Uniqlo's edge isn't LifeWear. It's a choice it made in 1987.
In 1987 Uniqlo stopped reselling and started making what it sold. HEATTECH grew from 1.5 million units in 2003 to 130 million by 2012. In FY2024 Fast Retailing's gross margin was 53.9%.
Transcript
In 1984, Uniqlo opened as a casual wear warehouse, reselling other companies' clothes cheaply. Within two years, that model hit its limit.
In 1987, Uniqlo gave up being a reseller and became a manufacturer-retailer, controlling the chain from planning and design to materials and the price tag.
Products like HEATTECH came out of that control. Uniqlo sold 1.5 million HEATTECH units in 2003, and 130 million by 2012.
In fiscal 2024, Fast Retailing reported a 53.9% gross margin and ¥500.9 billion in operating profit.
The LifeWear name arrived a decade after the switch. What Uniqlo gave up in 1987 was the easy model. The advantage was in how it was built, not in what it was called.
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Every figure in the video comes from this Decision Record, each with its sources.
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