▲Tadashi Yanai, Chairman of Fast Retailing. Tokyo/AP News
Tadashi Yanai, chairman of UNIQLO Fast Retailing, who wanted to continue business in Russia on a humanitarian basis despite Russia’s invasion of Ukraine, revealed the reason for the change of policy.
Chairman Yanai said in an interview with the Nihon Keizai Shimbun on the 11th, “I think that companies are different. As long as there are consumers, they provide services. If our company was an American company like Apple, we might stop right away. But Russia is right next to Japan. Is it a good thing that Russians have bad feelings for Japan?” he explained why he wanted to continue doing business in Russia.
Previously, Fast Retailing announced that it would continue its business in Russia, saying, “clothes are a necessity for daily life,” even while global companies are shutting down their business in Russia one after another. However, as criticism continued at home and abroad, the company decided to suspend its Russian business on the 10th.
According to the newspaper, Chairman Yanai believes in the idea that ‘clothes are necessities of life’ and that he should open a store without succumbing to criticism from those around him. During the Great East Japan Earthquake in 2011, requests for power conservation were received due to power shortages, but the business continued. In the spring of 2020, when a state of emergency was declared due to the outbreak of the novel coronavirus infection (COVID-19), many companies went into self-reflection, but Fast Retailing continued to operate directly-managed stores, and some opened new stores. At the time, many consumers supported Uniqlo’s actions. The reason why we wanted to continue our business in Russia this time was to continue our beliefs so far.
Fast Retailing’s European business sales in fiscal 2021 are approximately 110 billion yen. Of the 117 stores in Europe, Russia accounts for 40%, and the largest store in Europe is also located in Moscow, Russia. It is a significant proportion of the pastry retail business.
First, Fast Retailing will temporarily close 50 Uniqlo stores and e-commerce sites in Russia from the 21st. This is because the international community’s view of Russia’s invasion of Ukraine was unexpectedly poor.
More than two weeks have passed since the start of the invasion, and the Russian army is attacking even civilian facilities such as hospitals and kindergartens. Even within Fast Retailing, it is said that there was an evaluation that “helping the lives of ordinary Russian people is not understood.” Outside directors also voiced their voice to change the policy on the grounds of reputational risk.
In response to Fast Retailing’s change of policy, U.S. Ambassador to Japan Ram Emanuel posted on Twitter, “It’s really Fast Retailing and Uniqlo. We’ve taken the lead in Russia. Another conglomerate is fighting with us. Who’s next?” raised
The newspaper said that politics and business are inextricably linked, and that Uniqlo’s move this time would have been a lesson for many Japanese companies.
