In 2017, Fast Retailing, the parent company of UNIQLO, embarked on a significant transformation to become a digital consumer retailing company. The goal: to provide customers with the products they need, no matter where or when, while ensuring efficient production, transportation, and sales processes. Fast Retailing has integrated advanced technologies across all business processes, focusing on those that deliver the most value to customers and front-line staff. A notable innovation is their RFID platform, which effectively “digitalizes clothing.”
Enhancing Business Processes
Takahiro Tambara, Global CIO of Fast Retailing, shares that the company’s mission at the NRF APAC 2024 Event —changing clothing, conventional wisdom, and the world—drives their business transformation. This mission focuses on continuous innovation to meet global consumer needs. A significant challenge in this journey has been managing the flow of information across the company’s end-to-end business model.
“We use information at each business process to bring a new level of quality and efficiency,” Tambara explains. By leveraging AI and robotics, Fast Retailing is creating an ideal retail environment where products and services are available precisely when and where customers want them.
Implementing RFID Technology
One of the most revolutionary technologies adopted by Fast Retailing is RFID. This technology has been pivotal in inventory management and creating a seamless checkout experience. In many UNIQLO stores, customers can place their shopping bags on the counter, and RFID automatically registers the items without the need for scanning barcodes. This system, which has halved checkout times, is designed to improve customer experience rather than reduce labor costs.
“RFID technology helps us manage the supply chain more efficiently,” says Tambara. “It provides greater visibility and control from procurement to final sale, ensuring that we can meet customer demands precisely.”
Automated Warehouses
Fast Retailing has also invested in automated warehouses to enhance logistics capacity and precision in inventory management. These warehouses, which support both retail and e-commerce, ensure that products are available at the right location and time for customers. Tambara highlights that the automated system increases throughput and shortens delivery times, thereby improving overall customer satisfaction.
Continuous Customer Feedback
Fast Retailing places high importance on customer feedback, receiving over 30 million comments annually. This feedback is crucial for product development and improvement. For example, UNIQLO’s iconic Oxford shirts undergo continuous enhancements based on customer insights, ensuring they remain timeless yet improved in quality and durability.
“Despite our efforts, we still strive to capture more customer voices,” Tambara admits. “With AI, we hope to better utilize this feedback to innovate further.”
Global Vision and Future Technologies
Tambara, recently relocated to London, emphasizes the importance of a global perspective. Fast Retailing aims to be a truly global company, integrating diverse insights into their operations. The future vision involves creating a fully connected retail environment where technology and information drive all key processes.
“Our transformation is about connection,” Tambara concludes. “We must link all tools, actions, and resources for the benefit of our customers, leveraging technology to create a more convenient and positive shopping experience.”
Conclusion
Fast Retailing’s journey to becoming a digital consumer retailer showcases how strategic use of technology can revolutionize the retail industry. By focusing on customer-centric innovations and seamless integration of advanced technologies, UNIQLO is well on its way to achieving its goal of being the world’s number one apparel brand.
