GU, a subsidiary of Fast Retailing, sets its sights on global prominence with plans to open a permanent store in New York and an ambitious goal to double sales to $4.08 billion in five years. CEO Osamu Yunoki emphasizes the brand’s overseas expansion strategy, highlighting its success in greater China and undisclosed plans for Europe and Southeast Asia. The move is part of GU’s effort to reduce dependence on the Japanese market, akin to its sister brand, Uniqlo.
With 463 stores, GU is revamping its recruitment and training, establishing a global training program and hiring new graduates in China. Yunoki states that GU’s fiscal year ending in August 2024 is pivotal for solidifying its overseas presence. The brand is actively studying global trends, sending executives to a Manhattan hub for product development and considering it as an alternative headquarters.
While GU faces challenges from online giants like Shein, it distinguishes itself through brick-and-mortar stores and a streamlined product strategy, focusing on quality over quantity. GU plans to strengthen its logistics infrastructure and increase e-commerce sales to 30% from the current 12%. As GU aims to contribute significantly to Fast Retailing’s goal of achieving ¥10 trillion in group sales, Yunoki emphasizes the importance of efficiency and brand attractiveness in a competitive global market.
