With 80 partner factories and 240,000 related workers, Uniqlo's CEO said Vietnam is one of the brand's key Asian manufacturers.
The information was recently shared by Mr. Nishida Hideki, General Director of Uniqlo Vietnam. "From local partner factories, 'Made in Vietnam' products are distributed to more than 2,400 stores around the world, playing an important role in our global value chain," he said. Last year, more than 50% of the products sold in Uniqlo stores in Vietnam were also produced by Vietnamese people.
Mr. Nishida's comments were made in the context that fashion products in general produced in Vietnam are increasingly gaining a significant market share in major world markets.
According to data from Mirae Asset Securities, the market share of Vietnamese-origin fashion in the US and Japan in 2022 will be 18.3% and 15.6%, respectively, up from 17.6% and 14.1% in 2021. In Korea, the market share is up to 31.1%.
Mr. Nishida Hideki, General Director of Uniqlo Vietnam. Photo provided by the company
Uniqlo clothing was manufactured in Vietnam long before the chain opened its first store in Ho Chi Minh City in 2019. Accordingly, parent company Fast Retailing has been placing orders with Vietnamese suppliers for more than 20 years. Currently, about 240,000 Vietnamese workers are directly and indirectly involved in this production process.
The Vietnamese partner is considered to be highly capable. Many of the Japanese brand’s core products, which require advanced processes, are made here. For example, the ultra-lightweight down jacket (ULD) line, thermal clothing using exclusive technology (HEATTECH) or faux-fleece jackets, using 100% recycled material from PET plastic bottles.
To implement this, Fast Retailing will send Takumi (the group's textile experts) to share knowledge and experience and ensure that partners meet independent global standards for product quality and safety. Without sharing specific plans for the future, Mr. Nishida affirmed his commitment to continue expanding and increasing the proportion of Vietnamese goods in the store system in Vietnam.
Despite the volatile economic climate, Uniqlo still opened 7 more stores this year, bringing the total to 22. The latest is a standalone store located in a prime location overlooking Hoan Kiem Lake (Hanoi) renovated from an ancient building.
Mr. Nishida Hideki said that the business results are still in line with the long-term development plan that Fast Retailing has set. According to the recent business results report for the fiscal year ending August 2023, Fast Retailing had a net profit of 296 billion yen (over 1.9 billion USD), up more than 8% over the same period thanks to record revenue of 2,770 billion yen (nearly 18.6 billion USD), up 20%.
Uniqlo's markets in South Korea, Southeast Asia, India and Australia reported joint results, with revenue of nearly 450 billion yen (about 3 billion USD) and operating profit of more than 78 billion yen (over 518 million USD), up 46.1% and 36.4% respectively.
"Southeast Asia, especially Vietnam, is showing impressive growth potential. We remain optimistic about the prospects here," said Mr. Nishida Hideki.
This brand has about 1,000 employees operating the retail chain in Vietnam, of which 70% of the store managers are Vietnamese. General Director Nishida aims to increase this ratio in the coming time, and wants each store to have a disabled employee to create an inclusive workplace and development opportunities for everyone.
Nishida Hideki is the second CEO of Uniqlo Vietnam, taking over from his predecessor Osamu Ikezoe in late February. He first came here about four years ago. "Coincidentally, that was also the time when the first store opened, with thousands of customers lining up for days. That image always inspired me about Vietnam," he said.
During his tenure, he aimed to make the fashion retailer a leading brand in the market. To do so, he applied the 4C formula: customer service; confidence in LifeWear; contribution to society; and challenge spirit.
"I believe that there are always trustworthy companions around me, instead of feeling pressured, I enjoy this journey in Vietnam," he said.
Uniqlo is the largest of eight brands under the Fast Retailing group, founded by Japan's richest man Tadashi Yanai. As of November 15, Fast Retailing had a market capitalization of 11,749 billion yen ($77.8 billion). The total number of stores under Fast Retailing's brands currently stands at nearly 3,600, of which Uniqlo has 2,400 stores.
If calculated by the capitalization of global fashion retailers as of February this year, Fast Retailing ranked second in the world after Inditex (parent company of Zara).
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