FAST RETAILING

Fast Retailing and Indonesia

Fast Retailing and Indonesia

Introduction

Fast Retailing is one of the leading brands around the world which has expanded its stores in various countries. Fast retailing has successfully expanded its different business networks by entering into different countries. The company has established Specialty store retailer of Private label Apparel model. In this paper apparel industry of Indonesia has been analyzed along with cultural and language differences that can be faced by the company before entering into Indonesia.

Fast Retailing

Fast Retailing Co. Ltd. Is a Japan based holding company. In 1984, first UNIQLO store was opened, and since 2001, UNIQLO has expanded its operations worldwide including China, Hong Kong, United Kingdom, South Korea, United States, Singapore, France, Russia, Taiwan, Malaysia, Philippines and Malaysia. UNIQLO has possessed 845 stores within Japan and 292 in different other markets by the end of August, 2012 (Fast Retailing, 2012). UNIQLO is its primary subsidiary and several others, including U.S. labels theory, g.u., Princess Tam-Tam, Comptoir des Cotonniers and National Standard.

Tangible assets

The consolidated financial statements of the company are based on an evaluation of the 98 subsidiaries. Fast Retailing reported a total of ¥595.102 billion in the total assets in the fiscal year of 2012, which was ¥61.331 billion higher than that reported in 2011 (¥533.777). The total current assets of the firm increased from ¥369.969billion in 2011 to ¥424.516, mostly due to the increase in the inventories from ¥92.75 billion to ¥98.963billion. The inventories increased primarily due to the increase in the number of stores, which accounted for an increase of 34 stores, and the accretion of the winter stocks. The increase in inventories was also due to the increase in the sales of the total stores. Moreover, the inventories also increased due to the launch of new stores in New York, South Korea, Taiwan and other markets. The fixed assets increased due to the increase in the number of the stores from ¥163.802billion to ¥170.586billion which included the launch of new stores in Japan and other markets worldwide.

Figure 1: Sales and Stores

Source: http://www.fastretailing.com/eng/about/business/

Intangible Assets

The intangible assets included in the financial statements of the company included the Goodwill and Software for use within the company. The Goodwill is amortized on a straight line basis until it is considered insignificant in value. Likewise, the software is also amortized on a straight line basis. The value of Goodwill increased from ¥21.648billion in 2011 to ¥15.992billion in 2012. The balance was written off from the financial statements during the year. The other intangibles including the software used in the organization was recorded as ¥19.102billion in 2011 and ¥22.224billion in 2012, both recorded as net of the amortization values.

Fast Retailing Business Networks.

UNIQLO has expanded its business network, which can be mainly found in roadside locations and inside shopping malls. It began to access into retail markets internationally in 2001 with the opening of its store in London, United Kingdom. By August 2007, it had a total of 11 stores in ...