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UNIQLO commits to accompany long-term development of Vietnam

Invest Global 08:41 13/11/2023

UNIQLO’s Hoan Kiem store opened on November 10, aiming to become an icon of harmony and honouring the local culture and long-term relationship between Vietnam and Japan. Nishida Hideki, general director and COO of UNIQLO Vietnam, told VIR’s Duc Hanh about the company’s strategy, vision, and commitments to the country’s sustainable development.

What distinguishes the store in this central location from the other stores in Hanoi? UNIQLO commits to accompany long-term development of Vietnam Nishida Hideki

UNIQLO Hoan Kiem is our newest store in Vietnam. The launch also celebrates 50 years of diplomatic relations between Vietnam and Japan. When we came up with the idea for this opening, we wanted to create a store that everyone, especially Hanoians, would love. Prominent location, unique design concept, and an immersive shopping experience were the main requirements.

This store reaffirms our mission and commitment to bring LifeWear to more customers, especially in Hanoi. The more stores we operate, the more convenience we can create for the customer experience.

Located in the heart of Hanoi, we hope that the store will welcome not only local customers but also many visitors from around the world to become a new destination for shopping and also for a cultural experience.

UNIQLO has been contributing to putting Vietnam on the international fashion map through its LifeWear product line. Could you provide more details?

Vietnam has been among our key manufacturers in Asia. From local partner factories, Vietnamese-made LifeWear is not only available at local stores but also distributed to over 2,400 stores across our global network, playing an important role in our global value chain.

Many of our products such as ULD and HEATTECH, which require advanced production processes, are made in Vietnam at a high-quality standard.

With the digital transformation storm today, has UNIQLO offered new and state-of-art digital products and services in its online and offline store chain?

The customer shopping experience is our priority. While physical stores uphold the UNIQLO promise of quality and accessibility, the online store holds a special place in our strategy. The UNIQLO online platform boasts a vast selection of over 15,000 items, including diverse sizes and colours.

Our online store extends exclusive benefits to our customers, such as the convenience of click and collect, enabling customers to pick up their online orders at our physical stores. This synergy between online and offline channels ensures that customers can seamlessly transition between the two, enjoying the best of both worlds.

Additionally, the beauty of advanced technology helps us improve the customer shopping experience. At the checkout area, customers just need to simply drop their items in a bin and pay. Self-checkout machines help make the payment process stores faster, more accurate, and convenient.

UNIQLO commits to accompany long-term development of Vietnam UNIQLO’s Hoan Kiem store What are some valuable insights for businesses looking to pursue a more sustainable direction in the strategy?

In UNIQLO, we are advancing our LifeWear concept – the ultimate in everyday clothing, designed to make everyone’s life better. The aim is to create apparel that not only emphasises quality, design, and price, but also meets the definition of good clothing from the standpoint of the environment and society. Based on the LifeWear concept, we are accelerating its transition to a business model encompassing both sustainability and business growth.

For example, Fast Retailing, a UNIQLO-owned company, has a target to reduce greenhouse gas (GHG) emissions from energy use at its facilities by 90 per cent compared to 2019 levels by the end of the decade. As of the last financial year, the reduction was 45.7 per cent.

In addition, the percentage of materials used with low GHG emissions, such as recycled materials, rose to 8.5 per cent for all 2023 planned products. For polyester items, recycled polyester now accounts for 30 per cent of all polyester used. Work continues toward the 2030 target of 50 per cent.

With this in mind, in Vietnam, we are also working together towards these goals across our value chain.

From a sustainable fashion producer and global fashion retailer perspective, how has UNIQLO demonstrated the role and responsibility of the company in social contribution?

We believe we can turn the power of clothing into a force for good. By designing, making, and selling good clothing, we can make the world a better place. In Vietnam, this belief never changes. Our mission is to relentlessly make a positive and long-term impact on society.

For example, through expanding our local store network, we are able to help generate more jobs for local employees, develop local talents, and contribute to Vietnam’s economic growth. We also focus on supporting underprivileged people and producing top quality clothing that Vietnamese people want, without harming the environment.

Corporate social responsibility activities

UNIQLO commits to accompany long-term development of Vietnam

To celebrate 50 years of the Vietnam-Japan diplomatic relationship, UNIQLO has organised a UTme! t-shirt design contest to encourage the spirit of creativity, passion for art, and spread bold cultural value between the two countries. Total sales of this collection until the end of December will be donated to the HOPE Foundation to contribute to building new schools in Mu Cang Chai. Furthermore, UNIQLO is continuing its commitments to support the community through its scholarship programmes for young talents, training courses for Vietnamese labour, and more.

Recycle, reuse, and reduce activities

UNIQLO commits to accompany long-term development of Vietnam

UNIQLO’s ability to recycle materials is growing as recycling technology evolves, and new clothes made by recycling limited resources are becoming increasingly visible in UNIQLO’s product line-up. The company aims to switch approximately half of all materials used to recycled materials by 2030. Fleeces are one of UNIQLO’s signature items, with 100 per cent of its fabric made from polyester yarn recycled from PET bottles. In Vietnam, UNIQLO has implemented the RE.UNIQLO project since 2021 to collect and categorise second-hand clothes, and work with non-governmental organisations and other partners to distribute wearable used clothing to people in need.

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