Uniqlo to Chinese suppliers: Improve work conditions

TOKYO - Uniqlo-owner Fast Retailing Co Ltd has told two suppliers in China to improve factory working conditions after an inspection by the Japanese apparel retailer found problems, including long working hours.

The move comes after SACOM, a Hong Kong-based advocacy group, issued a report saying employees at Dongguan Tomwell Garment Co Ltd and Pacific (Pan Yu) Textiles Ltd were working excessive hours in unsafe conditions, including high temperatures, poor ventilation and floors covered with sewage.

Factory safety at suppliers to global clothing brands has been under particular scrutiny since the 2013 collapse of a factory in Bangladesh that killed more than 1,100 workers.

In China, poor working conditions have been widely blamed for contributing to a number of suicides in recent years, such as at factories of Apple Inc supplier Hon Hai Precision Industry Co Ltd, also known as Foxconn.

"Respecting human rights and ensuring appropriate working conditions for the workers of our production partners are top priorities for Fast Retailing, and in this we are completely aligned with SACOM," Yukihiro Nitta, group executive responsible for corporate social responsibility, said on Thursday.

The company said it had told Dongguan Tomwell and Pacific (Pan Yu) to make various improvements at their factories and in regulating working hours. It also instructed Dongguan Tomwell to establish a workers' union, hold elections and organise its first assembly in March, it said.

However, its inspection found discrepancies with several points in SACOM's report regarding Pacific (Pan Yu), including that the cause of a worker's death was electrocution. It said it would continue its inspection and seek talks with SACOM.

Dongguan Tomwell makes clothes for Uniqlo and Pacific (Pan Yu) supplies garment factories, including Dongguan. Dongguan Tomwell's parent company, Luen Thai, said it took fair treatment of workers very seriously.

In response to the SACOM report, it said it was "committed to establishing strict measures to ensure that our operations are in accordance with UNIQLO's Code of Conduct for Product Partners" and that it would "make ongoing efforts to prevent excessive overtime. In addition, an independent system will be set up to review all aspects of this issue and to closely monitor the progress."

Pacific (Pan Yu) did not answer calls seeking comment.

Fast Retailing also said it would improve its monitoring system for manufacturing partners including beefing up measures to check overtime hours, tracking employee accidents and strikes, and introducing a system to monitor textile factories that supply garment plants.

Nitta said Fast Retailing would check progress within a month along with third parties including auditors.

source: www.abs-cbnnews.com

Pinay included in Forbes list of top social entrepreneurs

MANILA, Philippines - A Filipina who has tapped poor communities to make "eco-ethical" bags has been included as one of Forbes magazine's top young social entrepreneurs.

Reese Fernandez-Ruiz, 29, is the only Filipina included in Forbes' "30 Under 30 Social Entrepreneurs" for 2015.



Fernandez-Ruiz is the co-founder of R2R (Rags2Riches Inc), a for-profit social enterprise creating bags and home accessories using upcycled scrap cloth, organic materials and indigenous fabrics. Women from poor communities have bee

Forbes noted that Rags2Riches is the "first fashion and design house empowering community artisans in the Philippines."

"It has trained 900 artisans and directly employ 50 people--professionals, in-house artisans, marketers, and strategists who are all working together towards the same goal. The organization experienced a consistent 100% annual growth rate for their first five years in existance (2007-2012)," the magazine said.

This is not the first time Fernandez-Ruiz has been recognized for her efforts. The Ateneo graduate also received the Rolex Young Laureate award in 2010.

According to its website, R2R was started in 2007 in Payatas, where many women make rugs from scrap fabric. R2R tapped these women workers and provided them with skills training.

R2R is known for its fashionable "Buslo" bags, as well as designer collaborations with Rajo Laurel, Oliver Tolentino, Amina Aranaz-Alunan, and Olivia d’Aboville.

source: www.abs-cbnnews.com

Why US is key to Uniqlo's global aspirations

NEW YORK - Many of the details of Uniqlo's aggressive US expansion still need to be worked out, but at least one thing is clear: the campaign will start on the coasts.


The Japanese apparel chain, known in its home market for its cheap chic clothing basics, has so far confined its US adventure to cities like Boston, San Francisco and Los Angeles.

But a broader US presence will be inevitable as the company blankets the country as part of its ambition to become the world's biggest specialty apparel retailer. Uniqlo will grow from fewer than 10 US stores last year, to about 40 by the end of 2014, to 200 by 2020.

"We will have a much larger footprint, which has to include the middle of the country," said Larry Meyer, chief executive of Uniqlo USA.

So far, Uniqlo's brand recognition is strong in the Northeast, where consumers know its flagship US stores in New York City, and in the West Coast, where a large Asian population already recognizes the company.

Uniqlo, a unit of Fast Retailing Co., is part of a wave of giants remaking global apparel. This group includes Spain's Grupo Inditex, parent of Zara; Sweden's Hennes & Mauritz (H&M); and US chain Gap, all of which have greater sales than Uniqlo. For now.

The United States, along with China and Southeast Asia, are the key growth markets identified by founder and chief executive Tadashi Yanai, ranked Japan's second-richest man by Forbes.

Top player in industry segment?

Yanai aims to increase global sales to five trillion yen (nearly $50 billion) by 2020, about a five-fold increase from 2013 sales and a sum that would make it the biggest player in this segment.

Yanai's philosophy "and my philosophy is, 'If you think small, you get no higher. So you might as well think big,'" said Meyer, a retail industry veteran who joined Uniqlo in January 2013.

Uniqlo is especially known for basics like t-shirts that may fetch $12 and undergarments that cost less than half of what they would garner at department stores.

The company also prides itself on innovations like "heattech," a thin fabric that keeps heat from escaping the body, and "performance wear," athletic gear donned by tennis star Novak Djokovic that is sweat and odor-resistant.

Morningstar analyst Jaime Katz said Uniqlo's challenges include attracting enough customers at especially pricey locations like Fifth Avenue in Manhattan. She also cites the difficulty of breaking into a new market where companies like Gap and H&M are already established.

But Katz sees an appeal in Uniqlo.

"It's more a color schematic than anything else," Katz said. "It's the same thing offered in 100 different colors."

"Everybody needs the basics, everybody needs consistent product, and that's what they tend to offer."

Meyer said its US stores are "on the road to profitability" while the company is in expansion mode.

The company's items will be manufactured at the same China sites and moved through the company's global supply chain. The designs will be identical to those in Japan, although Uniqlo plans sizing specifications for the US market.

"There's more than just size in size," Meyer said. "It's a question of how wide are the shoulders, how wide is the rear."

"Clothing sizing is shockingly complex."

source: www.abs-cbnnews.com

2 face raps for fake Chanel, Louis Vuitton shipment

MANILA – The Bureau of Customs (BOC) filed smuggling charges against an importer and broker for a P315 million importation of alleged counterfeit signature fabrics from China.

Charged were Ronaldo A. Cruz, owner of import firm TRIO, and Merrian A. Misula, his alleged broker.

Customs Intelligence and Investigation Service (CIIS) personnel at the Manila International Container Port (MICP) seized a 40-footer container van that declared contents of 1,212 packages fabric.

The shipment arrived at the MICP last Jan. 11.

The shipment allegedly turned out to be fake Mickey Mouse, Chanel and Louis Vuitton fabrics.

The respondents were charged for violations of the Tariffs and Customs Code.

source: abs-cbnnews.com