Both the isql and bcp utilities automatically support unichar data if the server supports 2-byte character data.
If the client’s default character set is UTF-8, isql displays 2-byte character data, and bcp saves 2-byte character data in the UTF-8 format. Otherwise, the data is displayed or saved, respectively, in 2-byte Unicode data in binary format.
Use isql -Jutf8 to set the client character set for isql. Use bcp -Jutf8 to set the client character set for the bcp utility.