How will the new president and the new designer affect the future of Uniqlo?

Fast Retailing Co., which is known worldwide for its Uniqlo and GU brands, made two important announcements at the end of August.

The announcements can be seen as a strategic move into the next era by Fast Retailing, which will post its best performance for two consecutive financial years ending in August.

The first announcement on August 28 was about the appointment of Daisuke Tsukagoshi, one of the board members of its main subsidiary Uniqlo Co., as president of the subsidiary, effective September 1. The 44-year-old executive was recognized for his achievement in turning Uniqlo’s U.S. business from deficit to profit.

Uniqlo Co. is the top earner for Fast Retailing, both in terms of turnover and profit. Until recently, Tadashi Yanai, the founder of the current company, served as chairman and president of the subsidiary and parent company. The appointment means that 74-year-old Yanai has handed the Uniqlo post to Tsukagoshi, but still has the final say as chairman and CEO of Uniqlo Co. In that sense, Tsukagoshi is second in command.

Uniqlo’s new president was denied a seat on Fast Retailing’s board of directors, the company’s highest decision-making body. Will he ever be appointed to the board of the parent company?

The current board of Fast Retailing sometimes hears sarcastic comments that it is a Yanai family meeting. And no wonder. Besides Yanai and his two sons, Kazumi Yanai, 49, and Koji Yanai, 46, the board members consist solely of 58-year-old director Takeshi Okazaki, outside board members and auditors.

Yanai has stated that he will not handle the succession, but I suspect that does not mean that he ‘absolutely wouldn’t do that’. I think he means that he would not appoint any of his sons as his successor if they were not up to the task. Tsukagoshi’s appointment as president of the core business could become a benchmark for thinking about how to hand over management to the next generation in the future.

The other major announcement on August 17 was about Uniqlo: C, a new women’s fashion line co-created by Uniqlo and British designer Clare Waight Keller.

Uniqlo has been working with many designers since 2006. The collaboration with Jil Sander started in 2009 under the label Plus J, with many stylishly designed clothing. It is said to have helped change the image of Uniqlo, which traditionally focused on its strength in functionality. The collaboration with Christophe Lemaire, which first went on sale in October 2015, has proven so popular that it has become a long-standing brand under the name Uniqlo U, with new items added every season. And from September 2017, Uniqlo has partnered with Jonathan Anderson through his JW Anderson brand, which has proven hugely popular with customers since its inception.

Uniqlo establishes relationships with designers who can consistently attract a large following for their designs, not with those who cater to fashionistas. In the fashion field, both Sander and Lemaire are leading designers in the field of anti-chic minimalism, which fits well with Uniqlo’s basic and casual style and ensures a long-term collaboration.

The collaboration between Uniqlo and Jil Sander was immensely popular, but Uniqlo apparently believes it has reached a turning point in the autumn-winter 2021 collection. Sander will turn 80 later this year and the collaboration is likely to end. Uniqlo was probably looking for a designer to replace her. Keller probably lived up to expectations.

“Uniqlo’s challenge is what to do with women’s fashion,” said Yukihiro Katsuta, an executive officer of Fast Retailing, speaking at the launch event for Uniqlo: C on September 13. “We had to add finesse and glamor to casual clothing.”

Keller, who has been creative director for a number of high-end brands such as Chloe and Givenchy, is a very different designer compared to Sander and Lemaire, as her style is quite elegant. She is perfectly suited to provide the “finesse and glamour” mentioned in Katsuta’s speech, although it remains an open question whether that kind of styling is what women want from Uniqlo.

Standout items among the Uniqlo:C clothes that went on sale on September 15 include a trench coat (¥12,900) and a color-block pleated skirt (¥5,990). The full range is available at 68 Uniqlo stores nationwide (out of the 790 Uniqlo stores open at the end of August), as well as online and in stores abroad. I’m looking forward with great interest to seeing how it goes.

Akira Miura