Last Updated: 2008.08.01
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Advancing to Win
in the World’s Fashion Capital
UNIQLO products are world class qualitywise. What they need next is just brand power. When the UNIQLO brand becomes widely known around the world, I believe there is a good chance of expanding our share of world markets.
In November 2007, we opened a global flagship store, the 311 Oxford Street store, with sales floor space of about 2,300 square meters, located on London’s Oxford Street. At the same time, we opened another store, the 170 Oxford Street store, with about 1,300 square meters of sales floor space. We chose these locations because this area is the fashion capital for casual wear, where the world’s leading brands compete for customer attention. By joining the lineup of fashion brands in Europe’s largest shopping area, we aim to increase the awareness of the UNIQLO brand and raise its appeal, its presentation, and its attractiveness. Once anyone tries on UNIQLO clothes, they will understand their value. Making our flagship stores in Europe a success after succeeding with our U.S. flagship store will open the way for UNIQLO to become No.1 in the world in the apparel industry.
Growth in International Operations Accelerates
The world apparel market is said to be about ¥100 trillion in size annually, but UNIQLO’s share at present is only 0.4%. Even though the world market is becoming more competitive, we believe that it is an attractive stage for our business, with considerable growth potential.
The lesson we have learned from our entry into overseas markets, which began with the opening of a store in London in September 2001, is that “the basis of brand awareness is the store.” That is why we are confident that the most effective strategy is the opening of global flagship stores in major countries.
At present, UNIQLO is developing its overseas activities in the United Kingdom; the United States; mainland China, including Hong Kong; Korea; and France. In fiscal 2007, UNIQLO’s overseas sales totaled ¥16.9 billion, about twice the ¥8.7 billion reported in fiscal 2006.
The stages of growth and development vary from country to country and strategies also differ. However, by drawing on the know-how accumulated thus far, we are working to optimize our operations. Going forward, we plan to accelerate the opening of UNIQLO stores overseas and consolidate our foothold as a global brand.
Opening Global Flagship Stores
We opened our first flagship store in November 2006 in New York’s Soho district, where the world’s top brands have gathered to display their fashions. With sales floor space of about 3,300 square meters, the Soho New York store has raised the awareness of the UNIQLO brand.
In November 2007, we opened another global flagship store in London’s Oxford Street area, which is one of Europe’s leading shopping areas. Then in December 2007, we opened our first store in France, a concept shop, situated in La Defense, outer Paris. We are also making plans to open a global flagship store in the center of Paris. These stores have the role of communicating UNIQLO’s top-level creativity to the fashion centers of the Americas and Europe and to the rest of the world.
In Asia, where demand for apparel is growing at an impressive pace, we opened our first large-format store, with about 2,300 square meters of sales floor space, successfully in China in December 2006.the Shanghai Zengda store. In fiscal 2008, we have plans for further store openings, including a large-format store in Beijing and new stores in Hong Kong.
In Korea, we opened a large-format store, with 2,300 square meters of sales floor space in the Myongdong district of Seoul in December 2007, and we are moving forward with plans for opening additional stores in Seoul.
