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This is Uniqlo, the world's third largest fashion retailer.
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This is a place where broke college students and dudes in private equity come to stock up on their basics.
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And on the surface, it seems simple.
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Create timeless silhouettes and a handful of colors.
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Use higher quality materials than competitors.
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And order it all in bulk so it can still sell at a fair price.
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But there's so much more to it than that.
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Behind the orderly, color-coded displays is a retail strategy that involves patented fabric science, a nearly robotic global supply chain,
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and a masterclass in borrowing credibility from some of the most respected names in fashion.
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So how does Uniqlo manage to pull this all off?
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Well, guess what?
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I dug into it.
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And in this video, we're unpacking the whole Uniqlo playbook, how a single fabric decision put Uniqlo's name on the map,
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how their science-first approach has won the hearts and minds of people all along the income spectrum,
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and whether all of this is really just fast fashion disguised as something more elevated.
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Let's get into it.
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Welcome to my inside business series where I use my business school
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and management consulting experience to break down businesses that are interesting and culturally relevant in a fun engaging way.
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None of what I say is affiliated with nor paid for by the brand in any way.
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I'm just a curious business lady who likes making educational videos.
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Without further ado, let's talk about Uniqlo.
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Before we talk shop, you know I'm not here to mess around.
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Let's start with the Uniqlo experience as always.
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You walk in and are greeted by dozens of orderly displays, all color-coded, of course.
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There is signage left and right, showcasing all things from Uniqlo's various trademarked fabrics to information on their latest collections to the array of high-quality fabrics
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that they love to use in their clothing.
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Among the timeless pieces, like 100% cotton t-shirts and merino wool sweaters, are some unexpected collaborations, some with local artists,
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some with the biggest names in the fashion world, and some with family-friendly brands that everyone knows and loves.
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A phrase I would use to describe Uniqlo stores is not usually one that I would use for a clothing store, and it is user-friendly.
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You don't have to go searching for what materials are in each garment because it prints it right there, front and center on the label.
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You don't have to search for what all the different styles of something are because there's an infographic to show you.
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You know right away what this piece of clothing aims to do for you and how it does it.
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As for the overall store footprint, these stores are pretty large, with your typical standard Uniqlo store being about 16,000 square feet.
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But their flagship locations?
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I'm standing in front of New York City's Fifth Avenue location, which is Uniqlo's biggest store in the entire world at 90,000 square feet.
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It has three different floors, a cafe, a station for custom graphic printing, a repair studio for clothing fixes, and a massive glass atrium.
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Uniqlo's flagship location in Ginza, Tokyo, Japan is 12 stories tall.
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And speaking of Japan, now that we know a bit more about what Uniqlo's store experience is like, let's go all the way back to the beginning, Uniqlo's founding story.
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Uniqlo was founded in 1984 in Hiroshima, Japan by Tadashi Yanai.
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Originally, the store was a unisex casual wear shop called Unique Clothing Warehouse.
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Unique clothing later combined to become Uniqlo.
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Very fun fact, when Yanai went to Hong Kong to register the brand's name in 1988, the C was accidentally changed for a Q,
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a complete typo during registration that Yanai actually preferred once he saw the unique look of the misspelling.
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And so Uniqlo with a Q was born.
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Way before that though, Yanai got his roots in retail at a much younger age.
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He grew up above his father's small tailoring shop in Ubei, Japan.
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After he went to college though, Yanai joined his father's tailoring shop and started with small tasks like sweeping floors and selling suits.
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Later though, he would go on to inherit the shop and face his own challenges as an owner.
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Yanai traveled to the US to study the success of Casual Basic Pioneer Gap, which would go on to inspire the original Unique Clothing Warehouse and a lot more of their future business strategy.
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So that's Uniqlo in the early days, but now let's talk about the guiding principle Yanai came up with
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that would go on to inspire every decision that Uniqlo makes.
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As Yanai expanded his business from Unique Clothing Warehouse to Uniqlo, he took inspiration from two big things.
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The first was The Gap, and the second was the Austrian-American consultant and educator Peter Drucker, who taught that putting the customer wants first,
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rather than what the business wants to sell first, is the way to a successful company.
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Through a combination of this customer-centric thinking, along with the strategies that The Gap employed to become a really successful basics giant,
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Yanai formed Uniqlo's guiding principle, LifeWare.
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LifeWare is an idea that rejects fast fashion trends in favor of perfecting everyday basics.
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And it will show up time and time again in every decision that Uniqlo makes to this day.
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Now, whether or not Uniqlo is low-key actually fast fashion is hotly debated, but we'll get to that later.
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But first, let's talk about how LifeWare has formed Uniqlo's business model and how it makes it quite different than competitors.
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So to set the stage for Uniqlo's special edge, I have to give you a few reference points.
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Uniqlo's two biggest competitors are fast fashion giants Zara and H&M.
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The three brands do have a lot of things in common, but Uniqlo does a few things that are extremely different.
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So all three follow what's called the SPA model, which really just means that they design,
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create, sell, and ship all of their own clothes in their own stores and on their own websites without any middlemen.
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Versus, let's say Levi's, who doesn't only sell their jeans in their own stores, but also on Target and Nordstrom and Amazon.
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You get it.
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But here's where they really differ.
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You can think about Zara as the speedy, reactive one of the bunch.
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Chasing runway and TikTok trends like that and getting those designs in their stores within a matter of weeks.
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But H&M takes a bit more of a forecast-driven approach.
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They chase new trends too, but basics is also a big part of their business.
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So they forecast their product mix much further in advance and order in massive quantities to drive the prices down.
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Uniqlo's approach?
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Engineered.
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They invest in fabric technology and research and development years before launching.
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You heard me right.
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Technology and R&D, not exactly buzzwords that you usually hear in fashion retail.
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To deliver on their lifewear philosophy, basics built to last you years and years, Uniqlo starts with the fabric science before any piece of their clothing is stitched together.
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This is all possible because of one key partnership that Uniqlo has, which in my opinion is their biggest competitive advantage.
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Uniqlo has a long-standing partnership with Torre industries, a Japanese textile giant that doesn't make these, but these, kinda.
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Torrey specializes in things like advanced carbon fiber composite materials and performance chemicals.
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The kind of fabrics that you find on airplanes and golf clubs.
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Not exactly the textile partner that you would imagine for a clothing company that makes basics.
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Yet, it is exactly through Uniqlo's unique partnership with Torrey
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that they have gone on to make best-selling proprietary clothing like HeatTech and Aerism.
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Clothing that actually has a trade trademarked scientific component.
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So what are some of the best-selling technology-driven products that have defined Uniqlo's success?
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And how do they work?
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Let's take a look.
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There are three main famous science-driven products that Uniqlo is really known for, but I would argue that it all started with a lesser-known fourth.
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It was the first massive mainstream product that really put modern Uniqlo on the map.
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Uniqlo's 1998 breakout fleece jacket.
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This is a newer one, but you get the idea.
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Now what made this product special is just a fleece jacket.
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Well fleece fabric had actually been a luxury textile in the 80s
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but a market downturn at that time made buying bulk fleece really cheap.
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Uniqlo saw this opportunity
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and made a big bet by sourcing tons of polyester fibers from Torre in order to make the jacket.
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Uniqlo then sold them for only $20 when something really similar would have gone for $100 elsewhere.
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Sales started at 2 million units in 1998 to 8.5 million units the next year to 26 million units in 2000.
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Needless to say, that bet paid off for Uniqlo and they became a household name.
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Shortly after, in 2003, Uniqlo came out with their most defining product line of all, HeatTech.
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How's that?
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HeatTech is Uniqlo's innovative thin thermal wear innerwear range developed with Toray
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that converts body moisture into heat as it gets traps and micro air pockets in the fabric.
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Heat Tech line is core to Uniqlo's technology that you can't see pitch.
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And this line alone has sold over a billion units worldwide.
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In 2009 came their next big innovative product, the ultra light down jacket,
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which aims to pack down into its own pocket and offer an extreme warmth to weight ratio.
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Finally, in 2013 Uniqlo launched Airism, which is a fine polyester fabric meant to feel like a second skin, even in hot and humid climates.
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This is my roommate's Uniqlo t-shirt.
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It fits me perfectly.
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I'm still wearing shorts.
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So Uniqlo makes their fabric science a priority by partnering with a really smart company.
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But you know who makes their budgeting a priority by partnering with a really smart company?
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Me, partnering with Monarch.
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Monarch is, in my opinion, the beautiful user-friendly personal finance tool that we kind of have in our heads, except it's real.
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So let me show you.
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All of my accounts, and Monarch syncs with over 13,000 institutions.
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So you should be covered.
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Bank, credit cards, investments, all sync into this one clean view.
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And this is on demo mode.
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Okay, these aren't my real numbers.
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Don't get too excited.
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And this is all totally private and ad-free, by the way.
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So you can see exactly where your money is going towards a bunch of Uniqlo shirts, what your net worth is doing and how you're tracking against your goals, whether it be saving something,
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paying down debt, all without opening 27 different tabs.
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A feature I love is that it separates fixed spending so things like rent and utilities from flexible spending.
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So I always have a picture of
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if I could be playing around a little more or if I should be pulling back.
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You can also manually recategorize things as you please.
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No surprise, it also has AI-powered insights, so it lets you know what your money is doing in plain English, so you don't have to do all the poking around yourself.
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And it'll point out things like unusual transactions or spending changes.
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In fact, it has helped me catch like three different subscriptions that I didn't know I was still paying for.
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And finally, in addition to it being both on mobile and on desktop, you can also have a shared view with your partner if that's relevant to you, so you both have the same financial picture.
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So join me
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and start your free trial plus 50% off of your first
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year with Monarch using the link in my description with code BELL50, or just scan this QR code.
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Thank you so much to Monarch for partnering with me on this video, and now back to Uniqlo.
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So with Uniqlo not competing on style trends, but rather on cutting-edge fabric science, developed with a company that also makes textiles for airplanes,
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you might be wondering, how is all of this stuff affordable?
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Whereas Zara orders in small batches because they're pivoting super fast to adapt to trends, Uniqlo does the exact opposite.
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They're selling mostly timeless basics and don't have a huge variety of products, which allows them to order bajillions of the same item in a handful of colors,
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rather than bajillions of different items and lots of different colors.
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So even though their clothing is higher quality
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and not as cheap to buy as say H&M clothing Uniqlo consolidates their styles down to maximize order volume discounts.
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And it's not only because they order things in huge bulk that they can drive those prices down.
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It's also about where they make it.
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So Uniqlo doesn't own its own factories
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but it does have multi-year long relationships with a small network of them that operate out of countries with cheap labor.
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China, Vietnam, Bangladesh, and Indonesia.
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At this point you might be like, and Uniqlo denies being fast fashion?
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We'll talk about it later.
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But the question kind of comes back around.
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If Uniqlo is chasing cheap labor markets, how is it maintaining quality control?
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Well, since the year 2000, Uniqlo has deployed a team of Japanese master craftsmen known as
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the Takumi team into partner factories to give technical instruction on everything from the thread to the final stitch.
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So even at very low manufacturing costs, there is still a team of Japanese master craftsmen on the ground floor signing off on the entire process,
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which I just think is super cool.
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So this is how we can still buy Uniqlo clothing pretty affordably, despite all of the science and R&D that goes into it.
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So let's talk numbers for a sec now that we know a bit more about Uniqlo's business model.
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Exactly what scale has the brand been able to achieve?
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Well, back in 2021, the brand's revenue was $11.2 billion, or 1.77 trillion yen.
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Just four years later, in 2025, that number had a 66% jump to $18.6 billion.
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The crazier little sub story within those numbers is that most of that sale growth came from international sales
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rather than Japanese sale growth.
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The Japanese market for Uniqlo is basically mature now, And while Japan used to make up about half of the business revenue, international sales now make up two-thirds.
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Meanwhile, this 66% revenue growth happened while their store count only increased a modest 9% over the same period of time.
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Which means their higher sales are coming from getting dramatically more revenue out of roughly the same footprint.
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Stronger sales per stores, more e-commerce sales, and successful flagships.
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The sign of a successful growing business, if you ask me.
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But when you operate at such scale, it could probably be easy to get lost in the sauce.
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In other words, although I like those words, when you're ordering items in the millions of units and forecasting your sales many months to a year out,
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Uniqlo runs the risk of holding warehouses full of clothes that didn't sell.
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So how do they stay nimble even at this massive scale?
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This is another one of their key competitive advantages.
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They're kind of a lot.
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In 2017 Uniqlo launched the Ariaki project where they moved their design,
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R&D and logistics team all under one roof in their Tokyo headquarters above their largest warehouse.
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They did this explicitly to close the gap between what is actually selling and what gets restocked.
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So this is super cool.
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One way that they did this is by tagging all of their clothing with RFID chips
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that automatically scan at the self-checkout when you go to buy your clothes.
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This point of sale data from the RFID chip gets sent back to the headquarters immediately
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so Uniqlo can always be analyzing inventory data, which means they always have a pulse on what items are selling really well and what items aren't.
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Then they can instantly adjust their year-round factory lines to dial up production for some items or slow it down for others.
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Honestly, mind blown.
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For a company at this scale to always have real-time point-of-sale data and to be able to adjust their factory lines accordingly,
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there is a reason why founder Tadashi and I says that Uniqlo is not a clothing company, but a technology company.
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So after all of that, the fabric science, the factory partnerships, the scale, who's actually buying this stuff?
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The core Uniqlo customer skews 25 to 45, lives in or near a city, and wants good basics at a fair price.
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So picturing the actual person buying Uniqlo, it could be a broke college student stocking up on a $19 t-shirt because that's what's in budget.
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It could just as easily be someone who makes multiple six figures, but doesn't want any in-your-face logos, just high-quality basics that won't fall apart.
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And that is sort of the magic of Uniqlo.
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It services both ends of the income spectrum in a way that other brands at this price range don't quite do.
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This unusual blend of appealing to just about everyone has also earned Uniqlo a very rare brand perception.
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As if it wasn't enough that Uniqlo appeals to every income bracket, it is also somehow cool.
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Where their silhouettes are simple, yes, but timeless, interchangeable, and a smart budget-friendly option for a capsule wardrobe,
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where they reject the idea that high-quality clothing needs to cost you an arm and a leg.
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There was a time when loud luxury, like big in-your-face logos, super bright colors, dominated the runways.
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I think there will always be some place for that.
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But in more recent years, quiet luxury has surged.
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And even though Uniqlo has decidedly un-luxury prices, their designs
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and overall philosophy of providing an anonymous blank canvas without signaling loud brand loyalty totally plays to the principles of quiet luxury.
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But Uniqlo does something else that is kind of sneaky to cement their place as a cool fashion retailer.
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They also have a number of very strategic, unexpected, elite collaborators.
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The most notable of their designer collaborations is their ongoing collection with JW Anderson, the creative director of Dior,
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and previously the creative director of luxury fashion house, Luve.
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He also designed Taylor Swift's wedding gown and Rihanna's red outfit for that Super Bowl.
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Like this guy is the real deal in luxury fashion, and he has had an ongoing collection with Uniqlo for almost 10 years.
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The global director of Uniqlo itself is Claire Waite Keller, who previously was the creative director of luxury fashion brands Chloe and Givenchy.
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I think we got it, though.
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Then, all of a sudden, in 2018, we see
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that Uniqlo pays Roger Federer $300 million for a 10-year endorsement deal to weigh in on design and to represent the brand off-court.
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Then a global brand ambassadorship with actress Cate Blanchett.
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Excuse me?
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At first, I was trying to find the through line for all of these collaborations because on paper, they seem kind of random.
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Uniquo is not luxury, yet it surrounds itself with excellence.
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A specialized industrial textile science company, the best tennis player of all time, the current and or former creative directors of Chloe,
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Givenchy, Louvay, and Dior, and a two-time Oscar winner, and so many more.
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The through line for these collaborators is mastery.
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Uniqlo chooses to partner with people and companies who are the very best at what they do, and in turn, they get to borrow some of that credibility without ever charging you for it.
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It is safe to say that Uniqlo has earned a spot in the very rare quadrant of both cool and affordable.
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Now, this is the moment that we've all been leading to.
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Uniqlo operates around this lifewear principle.
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They have specialized processes in place to make sure that their clothing remains high quality, and they have this both cool and affordable brand perception.
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And yet, 67% of you think of Uniqlo as fast fashion.
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So is it actually fast fashion, just camouflage as a high quality, durable basics company?
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Well, it's not so simple.
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Fast fashion, by definition, is a business model that produces clothing quickly and cheaply in response to the latest trends.
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Based on that definition, we already know that Uniqlo doesn't produce its clothing quickly or chase the latest fashion trends.
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Their products are planned up to a year in advance, and while they can remain nimble during that year based on sales data, they are definitely not in the realm of Zara,
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or even worse, Shein realm, of responding to trends and getting that clothing in their stores within a matter of weeks.
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But producing cheaply, Uniqlo does fit that bill in some respects.
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On one hand, they have the Takumi team ensuring product quality on the factory floor,
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and the The materials themselves are engineered with Torre to prioritize fabric utility and durability.
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On the other hand, they still manufacture exclusively in cheap labor markets and produce in mass volume, which are two core tenets of fast fashion.
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So Uniqlo really does operate in sort of a gray area,
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where they have fast fashion style manufacturing but apply it to anti-fast fashion style product philosophy.
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These two things can and do exist at once.
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Uniqlo does not escape all the tenants of fast fashion, but its high-quality clothing and strong brand reputation keep people coming back.
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As for the future of Uniqlo, in classic consultant style, you can take the girl out of consulting, but you can't take the...
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Uniqlo has some serious growth opportunities and some challenges ahead.
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Given that most of their recent sales growth has come from international sales outside of Japan, international expansion is the name of the game for Uniqlo.
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The brand has stated the goal of nearly tripling its North American footprint between 2024 and the end of 2027.
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This, in my opinion, is Uniqlo's biggest growth opportunity as they are still very underpenetrated in the US market.
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As for its biggest challenge, well, Tadashi Inai has been the driver of the Uniqlo ship ever since he first founded it back in 1984.
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He remains heavily involved in the daily decisions for the company, but he is in his late 70s.
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So when the time does come to replace him at the helm, it poses a huge potential risk for Uniqlo.
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The most likely candidate to succeed Inai seems to be the current president
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and COO who has led the North American expansion over the last few years.
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And while he seems like a great candidate, a massive leadership change is always a risk for a company.
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Despite this challenge, as it stands, Uniqlo is completely crushing it, in my opinion, not just from a sales perspective,
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but even more notably from a supply chain and brand perception perspective.
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To achieve this sweet spot of having high quality science-backed clothing,
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affordable prices, and an actually cool brand reputation is a combination that other brands would kill to have.
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And I imagine in the years to come, many more brands will come along and try to copy the Uniqlo model.
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I wish them luck.
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Question for you.
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Do you shop at Uniqlo and absolutely love it?
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Or do you think this is just a fast fashion giant with a couple of bells and whistles?
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Let me know, subscribe for more of the Inside Business Series.
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And until next time, Turtle out.
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yep oh boy we'll get into it people all along along along oh my god
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cut am i right we will boom nice bang swag um
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they're kind of a lot it's like a swap analysis
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but just yeah so so what are you doing hey thanks for watching
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and if you like this video i would bet at least the cost of this custom Uniqlo t-shirt
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that you will also like this one check it out okay bye
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Vocabolario e note di pronuncia per questa lezione
Questo video contiene 270 frasi e 4021 parole da ripetere con lo shadowing. Il parlato dura 21:49. Chi parla va veloce, circa 184 parole al minuto: aspettati suoni legati e ridotti. Solo il 79% delle parole rientra nelle 3.000 più comuni dell’inglese, quindi il lessico è impegnativo.
Vocaboli chiave di questo video
15 parole meno comuni del video, con pronuncia e significato:
- clothing /ˈkloʊðɪŋ/ (sostantivo) — abbigliamento, vestiti. Any of a wide variety of articles, usually made of fabrics, animal hair, animal skin, or some combination thereof, used to cover the human body for warmth, to…
- luxury /ˈlʌk.ʃə.ɹi/ (sostantivo) — lusso. Very wealthy and comfortable surroundings; the state of being that they create.
- chase /t͡ʃeɪs/ (verbo) — inseguire, cacciare. To follow at speed.
- principle /ˈpɹɪn.sɪ.pəl/ (sostantivo) — principio. A fundamental assumption, fundamental law or guiding belief.
- jacket /ˈd͡ʒæk.ɪt/ (sostantivo) — giacca. A piece of clothing worn on the upper body outside a shirt or blouse, often waist length to thigh length.
- affordable /əˈfɔɹ.də.bəl/ (aggettivo) — conveniente, vantaggioso. Able to be afforded; inexpensive or reasonably priced.
- warehouse /ˈwɛə(ɹ)haʊs/ (sostantivo) — magazzino. A facility for storing large amounts of merchandise or products.
- textile /ˈtɛk.staɪl/ (sostantivo) — tessuti. Any material made of interlacing or matted fibres, including carpeting and geotextiles, woven or nonwoven.
- partnership /ˈpɑɹtnɚʃɪp/ (sostantivo) — partenariato. The state of being associated with a partner.
- bulk /bʌlk/ (sostantivo) — massa, mole. Size, specifically, volume.
- perception /pɚˈsɛpʃ(ə)n/ (sostantivo) — percezione. The organisation, identification and interpretation of sensory information.
- competitor /kəmˈpɛt.ɪ.tɚ/ (sostantivo) — avversario, rivale. A person or organization against whom one is competing.
- footprint /ˈfʊtpɹɪnt/ (sostantivo) — orma, impronta. The impression of the foot in a soft substance such as sand or snow.
- pocket /ˈpɑ.kɪt/ (sostantivo) — tasca. A bag stitched to an item of clothing, used for carrying small items.
- reputation /ˌɹɛpjʊˈteɪʃən/ (sostantivo) — reputazione, rumore. What somebody or something is known for.
I phrasal verb che sentirai
- come back (verbo) — tornare. To return to a place.
- come up with (verbo) — ideare, escogitare. To manage to produce, deliver, or present (something) by inventing, creating, thinking of, or obtaining it.
- do in (verbo) — uccidere, finire. To kill or end; to defeat.
- fall apart (verbo) — cadere a pezzi. To disintegrate, to break into pieces.
- go for (verbo) — tentare, provare. To try for, to attempt to reach.
- grow up (verbo) — crescere. To mature and become an adult.
- make up /ˌmeɪk ˈʌp/ (verbo) — comporsi. To constitute, to compose.
Pronuncia a cui fare attenzione
Chi parla usa 36 contrazioni e forme ridotte, come don't, doesn't, I'm. Pronunciale nella forma breve, così come le senti.
- I suoni “th”: clothing /ˈkloʊðɪŋ/, thin /ˈθɪn/, thread /ˈθɹɛd/, thermal /ˈθɜːməl/
- I suoni “sh” e “zh”: luxury /ˈlʌk.ʃə.ɹi/, partnership /ˈpɑɹtnɚʃɪp/, perception /pɚˈsɛpʃ(ə)n/, reputation /ˌɹɛpjʊˈteɪʃən/, unusual /ʌnˈjuːʒ(u)əl/
- Parole lunghe — attenzione all’accento: affordable /əˈfɔɹ.də.bəl/, competitor /kəmˈpɛt.ɪ.tɚ/, reputation /ˌɹɛpjʊˈteɪʃən/, unusual /ʌnˈjuːʒ(u)əl/, priority /pɹaɪˈɒɹɪti/
Come esercitarsi con questo video
- Ascolta tutto il video una volta senza parlare e annota le parole che non conosci.
- Inizia a velocità 0,75×, fai shadowing frase per frase e torna alla velocità normale quando diventa facile.
- Registrati e confronta con l’originale, facendo attenzione a parole come clothing, luxury, chase.
La grammatica di questo video
Le strutture che chi parla usa di più, con le parole esatte del video:
| Struttura | Nel video |
|---|---|
| Present perfect have/has + participio passato — un’azione passata che conta ancora adesso | has won · has formed · have gone |
| Forma passiva be + participio passato — conta ciò che accade, non chi lo fa | is affiliated · are greeted · was founded |
| Frasi relative who / which + frase — un’informazione in più su una persona o una cosa | location, which is · Airism, which is · data, which means |
Cos'è la tecnica dello Shadowing?
Shadowing è una tecnica di apprendimento delle lingue supportata da studi scientifici, originariamente sviluppata per la formazione dei traduttori professionisti e resa popolare dal poliglotta Dr. Alexander Arguelles. Il metodo è semplice ma potente: ascolti un audio in inglese di madrelingua e lo ripeti immediatamente ad alta voce — come un'ombra che segue il parlante con un ritardo di solo 1–2 secondi. A differenza dell'ascolto passivo o degli esercizi di grammatica, lo shadowing costringe il tuo cervello e i muscoli della bocca a elaborare e riprodurre simultaneamente i modelli di discorso reale. La ricerca dimostra che migliora significativamente la precisione della pronuncia, l'intonazione, il ritmo, il discorso connesso, la comprensione dell'ascolto e la fluidità del parlato — rendendolo uno dei metodi più efficaci per la preparazione alla prova di speaking dell'IELTS e per la comunicazione reale in inglese.