Tokyo. Forty years after its founding, Japanese clothing retailer Uniqlo now boasts over 2,500 stores worldwide. Sales at its parent company, Fast Retailing Co., recently surpassed 3 trillion yen ($20 billion) annually for the first time.

Uniqlo's name combines "unique" and "clothing," with its core concept being "LifeWear" — everyday clothing. Fast Retailing Co. CEO Tadashi Yanai, Japan's wealthiest man according to Forbes with an estimated net worth of $48 billion, spoke recently with The Associated Press at the company's Tokyo headquarters. 

Uniqlo has opened 75 stores across 27 cities in Indonesia as of September.

Q: What were the biggest challenges over the past 40 years?

A: Reflecting on 40 years, it feels more like three. I started with a regional business and expanded nationwide. When we became No. 2 or No. 3 in Japan’s casual wear market, reaching No. 1 was within reach, so we went public in 1994. That led to our fleece boom, which doubled our revenue in one year to 400 billion yen ($2.6 billion).

I had global ambitions when revenue hit 300 billion yen ($2 billion), and we opened 50 stores in the UK, hoping to replicate our success in Japan. Instead, we were completely knocked out. We opened 21 outlets in a year and a half but closed 16, leaving only five. It was tough. But now, London and Paris are among our strongest markets. We made gradual progress.

Q: What are some key sustainability challenges you've faced over the years?

A: We make clothes that last. The cashmere sweater I'm wearing today costs $99, but please don’t call it “cheap” — call it “reasonable.” We sell quality products at reasonable prices. Sustainability is crucial to us, and we focus on what we’ve really achieved, such as recycling, hiring disabled workers, and supporting refugees.

Prices may be lower at Wal-Mart, but our products offer real value for the price. We put in great care and time, involving many people in the process. Our competitors don’t do the same.

Q: What is behind Uniqlo’s success, and why does it resonate globally?

A: When we say Uniqlo is "made for all," some might think of products for the masses, like at Wal-Mart or Target. But we mean high-quality products that appeal to everyone, including the very wealthy. Our products are fine-tuned in design and made with quality materials while addressing sustainability concerns.

We started as a retailer, then became a manufacturer-retailer, and now we are a digital consumer retailer. That’s why we are successful. If we had stayed the same, we wouldn’t have succeeded. Being a digital company means we use data to shape our work — understanding customers, store workers, and the market. Continuous adaptation is the key to stable growth.

Q: Are you confident Uniqlo will continue to thrive for the next 40 years?

A: Absolutely. We’ve been preparing to reach 3 trillion yen ($20 billion) in revenue, and we’ve just started getting recognition. There’s still a long way to go. We’re just getting started and will continue to grow. There’s huge potential in Europe, the U.S., China, and India, where the population is key. Clothing is a necessity, and a large population offers more opportunities.

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