Fashion-industry commentators hardly noticed when Fast Retailing, parent company of UNIQLO, opened the first North American flagship for GU, a sub-brand featuring trendier styles at cheaper prices, in New York City in 2024.
UNIQLO is arguably the most important fast-casual clothing line in the world, and the arrival of GU in America signified something huge in the supremely competitive space. Yet only a couple of trade publications paid the store opening much attention.
The kids, however, were all ears.
It’s easy — if not downright responsible — to be skeptical of fast fashion. The industry is largely propped up by exploitative labor, has a brutal environmental impact, produces products that are meant to be disposable. This is also a space so clogged that a sub-brand of an already ubiquitous retail giant gets lost in a world full of Zaras, SHEINs, and FashionNovas. But GU has staying power. Its success is obvious and predicated on organic demand that money can’t buy. GU’s word-of-mouth teen-shopper appeal smacks of Brandy Melville-level buzz, without any Brandy’s worst tendencies. Even then, it took years for the industry at large to become aware of Brandy’s appeal because, frankly, adults tend to be skeptical of taking young folks' tastes seriously until they become too big to ignore. GU is in the same boat... for now.
GU’s profits are up a whopping 20% year over year as of January. A great deal of that success is driven by its nearly 500 locations in Japan, but its Western audience is growing as the brand catches on stateside. A trip to Soho proves this — GU shopping bags are ubiquitous downtown, as young shoppers flood the low-key Broadway location.
Plus, good chunk of the over-quarter-million TikTok videos tagged #GU are in English, despite there only being a single GU location outside of Asia. Many of those videos are unboxings for product as disparate as sneakers, hoodies, bags, and pleated slacks, demonstrating broad demand. Maybe it's the two-letter name.
GU — named as a pun on jīyū, or the Japanese word for “freedom” — borrows the modus operandi of UNIQLO by specializing in simple, affordable staples while skewing trendier than its sibling. Like UNIQLO, GU bestsellers, helpfully listed on its website, are basics such as T-shirts and jeans. Also like UNIQLO, you’ll notice that certain product pages feature textile breakdowns, like for GU’s “dry” boxy tees.
Unlike UNIQLO, GU bestsellers are of-the-moment items: barrel-leg jeans, jorts, thick grey hoodies, and half-sleeve coaches jackets. This isn’t a brand designing an ageless millennial wardrobe, but one very aware of what’s popping on TikTok. GU’s collections are geared to be more of-the-moment than those from UNIQLO but are still presented as evergreen essentials. They’re also extra affordable: Nearly everything at GU costs less than $60, a price point clearly intended to appeal to younger shoppers.
Part of what makes UNIQLO feel more special than its fast-fashion peers is its industry bonafides. Former Givenchy overseer Clare Waight Keller is its creative director. Seasonal collections are designed by Cristophe Lemaire and Dior’s Jonathan Anderson. This helps it feel more like the patient clothing company it purports to be.
Rather than partnering with household names of a similar stripe, GU collaborates with Japanese and Japan-aligned labels like UNDERCOVER, Mihara Yasuhiro, ROKH, and Engineered Garments to create capsules of approachable clothes that still have an elevated air. It feels insider-y but remains wearable.
And GU has greater aspirations. It recently appointed Francesco Risso, formerly of Marni, as creative director; Risso’s first collections arrive at the end of 2026. Also, it’s almost certainly planning more stores outside of Asia (no plans have been announced, but with UNIQLO’s continued expansion and the success of GU’s NYC store, it’s safe to assume).
Even with all this going for it, GU still feels like an underdog. On its social pages, GU pushes microtrend aesthetics and of-the-moment items, but its engagement is relatively low. Its broader presence escapes the industry at large, which aligns with Fast Retailing’s relative indifference to splashy advertising. This is the word-of-mouth approach that fueled UNIQLO’s rise. Build it, and they will come.
Back in 2006, UNIQLO was a best-kept secret of accessible fashion, attempting to break into the Western market through campaigns that highlighted its real-world sensibilities. For a while, it was only known by true believers. Today, it’s an international gold standard of something beyond fast fashion.
GU’s similarly stealthy start feels like the beginning of something massive. After all, as history so often proves, the kids are usually onto this sort of thing long before anyone else.
