Tadashi Yanai
By
Giorgia Scaturro journalist
On a typical “Indian Summer” day of October, in 2011, the Fifth Avenue in New York City witnessed the opening of a big store. A new store is hardly news for the “city that never sleeps”, especially on its main street, which showcases the highest retail density in the world.
This time, however, was different: the three-story, 89,000 square foot shop, was not just another retail space, but a statement of intent: the Japanese brand Uniqlo was opening its biggest flagship store in the country. The choice of location in New York City was symbolic, as the fashionable international brand replaced the historic American shirtmaker Brooks Brothers on Fifth Avenue.
In the realm of global fashion, where established Western brands like Zara, H&M, and Gap have long reigned supreme, a formidable challenger from the East has risen over the past two decades: Uniqlo. Known for its timeless essentials rather than fleeting trends, the brand promotes its philosophy through the slogan “LifeWear.” Behind a global retail phenomenon stands a visionary entrepreneur: Tadashi Yanai. Blending Eastern philosophy with a Western business-wise stance, Yanai has transformed a small, regional store into a powerhouse, redefining casual wear and amassing a fortune which as a result has made him one of the world's wealthiest individuals.
ONCE UPON A TIME IN A PREFECTURE
Tadashi Yanai was born in 1949 in Ube, a city nestled in Yamaguchi Prefecture in southern Japan, near Hiroshima and Fukuoka. It was a harsh time: WWII had ended just four years earlier, leaving Japan—alongside Germany and Italy—on the losing side. The nation bore a most devastating toll, with the U.S. dropping an atomic bomb on Hiroshima. While the country struggled to rebuild, Yanai’s early life was profoundly shaped by the nuclear catastrophe: the Japanese people endured destructions, victims, and uranium contamination in silent sacrifice, but also with resilience and a collective spirit to rebuild from scratch. Tadashi’s father, Hitoshi, owned a small clothing store named “Men’s Shop Ogori Shoji” in his hometown. Unlike his friends, who aspired to stable careers in established conglomerate companies (keiretsu), young Tadashi was introduced to retail and trade early on, learning the business by just observing his father’s interactions with customers.
Yanai’s career did not start off in retail nor in his dad’s shop. He moved to the capital Tokyo to attend Waseda University, where he majored in Economics and Political Science, graduating in 1971. He found a job at Jusco, a supermarket chain that later became the retail giant Aeon. However, his time there was brief: Yanai returned to Yamaguchi to join the family business. Yet, he was not content with merely running a small local shop: he had big dreams of expansion and innovation, as he set out to rebrand and reinvent the family business.
HOW TO DISMANTLE AN ATOMIC BOMB
In 1984, while the world grappled with another nuclear threat and George Orwell’s chilling prophecy was unravelling, Yanai launched a new brand: the "Unique Clothing Warehouse”. This store was inaugurated in Hiroshima, nearly 40 years after the city’s devastation. A typographical error soon led to the store being mistakenly nicknamed Uniqlo, the name by which it would become widely known. The store’s mission was to offer affordable, high-quality casual wear in a clean, no-frills environment—a revolutionary concept in Japan at the time, where fashion was still largely associated with luxury. Yanai envisioned a space where ordinary people—students, office workers, and others—could find clothing that was not only stylish but also practical and comfortable.
Uniqlo's business model drew inspiration from Western retailers, particularly the American brand ‘Gap’, which was successful in selling casual basics. In the same year Uniqlo debuted, Italy’s apparel brand United Colors of Benetton was also booming, offering appealing yet affordable fashion – giving rise to what we now call: “Fast Fashion”. Yanai spent time in the United States studying their retail models, and he realized that while Japanese retailers typically focused on seasonal, high-fashion pieces, there was an untapped market for quality, low-price basics. This approach led to the creation of Uniqlo's "standard products," such as T-shirts, jeans, and jackets that customers could buy all year round - marking the brand’s shift toward timeless essentials rather than fleeting trends.
THE FLEECE
As Uniqlo’s popularity grew, so did Tadashi Yanai’s ambitions. In 1991, the parent company, Ogori Shoji, was rebranded as Fast Retailing, signaling a commitment to the brand’s speed and efficiency. The 90s were a period of rapid growth for Uniqlo, with the brand surpassing 100 stores across Japan by 1994. However, it remained largely a local brand, as global trends like the U.S. Grunge movement steered young people towards second-hand, rugged clothing styles.
A significant milestone came in 1998 with the launch of the fleece jacket. Priced at ¥1,900 (approximately $17), it became an instant hit, selling over 2 million units in its first year alone. This product not only bolstered Uniqlo’s image but also marked the beginning of a line of successful products that would define the brand's identity. In the early 2000s, Yanai set his sights on international markets. Uniqlo’s first overseas store opened on London’s Regent Street, where it still stands today. Despite initial challenges, including failing to attract enough local customers, Yanai persisted. He recognized that adapting to local preferences was essential for Uniqlo’s success abroad, while maintaining its core philosophy of quality and simplicity. Three years after the London launch, Uniqlo entered the Chinese market, a move that would prove to be one of its most strategic. China, with its vast population and growing middle class, became a key market for the brand. Over the next decade, Uniqlo expanded aggressively across Asia, opening stores in Shanghai, Beijing, Seoul, and Bangkok. By 2010, there were over 800 stores in Japan and approximately 200 international locations.
Uniqlo’s breakthrough in the West came with its flagship store in NYC. Today, the brand operates over 2,200 stores across more than 25 countries and has grown to become the third-largest fashion retailer in the world, after Zara and H&M.
Uniqlo's success has largely been driven by its commitment to product innovation. For instance, the Heattech line introduced in 2003, incorporates specially engineered fibers to retain body heat, making it a popular choice for the winter months. By 2012, Uniqlo had sold over 1 billion Heattech products worldwide. Similarly, the AIRism range, which was launched in 2013, focuses on moisture-wicking and breathable fabrics, providing comfort during warmer seasons.
PAR EXCELLENCE
Even more than fashion, Yanai’s true passion may be golf. He frequently plays at Hirono Golf Club, near Kobe, which is considered one of Japan's most prestigious courses. Yanai has also participated in PRO-AM tournaments around the world, blending his passion for the sport with networking opportunities. His appreciation for aesthetics extends beyond clothing to architecture. Yanai has been involved in designing Uniqlo's flagship stores, collaborating with world famous architects like Kengo Kuma and Herzog+Meuron. The iconic flagship store in NYC, designed by Masamichi Katayama, embodies a clean, minimalist layout that reflects the brand’s philosophy of simplicity.
BIG (NOT ONLY) IN JAPAN
As of 2024, Fast Retailing, the parent company of Uniqlo, has emerged as a global fashion behemoth. The company reported revenues of over ¥2.7 trillion (approximately $18 billion) for fiscal year 2023. It has a market capitalization exceeding ¥9 trillion (around $60 billion), making it one of Japan's largest publicly traded companies. Yanai himself is one of the richest individuals in Japan, with a net worth estimated at over $30 billion. His wealth is primarily tied to his significant stake in Fast Retailing, where he continues to serve as chairman. Despite his immense wealth, Yanai maintains a relatively modest lifestyle. He is often seen wearing Uniqlo’s own designs.
While Yanai’s journey has been one of immense success, it has not been without its challenges. Uniqlo faced criticism for labor practices in its factories in China and Southeast Asia, raising questions about the ethics of fast fashion. In 2015, Fast Retailing was ranked the worst out of 35 global fashion companies for labor rights by the NGO Human Rights Now.
