Summary of Key Points
Uniqlo's collaboration with French designer Lemaire on the U Series, often referred to as a "Hermes alternative," may come to an end in the fall and winter of 2026, with Lemaire planning to withdraw from the project. Over the past decade, the U Series has not only been a sales powerhouse, featuring hit products such as the "miracle pants" and globally bestselling round-neck t-shirts, but it has also served as Uniqlo's "design laboratory." New materials and cutting techniques were first tested in the U Series before being introduced to the main line, helping Uniqlo shift from the perception of being "inexpensive with poor quality" to one of "low price, high quality." However, Uniqlo's strategy has shifted, focusing more on efficiency and sustainable growth (by closing less profitable stores and streamlining products), as well as expanding into Europe and America and diversifying into other areas such as skincare and home goods. The trial-and-error nature of the U Series and its strategic importance have diminished, and even the new C Series may not be able to replace its role as a design laboratory.
Detailed Analysis
1. The U Series: Uniqlo's Double Ace – Both a Profit Generator and a Platform for Innovation
The value of the U Series goes beyond its sales success:
- Hit Product Maker: Two new collections are released annually, each containing bestsellers, such as the beloved straight-leg nine-inch pants and the round-neck t-shirts that were the global bestsellers in 2024. These products generate massive online buzz, with the round-neck t-shirt attracting 360 million views on social media platforms like REDnote.
- Design Testing Ground: Uniqlo tests new concepts that might not be suitable for the main line first in the U Series. For example, the seamless 3D knitted skirts and the "curved knife pants" that became popular on REDnote were all initially tested here before being rolled out nationwide. The current relaxed silhouettes and low-saturation color schemes in the main line also originated from the U Series, allowing Uniqlo to avoid design mistakes.
- Brand Enhancement Tool: In the past, Uniqlo was criticized for being inexpensive with poor quality; the U Series, with its involvement of designers like Lemaire (who formerly worked at Hermes), helped the brand change this perception by associating it with luxury, making consumers feel that they can afford high-quality clothing at a lower price.
2. The C Series Fails to Take Over
There are hopes that the C Series (launched in 2023 under the direction of a former designer from Givenchy) could replace the U Series, but the two are fundamentally different:
- **The U Series as a "Creative Laboratory": It explores ideas that may not immediately be successful but could shape the future, such as experimental designs that blur the lines between men's and women's clothing.
- The C Series as a Supplement: It serves more of a role in filling gaps in the product range—for instance, adding V-neck sweaters to the lineup. While the C Series brings innovation, it does not have the same impact on the overall design direction as the U Series.
3. Uniqlo's Changing Strategy
The decision to discontinue the U Series reflects a major shift in Uniqlo's growth approach:
- Efficiency Improvement: Uniqlo has been closing less profitable stores and focusing resources on key markets (such as Shanghai's Lujiazui and Beijing's Sanlitun), resulting in increased performance in the Greater China region (10% growth in the first three quarters of the 2026 fiscal year).
- Product Streamlining: The company is reducing the number of product varieties while increasing production of bestsellers, which lowers costs and allows for better bargaining with suppliers. Gross profit margin rose to 54.1% in the first half of the 2026 fiscal year, with a 19.6% increase in profits.
- Data-Driven Decision-Making: Stores select products based on local climate and demand, and headquarters use data to guide inventory management, ensuring faster sales and reducing overstocking.
4. New Strategic Focus: Europe, America, and Diversification
Uniqlo's priorities have shifted:
- Expansion into Europe and America: The company plans to open 40 new stores annually in these markets, aiming to achieve annual revenues of one trillion yen in each region (with growth rates already exceeding that of China in Europe and North America).
- Diversification for Profit Growth: Uniqlo is expanding into skincare, home goods, and sunglasses, as well as launching the more affordable sub-brand GU.
- Collaborations as Sales Initiatives: While collaborations were once used to attract younger consumers (such as those with "Star Wars"), they now require quick sales and minimal inventory. Designers are less willing to experiment, and customers find these collaborations less distinctive.
5. Why Did Uniqlo's Founder, Tadashi Yanai, Reject the U Series?
Despite the U Series' importance, founder Tadashi Yanai decided against continuing it for practical reasons:
- High Trial and Error Costs: The U Series requires significant time and resources (e.g., half a year to test new materials), while Uniqlo now prioritizes immediate returns on investment, such as cost savings from closing stores or increasing profits from selling bestsellers.
- Reduced Strategic Importance: In Uniqlo's new vision, "design innovation" is no longer the core focus. The company is more concerned with opening enough stores in Europe and America and improving supply chain efficiency, as well as the success of diversification efforts.
The discontinuation of the U Series signifies a shift from a culture of design experimentation to one focused on efficiency and profitability. However, whether Uniqlo can maintain its reputation for "low price, high quality" without the U Series remains a significant challenge for the company.