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Apparel retail business model

UNIQLO Business Model

UNIQLO was the first company in Japan to establish an SPA (Specialty store retailer of Private label Apparel)* model encompassing all stages of the business-from design and production to final sale. By continuously refining its SPA model, UNIQLO successfully differentiates itself from other companies by developing unique products. We quickly make adjustments to production to reflect the latest sales trends and to minimize storeoperation costs such as personnel expenses and rent. This is how we at UNIQLO provide such high-quality clothing at such reasonable prices.

* The SPA (Specialty store retailer of Private label Apparel) business model incorporates the entire clothes-making process from procurement of materials, product planning, development and manufacture through distribution and retail to inventory management.

Research & Development (Designers/Pattern Makers)

UNIQLO's R&D centers continually research the latest fashions and lifestyles from around the world as well as look for new materials.
Concept meetings are held roughly one year before a product's intended launch. On these occasions, R&D designers meet with representatives from the merchandising, marketing, materials development and production departments to discuss and finalize concepts for upcoming seasons. Then UNIQLO's R&D centers prepare designs and continue to refine samples until each product is finalized.

1 We Seek the World's Best Materials 
UNIQLO is able to offer reasonably priced garments 
made with luxury materials such as 
cashmere, Supima cotton, merino wool and 
premium down. 
You might expect to pay several hundred 
dollars for a women's cashmere V-neck sweater, 
but at UNIQLO you can purchase one for under 
80 dollars. This strength is based on our ability to 
negotiate directly with global materials manufacturers 
and secure mass-volume orders at 
low cost. 
 
2 New Functional Materials Create Demand 
Another key UNIQLO strength is our ability to 
develop new functional materials jointly with 
materials manufacturers and use them to 
make clothes that everyone can afford. 
For example, UNIQLO developed its innovative 
HEATTECH materials with Toray 
Industries, and steady improvements over the 
years have resulted in superb high-quality garments. 
Today, products such as HEATTECH 
(thin, light clothing that keeps you warm during 
cold winters) are transforming people's lives.
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