United Arrows

Basic Information

Stock Code
7606
Industry
Retail
Category Detail
Apparel & Fashion Retailers
Prefecture
Tokyo
Establishment Year
October 1989
Listing Year
July 1999
Official Website
https://www.united-arrows.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Adastria, Starseas, Chuppin, ANAP Holdings, TOKYO BASE, Baroque Japan Limited, World, Right On, Workman, MacHouse, Shimamura, Cox

Overview

United Arrows is a major select shop operator in the retail industry, founded in 1989 and based in Shibuya-ku, Tokyo, with strengths in diverse brands and planning capabilities.

Current Situation

United Arrows boasts consolidated sales of approximately ¥157.4 billion (fiscal year ended March 2020), operating 233 stores domestically and 5 overseas. It primarily plans and sells men's wear, women's wear, and sundries, maintaining competitiveness as Japan's leading select shop. Managing multiple brands, it advances a unique product mix strategy as a select-editing SPA. In the past, it received administrative guidance for false country-of-origin labeling issues but has worked to enhance transparency. In recent years, it has focused on promoting digitalization, DX strategies, and expanding outlet operations to improve product development and distribution efficiency. Looking ahead, it aims for sustainable growth through diversification from fashion into lifestyle goods and strengthening brands both domestically and internationally.

Trivia

Interesting Facts

  • Founded by a former Beams employee who went independent
  • One of the big three in the select shop industry
  • Company that sparked the Chrome Hearts trend in Japan
  • Brand name derived from the 'three arrows' philosophy
  • History of administrative penalty for past country-of-origin misrepresentation
  • Operates diverse stores and brands domestically and overseas
  • Combines multiple in-house developed brands with imported selections
  • Operates women's luxury brand 'Jewel Changes'
  • Corporate uniforms and workwear provision is a key business area
  • Uses NCR Japan-made POS system

Hidden Connections

  • Connection to sports-related company as official suit maker for Yokohama FC
  • Implemented J.League support through collaboration products with Gamba Osaka
  • Collaborates with numerous prominent brands at fashion events
  • History of independence from World Corporation in terms of capital
  • Supports local sports and culture through social contribution activities
  • Led expansion of import brands in the Japanese market
  • Intensifying competition with other major domestic select shops
  • Strengthened compliance following past Premium Labeling Law violation

Future Outlook

Growth Drivers

  • Increasing demand for high-value fashion in Japan
  • Diversification and strengthening of customer touchpoints via EC and DX
  • Acquiring new customer segments through brand diversification
  • Enhanced response to sustainable fashion
  • Outlet business expansion and profitability improvement
  • Accelerated brand deployment in overseas markets
  • Expansion of corporate services business
  • Future foundation building through youth-oriented brand nurturing
  • Strategic marketing leveraging AI and big data
  • Improved corporate image incorporating social issue solutions

Strategic Goals

  • Over 70% sustainable material usage ratio across all brands
  • Build 300-store network combining Japan and overseas
  • Achieve over 30% of total sales from EC
  • Expand outlet stores to over 20 locations
  • Double corporate uniform business sales from current levels
  • Improve customer satisfaction through advanced digital marketing
  • Balance brand value maintenance with new brand creation
  • Promote employee diversity and create better workplace environment

Business Segments

Corporate Uniforms and Workwear

Overview
Provides custom-made uniforms and workwear to corporate clients.
Competitiveness
High-value proposals through hospitality-focused customer service
Customers
  • Corporations
  • Government Agencies
  • Hospitals
  • Schools
  • Service Industry
Products
  • Uniforms
  • Workwear
  • Business Apparel

Brand Licensing and Collaborations

Overview
Develops licensed products and collaboration projects leveraging brand value.
Competitiveness
Powerful brand building and planning capabilities
Customers
  • Fashion Brands
  • Sports Clubs
  • Event Organizers
Products
  • Collaboration Apparel
  • Event Goods

Select Shop Operation Support

Overview
Provides store operation and marketing support to retailers.
Competitiveness
Support based on extensive store operation experience
Customers
  • Retail Stores
  • Online Retailers
Products
  • Sales Expertise Provision
  • Marketing Support

Competitive Advantage

Strengths

  • Leading brand power in the select shop industry
  • Broad customer touchpoints through diverse store locations
  • Stable earnings from balanced in-house development and procurement
  • Rich brand portfolio and planning expertise
  • Product assortment and quality control aligned with customer needs
  • High management know-how from long years of operation
  • Strong corporate services and client base
  • Efficient sales management via digital technology adoption
  • New market development through overseas expansion
  • Customer satisfaction from staff hospitality

Competitive Advantages

  • Overwhelming recognition as one of the big three select shops
  • Strategy combining unique selections and PB products
  • Capturing broad customer segments through multifaceted brand deployment
  • Stable revenue from strength in corporate projects
  • Competitive edge from balancing premium orientation and trend responsiveness
  • Brand value maintenance through rigorous quality control
  • Strengthened customer touchpoints via aggressive store expansion
  • Improved inventory efficiency through outlet business
  • Customer trend insights from marketing and planning
  • Industry-leading staff training system

Threats

  • Risk of reduced fashion demand due to economic fluctuations
  • Intense competition from similar select shops
  • Potential sudden shifts in customer preferences due to lifestyle changes
  • Cost increases from rising raw material and logistics prices
  • Overseas market volatility and currency risks
  • Shifts in physical store demand from rapid EC market growth
  • Brand image decline stemming from past administrative penalties
  • Store operation challenges from labor shortages
  • Increased adaptation costs from stricter environmental regulations
  • Market share pressure from emerging brands

Innovations

2024: DX Promotion for Business Efficiency

Overview
Implemented AI in marketing and inventory management to improve accuracy.
Impact
Contributes to sales efficiency gains and cost reductions.

2023: Outlet Store Expansion

Overview
Expanded outlets consolidating group brands.
Impact
Achieved improved inventory turnover and customer base expansion.

2022: Expanded Adoption of Sustainable Materials

Overview
Actively introduced eco-friendly materials to strengthen product lines.
Impact
Enhanced brand image and gained customer support.

2021: EC Site Enhancement Project

Overview
Expanded features of the online sales platform.
Impact
Achieved sales growth and improved customer convenience.

2020: New Brand Development and Diversification Strategy

Overview
Launched new brands targeting multiple customer segments.
Impact
Leads to customer base expansion and sales growth.

Sustainability

  • Review of material procurement to reduce environmental impact
  • Promotion of products using recycled materials
  • Initiatives to reduce plastic packaging
  • Energy-saving measures at stores domestically and overseas
  • Environmental conservation activities in collaboration with local communities