Our Business Model
Overview of the Retail Apparel Market
Provides an overview of Japan’s retail apparel market and trends in the UNITED ARROWS Group’s Sales
Provides an overview of Japan’s retail apparel market and trends in the UNITED ARROWS Group’s Sales
Markets in which the UNITED ARROWS Group Operates
United Arrows Group primarily operates in the mid-priced to premium-priced segment of the Japanese apparel market, targeting fashion-conscious customers who place a high value on quality, design, and brand identity.
The market we serve is characterized by consumers who view apparel not merely as a commodity, but as a means of expressing their values and lifestyles. As a result, competition is driven not only by price, but also by product planning capabilities, quality, brand appeal, and customer experience. In addition, as lifestyles and consumer values continue to diversify, demand for products and services that reflect individuality and personal preferences remains strong, creating growth opportunities for differentiated brands that offer distinctive value propositions.
To address a wide range of customer needs and price points, the Group operates a portfolio of brands. These include the high-end segment represented by UNITED ARROWS, the trend segment centered on BEAUTY&YOUTH UNITED ARROWS, and the mid-trend segment led by green label relaxing. Through these brands, we deliver unique value propositions and serve a broad and diverse customer base.
Our customers are individuals who seek to enrich their lives and express their personal lifestyles through fashion. To meet these needs, we provide highly curated, value-added products and services across the entire customer journey, from merchandise planning and sales to digital channels.
While our earnings are currently driven primarily by our domestic apparel business, over the medium to long term we aim to expand our overseas apparel operations, particularly in Asia, while also broadening our presence into lifestyle-related categories beyond apparel. By leveraging our high-sensitivity, high-value-added strategy, we will continue to expand our business domains and pursue sustainable growth.
What is a select shop？
A select shop is a shop that provides customers with a range of products that buyers have selected from all over the world in accordance with the brand concept. In Japan, there are many select shops that sell their own branded products as well as those purchased from suppliers, and UNITED ARROWS LTD. is also one of those select shops. With only purchased products, it is difficult for a shop to make big profits, and on the other hand, with only their own branded products, product lineups tend to become monotonous. Japanese-style select shops, which sell both, have the characteristics of being able to achieve both a wide selection of products and high profitability.
Our company set the optimum percentage distribution between our branded products and purchased products for each brand in consideration of the customer characteristics of the brand.
Three Elements of Customer Satisfaction
We will continue to hone our services, products, and places—the three elements of customer satisfaction—as the source of our competitiveness. By continually improving these three elements, we seek to realize our mission “to continually create, with sincerity and a sense of beauty, new tomorrows for our customers that set the standard for lifestyle culture.”
- Service
Responsive customer service grounded in refined hospitality.
- Products
Carefully made and selected products that incorporate a broad global perspective and satisfy the five criteria.
*The five criteria: Customers can purchase (1) what they want, (2) in the quantity they want, (3) when they want, (4) where they want, and (5) at the prices they want.
- Places
Facilities, spaces, and environments, including shops, e-commerce, and other customer touchpoints, that are genuinely comfortable and pleasant.
Service
The foundation of our brand value is the shopping experiences of customers who are served by salespersons at physical stores. We will heighten the value of customer experience by enhancing our sales capabilities through training on customer service and sales operations, and by offering customized service using advanced CRM, which utilizes digital technologies. Salespersons are also responsible for feeding back customers’ opinions about products to the product department. One of their major roles to deliver honest feedback from customers to make our product lineups more attractive.
Products
Company-wide Direction, which shows plans for each of the spring-summer and fall-winter seasons, is laid out while considering the latest fashion trends (colors, materials, collections, etc.), social situations, and cultural trends such as movies and music. Based on the Company-wide Direction, Fashion Direction is formulated in accordance with the characteristics of each business before starting development of our own branded products or purchasing products from suppliers. The combination of our company’s branded products, which have been developed while considering the latest trends and customer needs, and the purchased products that are specially selected from around the world, enables us to provide a high quality and trend-sensitive assortment of products.
Places
Our shops are places where customers can experience our service and products. We are creating an aesthetic and comfortable store environment as a place where customers can experience a highly trend-sensitive assortment of products and high quality customer service. By doing so, we want our customers to be excited while shopping and feel that their shopping experience at our shops itself adds values. With online shopping prevailing in recent years, we renovated our company’s online store system in March 2022, and started using our own infrastructure, including distribution centers. Our online store also creates a world attractive to customers and is evolving as a place of high convenience.
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