UNIQLO Investigative Report

CHARMAINE LOPEZ 12BS2

Executive Summary
UNIQLO is a Japanese casual wear designer, manufacturer and retailer. The company is a
wholly owned subsidiary of Fast Retailing Co., Ltd. Their slogan is “Made for All” as their
clothing comes in every shape and colour that a customer wants. (UNIQLO.com)

This investigative report of UNIQLO, will outline their operation management practices:
● interdependent to their marketing
● finance and human resources management
● what influences the business
● their processes and strategies.

Interdependence with Other Key Business

Functions

Marketing
Uniqlo’s operations relies on the marketing management from the opinions and requests of
customers which comes back to their merchandising, material development and production so
the business can create the products that satisfies customer’s needs and wants. (Fast Retailing
PDF - Operations)

Finance
By producing the best quality clothing, UNIQLO makes profits that can be used to purchase
their materials in production. Also with the profits, they bulk buy their products. (Fast Retailing -
Financial Summary)

Human Resources
UNIQLO has a team of technical specialists who are skilled in textile takumi English translation -
artisan) meaning they are highly skilled in textile creations. Their textile team have many years
of experience and they are sent to their partner factories in their outsourced factories to teach
their techniques. This allows the business to create quality products consistently. (UNIQLO -
Manufacturing)

Influences
Globalisation
Globalisation is the removal of barriers between nations. It provides businesses to new
customers, technology, financial markets, the cheapest suppliers and inputs and the most
effective production process.

UNIQLO has around 70 partner factories, and roughly 80% 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. Their
ultimate aim is to position one-third of production outside China. UNIQLO
now has global production centres that are located in Shanghai, Ho Chi
Minh City, Dhaka, Jakarta and Istanbul. (see FIG 1.) (Digital Initiative -
What’s behind the low-cost high-quality casual wears?)

(FIG. 1)

Quality Expectations
Having great quality of products and services is always ideal for a business. As customers have
high expectations of a product, the business should create their product that is designed well
and made for its purpose so that they can achieve customer satisfaction.

UNIQLO is famous for being “innovative, functional and affordable,” with their clothing.
E.g: UNIQLO’s heattech clothing where fibers absorb moisture that the body emits, and the
fabric itself generates heat to keep you warm. A clothing example is a long sleeve shirt where in
Australia, it is $39:00 - affordable for it’s quality. (see FIG 2.)
(UNIQLO - HEATTECH)

(FIG 2.)
Environmental
Corporate Social Responsibility (CSR) is how the business does activities that assist people, the
community/society and a broader environment. These activities that the business is more than
just complying with laws and regulations. UNIQLO utilizes highly in having corporate social
responsibility as they conduct activities for everyone and the environment.

● Environmental Responsibility - Sustainable Jeans: Uniqlo is a member of a non-profit

“Better Cotton Initiative (BCI)” that supports sustainable jeans where the process and
techniques are environment efficient. Such as in their cotton cultivation where BCI
teaches producers about techniques of appropriate water, pesticide or other chemical
usage. Another step that they use is washing with artificial eco stones that last long. This
eliminates the need for natural stone mining and stones are stayed put within the earth.
● Social/Ethical - Recycling Program: UNIQLO aims to provide their high quality clothing
to all people in need around the world. The program collects clothing through donations
of UNIQLO bought clothing that customer does not wear anymore. The clothing goes
into a UNIQLO recycling box and it is given back to the store itself.
(Sustainability - UNIQLO)

(This is the amount of items donated in all parts of the world)

Processes

Inputs
● Transformed - Material: By producing high quality clothing,
UNIQLO uses a variety of materials such a fabric, wool, cotton,
denim, yarn, etc.
E.g: UNIQLO is partnered with Kaihara, a Japanese denim
manufacturer from the 1960s who is known to create their denim with
high expertise. (see FIG 3.)

(FIG 3)

● Transforming - Human Resources: As mentioned in the "Interdependence between Key

Business Functions," The UNIQLO takumi teaches employees in the production centres
about sewing techniques..
(Fast Retailing PDF - Operations, UNIQLO - Manufacturing)

Transformation Process

UNIQLO breaks it down into a series of jobs based on a process layout. In their cutting and
sewing process starting from the “spinning”; the unraveling of the materials. Then by using
skilled craftsman, they adjust the computer-generated test colours in the “dyeing” process”. The
“sewing process” begins with cutting, followed by machine sewing, In “processing and finishing”
quality and safety inspections are conducted several times. (Fast Retailing PDF - Operations)

(FIG 3)
Outputs
Customer Service: UNIQLO’s high quality clothing have always satisfy customer expectations
and giving quality service. UNIQLO has their saying of the “UNIQLO way” where they say well
honed phrases like "Let me know if you need anything. My name is [insert name].", "Thank you
for waiting." Also in Australia for one day, UNIQLO gave free heattech due to their current winter
weather.

Three Strategies

Outsourcing
Outsourcing is the use of external providers to perform business activities.
UNIQLO outsources its production to partner factories in developing countries for its low-cost
production. UNIQLO doesn’t own factories and holds flexibility to change production partners
because the best production location has changed as times goes. They currently relationships
with factories in China, Vietnam, Bangladesh and Indonesia and Turkey. (Digital Initiative -
What’s behind the low-cost high-quality casual wears?)

Inventory Management - Just in Time (JIT)

The “Just in Time” management approach is to ensure that the exact amount of material inputs
will arrive only as they are needed.

With UNIQLO, their Inventory Control Department maintains their levels of store inventory by
dispatching inventory is it is needed and purchasing stock in a weekly basis. (Fast Retailing
PDF - Operations)
Quality Management

Quality management is a process that a business undertakes to ensure there is consistency,

reliability, safety and fitness of the product. UNIQLO engages in their quality management to
deliver secure and safe products to their customers

Quality Control: UNIQLO relies on third parties to conduct sample tests on all their materials to
see whether they conform to quality and safety. Also UNIQ

Quality Assurance: UNIQLO has a quality assurance team. They do many tasks such as
quickly prompting to any material product prompts. This determines whether to issue a recall for
the product in question.

Quality Improvement:
Total quality management: Through customer feedback, they will find any defects in their
products and they will try to improve this. The takumi team teaches employees the occupational
safety of the workplace which leads to greater capacity and improved infrastructure among
them.

(Quality and Safety - Fast Retailing)

Conclusion
Through this investigative report, we insight in how UNIQLO creates their “Made for all,” high
quality products with their interdependence with the other management groups, their influences
of operations, how they make their products and what strategies do they have.

APA FORMAT - Websites Used

● Article title: Uniqlo - The Strategy Behind The Japanese Fast Fashion Retail Brand
Website title: Martin Roll
URL: https://martinroll.com/resources/articles/strategy/uniqlo-the-strategy-behind-the-global-
japanese-fast-fashion-retail-brand/
● Article title: About Production Department | Production Department for New Graduates |
FAST RETAILING CAREER OPPORTUNITIES
Website title: LIFE at FR | FAST RETAILING CAREER OPPORTUNITIES
 URL: https://www.fastretailing.com/employment/en/uniqlo/production/production.html
● Website title: Fastretailing.com
URL: https://www.fastretailing.com/eng/ir/library/pdf/ar2011_en_08_n.pdf

● Article title: UNIQLO: What’s behind the low-cost high-quality casual wears? –
Technology and Operations Management
Website title: Rctom.hbs.org
URL: https://rctom.hbs.org/submission/uniqlo-whats-behind-the-low-cost-high-quality-
casual-wears/
● Website title: Fastretailing.com
URL: https://www.fastretailing.com/eng/ir/library/pdf/ar2007_e_07.pdf
● Article title: Results Summary | FAST RETAILING CO., LTD.
Website title: Fastretailing.com
URL: https://www.fastretailing.com/eng/ir/financial/summary.html
● Article title: Manufacturing - UNIQLO
Website title: Uniqlo.com
URL: https://www.uniqlo.com/sg/corp/production/
● Article title: UNIQLO LAB HEATTECH
Website title: Uniqlo.com
URL: https://www.uniqlo.com/lab/heattech/us/
● Article title: Manufacturing - UNIQLO
Website title: Uniqlo.com
URL: https://www.uniqlo.com/sg/corp/production/
● Article title: UNIQLO: What’s behind the low-cost high-quality casual wears? –
Technology and Operations Management
Website title: Rctom.hbs.org
URL: https://rctom.hbs.org/submission/uniqlo-whats-behind-the-low-cost-high-quality-
casual-wears/n
● Article title: Quality and Safety | FAST RETAILING CO., LTD.
Website title: Fastretailing.com
URL: https://www.fastretailing.com/eng/sustainability/products/quality_and_safety.html