Uniqlo President on Globalization Challenge for Japan

[Mulboyne]

Yomiuri: Economy became borderless long ago

[Interview with Tadashi Yanai of Fast Retailing]

What is the goal of globalization for Uniqlo?

A: We intend to increase overseas sales from the current 15 percent to more than 50 percent by 2015. For fiscal 2012, we'll hire only 200 to 300 Japanese among the 1,500 new employees in our group. In about five years, we'll increase the percentage of foreign employees to 50 percent at our Tokyo office.mWe plan to make our Tokyo office employees and store managers across the country work abroad at least once. In March, we'll introduce English as our company's official language.

Our Japanese employees will be allowed to speak Japanese among themselves, but they'll have to use English for meetings with foreign participants and for documents to be read by foreigners. We want Japanese staff to score at least 700 on the Test of English for International Communication (TOEIC) by March.

Why does your company have to introduce English as its official language?

A: It may not make sense to require Japanese employees to speak in English to each other. But close communication is needed for an internationally expanding labor-intensive retail business. It's difficult to convey one's true thoughts through interpreters. [This principle is] applied not only to English [but also Chinese]. At our company in China, those who are unable to speak Chinese after a one-year stay are sent home.

Q: What do you think about the idea that nowadays young Japanese are said to be inward-looking [without thinking of other countries and going abroad]?

[continued in next post]

[Mulboyne]

A: All we can do is to make them go abroad to learn, even if we have to force them. What is important is to immerse them in foreign communities and let them work using their individual skills, without flocking together [with other Japanese]. Foreign language skills are also necessary for this.

How do you view globalization of other Japanese companies ?

A: They're lagging too far behind. Today, issues in the United States and European nations have a bigger influence on Japanese companies' management than domestic ones. But [Japanese] top executives tend to see only successful past experiences.

The time long gone when there were boundaries on the economy. Top executives will remain out-of-touch if they don't embrace an international system.

Our company started as a local textile retailer, so our only choice was to go abroad for development. But in the future, a company won't be able to survive without expanding internationally, regardless of size or business area.

Looking at movements regarding the Trans-Pacific Partnership agreement, it seems like Japanese are too lackadaisical [and don't acknowledge the severe state of the economy].

What will they be able to achieve if they say "we can't do this or that" even before starting negotiations? We have no option but to open our country for further development. A country without growth will eventually fail.

What do you think about the concerns of Japanese industry hollowing out?

A: Once a company is bankrupt, it can't employ anyone. I want people to clearly understand one point: Despite a lack of natural resources, Japan has managed to survive up until now thanks to the efforts of large, internationalized companies.

China and India have a combined population of 3 billion. Within 10 years, the two countries will have a larger middle-income population than the United States and Europe. This is like a "gold rush" for me. Japan still has everything--human resources, goods, money, information and technology.

Given Japan's massive debt, I don't think the yen's appreciation will continue for long. Unless something is done before the yen collapses, Japan will become a second-class country. We must have more of a sense of crisis.

If a Japanese company internationalizes, it may one day become unnecessary to have a Japanese president. What do you think about that?

A: Uniqlo can develop globally because our company has [strong] DNA as a Japanese company. But we don't care about the nationalities of employees: As long as a person shares the DNA with us and is good at their job. If a company promotes globalization, there is a good chance it will have a non-Japanese top executive. It's unavoidable.

What is important for Uniqlo to survive globally?

A: We have to create products which are accepted all over the world, rather than making country-specific products. We'll strive to prove the value of Uniqlo products in the global market.

[Russell]

Maybe Uniqlo's employees can use the new translation service of DoCoMo?

[Kagetsu]

That's pretty impressive really... it's pretty apparent the business in Japan isn't really interested in looking international, though they're not the only ones guilty of this. It's nice to see one major Japanese company who willing to put the effort into international work.
Kudos Uniqlo. Love your clock. ^_~

[matsuki]

I want people to clearly understand one point: Despite a lack of natural resources, Japan has managed to survive up until now thanks to the efforts of large, internationalized companies.

Amazing!!



With this guy at the helm, UNIQLO has a future...most of the other major Japanese companies...not so much.

[Coligny]

UNIQLO has a future....

I don't really see this as a good news...

(buying my clothes at the hardware shop these days...)

[Catoneinutica]

Of all the essays in Reimagining Japan, that book put out last summer by McKinsey (Rajat Gupta!), Yanai's was the harshest in its criticism of Japan. His advice to Japanese young people was, "get out of Japan for a few years."

[Samurai_Jerk]

I don't know. I have a client that's working with Uniqlo on expanding their presence abroad and he told me they're a pain in the ass to work with because they're so Japanese. I wonder if Yanai will really be able to change that.

[Coligny]

I really don't see the need for uniqlo to expand whatsoever (from a consumer perspective). They are designless, cheaply made crap. It's exactly like Muji, past the novelty syndrome, you are sold purposefully unbranded but branded junk.

It's like they choosed to go without a marketting budget, but decided to go anyway with a strong brand image... just without thinking aboot how to build one and certainly not paying for any (at least pretending)... but going with whatever remaining paint scheme was possible with some colors leftover from another paint job and sticking with it... It's some sort of corporation sized emperor new clothes...

Remind me the Toyota Mark X launch... branded as a new exciting sport car yadda yadda yadda... Ending up with the usual Silver Toyoturd sedan nearly impossible to differentiate in the parking lot like an early 90' Audi before they went full retard...

[Russell]

I really don't see the need for uniqlo to expand whatsoever (from a consumer perspective). They are designless, cheaply made crap. It's exactly like Muji, past the novelty syndrome, you are sold purposefully unbranded but branded junk.

It's like they choosed to go without a marketting budget, but decided to go anyway with a strong brand image... just without thinking aboot how to build one and certainly not paying for any (at least pretending)... but going with whatever remaining paint scheme was possible with some colors leftover from another paint job and sticking with it... It's some sort of corporation sized emperor new clothes...

Remind me the Toyota Mark X launch... branded as a new exciting sport car yadda yadda yadda... Ending up with the usual Silver Toyoturd sedan nearly impossible to differentiate in the parking lot like an early 90' Audi before they went full retard...

Of all the cheap clothes I have bought, Uniqlo's stand out because they fit so badly. They have sewn this crap together along straight lines without any consideration for body shapes. The only appeal that Uniqlo has is that they put similarly colored clothes together. That looks nice in the shop, but once home, you are left with some piece of cloth that fits like a sack. I have long ago abandoned their stores.

[Mike Oxlong]

I agree with Coligny that the DIY centres and similiar warehouse type stores are the place to get basic, very casual clothing. Cheap, functional, and certainly no worse in quality than Uniqlo. Sometimes better. Kind of like Costco back home in the early days.

[Netherlander]

Of all the cheap clothes I have bought, Uniqlo's stand out because they fit so badly. They have sewn this crap together along straight lines without any consideration for body shapes. The only appeal that Uniqlo has is that they put similarly colored clothes together. That looks nice in the shop, but once home, you are left with some piece of cloth that fits like a sack. I have long ago abandoned their stores.

Those were my thoughts exactly. I would argue that for that very same reason Uniqlo's stuff is good for the kids though.

[damn name]

The problem with clothing stores, no matter what country, is that they have it all wrong.

You want to make a popular, successful clothing store? Open one and separate your product by size e.g. all the 34-30 jeans are here, all the 34-32 jeans are here, all the L size pullover sweaters are here, all the LL cardigans are here, etc. Pick a color or design from the size area that fits you.

Instead, they all torture you by making you wade through pile after pile of stuff here, then there, then waaay the hell over there, only to find that they don't have it in your size.

Uniqlo will be just another brand in the dustbin 10 years from now. All companies like them go through the same phases of growth, debt, arrogance and bankruptcy.

[Coligny]

You want to make a popular, successful clothing store? Open one and separate your product by size e.g. all the 34-30 jeans are here, all the 34-32 jeans are here, all the L size pullover sweaters are here, all the LL cardigans are here, etc. Pick a color or design from the size area that fits you.

Not all clothes for the same size sticker fit the same way, or if you are between 2 sizes, it's 10 times easier to have direct access by design then all the size for said design...

Uniqlo will be just another brand in the dustbin 10 years from now. All companies like them go through the same phases of growth, debt, arrogance and bankruptcy.

except my bet is that uniqlo's success might be more a mix between dirt cheap prices and good profit margin... They make their name like wallmart by being the cheapest in town while staying in the black...
They can go on writing "fuck you" on all their plastic bags, not gunna lose them a customer...
rising chinese wages are sounding an early warning. So they still have Vietnam, Thailand or Malaysia for cheap slave labour... then after... greece portugal... Spain... and all the new 3rd world countries

[Russell]

Not all clothes for the same size sticker fit the same way, or if you are between 2 sizes, it's 10 times easier to have direct access by design then all the size for said design...

When I bought T-shirts near the Vatican a few decades ago I noticed that they were all the same size, even though the stickers said S, M, L, LL, etc, so I guess they found an economical way to solve the size problem (economical for them).

except my bet is that uniqlo's success might be more a mix between dirt cheap prices and good profit margin... They make their name like wallmart by being the cheapest in town while staying in the black...
They can go on writing "fuck you" on all their plastic bags, not gunna lose them a customer...
rising chinese wages are sounding an early warning. So they still have Vietnam, Thailand or Malaysia for cheap slave labour... then after... greece portugal... Spain... and all the new 3rd world countries

France?

[matsuki]

Hahaha, I never buy anything there except their underwear and pajamas. Heattech and their dry/cool wear. Stuff fits and holds up pretty good. Their regular clothes, not my taste.

Of all the essays in Reimagining Japan, that book put out last summer by McKinsey (Rajat Gupta!), Yanai's was the harshest in its criticism of Japan. His advice to Japanese young people was, "get out of Japan for a few years."

Bwahahaha, best advice evaaaaaaaaaaaaaaaaaaaa!

[Russell]

Those were my thoughts exactly. I would argue that for that very same reason Uniqlo's stuff is good for the kids though.

Yep, them Uniqlothes don't fit us Dutch frames very well.

[Netherlander]

Yep, them Uniqlothes don't fit us Dutch frames very well.

Haha:p I like how you outed yourself as Dutch;)

Also you mention that the Uniqlothes don't fit our frames. I always have that problem. I'm not fat, but whenever I pick some clothing that looks nice and is in the LL size, and try it on I think this is great! Everything is great, the size color or design until I push my arms through the sleeves and it turns out the sleeves are made for midgets!!:mad: WTF?!

[Coligny]

France?

(Too much strikes....)

Beside... we still have quite a few kick ass indutries... (Renault, Areva, Airbus, Dassault)

[Mike Oxlong]

[legion]

The problem with clothing stores, no matter what country, is that they have it all wrong.

You want to make a popular, successful clothing store? Open one and separate your product by size e.g. all the 34-30 jeans are here, all the 34-32 jeans are here, all the L size pullover sweaters are here, all the LL cardigans are here, etc. Pick a color or design from the size area that fits you.

Instead, they all torture you by making you wade through pile after pile of stuff here, then there, then waaay the hell over there, only to find that they don't have it in your size.

Uniqlo will be just another brand in the dustbin 10 years from now. All companies like them go through the same phases of growth, debt, arrogance and bankruptcy.

Wouldn't work, people would not want to walk over to the section labelled "TUBBIES!"

Uniqlo clothes are made to fit Japanese people I guess cos they don't fit me. They are also a fine example of Sam Vimes' theory of general economic unfairness (Sam Vimes is a character in Terry Pratchett's Discworld novels). Rich people can afford good quality stuff which costs twice as much and lasts four times as long as the gear poor people can afford. The poor are trapped in a cycle of low value purchase.

If you want simple stuff that lasts I find Muji much better.

[legion]

Yep, them Uniqlothes don't fit us Dutch frames very well.

Haha:p I like how you outed yourself as Dutch;)

Also you mention that the Uniqlothes don't fit our frames. I always have that problem. I'm not fat, but whenever I pick some clothing that looks nice and is in the LL size, and try it on I think this is great! Everything is great, the size color or design until I push my arms through the sleeves and it turns out the sleeves are made for midgets!!:mad: WTF?!

They shrink too.

[matsuki]

I dunno, 3,990Yen for the "Ultra light weight" down jackets that fold into nice little pillows seem like a good deal and great for travel.....the sizes also seem to have changed recently (I haven't lost thaaaat much weight!) as I found myself down to medium in everything they offer. Possibly internationalizing their sizing?