Uniqlo raises fall-winter prices in Japan 4% as weak yen bites

Uniqlo, the Japanese clothing brand that built its name on low prices, is raising prices in Japan after failing to absorb the mounting costs of a weak yen and rising raw materials. The company has long relied on mass production to keep costs in check, but overseas manufacturing expenses have climbed to the point where it can no longer hold the line on fall and winter apparel.

According to the Nikkei, Uniqlo will raise prices on 11 fall and winter products sold in Japan by an average of about 4% starting next month. The company also published a list of the affected items on its official website.

The main drivers of the increase are the yen's weakness and higher raw material costs. Uniqlo manufactures its clothing at factories in China and Southeast Asia before selling it in Japan and other markets worldwide. When the yen falls in value, the cost of importing those goods into Japan rises accordingly.

Uniqlo's parent company, Fast Retailing, works with about 700 supplier factories in China and Southeast Asia. The company has long offset rising costs through large-scale production and efficient supply chain management, but the yen's prolonged weakness has made it increasingly difficult to hold prices steady.

This is not the first time Uniqlo has raised prices. In September, it increased the prices of some women's pants and then raised service fees including delivery charges and clothing alteration costs. The latest move means consumers are facing higher prices not only on products but also on the services they pay for.

Further increases are also planned. Uniqlo said it intends to raise prices again on some fall and winter items after December, though it noted the number of affected products would be limited.

Uniqlo has long been one of Japan's most recognizable brands for affordable clothing. However, its heavy reliance on overseas production means a sustained weak yen inevitably drives up costs.

The price increases also illustrate how a weak yen is translating into a higher cost of living for Japanese consumers. The ripple effects of rising import prices are spreading beyond food and energy into everyday goods such as clothing.