柳井 正 Yanai Tadashi

UNIQLO Co.Ltd Global Management

Presented by:

Jason Chan Frendy

Shizen Nakagawa Seounghyun Seong Batdorj Davaajargal

On Takahashi

24th July, 2013

Contents

1. Mission, Objectives, Vision & Basic Information

2. Financial Performance 3. Management Style 4. Organizational Culture 5. Organizational Characteristics 6. Problems, Crisis and Facts 7. Q&A

1. MISSION, OBJECTIVES, VISION & BASIC INFORMATION

Basic Information Japanese casual wear designer, manufacturer and retailer. Originally a division of Fast Retailing Co. Ltd. On November 1, 2005, it was restructured as a separate

wholly owned subsidiary called Uniqlo Co. Ltd

Origin of name In May 1985, they opened a unisex casual wear store in

Fukuro-machi, Naka-ku, Hiroshima under the name "Unique Clothing Warehouse".

It was at this time that the name "Uniqlo" was born, as a contraction of "unique clothing". In September 1991, the name of the company was changed from "Ogori Shōji" to "Fast Retailing"

Brief History 1949

Yamaguchi-based company, Ogori Shōji had been operating men's clothing shops called "Men's Shop OS" in Ube, Yamaguchi.

May 1985 Opened a unisex casual wear store in Fukuro-machi,

Hiroshima

April 1994 Over 100 Uniqlo stores operating throughout Japan.

Brief History 1997

Adopted a set of strategies from American retailing giant The Gap, known as "SPA" (Speciality-store/retailer of Private-label Apparel), meaning that they would produce their own clothing and sell it exclusively.

November 1998 Opened their first urban Uniqlo store in Tokyo’s

trendy Harajuku district, and outlets soon spread to major cities throughout Japan.

Brief History 2001 Over 500 retail stores in Japan and begin to expand

oversea. November 2005 Listed on the First Section of the Tokyo Stock Exchange. Present UNIQLO international has 234 stores as of January

2012. There are 30000+ employees in the company.

Objective “Our clothes are made for all, going beyond

age, gender, occupation, ethnicity, and all other ways that define people. Our clothes are simple and essential yet universal, so people can freely

combine them in their own unique style.”

Missions Yanai Tadashi said, “UNIQLO clothes are MADE FOR

ALL–highly finished elements of style in clothes that suit your values wherever you live. This unique concept of clothes sets us apart from apparel companies whose sole purpose is the pursuit of fashion trends.”

Can clothing change the world? UNIQLO not only believes it can. We’re already doing it.

2. UNIQLO FINANCIAL PERFORMANCE

UNIQLO Financial Summaries 2008-2012

0

100

200

300

400

500

600

700

800

900

1000

2008 2009 2010 2011 2012

Yen

in B

illio

n

Total Assets

Net Sales

Net Income

Amount of cash and cashequivalents

Source: UNIQLO financial statements 2008-2012

Major Global Specialty Share Retailers of Private Label Apparel (SPA)

Company Name (Flagship Brand) Country End of Fiscal YearSales (¥ Trillion)

Sales (Billions of dollar) Change (%)

Hennes & Mauritz Sweden Nov. 2012 1.61 18.6 9.8INDITEX(ZARA) Spain Jan. 2012 1.58 18.27 10.1Gap USA Jan. 2012 1.26 14.55 -0.8FAST RETAILING (UNIQLO) Japan Aug. 2012 0.93 10.73 13.2Limited Brands USA Jan. 2012 0.9 10.36 7.8Polo Ralph Lauren USA Mar. 2012 0.59 6.86 21.2NEXT UK Jan. 2012 0.48 5.55 -0.4Abercrombie & Fitch USA Jan. 2012 0.36 4.16 19.9Esprit Hong Kong Jun. 2012 0.34 3.89 -10.7American Eagle Outfitters USA Jan. 2012 0.27 3.16 6.5

20%

19%

15% 11%

11%

7%

6%

4% 4% 3%

2012 Sales (Billions of dollar)

Hennes & Mauritz

INDITEX(ZARA)

Gap

FAST RETAILING (UNIQLO)

Limited Brands

Polo Ralph Lauren

NEXT

Abercrombie & Fitch

Esprit

2012 Business Performance by Group

Source: http://www.fastretailing.com/eng/about/business/group.html

3. UNIQLO MANAGEMENT STYLE

Price High Quality

SPA* (Specialty store retailer of Private label Apparel) Product development based on customer

feedback Material procurement from around the world Expanding the women’s line of apparel

Japanese Apparel Market Total = 10.7 trillion yen Women’s market = 7.1 trillion yen Men’s market = 2.9 trillion yen

Children’s market = 0.7 trillion yen

Global Flagship Store HEATTECH

4. ORGANIZATIONAL CULTURE

- Department and position

“the office needs only passion.” UNIQLO CEO: Tadashi Yanai

• U N I Q L O

Organizational Culture

- Personal phone and notebook

• U N I Q L O

Organizational Culture

- Chair of the meeting room

• U N I Q L O

Organizational Culture

- Overtime

• U N I Q L O

Organizational Culture

5. ORGANIZATIONAL CHARACTERISTICS

Corporate Social Responsibility

“Making the world a better place” “Sharing the power of clothing”

Social -Clothes for smiles -All product recycling initiative -Uniqlo recovery assistance project -Social business -Special olympics -Charity projects

Environmental -Setouchi Olive

foundation

Working environment -Employees with disabilities

Clothes for Smile

Help children by raising 10 million $ fund

donated to UNICEF for projects in education-based project(Philippines, China, Serbia, Bangladesh)

All product recycling initiative

◦ Uniqlo is shareable ◦ Clothes aren’t disposable ◦ You’re not their final destination

Grameen Uniqlo

Support social business in Bangladesh Average T-shirt in

Bangladesh costs 150 yen

Low-cost, high quality materials from partner production factories.

Partner factory located in Bangladesh produce high quality product

Sales boost in urban areas, fund used to

support Grameen

ladies

Target middle to low income owners

Affordable clothing for everyone

Reinvest in initiatives of local

social business

6. RECENT PROBLEMS AND IMAGE IN JAPAN

Senkaku Dispute Uniqlo stuck banners

on their shops supporting China’s claim on the islands. ◦ Strategic in avoiding

damage ◦ Criticism back home

“Black” Company

Competitive working condition ◦ 50% of employees quit in the first 3 years ◦ Performance-based salary ◦ No differentiation between new employees ◦ Recruitment of foreigners and Zainichi over

local Japanese

The use of English in the workplace

Are the criticisms fair? Japanese stores were advised by local police to

stick the “Chinese support poster” as to avoid vandalism. ◦ UNIQLO has no-politics policy. ◦ Store owner acted on own accord (performance-based)

Isn’t the “Black Company” model the “normal”

business model for most global companies? ◦ Performance-based salaries ◦ Multi-cultural workforce ◦ Non-continuity due to stress

THANK YOU FOR YOUR ATTENTION