Two Dollars, and a Line the Company Would Not Cross

The item at the centre of the argument was a pair of socks priced at 290 yen, roughly two dollars, part of a line sold in fifty colours.

Uniqlo announced an increase of 100 yen and removed a bulk-purchase discount. Less than two weeks later it reversed both, after customers responded with unusual force.

So the company chose volume over unit economics on one of its most visible products, protecting a relationship with customers who treat the store as a utility.

There is a supply side as well. A weak yen raises the cost of imported material, and a brand that manufactures at scale cannot absorb that indefinitely without touching shelf prices.

The episode also shows how fast sentiment travels now. A price change published on a website can be read, screenshotted and answered inside a day.

Fast Retailing has spent a decade positioning Uniqlo as a life-wear company rather than a fashion retailer, which makes a basic sock a statement of corporate intent rather than a margin line.

By continuing to use the site, you agree to the use of cookies. more information

The cookie settings on this website are set to "allow cookies" to give you the best browsing experience possible. If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this.

Close