Last Updated: 2012.04.12
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UNIQLO has established a SPA (Specialty store retailer of Private label Apparel) business model encompassing all stages of the business--from design and production to final sale. By continuously refining this SPA model, UNIQLO successfully differentiates itself from the competition by developing unique products. We quickly make adjustments to production to reflect the latest sales environment and minimize store-operation costs, such as personnel costs and rent. This is how we at UNIQLO provide such high-quality clothing at such reasonable prices.
* The SPA (Specialty store retailer of Private label Apparel) business model incorporates the entire clothes-making process from procurement of materials, product planning, development and manufacture through distribution and retail to inventory management.
Research & Development (Designers/Pattern Makers)
UNIQLO's R&D centers are constantly researching the latest fashions and lifestyles
around the world as well as looking for new materials.
Concept meetings are held roughly one year before a product launch. On these occasions, R&D designers and pattern makers meet with representatives from the merchandising, marketing, materials development and production departments to discuss and finalize concepts for upcoming seasons. Then UNIQLO's R&D centers prepare designs and refine samples until each product is finalized.
Development and Procurement of Materials
UNIQLO secures a stable, high-volume supply of top-quality materials at low cost by negotiating directly with materials manufacturers. The development of materials is especially important for core products. We source denim to specific spinning standards and dyeing specifications from the industry's reputed Kaihara Corporation. We develop new functional materials, such as HEATTECH and Silky Dry, with synthetic fiber maker Toray Industries, Inc.
We can work with materials manufacturers in this way because we produce over 600 million items annually.
Merchandising
Merchandisers play a vital role from product planning through production. Having met with the R&D designers, merchandisers then apply the concepts for each season in product plans, materials and designs.
Next, merchandisers decide the product lineup and volume for each season, paying close attention to a detailed marketing strategy.
One other important task for merchandisers is to decide when to increase or reduce production during a season. Decisions to adjust production in line with demand are taken jointly with the product planning department.
Production Department (Quality and Production Control)
UNIQLO deploys around 250 staff and takumi, or expert textile artisans, in Shanghai, Shenzhen, Ho Chi Minh City and Dhaka. Production managers visit partner factories each week to resolve outstanding issues. Customer concerns regarding quality are communicated immediately to production departments, and improvements made.
UNIQLO's Takumi Team
Since 2000, UNIQLO's Takumi Team, made up of veteran personnel trained and seasoned in Japan's textile industry, has played a central role in providing technical support to partner factories. These takumi have a diverse range of backgrounds and skills, with each of them playing a role in supporting UNIQLO product quality while transmitting to the next generation expertise acquired in Japan's historically acclaimed apparel industry.
Partner Factories
UNIQLO has around 70 partner factories, and roughly 75% of UNIQLO products are made in China. Having expanded its global sales network in recent years, UNIQLO is now actively expanding production in other Asian countries to reduce reliance on China and to lower costs. Our ultimate aim is to position one-third of production outside China.
Inventory Control
The Inventory Control Department maintains the optimum level of store inventory by monitoring sales and stock on a weekly basis, and dispatching necessary inventory and new products to fulfill orders.
At the end of each season, merchandisers and the Marketing Department help coordinate the timing of markdowns and limited-period sales (20-30% off the regular price) to ensure that inventory is sold out.
Marketing
Each season, UNIQLO conducts promotional campaigns for core products such as fleece, Ultra Light Down jackets, polo shirts, and HEATTECH. During campaigns, UNIQLO advertises a core product's unique qualities and newsworthy features on TV and in other media. In Japan, for example, weekly flyers in the Saturday edition of national newspapers promote the latest apparel at weekendonly prices.
Online Store
Sales at the UNIQLO Japan Online Store totaled 19.9 billion yen in fiscal 2011, or 3.3% of total sales. We also offer online sales internationally, including in China, Hong Kong and Taiwan.
UNIQLO online store (Japanese)
Customer Center
The Customer Center receives more than 70,000 opinions and requests annually from customers. Appropriate departments then act on them to help improve products, stores and services.
Click here to send an opinion or a request (Japanese)
UNIQLO Japan Stores
UNIQLO began as a chain of regional roadside stores with a typical sales floor of 500 square meters. We subsequently upgraded most stores to 800 square meters. Today, we open primarily large-scale stores offering at least 1,600 square meters. Of 843 stores at the end of August 2011,129 were large-scale stores, and they accounted for approximately 20% of UNIQLO Japan sales.
UNIQLO is also developing large-scale stores in urban locations, such as the UNIQLO Ikebukuro Store within the Tobu Department Store, which opened in September 2011. We will open global flagship stores in Ginza in March 2012 and Shinjuku in fall 2012. Going forward, we are looking at global flagship stores for Japan's busiest shopping locations, including Shibuya, Harajuku, Ueno and Ikebukuro in Tokyo, as well as Osaka and Fukuoka. We will also consider megastores offering at least 3,300 square meters in all major Japanese cities.
UNIQLO store openings/closings (Japan)
You can see photos of UNIQLO Japan stores in Photo Library.
Photo Library | UNIQLO Japan
UNIQLO International
UNIQLO International has a total of 234 stores as of February 2012. Of that total, 113 stores are located in China, 16 in Hong Kong, 68 in South Korea, 7 in Taiwan, 5 in Singapore, 3 in Malaysia, 3 in Thailand, 12 in the United Kingdom, 2 in France, 2 in Russia and 3 in the United States. UNIQLO operations in Asia are developing into highly profitable businesses and therefore a more aggressive new store opening policy has been pursued in the Asian nations of China, Hong Kong, South Korea and Taiwan, with 100 new stores scheduled to open for business in the Asian region in fiscal 2012. The total number of UNIQLO International stores is expected to reach 291 by the end of August 2012.
In addition, UNIQLO is forging ahead with its strategy to open global flagship stores in major cities around the world. New global flagship stores in Taipei, New York Fifth Avenue and Seoul in fall 2011 have successfully boosted UNIQLO's brand appeal in their respective markets.
You can see photos of UNIQLO International stores in Photo Library.
Photo Library | UNIQLO International