Editor's Choice: As superfast-fashion retailer Shein misses stock trend, Uniqlo bets on brand power

China-based fashion retailer Shein made its debut on the Hong Kong stock market on Tuesday. The company's unique business model, which utilizes big data to identify emerging fashion trends and swiftly produces items using Chinese suppliers, has made it a symbol of the "superfast fashion" movement. However, despite being a pioneer in the industry, Shein's shares underperformed against its initial public offering price and its market value is now only about a quarter of its 2022 peak valuation.

The slowdown can be attributed to regulatory changes affecting low-value imports in Western markets and increased competition from Temu, a Chinese-owned online retail rival. In contrast, Japan's Uniqlo, a leader in fast fashion, is focusing on expanding its global flagship store network and leveraging its brand power. Uniqlo's strategy has been receiving praise as customers flock to its flagship stores in Tokyo's Ginza district, appreciating the retailer's affordable yet high-quality apparel.