Uniqlo’s parent company, Fast Retailing, remains committed to Chinese manufacturing despite rising labor costs, citing the country’s large-scale production capacity as crucial for its global operations. China continues to be Uniqlo’s largest production base, but the brand is seeing slower growth in the region, with revenue in Greater China rising only 9.2% in the fiscal year ending August 2024. In response to market saturation, Uniqlo plans to slow its store expansion in China in 2025, focusing on higher-efficiency outlets. The company is also increasing investment in North America and Europe, where sales have surged, to reduce reliance on the Chinese and Japanese markets and balance its global growth strategy.