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Last Updated: 2024.11.13

"LifeWear = a New Industry" Briefing - Ariake Project Driving Both Business Growth and Sustainability

Accelerating the shift to a waste-free business model that makes and sells only the products that customers want, based on more than 30 million instances of customer feedback annually

FAST RETAILING CO., LTD.
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Fast Retailing today held its LifeWear = a New Industry media and analyst briefing, the fourth such annual briefing by the company. At the first session of its kind in 2021, Fast Retailing unveiled its vision of LifeWear = a New Industry, pursued through a business model in which growth and sustainability are linked objectives. Today's briefing focused on how specific initiatives under Fast Retailing's companywide Ariake Project (an ongoing business transformation initiated in FY2017) are helping it to make progress toward sustainability goals.

The session today began with updates on Fast Retailing's progress against key sustainability goals in areas such as emissions and materials use. This was followed by a key session illustrating how Fast Retailing collects and analyzes more than 30 million instances of customer feedback annually from around the world. The company mines this information for insights, and by responding to changes in customer needs and lifestyles, it eliminates waste, making only products customers truly want and need, and transporting and selling these at exactly the time customers need them.

Koji Yanai, Fast Retailing Group Senior Executive Officer, said, "We aim to make and sell only the products our customers really want. At the same time, we are building a supply chain that considers the environment and human rights for our customers' peace of mind. We also conduct social contribution initiatives like our PEACE FOR ALL charity T-shirt project, and The Heart of LifeWear initiative through which we will donate one million items of HEATTECH and AIRism to those who need them most - refugees, children, and disaster victims. Such activities have grown significantly in cooperation with our customers and partners, as well as our local business operations around the world, and their own communities. Through our products, stores, employees, and global network, we will continue working towards a more sustainable society, supporting peaceful and stable lives for people around the world."

Highlights of Fast Retailing's initiatives, and its efforts and progress toward meeting its FY2030 sustainability targets, are as follows.

Product development and improvement, and the product mix, based on customer feedback

  • In FY2024 (ended August 2024), 31.4 million instances of customer feedback (VoC*) were collected worldwide. Along with suggestions received at its customer center, Fast Retailing analyzes product reviews from online stores and feedback provided through store staff, generating insight from this information to develop and improve products. The "Management Cockpit," a company-wide platform introduced in 2023, integrates a wide range of management data, enabling VoC* to be visualized globally in real time, and reflected in business operations more quickly.
    *VoC = "Voice of Customers"
  • Key developments through VoC data include the proprietary new material "souffle yarn knit," improved bra tops, and other product innovations reflecting changing lifestyles of customers, such as washable knit ribbed pants and PUFFTECH.
  • In FY2024, the average product review score was high, with combined Spring/Summer and Fall/Winter items receiving 4.5 points or more out of a maximum 5 points.
  • The number of key items sold globally, the mainstay of Fast Retailing's business, was more than 50 in the fiscal year ended August 2024, more than triple the number compared to FY2017, when the Ariake Project began. Fast Retailing is eliminating unnecessary items, and gradually establishing a business centered on products customers want most.
  • In response to longer summers and warmer winters, Fast Retailing has expanded its lineup of year-round mainstay products to meet customer needs. Instead of the conventional method of dividing items into Spring/Summer and Fall/Winter lines, Fast Retailing has strengthened the product mix to offer items with high demand throughout the year.

Establishment of a production and logistics system to produce, transport, and sell only what customers want, at optimal timing and in precise quantities

  • Algorithm-based demand forecasting has improved the accuracy of sales planning. Coordination with the production plan allows production to be adjusted on a weekly basis.
  • Sharing production plans and progress with factories allows for efficient stockpiling of materials, the ability to secure production capacity, and shorter production lead times. In logistics as well, Fast Retailing collaborates with transportation partners to shorten shipment and arrival times, and to enhance operational efficiency for shorter transportation lead times.
  • Warehouse automation allows for delivery of necessary products to stores in the required quantities, helping to optimize store inventory and operational efficiency.

Progress toward meeting key targets for FY2030

  • In FY2023, Fast Retailing achieved a 69.4% reduction in GHG (greenhouse gas) emissions from its own sources (stores and major offices), compared to FY2019 levels. Steady progress is being made toward the target of a 90% reduction by FY2030. The procurement of renewable energy increased to 67.6% in FY2023, compared to the target of 100% by FY2030.
  • GHG emissions in the supply chain had been reduced by 10% as of FY2023. The pace of reductions is expected to accelerate further from FY2024 onwards due to the replacement of plant equipment and expanded use of materials with a low-environmental impact.
  • The percentage of materials use with low GHG emissions, such as recycled materials, is 18.2% across 2024 products, a significant increase from 8.5% in 2023 products. For polyester items, the percentage of recycled materials used increased to 47.4%.

Main progress in products and services

  • RE.UNIQLO STUDIO, the clothing repair and remake service launched in 2022, had expanded to a network of studios in 51 stores in 22 markets by October 2024, and is scheduled to be available in 60 stores by the end of December 2024
  • Fast Retailing began trial sales of pre-owned clothing in October 2023. Sales at the UNIQLO Maebashi Minami IC store in Japan began in October 2024, the third location alongside the UNIQLO Setagaya Chitosedai and UNIQLO Tenjin stores, where the first trial sales were conducted.
  • The official uniforms provided to the Swedish Olympic and Paralympic Committee are the first to use a recycled polyester from clothing collected by UNIQLO. Fast Retailing is continuing its research and development on clothing-to-clothing recycling.

Main progress in the supply chain

  • Fast Retailing is working to grow its range of "sustainable materials," and is supporting expanded use of such materials in its products. GHG emissions, water usage, biodiversity, human rights, and animal welfare are all designated as aspects to be considered. Development of a new framework to clarify the qualitative and quantitative standards for each material began in FY2024. The formulation of standards for cotton materials will be completed by the end of this fiscal year and applied to production from FY2026. Regenerative cotton has been preemptively added to the list of sustainable materials from this fiscal year.
  • Continuous enhancement of traceability: Enhanced traceability, which was first applied to cotton, has been extended to other materials such as cashmere and wool. Fast Retailing is pursuing initiatives to build long-term partnerships with factories in upstream processes, such as spinning mills. For cashmere, from the 2024 Fall/Winter season, Fast Retailing has introduced periodic traceability audits of 100% cashmere products at its wool washing and spinning plants. A similar framework is being developed for wool products.

References

  1. LifeWear = a New Industry Briefing Presentation Material (PDF 3.5MB)
    https://www.fastretailing.com/eng/ir/library/pdf/presen241113_LifeWear-aNewIndustryBriefingSession_eng.pdf
  2. Fast Retailing Holds LifeWear = a New Industry Briefing (November 7, 2023)
    https://www.fastretailing.com/eng/sustainability/news/2311071510.html
  3. Fast Retailing Hosts Second LifeWear = Sustainability Briefing (November 16, 2022)
    https://www.fastretailing.com/jp/sustainability/news/2211161500.html
  4. Fast Retailing Establishes Fiscal 2030 Sustainability Targets and Action Plan - Making LifeWear a "New Industry" (December 2, 2021)
    https://www.fastretailing.com/jp/sustainability/news/2112021500.html

 

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