God of Management: Subversion of Japanese Fashion

When many private entrepreneurs complete their capital accumulation and casually jump into different industries in a "gold rush," he remains steadfastly focused on the 26-year-old garment industry, continuously building his "clothing empire" and eventually becoming Japan's "Panasonic"—the third-generation "God of Operations." While many successful entrepreneurs become complacent, satisfied with their achievements and stuck in a difficult-to-break "bottleneck," he reflects rationally, gives up the joy of success, and publishes a warning to the world: "One Win and One Loss." His introspection and enlightenment reveal that failure can be the seed of success. When many private owners turn their assets into family legacies, creating "rich second generations," he allows his two sons to step away from the group, unexpectedly promoting the establishment of presidents in China and opening up the Chinese market. This unique figure is the founder of Uniqlo, known as the "subverter of the Japanese clothing industry." As Uniqlo expanded globally and opened its third store in Shenyang, a reporter interviewed Mr. Yanai, the "God of Business." This entrepreneur, who embodies Confucian-style business values, has become a model for business success worldwide. **The Human Market Decision: The Story of Uniqlo** Named after clothing, Uniqlo’s journey represents the evolution of Japan’s fashion industry. Starting from small shops selling suits, it has grown into a large-scale clothing sales group, flourishing across the globe. Today, Uniqlo operates multinational production and sales companies in 11 countries, with 920 stores worldwide, including 67 in China (Beijing, Shanghai, and Shenyang). As of August 2010, Uniqlo achieved total sales of 814.8 billion yen, a profit of 123.7 billion yen, and 2,203 stores. It was named the Best Japanese Company for two consecutive years and received the title of "International Retailer of the Year" by the U.S. Retail Association. The founder, Tadashi Yanai, became Japan’s "God of Wealth" after Matsushita and others, known as the "third-generation management god." His success was described as a "subversion of the traditional Japanese clothing retail industry." From business insight to development, success comes from hard work and smart decisions. When the global clothing market became more refined and trendy, Yanai saw an opportunity: society created a group of leisure-oriented people who needed comfortable and relaxed clothing. Clothing should serve people, not bind them. He designed clothes that were affordable yet high-quality, focusing on everyday wear, simplicity, and comfort. Uniqlo’s philosophy is to provide modern, easy-to-wear, high-quality casual wear for all ages. This approach reflects his belief that clothing should be practical and accessible. **Integrity Builds Market Reputation** Japan's economy is highly export-dependent, and its products have gained international trust through sincerity. Uniqlo has become an international brand, holding 85% of the market share in China for raw materials, production, and sales. They won the Chinese market not just through strength but through integrity. In the early 1990s, Yanai saw potential in the Chinese market and decided to expand. He visited a Zhejiang factory, signed 1,000 garment contracts, and promised long-term cooperation. When the factory fulfilled its obligations, Yanai did not abandon them. Instead, he conducted an unscheduled visit, assessed the factory, invested in technology, and signed a long-term contract. Despite initial disputes over quality and management, Yanai remained committed, which helped build trust and long-term partnerships. Uniqlo’s current success stems from past failures. Even when it faced setbacks, like its London store closing due to economic miscalculations, Yanai used his established credit to secure support from banks and other companies, helping the company recover quickly. In his book *One Victory and Ten Failures*, Yanai wrote: “Success comes from countless failures. Learning from failure can lead to new beginnings.” **Talent Management and Leadership** Yanai believes in selecting the right people and creating favorable conditions for them. He quotes Sun Tzu’s *Art of War*: “Good fighters seek momentum, not responsibility.” He emphasizes using talent effectively and empowering leaders. In China, Uniqlo’s President Pan Ning and Vice President Gao Yu started as ordinary employees. Through dedication and hard work, they rose to leadership positions. Yanai also encouraged his sons to pursue independent careers rather than inherit the business, breaking the traditional family succession model. By focusing on talent and corporate culture, Yanai built loyalty and ensured sustainable growth for Uniqlo. **Visionary Strategy for Global Expansion** Uniqlo, listed on the Tokyo Stock Exchange, has become a barometer of Japan’s economic changes. Yanai, now one of Japan’s wealthiest individuals, once answered a question about investment differently from others. While some chose real estate, he opted to expand Uniqlo globally. He believes that understanding one’s strengths and weaknesses is key to leadership. He adapted the saying, “A wise person loses ten things but gains one,” reflecting his belief that success comes from learning and adapting. His story shows that true leadership is not about fear of failure, but about seeing opportunities in challenges. (Yang Zhigang, Senior Reporter)

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