanese operate more than 85 stores in eleven countries in the region. “The autumn and winter season will add nine more,” says Morikawa. At the same time, it does not see much resistance from competitors.
“We are different from other brands, with a completely different range of products and corporate values,” Japanese explains. Many manufacturers focus on Fast Fashionh+, that is, the fast fashion design that is trying to respond to short -term trends. “We, on the other hand, focus on durable high quality basic products.” This is liked by many Europeans.
Despite the difficult climate of consumer confidence, strong growth rates support Morikawa’s assessment. According to the representative forecast for Alix Partners in 2025, more than one -third of consumers involved in the study plan to spend less money on non -nutrition products this year. An expert in the field of trade, who wishes to remain anonymous, told Handelsblatt that a brand like Uniqlo could benefit from it, as its products are economical and independent of fashion trends.
CLSA’s Oliver Matthew expert is in agreement with Oliver Matthew. “Fast retailing has a unique competitive advantage,” says Tokyo -based analyst.
The price of Fast Retailing is currently on the ceiling, especially because the Japanese company’s profit margins have been negatively affected by the increase in shipping costs and duties. However, he expects growth. “The business model is not easy to copy from others.” This advantage can be further enhanced by expanding the company to US, Europe, Gulf and African countries.
The recipe for the success of founder Tantasi Janai
The foundations for today’s Uniqlo success were laid by the founder of the company, Tantasi Yanai, in the 1980s. His father had a traditional clothing store. The son, however, had the vision to upset the exact Japanese fashion industry with high quality mass production products.
In 1984 he opened the first uniqlo store in Hiroshima. From early on, he decided to control the whole process, from design and production to sale. So it managed to eliminate many intermediate stages that increased costs and took a lot of time.
In 1991 he renamed his company to fast retailing. The name was not aimed at referring to fast fashion, but to reflect the management philosophy that focused on speed. Janai, Japan’s richest man today, is trying to maintain this spirit.
With the slogan “Global One”, the 76 -year -old plans to create a global flexible organization in which every member of the staff will think and act as a businessman.
Innovations in the field of textile products and distribution
The new seat in the Ariake area of Tokyo also reflects this philosophy. Fast Retailing has concentrated most of the basic functions, such as products growth, technology, administration and distribution, on the two upper floors of a huge, almost fully automated storage space.
The workplaces were designed as a small town to improve communication. That is why they are divided into different zones, with a library and even climate chambers, where clothes can be tested in different environmental conditions.
Janai invested early in new technologies in the field of textile products and distribution. In 1998, a Flis jacket brought him success in Japan. At the beginning of the millennium, a collaboration began with the Toray Chemical Club, which specializes in fiber, with the aim of developing functional underwear.
These include products called “Airism” intended for summer, and “Heattech” for winter. The material absorbs sweat and then produces heat. Working with great athletes, such as Roger Federer, or designers, such as German Jil Sander, are aimed at giving Uniqlo a more emotional tone.
In production and distribution, the group is also largely based on RFID radio. Each outfit is already equipped with them in the factory. In this way, the Group is not only managing the supply chains, storage and orders, but also revolutionized the fund, according to Morikawa.
Customers should simply place their shopping baskets in the cashier, where the amount they have to pay automatically. Thus, the payment process is reduced from minutes to seconds.
In this process, the group turns its clothes into a source source: customer feedback is evaluated and integrated into the development of products and business. “Uniqlo is not a fashion company, but a technological company,” its founder, Yanai, once said.
Europe is becoming an innovation center
The group focused early on the recycling of products, especially in Europe. Even repair services were created, such as repair with the Japanese Sachiko technique, as well as an optional clothing embroidery service with initials.
In the meantime, these ideas have been adopted in selected stores around the world. “Thus, Europe now takes on the leading role in sustainability and service projects,” says Morikawa.
In marketing, despite the global orientation, local strategies are being followed. To make it better known in Europe, Uniqlo is investing in chiefs in historic buildings of large cities. Thus, the brand is presented in Europe with a significantly higher quality than in Japan, where operating stores are part of the equipment of each shopping center.
Another step: A London Research and Development Center was established in London, which works closely with the Center in the Japanese Ariake. “In this way we want to develop important technological or design elements for the world organization, based on the desires and demands of European customers,” says Morikawa. In Europe alone, 10,000 complaints and proposals are obtained each week, which are evaluated in detail.
Linen and Kashmir products are two ideas from Europe and have become popular in Asia. And in this case, Morikawa sees the biggest advantage of his company: “We have a global corporate policy, but when we find proven practices or products in some countries, we spread them around the world.”