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 Points - Uniqlo will discontinue the option for customers to return online orders at physical stores starting May 1, requiring returns to be sent to a specified address instead [2][3] - The new return policy has sparked mixed reactions among consumers, with some appreciating the streamlined process while others express concerns about the limitations and potential quality differences between online and offline products [6][8] Company Policy Changes - The new return policy eliminates the ability to return online purchases at physical stores, which was previously allowed [2] - Customers must now pay for shipping to return items unless they purchased shipping insurance at the time of order [2] Consumer Reactions - Some consumers view the change as a positive move towards a more unified management of online and offline sales [6] - Others criticize the restriction, arguing that it limits consumer choice and raises concerns about product quality discrepancies between channels [6][8] Industry Context - The fashion industry faces challenges with high return rates impacting profitability, prompting companies like Uniqlo to focus on cost control [6] - The rise of "white label" products that mimic Uniqlo's offerings at lower prices is increasing competition, particularly from platforms like Pinduoduo and 1688 [6][8] 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 mid-term of the 2024-2025 fiscal year, a 12% year-on-year increase [10] - However, revenue in the Greater China region declined by approximately 3% to 361.7 billion yen, with profits down about 9% [10][11] - The company has announced the closure of 50 unprofitable stores in China and has seen a net decrease of 8 stores in the mainland market for the first time [10]

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].