Last Updated: 2012.01.12
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Company Introduction
| Name: | G.U. CO., LTD. |
|---|---|
| Established: | September, 2008 |
| Location: | Midtown Tower 7-1, Akasaka 9-chome, Minato-ku, Tokyo 107-6231 Japan |
| Line of Business: | The design, manufacture and retail of G.U. brand clothing and other goods. |
| Number of Stores*: | 166 stores (As of November 30, 2011) |
Brand Introduction
G.U. offers low-priced clothing throughout Japan under the brand name G.U. Having applied UNIQLO’s SPA (Specialty store retailer of Private label Apparel) business model, which fully integrates planning, design, production, inventory control, production adjustments and store operations, the company aims to establish a new type of low-priced apparel business model as never before seen in the Japanese market.
http://www.gu-japan.com/Growth Strategy
G.U. has shown explosive sales growth since the March 2009 launch of jeans priced at only ¥990. Sales have continued to rise, supported by the introduction of new lines such as ¥490 T-shirts and fleece tops. As a result, G.U. posted full-year profits in fiscal 2009. G.U. is aiming to generate ¥50 billion in sales with 200 stores by fiscal 2013.
Interview with the CEO
Power of g.u.: Fashion at Amazingly
Low Prices Driving Growth
Osamu Yunoki
Chief Executive Officer
G.U. Co., Ltd.
At Half the Price of UNIQLO g.u. Has Started Out Strong
When we opened our first specialty store selling lowpriced g.u. clothing in fall 2006, we were looking to offer clothes at half the price of UNIQLO. Initially, the brand lacked recognition and struggled. But this changed in March 2009 when the launch of g.u. 990-yen jeans caught people's attention. Since then, sales per store have expanded favorably and the brand has begun to generate solid profits.
Today g.u. is facing another stage of development. The flagship store in Shinsaibashi, Osaka is a good example of a successful g.u. urban store and highlights the fact that customers who shop in city centers also have a strong need for g.u.'s fashion and low prices. Since it opened in October 2010, the store has drawn customers, especially young women. Until now, we have tended to open g.u. stores in shopping centers, or in roadside locations formerly occupied by UNIQLO.
However, the Shinsaibashi store has opened up a greater range of potential locations for new stores. We are looking to open 40 to 50 new stores annually. In order to achieve this, I shall be pushing ahead in earnest with a variety of new store formats, including roadside stores, large-scale stores in shopping malls and urban stores.
Growing Sales To Expand Around the World
In fiscal 2010, g.u. performed extremely well. Store openings proceeded as planned, profitability improved and the operation generated significant gains in sales and profit. This was due to the launch of our 990-yen jeans, as well as additional products such as low-priced fleece and T-shirts.
The g.u. brand strength lies in offering the latest seasonal fashions at low prices. To further fortify the brand, we need to now develop more fashionable women' s wear. On the manufacturing side as well, we are working to reduce production costs by concentrating orders with specific material manufacturers.
G.U.'s mid-term targets include expanding its store network to 200 stores and pushing sales to 50 billion yen by fiscal 2013. To reach these targets we will open stores in prime locations. The g.u. and UNIQLO brands are complimentary. The g.u. brand offers customers clothes costing half the price of similar items sold in UNIQLO stores, making the brands different enough that they can coexist profitably, even if they are in parallel establishments. I would also like to see g.u. begin to expand globally in the near future. We believe the successful expansion of UNIQLO globally suggests there is also ample need for a brand like g.u. in the world.
