Gaia Series 94: UNIQLO's "Secondhand Clothing Project"

CNA

12-07-2025

UNIQLO's bold secondhand clothing venture weaves sustainability with business, confronting challenges and redefining reuse.
At the heart of the fast fashion landscape, UNIQLO is shifting its trajectory toward sustainability by exploring the potential of secondhand clothing. The latest episode of Dawn of Gaia follows the company's effort to make reused garments a viable business, treating this transformation not just as an environmental response, but a bold commercial experiment.
In Paris, the UNIQLO Paris Opera store stands across from the historic Opera House. Though prices are more than 50 per cent higher than in Japan, customers remain loyal. A popular hoodie that costs around 4,000 yen (S$34.30) in Japan sells for approximately 6,400 yen in France. 'I always buy the same products at UNIQLO. The price is cheaper than other stores, and the product is great,' one shopper explains. Another adds, 'It's great quality for the price and great customer service.'
Today, UNIQLO operates 2,541 stores across 26 countries and regions, and Fast Retailing, its parent company, reported revenue of 3.1038 trillion yen. Chairman Tadashi Yanai has bigger ambitions. 'A 10 trillion-yen target is not unrealistic at all,' he says. 'Changing clothes, changing norms, changing the world... this is the challenge we will continue to take on.'
But the fashion industry's environmental record is hard to ignore. Global garment production has doubled in the past 20 years. But at the same time, the number of clothes that are thrown away have similarly increased. In Japan alone, about 1.5 billion garments go unsold each year and are often discarded. With the European Union preparing to ban the disposal of unsold clothing from 2026, the urgency to innovate has never been greater.
At the Sendai warehouse, around 10 million used garments are collected annually. These clothes are sorted by hand and then donated to 81 countries and regions. Yet UNIQLO is determined to go further, not just recycling but creating a profitable business model around reuse.
Tasked with launching this new venture is third-year employee Yoko Otaka. She is responsible for selecting and pricing garments for resale. But balancing cost and perceived value proves tricky. Uniqlo's clothes are already priced affordably, add to that laundry and shipping cost, it's hard to make a profit without increasing costs. But at the same time, as Otaka notes: 'Unless it's 1,000 yen, it might not feel like a bargain'.
To add value, UNIQLO partners with Komatsu Matere, a dyeing factory in Ishikawa with over 80 years of history. Selected garments are dyed using a unique pressure chamber method. 'This dyeing method really brings out the charm of secondhand clothing,' says Otaka. 'That's why we chose this 'Gamedye' technique to attain these goals.'
The Setagaya-Chitosedai store in Tokyo becomes the first test location. Items, including denim priced at 2,000 yen, are displayed in a way that encourages discovery. 'Grouped by colour but with variety within each group, so customers can still enjoy a broad selection,' Otaka explains. 'That gives it a slightly different feel from your typical UNIQLO store.'
On March 29, test sales begin. Ayaka Enomoto from the Sustainability Department says to customers, 'Each piece is one-of-a-kind, a once-in-a-lifetime find, so please do have a look.' Early reactions are positive. 'Kind of like a secondhand clothes shop, but since it's UNIQLO recycling, it feels a bit more reassuring,' says one customer.
Still, challenges surface quickly. At the Tenjin store in Fukuoka, which attracts a different demographic, issues around sizing become clear. 'A women's large is not the same as a men's large,' a customer points out. Another says, 'This is a women's medium?' with disbelief. Store staff also report that shrinkage often makes size labels inaccurate. 'Some pieces shrink one or two sizes,' one staff member notes. 'So using the original size label can actually cause more confusion.'
In response, Otaka and her team begin remeasuring garments, starting with body width. 'We're figuring out what is the best method to manage size and colour,' she says. Clothes are now sorted by how far they reach on a measuring mat, and markers are colour-coded for easy reference.
Despite such tweaks, the Setagaya store underperforms. In the first 20 days, it sells 334 items for a total of 680,000 yen, falling short of Otaka's target of 300 to 400 items per week. Koji Yanai, director of Fast Retailing, points out, 'It doesn't really feel like 'us'. It comes off as just a secondhand clothing shop.'
The team regroups, seeking to address key concerns. One persistent issue is cleanliness. 'Some items still have a bit of a lingering smell,' a staff member reports. Back at UNIQLO's Shinonome factory, a special detergent blend is developed. 'It removes body oils from the fabrics without damaging weakened fibres,' explains knitwear specialist Mr Miyamoto.
The results are promising. 'It used to be so flat. Now it's fluffy again,' one tester observes. 'The smell is... completely gone.'
In October, the Maebashi Minami IC store is selected as a new trial site. This time, pricing is reviewed. Items once sold at 3,000 yen are reduced to 2,000 yen. 'Though profit shrinks due to high costs, they prioritised getting more hands on quality garments,' the narrator explains. The bold pricing strategy pays off. 'At 1,200 yen, well… it's quite affordable,' a customer comments after buying a shirt. 'Only UNIQLO could pull this off.'
An unexpected insight emerges when smaller garments, shrunk beyond adult use, find a second life as children's wear. A mother comments, 'Actually, it's a perfect fit.' Signs featuring child models are added, and demand follows. 'There was demand in an unexpected place,' Otaka reflects. With all three test stores turning a profit, the project is handed over to the Sales Department in April for full commercialisation.
Still, questions remain. 'Here in the 21st century, it's clear that chasing profit alone won't sustain a business,' Otaku muses, 'What exactly should UNIQLO secondhand clothing be?' Otaka asks. 'We're still figuring it out.'
The episode closes with Otaka musing, Honestly, that's what I find really difficult right now. It's what I'm thinking about every day.' Her words encapsulate UNIQLO's dilemma: balancing the expectations of a global brand with the demands of a planet in crisis.