KEY POINTS:
Tadashi Yanai, the Japanese billionaire behind the clothing chain Uniqlo, is a man on a mission: to turn Fast Retailing, owner of Uniqlo among other chains, into the world's largest clothing retailer. And with his US$900 million ($1.153 billion) bid for Barneys, the American department store, Yanai, 58, has signalled he means business.
The unsolicited offer is part of a global buying binge that kicked off last year.
The founder of Fast Retailing, who is still its chairman and chief executive, has built up the country's biggest casualwear company in a little over two decades. Now he is trying to snatch Barneys from under the nose of an oil-rich Dubai Government investment fund.
Japan's sixth richest man, worth US$4.2 billion, is not used to failing but something prompted him to step up worldwide expansion last year.
Bruised pride is at stake, after all, his first attempt to make it big beyond his native shores in 2001 failed dismally after he misjudged the British retail market. Instead of opening 50 Uniqlo stores in quick succession as planned, he was forced to scale back to five outlets two years after the chain's much-hyped arrival, shutting 16 stores.
First up was the acquisition in February 2006 of the French lingerie brand Princesse Tam-Tam, then four months later Comptoir Des Cotonniers, the chic French womenswear chain. These joined Theory, the clothing line known for its stylish jersey pieces, and the fashion label Helmut Lang, bought in 2003. Italian tailor Aspesi is also part of the stable.
Next came the opening of a global flagship in New York's SoHo last autumn and a facelift for the remaining British Uniqlo outlets. A London flagship will follow this year on Oxford St, as will new stores.
A big injection of marketing nous, courtesy of a high-profile advertising campaign starring supermodel Helena Christiansen, has helped transform Uniqlo's reputation as a hub for two-a-penny fleeces into a serious contender to Primark for the cheap chic retail crown. Capsule designer collections by Philip Lim and Alice Roi have also helped, as has a line of funky, limited edition T-shirts.
Yanai said in Tokyo: "If one thing is successful in one country that means you are able to be successful everywhere. Everything has become global. Everything gets transmitted so fast there are no national boundaries any more."
Yanai's self-confidence stems from his belief that he cracked the world's toughest retail market years ago. "Japanese consumers are extremely discerning," he says.
He claims to have learnt from previous errors abroad, which he puts down to "not being used to doing business outside Japan".
British retail watchers are less convinced. Richard Hyman, head of Verdict Research, said: "Uniqlo has got quite a mountain to climb here, where the market is over-crowded and needs one or two big players to go bust."
As for Yanai's ambition to be the world's largest retailer, Hyman is dubious. "That's a pretty tall order and I just don't see where the vehicle will come from to get them there."
At least buying Barneys, which has 34 outlets across the United States, would catapult the group into the world of high fashion. Tokyo analysts believe it is only a matter of time before the Japanese group pulls off its cherished mega deal.
- INDEPENDENT
