GU, the lower-priced brand under Uniqlo owner Fast Retailing, is betting a former luxury fashion designer can help turn US$18 (approximately RM74) jeans into global success.
The retailer, known in Japan for being fashion forward and inexpensive, this week unveiled the first collection overseen by Francesco Risso, the former creative director of Italian luxury label Marni.
GU is seeking to use Risso’s collection to build its brand recognition for international expansion and step out of the shadow of its more famous sibling Uniqlo.
The collection, which start sales in Japanese stores in late July, spans six design themes including minimalist, classic, playful and sports-inspired styles in bright colour tones and patterns.
A pair of jeans will retail for ¥2,990 (RM75), about ¥2,000 (RM50) less than a comparable Uniqlo pair.
Risso’s role at GU reflects a broader trend of mass fashion brands turning to creative talent from luxury fashion houses to generate publicity, elevate products and strengthen brand identity, according to Achim Berg, founder of Germany-based FashionSights and former global head of McKinsey & Co’s apparel and luxury practice.
"It’s one way of creating excitement for the offering,” he said.
"There’s a greater fluidity between high-end fashion, luxury and the mass market.”
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Designer collaborations have become a new normal for fashion brands.
Zara recently announced a two-year collaboration with former Dior creative director John Galliano.
Uniqlo itself has benefited from long-running partnerships with high fashion designers, and its current creative director Clare Waight Keller previously worked at Chloe and Givenchy.
Fast Retailing founder and billionaire Tadashi Yanai has repeatedly said GU’s growth potential is comparable to Uniqlo, and has set a long-term annual revenue target of ¥1trillion (RM25bil) for the smaller brand.
The company plans to first test Risso’s collections in Japan, with plans to accelerate global expansion after.
The push to reinvent GU follows years of mixed results.
The brand’s business remains relatively small, and Fast Retailing’s chief financial officer Takeshi Okazaki said last week that previous GU collections did not resonate well with younger consumers.
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Operating profit at GU fell 9.5% last year, and annual revenue was ¥331bil (RM8.4bil), roughly one-ninth the size of Uniqlo.
Its previous overseas expansion effort has stalled since opening a flagship store in New York’s SoHo in 2024. It also has stores in China, Hong Kong and Taiwan.
"The challenge for GU is to define what it stands for and to offer a clear positioning and value proposition that goes beyond simply being Uniqlo’s sister brand,” said Takahiro Kazahaya, a senior analyst at UBS Securities.
While Uniqlo built a global business around functional products such as Heattech and Airism that addresses universal consumer needs, brands that are style-focused like GU face risks because trends vary significantly by geographic location.
Still, the bet from Fast Retailing is that Risso’s name recognition and experience from European fashion houses can help sharpen GU’s identity overseas. And typically, such collaborations can help a brand raise prices, said FashionSights’ Berg.
"It’s also a way for brands to test how far they can be elevated,” he said. – Bloomberg
