How Japanese retailer GU plans to grow in the US

A new brand is setting up shop in the crowded U.S. youth apparel market. GU, which is owned by Fast Retailing Co. and counts Uniqlo as a sibling brand, has a proposition it expects will resonate with the Gen Z customer. Opening in New York’s SoHo neighborhood on Sept. 19, the Japanese brand will offer a pared-down assortment of trend-driven apparel at fairly low prices. The products will encourage customers to mix and match to tap into fashion trends and also explore personal style. A new ad campaign to spread awareness of GU’s entry promotes the idea that the brand will help customers reinvent themselves. “Sometimes we walk into stores and we want trends, but we are overwhelmed,” said Dawn Abotsi, U.S. marketing manager at GU, about the state of retail in the U.S. “Here, GU has created an incredibly thoughtful trend-based selection that’s an edit.” GU has roughly one-tenth of the number of SKUs as many other teen retailers, Abotsi said. Founded in 2006, GU is derived from the Japanese word for freedom, “jiyu.” The brand, which sells products priced from around $14 to $49, hosted a New York-based pop-up shop from 2022 through earlier this year to test the U.S. market, where it will also debut e-commerce offerings. GU has nearly 500 shops in Asia and is in growth mode; its revenue increased 8.1% in the nine months ended in May. GU began working with Yard NYC on its “GU, New U” brand platform in February. The campaign is designed to educate consumers about the possibilities that GU opens for them. “The product proposition is a liberation, a freedom when you know what trend you can buy and you can mix and match, pull things apart and put things back together again,” said Ruth Bernstein, CEO of Yard. “There’s this opportunity to reinvent yourself every day.” The campaign includes out-of-home, digital media, connected TV and social media. In addition, GU will project a 2D ad on the streetscape near its new store beginning on Sept. 18 through its opening weekend. GU will be giving away custom tote bags and other gifts to customers who wait in line ahead of the store opening. It will also deploy Partiful, a social event app, to build the GU community with similar digital giveaways. “We really wanted to lean into ‘line culture,’ which is a big deal in Tokyo—this sense of Gen Z lining up and not wanting to miss out,” said Bernstein. “You can use the Partiful app to participate in all the giveaways and experiences, but you’re either physically in line or virtually in line—it’s a way of grabbing more and more participation.” NextGen Marketing Summit Join us for a crash course on Gen Z, DTC marketing and the creator economy Register today

How Japanese retailer GU plans to grow in the US

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