HOME > Group Companies > UNIQLO Business > UNIQLO Business Model

UNIQLO Business Model

Last Updated: 2025.03.04
to Japanese page

UNIQLO product development and improvement stem from customer feedback. Our strength lies in our comprehensive management of clothing design and planning through production, distribution, and retail. As more people seek out clothes that make their day comfortable and enjoyable, global support for LifeWear is growing.

 

Research & Development (Designers/Pattern Makers)

  • Boasting an impressive career at multiple luxury brands, Clare Waight Keller has designed the UNIQLO: C collection since September 2023 and has been UNIQLO Creative Director since Fall Winter 2024.

  • An important part of R&D at UNIQLO is developing products that respond to customer requests, while also identifying emerging needs. Accordingly, our UNIQLO R&D centers constantly incorporate customer opinion while researching global fashion trends and new materials. One year before a product launch date, UNIQLO representatives from teams including R&D, merchandising, marketing, and materials development hold a concept meeting to determine the designs, materials (including those with low environmental impact), and product lineup for the season. Based on those decisions, our designers begin work and turn their designs into samples. Even after a design is selected, its color and silhouette may be refined multiple times before it is truly finalized.

Top of page

 

Merchandising

  • The merchandising team plays a vital role in the product creation process, from product planning through production. Deciding product lineups and volumes through the year is an important aspect of the department's job. To do this, merchandisers communicate closely with R&D, the production department, and other divisions to determine the designs and materials required for each season's products. They also manage the launches of our strategic products in close cooperation with other key departments. Many UNIQLO products are manufactured in lots of roughly 1 million units. The merchandising department monitors sales conditions throughout the season, issuing instructions to increase or decrease production. The team's key responsibilities include minimizing surplus stock and shortages, so that all ordered items are sold.

Top of page

 

Development and Procurement of Materials

  • UNIQLO can secure stable, high-volume supplies of top-quality materials at low cost by negotiating directly with materials manufacturers worldwide. Utilizing our economies of scale enables us to achieve more favorable terms than any other manufacturer. The materials used for our core items are particularly important. Each season, we improve the functionality, feel, silhouette, and texture of our clothes based on customer feedback. For example, we work closely with Kaihara to source denim to specific spinning standards and dyeing specifications. We also partner with world-leading synthetic fiber manufacturer Toray Industries to create innovative new fibers and materials such as the ones found in our HEATTECH range.

Top of page

 

Production Network

  • A UNIQLO knitwear partner factory

  • UNIQLO outsources the production of most products to partner factories in mainland China, Vietnam, Bangladesh, Indonesia, and India. We have built strong relationships of trust with our partner factories over many years, and hold annual conventions to facilitate frank dialogue with factory managers. Our monitoring programs at our sewing factories and major fabric suppliers help to prevent human rights violations and to ensure good working environments and management frameworks in the making of our products. When required, we assist factories in the implementation of improvements. In 2023, we also introduced periodic audits of spinning mills for some materials. UNIQLO continues to ensure responsible procurement and high-quality products by maintaining win-win relationships with partner factories.

Top of page

 

Production Department

  • UNIQLO Production Offices

  • We assign production department members, who manage product quality and production progress, and Takumi (skilled artisans) to production offices in Shanghai, Ho Chi Minh City, Dhaka, Jakarta, and Bengaluru. Production office representatives visit factories weekly to resolve any issues and ensure quality management right there on the factory floor. The production department swiftly addresses any quality concerns raised by customers and implements improvements if required.

Top of page

 

UNIQLO Takumi Teams

  • "By visiting factories and providing technical advice, Takumi establish thorough quality control and a strong relationship of trust. "I offer instruction on dyeing technology at partner factories, and this can encourage workers to embrace a new production management philosophy and to improve their factories. I am proud to be passing on expert Japanese techniques to the next generation."

Top of page

 

Inventory Control

  • Flyer delivered with national newspapers

  • The inventory control team works to improve management efficiency by supplying inventory that reflects the sales capabilities and product sales of each individual store. The team monitors sales and stock daily at each store and dispatches inventory to fulfill orders and maintain appropriate inventory levels. At the end of each season, merchandisers and the marketing department identify popular items and other products for continued sale, and determine the right timing for any change in prices.

Top of page

 

Marketing

  • TV commercial

  • Each season, UNIQLO conducts promotional campaigns for core products such as HEATTECH, Ultra Light Down, AIRism, and Bra Tops. During the campaigns, UNIQLO advertises the products' unique qualities and features through TV commercials and online ads. In Japan, we use UNIQLO apps, email, social media, and flyers delivered with newspapers to notify customers about limited-period discounts, typically of 20-30%, on new seasonal ranges.

Top of page

 

Stores

  • UNIQLO roadside store

  • At the end of August 2024, UNIQLO Japan had 797 stores. UNIQLO International boasted more than twice that number at 1,698 stores, including 1,032 in Greater China; 126 in South Korea; 380 in Southeast Asia, India & Australia; 84 in North America; and 76 in Europe. We are enhancing LifeWear branding by replacing some existing stores with higher-quality ones, and accelerating the opening of large-format and global flagship stores.

    Japan store locator

    Global store locator

    UNIQLO store openings/closings (Japan)

    You can see photos of UNIQLO Japan stores in Photo Library.
    Photo Library | UNIQLO Japan

    You can see photos of UNIQLO International stores in Photo Library.
    Photo Library | UNIQLO International

Top of page

 

E-commerce

  • Our e-commerce operation is growing increasingly important as more customers shop both in store and online. In FY2024, online sales accounted for approximately 15% of total sales (14.7% in Japan; approximately 20% each in Greater China, South Korea, North America, and Europe; and approximately 10% in Southeast Asia, India & Australia). In order to meet customer needs, we intend to expand services that facilitate a variety of purchasing and delivery options, and to strengthen our role as an information-sharing platform through services including UNIQLO LIVE STATION.

    UNIQLO online store

Top of page

 

Customer Center

  • Our customer centers, which analyze customer requests and other information in-house and share that analysis across the company, play an important role in the development and improvement of products and services. We have also introduced the latest AI, chatbot, and voice-recognition technology to create various tools to communicate with customers via phone, email, or chat. Products that have been improved as a result of customer feedback are featured on our exclusive UNIQLO UPDATE website.

    UNIQLO UPDATE

Top of page