In 1997, Tadashi Yanai shut down the last Uniqlo store in Tokyo’s suburbs and, for the first time, seriously considered the future of his company.
At the time, Japan’s economy was in a slump. The once-thriving middle class was shrinking rapidly, young people had little ambition or desire to spend, and consumer sentiment was at an all-time low.
If Uniqlo continued selling expensive, custom-tailored suits or relied on its small town and suburban markets, bankruptcy seemed inevitable. Yanai sought a breakthrough. He decided to replicate the costly fleece fabric that was popular at the time and sell it to Tokyo residents at just one-fifth of the price charged by imported US brands.
A turning point in Uniqlo’s rise
Fleece was originally invented by Massachusetts-based textile manufacturer Madden Mills, which specialized in baby onesies. The company aimed to develop a synthetic fiber suitable for outdoor wear, eventually creating a dense fabric made from ultra fine polyester yarn. After undergoing a brushing process, the material became significantly more voluminous while retaining its insulation and moisture-wicking properties. Patagonia and GAP popularized fleece in the US, and Yanai brought it to Asia.
Since then, Uniqlo has championed the idea that each of its business peaks has been driven by technological innovation, “just like Apple.” Although operating in one of the world’s oldest industries, Yanai envisioned Uniqlo as a technology company.
In 2003, Uniqlo partnered with Japanese fiber manufacturer Toray Industries to develop “Heattech,” a fabric designed to generate warmth by absorbing body moisture. Initially, the company set an annual sales target of 1.5 million pieces, but within a decade, over 300 million units had been sold. Heattech became a cornerstone of Uniqlo’s fall and winter collections, marking its first true flagship product.
Seven years later, Uniqlo introduced “Ultra Light Down,” a hybrid insulation material that combined natural down with synthetic fibers. Unlike traditional down jackets, Ultra Light Down was lightweight and highly compressible. Uniqlo claimed that each jacket weighed just 206 grams—about as much as an apple—and could be packed into a compact triangular pouch, making it an instant hit. The Forbes magazine included the material in its 2020 list of 100 great inventions.
However, Uniqlo has not had another major technological breakthrough since then.
When innovation has an expiration date
Fashion writer Bruce Boyer once remarked in the book True Style: The History and Principles of Classic Menswear that it wasn’t new silhouettes or designs that liberated humans from heavy animal fur coats, but technological advancements that steered apparel toward comfort and lightness. Yet over time, many have come to realize that wearable technology may not be as revolutionary as once imagined.
By 2025, discussing clothing durability might seem outdated, but when Linyun discovered that her Heattech thermal wear had started to pill and develop holes after just one winter, she was disappointed. “Clothes just don’t last as long as they used to,” she lamented, attributing it partly to the faster turnover of fashion trends and partly to declining quality.
Few people know that Heattech actually has an expiration date. This year, Uniqlo publicly stated on its social media channels that Heattech garments are designed to last for three years and should be handwashed and replaced accordingly. Uniqlo sought to explain, claiming that frequent wear can cause fabric deterioration, making the heating function less effective. Some users raised concerns—if the production date on a garment’s label indicates it was manufactured years ago, does that mean its lifespan is already shortened?
“Uniqlo’s biggest distinction from other fast fashion brands is its promise of longevity,” said Hirotaka Takeuchi, a Harvard Business School professor who has studied the brand extensively. “It gives people the impression that its materials are carefully selected, its cuts are timeless, and buying a shirt feels like making an investment.”
Whether Uniqlo is quietly drifting away from its original vision remains uncertain, but the increased frequency of product replacements has undeniably raised the cost of staying warm. Linyun, who is reluctant to discard old clothes, finds the disposal of these garments to be a real hassle.
“Do these so-called innovations actually make our lives better?” She used to be convinced they did. Now, she’s not so sure.
Uniqlo’s struggle for a new breakthrough
Beyond the growing gap between marketing claims and real-world performance, Uniqlo also faces challenges from an evolving market landscape—where competitors playing the tech card are more numerous than ever. As the “corpcore” aesthetic gains traction, consumers are becoming increasingly skeptical of high-tech branding.
Buying a jacket now feels nearly akin to purchasing precision equipment: considerations include insulation efficiency, wind resistance, care instructions, washing methods, and even specialized factory treatments for coating maintenance. The R&D behind these garments seems as rigorous as aerospace engineering, and in some cases, these fabrics were initially designed for extreme environments like polar expeditions or space missions.
Thus, when a 20-something in a Patagonia fleece vest strikes up a conversation with a bartender wearing a Columbia jacket, when young white-collar workers who once never set foot outside the city now line up for weekend hikes, and when a Goyard bag contains a berry-red Montbell shell jacket—no one is surprised by the contrast.
Justin Chan, a 29-year-old designer in Shanghai, told us that wearing an Arc’teryx shell jacket at any given time signals something to the world: “I can survive beyond the city—and I’ll do it in style.”
Against this backdrop, even Uniqlo’s once-popular tech-driven pieces are beginning to lose their edge. John H Smith, fashion critic at The New York Times, noted that consumers have become more discerning—if a brand’s technological claims fail to meet expectations, trust erodes quickly.
Meanwhile, Swiss sportswear brand On recently developed a sprayable fiber that can reportedly be transformed into a running shoe without human labor.
Footwear production is among the most intricate segments of the textile industry, relying on complex global supply chains. If On’s vision comes to fruition, it could disrupt the industry’s established manufacturing ecosystem.
Such groundbreaking research is beyond Uniqlo’s scope or interest. When we asked whether Uniqlo had plans to pivot toward outdoor or sportswear, an internal source dismissed the idea, stating that the brand remains firmly focused on casual apparel.
But within these constraints, Uniqlo’s innovations are starting to fall short.
In 2023, Uniqlo once again partnered with Toray Industries to develop “Pufftech,” hoping to replicate the success of Ultra Light Down. Pufftech, made from ultra fine hollow fibers, was initially priced at RMB 499 (USD 69.9)—matching the cost of Uniqlo’s lightweight down series.
However, sales of Pufftech jackets have been underwhelming. According to data from third-party analytics firm Zhiyi Tech, during the 2024 Singles’ Day shopping festival, Uniqlo’s bestselling winter items did not include Pufftech. Additionally, Uniqlo’s Chinese website made no prominent mention of the new line in its warm clothing category.
Uniqlo had posted a detailed nine-step washing guide for Pufftech jackets on its official Xiaohongshu page, covering everything from reading the care label to ensuring the padding “returns to its original shape” after drying. The extensive instructions drew criticism in the comments: “It’s 2024—why is fast fashion still making clothes that can’t be machine-washed?”
Between September and November 2024, Uniqlo’s revenue in China totaled JPY 178.6 billion (USD 1.2 billion), remaining flat year-on-year, while operating profit declined by approximately 10%. In multiple financial reports, Uniqlo’s parent company attributed weak performance in Greater China to unseasonal weather and insufficient regional product differentiation. Third-party reports indicated that, for the first time, Uniqlo has closed more stores than it has opened in Greater China.
Bound by its fast fashion DNA and a focus on essential casual wear, Uniqlo has long relied on technology as a key selling point. But from the start, perhaps Yanai had set up an impossible challenge: convincing the market that a fast fashion brand could win with innovation alone.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This article was written by He Zhexin for 36Kr.