GU, the lower-priced fashion label owned by Fast Retailing, is looking to expand to Europe. The Japanese parent company has announced plans to expand the label overseas. The fashion label aims to open its first stores in Hong Kong, South Korea and Southeast Asia next year, and then expand to Europe and the United States in following years, reported Reuters.
GU currently has 270 stores in Japan, and opened its first overseas store in Shanghai last September. The fashion label is set top open two more stores in Taiwan this fall. “We'll expand in Asia first, starting next year, and if all goes well, we plan to enter Europe and the United States within several years,” said GU's chief executive, Osamu Yunoki.
Yunoki believes that prior to entering the Western market, GU will have to establish its brand identity and business profitable in non-Japanese Asian markets. The value fashion label currently accounts for 7 percent of revenue at Fast Retailing, but its ongoing growth is important for Fast Retailing goal of quintupling annual sales to 5 trillion yen by 2020 and become the world number one fashion company.