UNIQLO Co.Ltd
Global Management
Presented by:
Jason Chan
Frendy
Shizen Nakagawa
Seounghyun Seong
Batdorj Davaajargal
On Takahashi
24th July, 2013
柳井 正 Yanai Tadashi
Contents
1.
2.
3.
4.
5.
6.
7.
Mission, Objectives, Vision & Basic
Information
Financial Performance
Management Style
Organizational Culture
Organizational Characteristics
Problems, Crisis and Facts
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
1000
900
800
700
Yen in Billion
Total Assets
600
Net Sales
500
400
Net Income
300
Amount of cash and cash
equivalents
200
100
0
2008
2009
2010
2011
Source: UNIQLO financial statements 2008-2012
2012
Major Global Specialty Share Retailers of
Private Label Apparel (SPA)
Company Name (Flagship Brand)
Country
Hennes & Mauritz
INDITEX(ZARA)
Gap
FAST RETAILING (UNIQLO)
Limited Brands
Polo Ralph Lauren
NEXT
Abercrombie & Fitch
Esprit
American Eagle Outfitters
Sweden
Spain
USA
Japan
USA
USA
UK
USA
Hong Kong
USA
End of Fiscal Year
Nov. 2012
Jan. 2012
Jan. 2012
Aug. 2012
Jan. 2012
Mar. 2012
Jan. 2012
Jan. 2012
Jun. 2012
Jan. 2012
Sales (¥
Sales (Billions of dollar) Change (%)
Trillion)
1.61
18.6
9.8
1.58
18.27
10.1
1.26
14.55
-0.8
0.93
10.73
13.2
0.9
10.36
7.8
0.59
6.86
21.2
0.48
5.55
-0.4
0.36
4.16
19.9
0.34
3.89
-10.7
0.27
3.16
6.5
2012 Sales (Billions of dollar)
4%
4% 3%
Hennes & Mauritz
6%
INDITEX(ZARA)
20%
Gap
FAST RETAILING (UNIQLO)
7%
Limited Brands
19%
11%
Polo Ralph Lauren
NEXT
11%
15%
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
Organizational Culture
• U N I Q L O - Department and position
“the office needs only passion.”
UNIQLO CEO:Tadashi Yanai
Organizational Culture
•UNIQLO
- Personal phone and notebook
Organizational Culture
•UNIQLO
- Chair of the meeting room
Organizational Culture
•UNIQLO
- Overtime
5. ORGANIZATIONAL
CHARACTERISTICS
Corporate Social Responsibility
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
“Making the world a better place”
“Sharing the power of clothing”
Clothes for Smile
Help children by raising 10 million $ fund
donated to UNICEF for projects in educationbased 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
Reinvest in
initiatives of local
social business
Target middle
to low
income
owners
Affordable
clothing for
everyone
Sales boost in
urban areas,
fund used to
support
Grameen
ladies
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
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