 Good afternoon, and Aloha on this studio in beautiful downtown Honolulu, Hawaii. My name is Ray Tsuchiyama with another Think Tech show. And today, we're going to be discussing an expression of Japan Cool, exports from Japan globally in the world of fashion, retail, a global reach. And in a world with so much competition and so much brands available in department stores to choose from, how does a company like Uniqlo, that's what we're going to be talking about, succeed and have come to Hawaii. Hawaii, Hawaii, and all the business design aspects of opening, launching a store at the Alamoana Center in Honolulu. We have our guest, CEO of Uniqlo, Hawaii, Inc. Yuya Tanahashi. Welcome to the show. Thank you, my name is Yuya Tanahashi, and I'm Uniqlo, Hawaii, Shio. Thank you so much. Now, the first thing is, like I asked all my guests, where were you born and raised? I was born in Fukuoka, Japan, raised in Japan, but I lived in USA, New York, when I was eight years old, 17 years old. After that, I went back to Japan and deep into Japan. And did you go to college in Japan? Which one? I went to Alamaka University in Japan. And did you enter Uniqlo right after college? Yes, I entered right after college, 2006. Now, we in the West in America have heard about joining a company and so forth. Was it a very challenging experience for the interviews to get into a company like Uniqlo? Yes, but it actually was really interesting through the interview process. I went to interview for different companies as well. Uniqlo interview were more friendly in a way, and it was really interesting. And why did you join Uniqlo? I just really liked the speed of their decision-making. I had the final interview and they just pulled me right away. And I just felt something to it, so I made my mind at that moment. Now, in college or before, did you like the world of fashion and design? Yes, I liked the world of fashion. I did a part-time job in a store, not Uniqlo though, but I was into it. And when I was looking for a job, Uniqlo stood up and went to it. Well, now your first job was in a store in the suburbs, Western suburbs of Tokyo, in an area, a small city called Sengawa. And it wasn't Ginza, it wasn't Osaka. How was that experience working with Uniqlo and its products and customers, the residents of Sengawa for the first time? So we have a program called UMC, Uniqlo Manager Candidate Program. So right after college, we have that six-month program and then you get taught a lot of things. You're a manager candidate, so your expectation is to become a manager while you basically know nothing yet. So it was learning from associates, not only the managers, and trying to become the teacher for them as early as possible. So that was the first six-month experience I went through. And how was it? Did you enjoy it? It was challenging. In Japan, we hear a lot of the Senpai Kohai system. Did it work for you? It did. It's challenging in a sense that I had to be a teacher when I don't know anything yet, so I really need to learn things quickly. And I've learned that it's really the mindset that's really important. As long as you want to become better and be a teacher for your team members as early as possible, then the associates that have many years of experience will accept you and teach you more. So that was really good learning experience for me. These are good insights to how a company we think is very Japanese, then adapts those systems for global reach, going to hiring people in North America or Southeast Asia, China, and Europe. And you spent about five years or so in the domestic of Japan. And did they come to you when you started your international global assignment in New York City in 2012? Did they come to you or did you really want to go outside and do business internationally? So I always had in mind to work abroad because that's one of the experiences my father gave me when I was young and really helped in many ways, and I really enjoyed it. So I always had that in mind when I was working in Unico, even in domestic business, but I thought I had to prepare myself to be in a way successful when I'm really assigned because I don't know anything about customers or stores or how the store's functioning. I thought I had nothing to teach. So it took me five years to kind of prepare that, I always had that in mind. That's terrific. Well, before we go into further about the world of fashion and retail, what is Unico? What is this brand that we hear so much? And of course it led to the opening of the Alamono store, but going back in time and it has very humble beginnings in a small city called Ube, Yamaguchi Prefecture. And I don't think many people know where that is, but it's not Tokyo, it's not Osaka. And from there it expanded globally and it must appeal to a global audience like ours, Japanese cars, Japanese electronics, now Japanese fashion. But what kind of journey was that to become a global brand? I think there was a lot of trying there, right? But our basic concept never changed. Our clothes were made for all and we want all the customers around the world to enjoy it. And we wanna create clothes that meet customer needs in all aspects. What did you hold up that, is that a jacket? The first one, the gray one? Yeah. Can you explain what this is and what kind of fabric it is? So this is like pocketable pocket that we carry in our stores globally. It goes into pouches. So if you wanna bring when you're traveling, it's convenient. And then it has functions like UV cuts. So if you wear them, you don't really need to put a sunscreen. Yeah, so it's really about the functionality and then the quality and how affordable it is. So this is just one example items that I can show how we create product. Is this just for men or women? We have all for kids and men, they're women. Okay, yeah. All right, so what, and what, do you know the first store for Uniqlo that was outside Japan? First store of Uniqlo that was outside of Japan, I think it was in Europe. Oh, interesting, yeah. And so there are hundreds now of these stores all over the world. What do we go to the first photo and get an insight into Uniqlo? Okay, so this is your grand opening of your Uniqlo store in Alamoana. And we see Shinto Priest in a ceremony opening the store. And, but what led to the launch of the store here in Hawaii? To us, Hawaii, we're waiting for the store and it's finally come. When was it? Was it 2018 this year? So grand opening was, yes, this year, January. But we opened the pop-up small store last June first. So we had a store about a year now. And what led to the decision to open a store in Hawaii? Because we can understand in London, New York, Singapore, Beijing, Hong Kong, these are world-class cities with very large consumer markets. Hawaii barely has 1.3 million people. However, having said that, that tracks over 10 million visitors a year. And out of that, 2 million are from Japan and plus people from China, Europe, and Korea and other parts of the world. So what led to specifically a store and is it different or the same as other stores globally? So we were searching for opportunity to open in Hawaii for many years. And last year I think was the best timing considering the fact there was a 150 year anniversary of the Ganmen Mono. And we really found a location that meets our needs, which is Naramoana, the biggest in the United States. And everything, timing was perfect. Everything went well to open up a store last year. That's that for the timing. And then what's unique about our store is that we carry line-ups that the other unique stores in the world doesn't carry. For example, I don't have time. Yeah, describe your shirt. So this Aroha Sharts, we researched the market and saw a lot of opportunity in Aroha Sharts. So we created this line before we launched. It's a rayon of fabrication and it's wrinkle-free. So you don't have to iron them. And it's been a popular item since the opening. And we're thinking of adding additional patterns and having collaboration and creating a more variety of line-up for Aroha Sharts. And do you know, of course, that the designs for Aroha Sharts, especially in the 1940s and 50s, came from Japanese Roshiki that was brought in by Japanese immigrants. So there is a kind of a historical design ancestry to Japan. Now, when your Uniclo staff and researchers design, make new designs, do they do it entirely in Japan or do they collaborate with people in Hawaii? How is that done? So we get all the insights from the local members and we have a lot of discussion behind the scene. So first we have a couple samples and then go over the patterns and then make our final decisions. And some work, some doesn't work. So we just have to keep elevating and try to find the best pattern or colors or size or the fit for the consumers. Okay, next photo, please. Well, this is your store at an angle. It shows two stories. Now, is there a reason for its two stories? It differentiates products for different fashion or demographics to your market. Why is that? So we need a scale to really show our product lineup. So we not only carry these exclusive lineups, but we carry these worldwide essential items you're famous for. And in order to show that whole lineup, we need a space that can showcase the lineup. Then the reason for two floors when it comes to the Moana is the second floor we thought has more traffic as of all. So we thought it's good to have two stories in that Moana. Now, when you say you have a core, can you describe that core product? You must have that same core product in all your stores. And then you have the Hawaii specific, Hawaii focused design line over here. So tell me, what is the core? Because some people refer to some of your lightweight t-shirts and so forth that are very light and warm, for example, or certain line of jackets. What would you consider the iconic or when people say, oh, that's the Uniclo. What is that core, some models or clothing line? So when we think really about the essential items, you think about short sleeve t-shirts, you think about short, for female we think about dresses and start. The name is for our essential item, sweat is also essential item, all the innerwear is essential item. So for us, it's really the daily clothes that customer can wear every single day. And we keep elevating those line up so that we meet the customer needs. But of course you have four seasons. Do you have four season design where at your store in Hawaii, although it's mostly one season? Yes, so that's the unique part about Hawaii, I think. So I think the t-shirt's gonna be your year on the essential for Hawaii customers. But at the same time, we think many customers travel abroad. So winter items, we have to look into carefully and try to carry for those customers but I wanna purchase winter items even in Hawaii. Well, we'll go into even more unique things after this break. Aloha and welcome to At the Crossroads. I'm your host, Tisha King. You can catch me every Wednesday, alive at five. I'll see you there. Aloha, I'm Yukari Kunisue, the host of Konnichiwa Hawaii, Japanese talk show on Think Tech Hawaii. Konnichiwa Hawaii is all Japanese broadcast show and it's streamed live on Think Tech at 2 p.m. every other Monday. Thank you so much for watching our show. We look forward to seeing you then. I'm Yukari Kunisue. Mahalo. We are back with Mr. Hanahashi of Uniclo Hawaii and we're delving and exploring how Uniclo designs all kinds of clothing, wear, and fashion for different markets. We're just talking about the core market and I wanted to ask when people buy or look at fashion, what are they looking at? Are they looking for the design itself? Are they looking for technology of the fabric that is better than other brands? Are they looking at pricing? When you look at the whole consumer focus analysis, what percentage would you say will go to design, technology, or fabric, and also pricing? What would that be? I think consumers are looking at in all aspects and that kind of means the quality, the application functionality, affordable price, and all matches I think will be really attracted to it. So it's a little tough to say which percentage in which aspect, but I think quality kind of explains it all. Now where are your fashion clothing line manufactured? Are they all over the world or do you have areas where you manufacture and export out to your stores in various cities around the globe? Majority are Asia, not one location, but it depends on the product of different countries, but it's majority in Asia. Now going back to Hawaii, and you described unique designs that are these sold only in Hawaii? Some of these unique Hawaii, or will they be sold in places that are warmer like Singapore or Italy or Bahamas or Florida? Would they be sold outside of Hawaii? So some items it's really only in Nikro-Hawaii. Some items, specific locations, specifically for Asia that has a similar climate, but yeah, some items are only in Hawaii. Now if people who are into design or they have small startups or companies in Hawaii and want to have unique look at their designs or look at their fashion, do you have a way to collaborate or partner with these local designers? So we launched the Field Hawaii UT, UT stands for Unique T-Shirts when we opened and we collaborated with Hawao with Ed by Jasper and we created a T-Shirt with Matthew Appiah and Kevin Lyons and that's actually only sold in Nikro-Hawaii. But that's just an example of you're always searching for good collaborations that we can work together. Are you looking for uniquely Hawaii fashion or are you looking for something that would appeal globally? I think appealing globally is more when we think about collaboration. In the fashion world, and this is a bigger question about retail and fashion, are consumers becoming more and more the same like people in Hong Kong, Seoul, London, New York and Honolulu have the same design consciousness when they look at their clothes? Or are they differences? Like when you're working in Hawaii for about a year now and you must have a feel of the Hawaii consumer, the Hawaii consumer is more like or different than other consumers globally. I mean, I think it's totally different location by location. Hawaii customer really like relaxed silhouette. I think it's because one of the weather is really hot. So the more relaxed style, the more comfortable they can be. So it's really based on the location and customer's preference based off of that uniqueness of the location. That's very insightful. Next photo please. Here we have a group picture and now I chose the picture because is one of your focus for the future families? Or is it cut into or portioned off into men, women, children or is it kind of a family demographic? Or what are you trying to say in this photo? So we're trying to say our clothes are made for all. Oh, yeah. And also we're trying to say that you have poses that can fit into the needs of the Hawaii consumers. So that's behind the scene when it comes to that photo. All right, right, right. Next photo please. And this is focused on the women. And I can see, you know, there are reminiscent or the Mu Mu tradition and design and so forth. Is that something that you were looking for in this kind of a line that how do you, when we talk about design, do you bring back ideas about design back to your headquarters in Japan? And how is that done? Do you go back and explain about preferences by consumers to your designers in Japan? Or your designers come to Hawaii and do surveys, marketing, analysis? How is that process? I think both sides. We bring our ideas from what we receive from customers and then the headquarters come and we search on their own too. So it's both ends. That's very exciting. And one of the areas that is not really talked about is R&D, about fabrics and so forth. And you pointed out rayon. You pointed out non-iron and so forth. Many aspects about wicking off sweat for sportswear and so forth. Do you have R&D back at headquarters that you have staff looking at fabrics all the time? And who do you, what kind of people work there to analyze these fabrics? We have a global headquarter in Japan. And there's members that's working in those departments. The members consist from members that experience store managers. It's a big team with a variety of people involved. Oh, great. Next photo, please. This is a very Hawaiian kind of exhibit-like arrangement in your store that I found very interesting. And it gives a Hawaiian look, again, with the ukulele and other things. And where did you go for inspiration to assemble? Do you have people who design exhibits, clothing from Japan, or they're mostly local people who source these arrangements? So we have an IMD team and global headquarters in Japan. And they came to Hawaii and discussed what we can do, in a sense, differently to really show appreciation of us to the society. And we focused on creating Hawaii-specific aloha shots. And in the in-store presentation, we discussed what we can do to show that. So that's what you saw in the photo, really communicating about the history of aloha shots and kind of Hawaii-specific, original presentation that we implemented. One of the driving forces, or the driving force, behind you, of course, the president or the CEO, Mr. Yanai. And what can you attribute Mr. Yanai's global kind of thinking? Did it come from his upbringing? Where did he learn how to make products that would appeal and be attractive to global consumers? So we really value the customer's voice. It never changed, and it's never going to change. And how we react quickly to the customer's voice is going to be really important. Mr. Yanai always says innovation and creation. And then after that, marketing. So the basic idea have never changed and will not. Just about how we take action quickly to the customer needs of each location. Looking at Alamona Store, after a year, what did you learn from listening to Hawaii customers and working with local staff? And of course, you said that you were attracted to join Unicode because of the quick managerial response, decision making and so forth, and getting the right product to the customer. But in your Hawaii experience, and you can compare it to New York, West Coast, or Boston, or others, what did you learn from Hawaii? So first product lineup, of course. Some product were good, and some product didn't really work out. So that's what we learned in adopting ourselves. Another thing is sizes. We thought size was meeting the needs. For a couple of products, it tends to be too small. Too small, right? So we have to have bigger sizes for specific items. So product related, we learned so much. How to reach the customers you're learning? We thought there's more recognition of us. We're still new to the market, and we really want the local Hawaii customers to visit our stores daily basis, if not weekly basis, and how do we reach to those consumers? We're still learning and adopting ourselves. So there's quite a lot of learnings and adopting that we need to make. That's a very good point about how to reach to millennials and families and so forth. I mean, your brand has to really compete against Zara, H&M, Gap, many, many, many fashion brands out there. And to me, I think Uniclo was best known to people who travel to Japan. And sometimes in New York or the West Coast, they would see that store and try on products. But I think that Japan connection is still very strong. I mean, there's a lot of Hawaii people who go to Tokyo or Osaka or go to the Ginza or Hankyu department stores or that area, and they would see Uniclo. So I think that that's a branding bridge from Japan and people who travel to Japan. But you're correct that for many people who have not traveled, it is not yet a very recognizable brand. And that's something that I think Uniclo would work more with social media, with young people, viral kind of things that would really expand that market. I think that's a wonderful way to attract people and see value, I guess. And because you're correct that the size thing, if you don't get it right, then you suffer from that. People say, oh, it's not going to have my size. I am not going there anymore. But if you change that and make it a very local product, again, people will be amazed and will be very attracted to Uniclo. Now, you're having a Uniclo Day weekend celebration very soon in June. Yes. Tell me about it. So last year, June 1st, we opened our pop-up store in Atamwana center quarter floor. And it's a one-year anniversary in a sense. So we are going to have a one-year anniversary event this year in June 1st and 2nd. And we have the main store in Atamwana, Ewa Wing. So we're going to have exciting products launching on that day. And we're going to have a couple of events around those timing to, in a sense, show our gratitude to the Hawaii consumers, then give back as much as possible. Well, I think that's a great way of really being part of the community. You're correct, because community is a very strong word. And the sense of community is very embedded in the Hawaii culture. The word ohana, for example, has become prevalent in defining family, community, and to be part of that in Hawaii. But we're coming to the end of the show. It's been so fast. I wanted to ask more questions. But what's the future of Uniclo in Alamana? Would you like to have other stores in the Netherlands or just this store? We're always searching for opportunities, yeah, including neighbor items. Our first focus is going to be Alamana and then increasing the recognition and adopting ourselves to really meet all the customers in Hawaii. And the second step is going to come from there. Well, that's a wonderful ending to a wonderful show. And I thank you, Mr. Tanahashi. And my name is Ray Tsuchiyama with another episode of Business in Hawaii. Thank you very much.