Core Viewpoint - Uniqlo has implemented a new policy starting in May, where online orders cannot be returned in physical stores, requiring returns to be sent back to a designated address, which may involve additional shipping costs depending on the order details [2][5][10]. Group 1: New Return Policy - The new return policy aims to unify online and offline management, making the process more streamlined for the company [6]. - Some consumers appreciate the change, viewing it as a simplification of the return process, while others express confusion and frustration over the lack of flexibility in return options [7][10]. - Concerns have been raised about the potential for a divide between online and offline product quality due to the separation of return channels [8]. Group 2: Financial Performance - Fast Retailing, Uniqlo's parent company, reported a total revenue of 1,790.1 billion yen (approximately 91.3 billion RMB) for the fiscal year 2024-2025, with a year-on-year growth of 12% [13]. - However, revenue in the Greater China region declined by approximately 3% to 361.7 billion yen, with profits down about 9%, indicating a slowdown in this key market [13][14]. - The company attributes the poor performance in Greater China to low consumer sentiment and a mismatch in product offerings with regional demands [14]. Group 3: Market Competition - The decline in Uniqlo's revenue in China is partly attributed to the rise of "affordable alternatives" that replicate Uniqlo's popular styles at lower prices [15][16]. - Many popular Uniqlo items can be found on platforms like Pinduoduo and 1688 for under 100 yuan, highlighting the competitive pressure from these alternatives [16]. - The domestic apparel manufacturing industry has become highly developed, making it easier for competitors to replicate Uniqlo's basic designs [18].

Core Viewpoint - Uniqlo's strategy in Europe is shifting towards local cultural integration, contrasting with its previous approach in China, where it focused on transplanting Japanese style. The company aims to establish a strong presence in the European market after experiencing a slowdown in growth in China [4][5]. Group 1: Market Strategy - Uniqlo is collaborating with local artists in Europe to create a positive brand image and is opening flagship stores in prime locations to gain respect from local consumers [4][8]. - The company has significantly increased its investment in the European and North American markets, with overseas operations contributing approximately 20% to Fast Retailing's revenue, a figure that continues to grow [4][8]. - Uniqlo's previous attempts to enter the European market were met with challenges, including management issues and a lack of consumer acceptance, leading to a strategic retreat and a more cautious approach in recent years [9][10]. Group 2: Financial Performance - The latest financial reports indicate that overseas business, particularly in Europe and North America, has driven growth for Uniqlo, with expectations of a 76% increase in capital investment for overseas operations by the fiscal year 2025 [8][11]. - E-commerce has become a significant revenue driver for Uniqlo in Europe, with its share of total sales increasing from 20% in fiscal year 2019 to 30% in fiscal year 2021, aided by a shift in consumer behavior during the pandemic [11][12]. Group 3: Competitive Landscape - Uniqlo faces competition from local fast-fashion brands in Europe and North America, where consumer preferences vary significantly. The brand is perceived as a more durable alternative to competitors like H&M and Zara, with lower price points for essential items [10][12]. - The company is also expanding its physical presence in the U.S., with plans to open 200 stores by 2027, leveraging e-commerce data to identify optimal locations [15][18]. Group 4: Challenges and Risks - Uniqlo's reliance on Chinese manufacturing poses risks, especially with potential tariff increases and geopolitical tensions affecting supply chains. The company has a significant number of its production facilities in China, which could impact pricing strategies if tariffs rise [18][19]. - The brand's commitment to maintaining its manufacturing base in China, despite rising costs and geopolitical pressures, reflects a long-term strategy that may face challenges as it expands in Western markets [18][19].