Uniqlo's CIO on its transformation into a digital retailer

Brands in all industries obsess over customer experience. No exception for clothes and apparel retailer Uniqlo which relies on its LifeWear products as a unique selling point (USP) for consumers.

For Uniqlo, which sits under its Fast Retailing parent company from Japan, building customer experience is central to their transformation into a digital consumer retail company, as explained by Takahiro Tambara, group executive officer and CIO of Fast Retailing.

Takahiro Tambara, Group Executive Officer & CIO of Fast Retailing Co., Ltd

Fast Retailing is the world's third-largest fashion apparel company with its main brand being Uniqlo. In total, Fast Retailing operates 3,600 stores in Asia Pacific, North America, and Europe. Its other brands include Theory, a higher-end brand based in New York, while GU is a more affordable fashion product that is growing internationally.

In a written interview with Marketeers, Tambara explained that Uniqlo's LifeWear collection of everyday clothing is what sets Uniqlo apart from other retailers. It is simple, high-quality clothing that's made to last—aligned with Japanese values. 

But consumers increasingly want more from their favourite retailers.

"Now, we are transforming into a digital consumer retail company. This transformation is done by creating an easier, more convenient, more efficient, and more positive experience for our customers," Tambara said.

To do this, Uniqlo plans to rely even more heavily on the power of data and information.

"We understand very well that the use of information in every business process will increase value for consumers. That is why we are developing a new business model that utilises the power of information," said Tambara.

Here, Uniqlo likes to collect 'voices' from consumers and workers globally, including opinions on clothing trends. Every year, Uniqlo receives more than 30 million requests along with feedback from customers. This number has increased 200-fold in the last 10 years. Based on all this information, Uniqlo refreshes its product planning, orders, and manages the supply chain.

“By making full use of information and using the power of digital technology to drive the supply chain, we create the ideal retail environment,” Tambara continued.

Uniqlo is known for producing high-quality, simple yet beautiful designs and Tambara says many people assume that the designs of Uniqlo's classic products never change. But it's in taking insights from customers that the company continues to pursuing 'the perfection of simplicity' in LifeWear products.

"In fact, insight and data are very important in the company's vision. The right information will help us determine the right quantity of products and services, in the right location, and provide what consumers want," Tambara explained.

While insights are invaluable for driving product and service improvements, Uniqlo is still not yet able to capture and use all the customer 'voices' and data points available. But with the help of artificial intelligence (AI), this could soon be possible.

Creative thinking a la Uniqlo

More than just using technology, Uniqlo's transformation focuses on building connections. Here, the company connects tools, execution, and resources for consumers.

There are five connections built by Uniqlo, including:

• Connecting stores with online channels
• Connecting the retail ecosystem with the supply chain
• Connecting customers with, and through, technology
• Connecting global with local strategies
• Connecting and focusing on one solution with the next

"We need to make this effort to strengthen the company's mission to become a digital consumer retailer. Of course, in this process we will maximise the role of technology, but technology is not a stand-alone solution," Tambara said. "Our focus is on customers and utilising technology for their benefit. Customers are our mecca in transforming our business model. Everything we do is to create an easier, more convenient, more efficient, and more positive experience for our customers."

Uniqlo uses many different technologies to this end. One example is RFID to recognise specific items and converts information in clothing into digital format using chip technology. Information from the chip enters the company's management system to help with inventory management and self-checkout systems.

"Our self-checkout system is new and unique. First, this system reduces checkout time to become two times faster than using an in-person cashier. We also designed this system to be simple and easy for consumers," he added.

He emphasised that this system's goal is not to reduce labour, but to improve customer experience. This self-checkout technology has been introduced in most Uniqlo locations, except in India and the Philippines.

This article was first published in Marketeers and has been translated from Bahasa Indonesia.