After more than three decades of making money through Japan’s housing market crash and deflation, Uniqlo hopes it has what it takes to repeat the trick in China, as the world’s second-largest economy slows down.

The company, which is fighting to eclipse Zara owner Inditex and H&M as the world’s biggest mass-market clothing retailer, has come to rely on China as one of the biggest drivers of its business. In the last fiscal year to the end of August 2023, Uniqlo made ￥620.2bn ($4bn) in revenues in greater China and ￥2.3tn worldwide.

But Uniqlo’s parent company Fast Retailing said last month it was slowing expansion in China from a planned 80 stores this fiscal year to 55, helping send shares down sharply as investors reassessed the retailer’s prospects in the country.