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 {#blank#}1{#/blank#}, 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 {#blank#}2{#/blank#} to timeless basics.

    Mr. Yanai has a/an {#blank#}3{#/blank#} base at home from which to develop into his Western competitors' main markets of Europe and America. But instead his {#blank#}4{#/blank#} remains Asia. "Asia is the engine of growth today," he says, pointing to the millions of consumers across the {#blank#}5{#/blank#} who are reaching the middle class. UNIQLO will open its first shop in India this year and is considering {#blank#}6{#/blank#} 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 {#blank#}7{#/blank#} 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 {#blank#}8{#/blank#}. Last year UNIQLO's international profits overtook its {#blank#}9{#/blank#} 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 {#blank#}10{#/blank#} 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.

What Is a Paragraph Break?

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