Uniqlo Co., Ltd.

is a Japanese casual wear designer, manufacturer and

retailer. The company has been a wholly owned subsidiary of Fast Retailing Co.,
Ltd. since November 2005.

Since March 1949, a Yamaguchi-based company, Ogori Shji (which, until

then, had been operating men's clothing shops called "Men's Shop OS") existed
in Ube, Yamaguchi.
In May 1984, they opened a unisex casual wear store in Fukuro-
machi, Naka-ku, and Hiroshima under the name "Unique Clothing Warehouse".
Initially, from the contraction of "unique clothing", the brand was going to register
under "uni-clo". However, in 1988, during administration work between Hong Kong
in relation to the brand, staff in charge of registration misread the "C" as "Q", and
that is how the brand name was born. From then, Tadashi Yanai changed the
store name to "uniqlo" across Japan. In September 1991, the name of the
company was changed from "Ogori Shji" to "Fast Retailing", and by April 1994,
there were over 100 Uniqlo stores operating throughout Japan.

UNIQLO clothes offer unique value to everyone, everywhere. UNIQLO

negotiates directly with materials suppliers around the world, placing large
orders to ensure steady access to world-class natural materials. We also work
with top synthetic fiber manufacturers to develop new functional materials.
UNIQLO is known and loved by consumers worldwide for its ability to challenge
the conventional wisdom of clothing.

Research & Design (Designers/Pattern makers)

UNIQLO's research and design (R&D) centers continually research analyze

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, 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 refine samples until each product is finalized.

Development and Procurement of Materials

UNIQLO can secure stable, high-volume supplies of top-quality materials at

low cost by negotiating directly with materials manufacturers, and placing large-
volume orders. The materials used for our core items are particularly important.
Our in-depth research and experimentation generates multi-layered
improvements in the functionality, feel, silhouette and texture of our clothes. For
example, we source denim to specific spinning standards and dyeing
specifications from Kaihara Corporation. We also develop materials with our
strategic partner Toray Industries, a synthetic fiber manufacturer, to create
HEATTECH.

Merchandising

Merchandisers play a vital role from product planning through production.

After meeting with the R&D designers, merchandisers then apply the concepts for
each season to product plans, materials and designs. Next, they decide the
product lineup and volume for each season, paying close attention to a detailed
marketing strategy. One other important task for our merchandisers is to decide
when to increase or reduce production during a season. Any decisions about
adjusting production in line with demand are made jointly with the product
planning department.

Quality and Production Control

UNIQLO deploys about 400 staff and textile takumi (skilled artisans) to offices
in Shanghai, Ho Chi Minh City, Dhaka, Jakarta and Istanbul. Production managers
visit partner factories each week to resolve outstanding issues. Customer
concerns regarding quality are communicated immediately to production
departments, and then improvements are made.

UNIQLO's Takumi Team

"By offering instruction on dyeing technology at UNIQLO's partner factories,

I can encourage workers to embrace a new production management
philosophy and improve the factories they work in. Our cultures may be different,
but our aim is the same--to make good great products. I am proud to be passing
on expert Japanese techniques to the next generation of technicians."

Expanding Our Production Network

As UNIQLO expands its global reach, we have formed business relationships

with partner factories in China, Vietnam, Bangladesh and Indonesia. We will also
look at expanding our global manufacturing base by developing relationships
with factories closer to UNIQLO stores in Europe and the United States.

Inventory Control

The Inventory Control department maintains the optimum level of store

inventory by monitoring sales and stock on a weekly basis, and dispatching
necessary inventory and new products to fulfill product orders. At the end of each
season, merchandisers and the Marketing Department help coordinate the
timing of markdowns and limited-period sales (typically 20-30% off the regular
price) to ensure that inventory sells out.

Marketing

Each season, UNIQLO conducts promotional campaigns for core products

such as fleece, Ultra Light Down, AIRism and HEATTECH. During these campaigns,
UNIQLO advertises these core products' unique qualities and noteworthy features
on TV and in other media. In Japan, for example, weekly flyers in the Friday
editions of national newspapers, which are delivered to most households,
promote the apparel that will be discounted through Monday.

UNIQLO Stores

UNIQLO Japan had 841 stores (including 30 franchise stores) at the end of
August 2015. Since the opening of the first store outside Japan in 2001, UNIQLO
International has expanded to 798 stores, including 467 stores in Greater China
(Mainland China, Hong Kong and Taiwan), 155 in South Korea, and 108 in
Southeast Asia and Oceania. We have enjoyed rapid store development in Asia.

E-commerce Business

Online sales in Japan totaled 32.4 billion in fiscal 2015, or 4.2% of total
UNIQLO sales. Online sales are also doing well in places including Mainland China,
Taiwan, South Koria, Britain, the U.S., Australia and Singapore.
Customer Center

The Customer Center deals with more than 270,000 comments and requests
annually. Appropriate departments act on them to improve products, stores and
services.
Developing Products of Exceptionally High Quality

To ensure the development of products of exceptional quality, UNIQLO has

refined its SPA* (Specialty store retailer of Private label Apparel) business model,
allowing for control of the entire business process from planning and design to
material procurement and sales.

Product Development Based on Customer Feedback

Customer opinions and needs play a vital role in UNIQLOs product
development. The UNIQLO Customer Center receives approximately 90,000
comments from customers annually. Our HEATTECH products, for example, have
been refined each year based on customer feedback such as comments
asking for softer fabric, a function to keep skin both warm and prevent dryness
and an expanded range of colors. It is precisely this customer feedback that
makes it possible for UNIQLO to produce the high-quality apparel that it does.
Material Procurement from Around the World
The UNIQLO Material Development Team is able to procure high-quality
materials at low costs through direct negotiations with and bulk purchases from
material manufacturers globally. For instance, take the denim fabric that is
nearly synonymous with UNIQLO. This is woven, dyed and manufactured to meet
UNIQLOs specifications by the global denim manufacturer KAIHARA Co., Ltd..
In addition, it is efforts like this that have made it possible for UNIQLO to secure
high-quality, long-staple cotton which can only be harvested from three
percent of the worlds cotton plants for UNIQLOs popular Extra-Fine Cotton
plain T-Shirts.
Expert Technical Guidance at Factories Emphasizes Quality
In order to produce millions of products of standardized quality, it becomes
important to implement quality control across factory production
technology and management. UNIQLO has a team of technical specialists,
known as the Takumi Team, boasting many years of experience in the Japanese
textile industry. These specialists are sent directly to our partner factories in China
to offer technical instruction and share their abundant experience. At the same
time, the supervisors from the Production Department, based in the Shanghai
office, make weekly visits to partner factories to check the quality and progress
of production.
Becoming Japan's Top Brand by Expanding Urban Market Share

Since opening our first in-mall stores in 2004, UNIQLO's image has been
transforming from a suburban discount retailer to a high-quality, high-street
brand. Commercial property developers recognize UNIQLO's power to attract
customers, and we receive many invitations to open stores from prime large-
scale shopping malls, urban department stores and fashion buildings.

Our new global hotspot store, the BICQLO Shinjuku East Exit Store, has enjoyed
great success in a location formerly occupied by a prominent department store.
We will continue to expand our urban market share by aggressively opening
stores in major cities. In spring 2014, we plan to open global hotspot stores in
Ikebukuro and Okachimachi, two thriving Tokyo commercial districts on a par
with Shinjuku.

Expanding UNIQLO International

Expanding UNIQLO's Presence in Global Markets

In the year ending August 2014, we expect UNIQLO International sales will
increase to 400.0 billion, operating income will expand to 35.0 billion, and the
number of UNIQLO stores located outside of Japan will rise to 632 stores. UNIQLO
International already accounts for over 30% of total UNIQLO sales. Favorable
new-store expansion in the Asian region has proved the key driver of recent
growth, and we are now focusing our attention on another promising location
for future expansion: the United States.

Within the Asian region, our Greater China operation (China, Hong Kong
and Taiwan) is growing rapidly, with approximately 100 new stores opening each
year. We have expanded our horizons for new store openings across Southeast
Asia and Oceania, encompassing Singapore, Malaysia, Thailand, the
Philippines, Indonesia and Australia. Across the Pacific, we have now reached a
point where we can begin building a genuine store network in the United States.
We aim to expand our store network in the United States to 100 stores over the
next few years by opening between 20 and 30 new stores each year.
HEATTECH

HEATTECH is the result of collaboration between UNIQLO and Toray

Industries, Inc. HEATTECH is a unique highly functional line of innerwear that offers
amazing comfort, which has won over a multitude of customers.

AIRism Comfort Takes the World by Storm

REAC TION

PA- PER
 Uniqlo Co., Ltd. s a Japanese casual wear designer, manufacturer and
retailer and is slowly killing the market with their sudden uprising in the Clothing
Market. Who would have thought that in just 5 years or less, the BOOM Factor in
the Market of UNIQLO is quite shocking.

UNIQLO is passionate about creating comfortable everyday clothes that

make your life better. Today, UNIQLO boasts over 1,700 stores in 17 countries and
regions, and is attracting fans from all over the world with new concepts in
clothing. Of course, they offer UNIQUE value to everyone. We could say that
their manufacturing strategy is phenomenal. They use top synthetic fiber to
develop new functional materials. UNIQLO is known and loved by consumers
worldwide for its ability to challenge the conventional wisdom of clothing. UNIQLO
is continuously developing products of exceptional quality, in order to create
clothing with new and unique value and to satisfy customers worldwide.

Usually, the most important thing in the fashion business is to chase the latest
trends faster than anyone else. At UNIQLO, however, we are striving for something
completely different: an entirely new, unique category of clothing. This is founded
on our LifeWear concept, which denotes high-quality, fashionable, affordable
and comfortable everyday clothing.

According to the Ministry of Economy, Trade and Industry (METI), Japan's

department store, supermarket and apparel retail sales totaled 10.7 trillion yen in
2007. Based on METI's data, UNIQLO's market share in Japan in 2013 was 6.2%. (Its
2013 menswear market share was 10.0%, and its women's wear market share was
4.7%.) However, given its origins as a chain of suburban roadside stores, UNIQLO
has traditionally been underrepresented in major urban areas such as Tokyo,
Osaka and Fukuoka.
 Global flagship stores in major cities around the world will become an
increasingly important part of their strategy to build an international store network.
These stores are ideal showcases for promoting the UNIQLO brand concept of
high quality basic clothing to the world. Since opening our first in New York's Soho
district in fall 2006, we have subsequently opened global flagship stores in London,
Paris, Shanghai, Shinsaibashi in Osaka, Taipei, New York's Fifth Avenue, Seoul,
Hong Kong, Ginza and Berlin.

UNIQLO relentlessly strives to create world-class products of the highest

caliber and will not compromise on quality.