You should invest in Fast Retailing, the parent company of Uniqlo, GU and other global brands. Its a Japanese based company run by Tadashi Yanai who took over his fathers company in 1984 and grew it into the 80 billion $ market cap company it is today.
In 2023, Uniqlo contributed 84% to total sales, and offers high quality functional clothing at affordable prices. GU on the other hand contributed 11% to total sales, and offers trendy fashion at even cheaper prices, which is attractive to a younger more price-concious audience.
Uniqlo stands out with its innovative technologies such as HeatTech and AIRism, which provide functional benefits, distinguishing themselves from other brands.
Uniqlo also caters to a broad demographic. Men and women's clothing contributed 44% each to total sales, and children's clothing contributed 12% total sales. I think that the childrens clothing segment has the potential to grow in the future, because as Uniqlo consumers grow older and have kids, they'll buy Uniqlo for their children too.
And what's unique about Uniqlo ( :> ) is that they've maintained control over their distribution so you can't buy them on other platforms like Amazon, yet they've been so successful.
Uniqlo has over 2400 stores worldwide, with plans to open 60 stores annually in Southeast Asia, India, and Austrialia, and 30 stores annually in North America and Europe. They are also increasing their presence in e-commerce, which accounted for 25% of total sales in 2023.
They achieved 19 billion $ in revenue in 2023, and are expected to exceed 20 billion $ in revenue in 2024. I believe that this increase in revenue is a combination of pricing and volume, and a little bit of store growth, which can lead to low double digit growth in the future.
So after outpacing fast-fashion companies like H&M, Zara and Gap, Uniqlo's lifewear is here to stay.
#FRCOY