Takeshi Okazaki, chief financial officer of Fast Retailing, which also owns the Uniqlo brand, believes GU has as much potential as Uniqlo.he said bloomberg Plans to bring Japanese fashion labels to America and Europe.
Fast Retailing is expected to create as many GU stores as Uniqlo as it accelerates its bid to become a global retailer with sales of 10 trillion yen (US$67 billion).
GU has slightly lower prices than Uniqlo and is targeted at younger customers. However, its base is mainly in Japan.
The brand made its first foray into North America in 2022 with a pop-up store in New York City's SoHo neighborhood.
Mr. Okazaki said: bloomberg The brand's goal is to have “an abundance of trendy products that are easily available'' and “enjoy fashion,'' but he said that this cannot be achieved by just staying in Japan.
He hinted at the idea that GU could follow in the footsteps of sister brand Uniqlo, which is accelerating its expansion in the United States and Europe. According to its fiscal year-end report, Uniqlo is considering opening 20 stores in North America and 10 in Europe each year.
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However, GlobalData analyst Louise Dogries Fabre expressed mixed feelings about the move. She told Just Style that viewers may be confused about how to perceive GU because Uniqlo already has a strong value and quality proposition.
“They're going to have to do a really good job marketing it. This is a more valuable brand and it's targeted at a younger demographic. I can see them trying to compete with rivals like Primark with this. However, given that Uniqlo has a similar offer and is doing very well in those markets, I wonder if viewers will be worried that GU is cheaper in quality? , That said, success is possible given the current economic climate in the US and EU. Your marketing needs to be done right so your audience understands, trusts, and accepts your brand. .”
Fast Retailing reached out to Just Style for comment at the time of writing, but had not received a response.
In its latest financial report, Fast Retailing reported a 13.2% increase in sales in the first quarter, with Uniqlo's overseas operations seeing a rise in sales as its products are perceived as offering good value for money. reported an increase of almost a quarter (23.3%).
