UNIQLO Co.Ltd Global Management
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1 UNIQLO Co.Ltd Global Management Presented by: Jason Chan Frendy Shizen Nakagawa Seounghyun Seong Batdorj Davaajargal On Takahashi 24 th July, 2013 柳井正 Yanai Tadashi
2 Contents 1. Mission, Objectives, Vision & Basic Information 2. Financial Performance 3. Management Style 4. Organizational Culture 5. Organizational Characteristics 6. Problems, Crisis and Facts 7. Q&A
3 1. MISSION, OBJECTIVES, VISION & BASIC INFORMATION
4 Basic Information Japanese casual wear designer, manufacturer and retailer. Originally a division of Fast Retailing Co. Ltd. On November 1, 2005, it was restructured as a separate wholly owned subsidiary called Uniqlo Co. Ltd
5 Origin of name In May 1985, they opened a unisex casual wear store in Fukuro-machi, Naka-ku, Hiroshima under the name "Unique Clothing Warehouse". It was at this time that the name "Uniqlo" was born, as a contraction of "unique clothing". In September 1991, the name of the company was changed from "Ogori Shōji" to "Fast Retailing"
6 Brief History 1949 Yamaguchi-based company, Ogori Shōji had been operating men's clothing shops called "Men's Shop OS" in Ube, Yamaguchi. May 1985 Opened a unisex casual wear store in Fukuro-machi, Hiroshima April 1994 Over 100 Uniqlo stores operating throughout Japan.
7 Brief History 1997 Adopted a set of strategies from American retailing giant The Gap, known as "SPA" (Speciality-store/retailer of Private-label Apparel), meaning that they would produce their own clothing and sell it exclusively. November 1998 Opened their first urban Uniqlo store in Tokyo s trendy Harajuku district, and outlets soon spread to major cities throughout Japan.
8 Brief History 2001 Over 500 retail stores in Japan and begin to expand oversea. November 2005 Listed on the First Section of the Tokyo Stock Exchange. Present UNIQLO international has 234 stores as of January There are employees in the company.
9 Objective Our clothes are made for all, going beyond age, gender, occupation, ethnicity, and all other ways that define people. Our clothes are simple and essential yet universal, so people can freely combine them in their own unique style.
10 Missions Yanai Tadashi said, UNIQLO clothes are MADE FOR ALL highly finished elements of style in clothes that suit your values wherever you live. This unique concept of clothes sets us apart from apparel companies whose sole purpose is the pursuit of fashion trends. Can clothing change the world? UNIQLO not only believes it can. We re already doing it.
11 2. UNIQLO FINANCIAL PERFORMANCE
12 UNIQLO Financial Summaries Yen in Billion Total Assets Net Sales Net Income Amount of cash and cash equivalents Source: UNIQLO financial statements
13 Major Global Specialty Share Retailers of Private Label Apparel (SPA) Company Name (Flagship Brand) Country End of Fiscal Year Sales ( Trillion) Sales (Billions of dollar) Change (%) Hennes & Mauritz Sweden Nov INDITEX(ZARA) Spain Jan Gap USA Jan FAST RETAILING (UNIQLO) Japan Aug Limited Brands USA Jan Polo Ralph Lauren USA Mar NEXT UK Jan Abercrombie & Fitch USA Jan Esprit Hong Kong Jun American Eagle Outfitters USA Jan Sales (Billions of dollar) 6% 4% 4% 3% 20% Hennes & Mauritz INDITEX(ZARA) Gap 7% 11% 19% FAST RETAILING (UNIQLO) Limited Brands Polo Ralph Lauren 11% 15% NEXT Abercrombie & Fitch Esprit
14 2012 Business Performance by Group Source:
15
16 3. UNIQLO MANAGEMENT STYLE
17 Price High Quality
18 SPA* (Specialty store retailer of Private label Apparel) Product development based on customer feedback Material procurement from around the world Expanding the women s line of apparel
19 Japanese Apparel Market Total = 10.7 trillion yen Women s market = 7.1 trillion yen Men s market = 2.9 trillion yen Children s market = 0.7 trillion yen
20 Global Flagship Store HEATTECH
21 4. ORGANIZATIONAL CULTURE
22 Organizational Culture U N I Q L O - Department and position the office needs only passion. UNIQLO CEO: Tadashi Yanai
23 Organizational Culture U N I Q L O - Personal phone and notebook
24 Organizational Culture U N I Q L O - Chair of the meeting room
25 Organizational Culture U N I Q L O - Overtime
26
27 5. ORGANIZATIONAL CHARACTERISTICS
28 Corporate Social Responsibility Social -Clothes for smiles -All product recycling initiative -Uniqlo recovery assistance project -Social business -Special olympics -Charity projects Environmental -Setouchi Olive foundation Working environment -Employees with disabilities Making the world a better place Sharing the power of clothing
29 Clothes for Smile Help children by raising 10 million $ fund donated to UNICEF for projects in educationbased project(philippines, China, Serbia, Bangladesh)
30 All product recycling initiative Uniqlo is shareable Clothes aren t disposable You re not their final destination
31 Grameen Uniqlo Support social business in Bangladesh Reinvest in initiatives of local social business Average T-shirt in Bangladesh costs 150 yen Target middle to low income owners Affordable clothing for everyone Sales boost in urban areas, fund used to support Grameen ladies Low-cost, high quality materials from partner production factories. Partner factory located in Bangladesh produce high quality product
32 6. RECENT PROBLEMS AND IMAGE IN JAPAN
33 Senkaku Dispute Uniqlo stuck banners on their shops supporting China s claim on the islands. Strategic in avoiding damage Criticism back home
34
35 Black Company Competitive working condition 50% of employees quit in the first 3 years Performance-based salary No differentiation between new employees Recruitment of foreigners and Zainichi over local Japanese The use of English in the workplace
36 Are the criticisms fair? Japanese stores were advised by local police to stick the Chinese support poster as to avoid vandalism. UNIQLO has no-politics policy. Store owner acted on own accord (performance-based) Isn t the Black Company model the normal business model for most global companies? Performance-based salaries Multi-cultural workforce Non-continuity due to stress
37 THANK YOU FOR YOUR ATTENTION
38
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