Pioneering a New Industry
I am delighted with Fast Retailing's fantastic performance in the first six months of fiscal 2015 (September 2014 through February 2015). The strong first-half gains in both revenue and profit have put us firmly on course to achieve another record operating profit for the full business year through August 2015. Stable growth at UNIQLO Japan contributed to the strong overall performance, but the UNIQLO brand also experienced strong growth in international markets, especially in Greater China (Mainland China, Hong Kong and Taiwan) and South Korea.
UNIQLO is now recognized as the No.1 casualwear brand, not only in Japan, but in Greater China and South Korea as well. I am very proud of this achievement. We intend to work hard to develop UNIQLO as a leading brand in other regions as well, including the United States, Europe, Southeast Asia and Oceania. In fact, creating a firm operational platform and expanding the UNIQLO brand in the United States is our top priority at this stage, and we intend to channel the expertise and experience of the entire Fast Retailing Group into achieving that aim. Over the coming three years, our target is to develop UNIQLO USA into a ¥100 billion operation.
Meanwhile, our second mainstay, the low-priced GU casualwear brand, has entered its second stage of growth. Having reported significant first-half gains in revenue and profit, GU is fast carving itself a firm position in the Japanese apparel market as a brand that offers fashion fun at amazingly low prices. We will also be looking to expand GU's international presence, starting with Shanghai and Taiwan, as part of our interim strategy to boost overall sales to ¥300 billion and operating profit to ¥30 billion.
The faster our global operations grow, the more keenly I recognize the absolute importance of maintaining our native corporate DNA, and upholding the quintessentially Japanese commitments to indisputable quality, attentive customer service, and a managerial approach that encourages effective teamwork. We molded our Global One and Zenin Keiei management principles with these commitments in mind. The former encourages our people to seek the best available global approach to everything they do; the latter encourages every employee to adopt the mindset of a manager. It is vital that all staff around the world follow Global One and Zenin Keiei principles faithfully if we are to develop UNIQLO as a No.1 brand across global markets.
Fast Retailing is keen to pioneer a new industry, which is completely different from the apparel, fashion and retail industries we know today. This will require a fundamental review of our entire supply chain. We have already established R&D centers in Tokyo, New York and Shanghai. Now we are looking to promote full-fledged product development in Paris, London and Los Angeles as well by opening additional R&D centers in these three cities. We are also working to restructuring our global production network to better serve the various markets in which we operate, and to drastically reduce lead times on supplementary production orders.
We also need to instigate drastic changes in our distribution business if we are to capitalize on accelerating flows of information via the internet or smartphone. Once it is completed in spring 2016, we plan to develop our new state-of-the-art distribution center in Ariake, Tokyo into the world's largest digital flagship store. We intend to carve new business by combining our virtual storefronts (online retailing) with our physical store network in such a way that enhances their mutual functionality, and makes buying our clothes an even more pleasant experience for customers, wherever they are, and however they choose to shop. The changes inspired by the digital age offer huge new business opportunities. Industries are changing worldwide. As a growing global company, I believe we are perfectly positioned to adjust our fundamental business structure in order to maximize the potential of our real and virtual resources.
Our drive to revolutionize the clothing business, and the retail industry as a whole, is motivated by our company's ongoing commitment to use clothes to enrich peoples' lives, and bring people joy and happiness. We can help make the world a better place.