UNIQLO's founder tries to find a way to beat Zara and H&M

    When asked what guides his vision of UNIQLO, Tadashi Yanai, its founder and chief executive, pulls off the shelf the 1987 autumn/winter collection catalogue of Next, a mass-market British retailer. All of the clothes are so , he says, that they could be worn today. While Zara of Spain and H&M of Sweden follow fashion trends without having any original thought, UNIQLO of Japan to timeless basics.

    Mr. Yanai has a/an base at home from which to develop into his Western competitors' main markets of Europe and America. But instead his remains Asia. "Asia is the engine of growth today," he says, pointing to the millions of consumers across the who are reaching the middle class. UNIQLO will open its first shop in India this year and is considering into Vietnam and other countries (it has already opened networks of shops in Indonesia, Singapore and Thailand).

The success or not of UNIPLO's overseas operations greatly to investors at home. Fast Retailing's shares — Mr. Yanai owns just over 20% of the firm — have been rising since 2015, nalysts estimate, largely owing to its international expansion and improved logistics (物流). At home the firm is closing stores because the population is . Last year UNIQLO's international profits overtook its sales for the first time and its foreign operation profits almost equaled its Japanese equivalent.

    Though they are very different markets, Europe and America offer a cautionary tale. UNIQLO in America struggled outside the big cities of the east and west coasts. Growth in America remains for UNIQLO both there and in Europe. However, Mr. Yanai, an enthusiastic fan of globalization, is confident that he can guide UNIQLO through the changes needed.