UNIQLO's business strategy | Fast Retailing Co., Ltd.

UNIQLO in Japan achieved sales of 890.4 billion yen (9.9% increase from the previous year) and operating income of 117.8 billion yen (9.2% increase) in fiscal 2023. Despite soaring raw material costs and a weak yen, we were able to achieve these strong results because our store staff and the entire company worked together to focus on meeting customer needs.

The UNIQLO Maebashi Minami Inter store (approximately 2,500 square meters of sales floor area) opened on April 21, 2023, near a major national highway. Unlike the previous roadside stores, it has an open atmosphere that makes you want to spend the whole day there.

In between shopping, you can relax on the lawn “UNIQLO Garden'' or bring your children to the UNIQLO Kids Box, where you can have fun both indoors and outdoors. The UNIQLO LOGO STORE, with its impressive exterior logo, is designed to help customers understand UNIQLO's corporate philosophy. Located in an exciting up-and-coming area with many large retailers such as Costco and IKEA, the area is popular with families and groups. More than just shopping, you can enjoy a variety of fun things, such as taking a break while chatting with Uniqlo coffee, relaxing on the lawn, or spending time with your children on the playground.

Through the store opening, we realized that not only individual customers, but the entire community have high expectations of UNIQLO. We have learned that by meeting these expectations, we can grow our business even in the mature Japanese market.

Our very own UTme! Graphic T-shirts featuring familiar local motifs are very popular, and the cafe also sells locally produced sweets.

Uniqlo promoting the vibrant local culture to more customers will benefit the local community in the long run. There are many other regions in Japan where you can open similar stores.

By promoting community-based store management that meets local needs, we aim to maximize UNIQLO's potential and become an even more beloved brand.

UNIQLO Maebashi Minami Inter store

UNIQLO Greater China's sales in fiscal 2023 were 620.2 billion yen (up 15.2%), and operating income was 104.3 billion yen (up 25.0%), resulting in significant increases in sales and profits. We have worked to strengthen our marketing and flexibly prepared the optimal sales system and sales floor. As a result, we were able to firmly capture customer demand even in the second half, when the number of people infected with the new coronavirus decreased and consumer sentiment improved.

Our e-commerce business has always been popular in the mainland China market, but with COVID-19, we have found that our customers are also looking forward to shopping in our stores. When I go to a store, I am reminded of the joy of actually touching, looking at, trying on, and buying. UNIQLO's strength is its ability to combine online and in-store services to provide customers with an enjoyable shopping experience.

We are working hard to popularize LifeWear. We will introduce the value of UNIQLO's clothing and communicate our corporate philosophy of creating a better life through clothing. The LifeWear Day event, which was held mainly at stores in Zhejiang province in conjunction with the Asian Games in September and October 2023, was also featured on major Chinese TV stations. We plan to hold similar events at stores in 28 major cities in 2024.

Our ability to deepen our understanding of LifeWear and provide products and services that please our customers greatly depends on the enthusiasm of our staff. UNIQLO has been awarded China's Top Employer Certification for eight consecutive years for its excellent human resources practices. Approximately 350 new employees joined the company at a ceremony held in Shanghai in July. We aim to attract outstanding human resources and achieve further dramatic growth.

For UNIQLO Greater China in 2024, we will place emphasis on creating high-quality stores in better locations. These stores offer a true LifeWear experience. By accelerating the replacement of our store network, we aim to increase sales per store, further improve profits, and strengthen our operational structure. We will continue to solidify our position as the No. 1 brand in Greater China.

UNIQLO Shenzhen Wanxiang Tiandi Store

Uniqlo's Southeast Asia, India, and Australia regions reported significant increases in sales and profits in fiscal 2023, with total sales of approximately 200 million yen. 350 billion yen (approximately 50% increase from the previous year), and operating income reached approximately 300 million yen to 60 billion yen (approximately 30% increase). We expanded our customer base by promoting our core products throughout the year. Sales of T-shirts, bra tops, and cargo pants also increased as travel demand recovered.

Through content creation and in-store events and activities that convey the value of LifeWear products, we will deepen customer understanding and steadily expand support for LifeWear in Southeast Asia, India, and Australia. We have built a strong brand position and are actively working to support local communities. This support includes donating masks during the COVID-19 pandemic, providing clothing to flood-affected areas, and tree-planting activities. Trust in the UNIQLO brand continues to grow. Support from local customers is increasing year by year, and support is increasing among people in their teens and 20s, who make up the majority of the population.

As of the end of August 2023, the number of stores is 342. Although we have mainly expanded our business to shopping mall stores, sales at roadside stores are also strong. Therefore, we will strengthen the opening of roadside stores, encourage new purchasing behavior, and aim to make UNIQLO a shopping destination. In addition to opening approximately 60 new stores each year, we will strengthen our branding and improve convenience by renewing our store network, and will continue to create large-scale, well-located stores.

The Southeast Asia, India and Australia region boasts the world's greatest growth potential. We will continue to strengthen human resource development, introduce a management system that carefully selects excellent human resources, and focus on creating products suitable for tropical climates. We aim to make UNIQLO the number one trusted brand and to have a strong presence around the world.

UNIQLO Hohoan Kiem store

UNIQLO North America reported significant increases in sales and profits in fiscal 2023, with sales of 163.9 billion yen (43.7% increase) and operating income of 21.1 billion yen (91.9% increase). We strategically clarified target products for sale, secured sufficient product quantities, and strengthened information dissemination through digital means such as branding and social media.

This allowed us to attract new customers and encourage more loyal Uniqlo fans. Sales of core products such as HEATTECH innerwear, down jackets, linen shirts, T-shirts, and bra tops increased significantly. The quality of our products is undoubtedly very high, and many people who previously wore other brands are now attracted to the superior quality and comfort of Uniqlo clothing. This growing confidence in our products has helped us expand our customer base.

Furthermore, in recent years we have been working diligently to develop a large number of talented human resources and build a business team that can collaborate in everything from marketing to product planning and store operations, and we are beginning to see results from our efforts. One of his hit products from the US is his cropped sleeveless bra top. While many customers saw the bra top series as inner wear, Americans loved to wear this special item like a standard top. It became a huge hit in America, Japan, and all over the world.

We transformed our operating structure to foster stable profits and now have a platform in place to accelerate growth. By fiscal 2027, we would like to increase the sales of UNIQLO North America (USA, Canada) to 300 billion yen and the operating profit margin to 20%. This means building a network of 200 stores in the region by fiscal 2027 and accelerating the pace of annual store openings from eight stores in fiscal 2023 to 20 stores in fiscal 2024.

We will actively promote ongoing sustainability activities so that local customers can understand our corporate stance, and strive every day to become the most beloved brand in North America.

UNIQLO New York Soho store (global flagship store)

Uniqlo* in Europe reported significant increases in sales and profits in fiscal 2023, with sales of 191.3 billion yen (+49.1%) and operating profit of 27.3 billion yen (+82.5%). We will continue this growth and aim for sales of 500 billion yen and operating profit margin of 20% in fiscal 2027.

European customers trust natural materials and our high quality cashmere, extra fine merino and Supima® cotton products are always popular. But key this year was promoting the value of our functional materials on social media. As a result, sales of synthetic fiber products such as HEATTECH and AIRism increased. Due to last year's severe winter in Europe and the rise in fuel prices, more and more people are turning to heattech to stay comfortable without relying entirely on heating.

On September 15, 2023, the UNIQLO Paris Opéra global flagship store reopened after expanding its sales area while preserving its historic 19th-century façade. A new central grand staircase, reminiscent of a theater entrance, connects his three floors inside. The store has an open feel with natural light coming in through the glass ceiling. Many customers were looking forward to reopening.

We have built many stores across Europe that respect regional characteristics, including the Paris Opera store. Opening stores in prime locations also contributes to improving Uniqlo's branding. In the future, we would like to continue to open stores such as global flagship stores where people can experience UNIQLO's philosophy and values. The first store is scheduled to open in Luxembourg in October 2023, followed by stores in Rome, Edinburgh, etc. in 2024.

European customers tend to value timeless basic clothing rather than passing trends, and many fans understand Uniqlo's appeal. LifeWear, the ultimate basic daily wear with a high level of perfection, has a very high affinity in the European market. We will continue to provide products that align with European values ​​and aim to be a brand that is loved and trusted.

*Due to UNIQLO Russia's suspension of operations, sales in Russia are not included.

UNIQLO Paris Opera store (global flagship store)