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Decoding UNIQLO’s Enduring Appeal

Retail

Branding

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5 min read | 27 Mar 2024

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My first visit to UNIQLO in the US left me surprised. Compared to the fancy stores like Nordstrom and Macy’s, UNIQLO’s range was limited and the clothes seemed simple—basic colors and styles. The store itself wasn’t huge, and the prices were neither particularly cheap nor expensive. I couldn’t understand why my cousin, who lives in New York, thought it was his favorite place to shop.

Years later, I read an interview with UNIQLO’s founder in which he demonstrated his brand’s appeal by pulling out a catalog from 14 years ago. According to him what made UNIQLO special was the fact that every item in it could be worn even today. This demo crystallized UNIQLO’s approach: their focus on classic, essential clothing that never goes out of style, instead of following fleeting trends. Their goal is to perfect basic items like black T-shirts, blue polos, and track pants—clothes that everyone needs and uses regularly. UNIQLO uses high-quality materials and small incremental design innovations to make these staples comfortable, durable, and affordable, even after many washes.

This approach allows UNIQLO to offer a limited but long-lasting collection, unlike fast fashion brands with overwhelming choices and often wasteful production. By focusing on what truly matters, UNIQLO has carved out a unique and valuable space as the “timeless fashion” brand, avoiding the fast-paced and ever-changing demands of fast fashion, and its new cousin, “on-demand” fashion exemplified by Shein.

Building a Strong Brand: Beyond the Surface

UNIQLO’s story shows a crucial lesson for brands caught up in the constant chase for novelty: building strong, foundational values matters way more than just constantly buzzing with the new. Branding efforts can be divided into two parts: creating the brand idea i.e. CONCEPTUALISATION,  and selling it to customers i.e. CONSUMPTION. 

However, most new or emerging businesses trying to build a brand seem to be obsessed more with the “CONSUMPTION” part, always searching for the next shiny thing to stay relevant. Today, the front end of marketing deploys hundreds of different tactics across digital and physical channels. The choices and decision-making process are incredibly overwhelming with numerous micro-specializations. 

UNIQLO’s story exemplifies a different path: focusing on the CONCEPTUALIZATION phase i.e. identifying a clear and unique core value early on can simplify branding efforts and make them much more amplified, without the cost or the complexity. This way, a brand establishes its unique identity from the start, making its position in the market clear and any future interactions with customers more impactful. And this approach offers a much better signal-to-noise ratio at the front end.

For new companies, the message is critical: invest in finding what makes you truly different. The answers are not obvious in most categories. We’re not in Lifebuoy or Lux-land anymore. Categories are much more cluttered, and consumers are incredibly distracted. It requires significant rigor and  effort to identify a universal and timeless difference. But it is worth it for the compounding effect it creates on the desirability of the brand. 

This deep differentiation will not only simplify branding and marketing but also help differentiate between an opportunity and a distraction. It is a productivity hack. UNIQLO exemplifies that even in a fast-changing industry like fashion, enduring success comes more from building a strong foundation of uniqueness that resonates with customers over time, and less from riding on fleeting trends.