Renewed GU brand-Energizing the World through Fashion –GU Spring / Summer 2013
Business Strategies

Osamu Yunoki
Chief Executive Officer, G.U. CO., LTD.

Looking Back on GU So FarFashion with more freedom Seasonal fashion
 Amazingly low prices
 Reliable quality“Brand that aims to delight customers withseasonal fashion items at amazingly low prices”

Review: Fall/Winter 2012
■ Product strategy
Focused on generating greater interest among adult womenContinued appeal to younger generation while also developing a trend-based, CoolMode fashion range for more sophisticated women to strengthen g.u.’s appeal for adult
women

Strengthened men’s and kids clothing lines
Men’s: Launched promotions from October in time for seasonal demand
Kids: Expanded the product assortment by 1.5 times year on year.

■ Store opening strategy
Introduced new store formats, including large-scale stores, urban stores, roadside (standalone) stores, and stores in new regions. Increase of 22 stores year-on-year, including theCross Garden Tama, Shinjuku Sanchome, and Printemps stores in Tokyo■ New promotion strategy
Introduced Kyary Pamyu Pamyu as new campaign character. Collaboration included tie-up
between her new song and g.u. ad campaign
Promotions included a series of online promotions to realize O2O (Online to Off line)
results

GU’s Vision for the Future
Energize the World through Fashion
・Fashion makes you smile. Fashion makes you happy. Most of all,fashion energizes you. The GU brand believes in the “power of fashion.”・The GU brand wants to deliver the “power of fashion” to people of all
walks of life, all over the world. (Including people who are starting todiscover fashion and even those who have given up on fashion,
exceeding borders)
・To achieve that goal, GU will aim to become the “brand that offers theworld’s greatest freedom in fashion”
・Expand the brand’s presence globally (including Japan, greater China,
the rest of Asia, Europe and the U.S.)GU - Looking Back
“Domestic Market” & “Family Casual” BrandGU – Going Forward“Global” & “Fashion” Brand

Spring/Summer 2013 Business Strategy

1 Pricing Strategy
990 yen (kyu-kyu) = GU

12 Product Strategy- Women- Men- KidsPricing Strategy

2New&Improved
GUProduct Strategy3Store Opening/ServiceStrategy

3 Store Opening/Service Strategy- New large-scale store format- Development of next-generation
stores- Expansion of Osharista (fashionadviser) services

12 ＧＵ 3Pricing Strategy

Make “990 yen (kyu-kyu)” synonymous with GU!
“GU = 990 yen” or “990 yen = GU"
The introduction of the 990-yen denim in the spring of 2009
took Japan by storm

GU will again be setting a strategic price point of 990 yen.
The 990 yen product lineup has approximately doubled thisSpring / Summer.
Customers will have freedom to enjoy fashion, unfettered by price.

12 ＧＵ 3

Product Strategy (Women)

Product designs will focus on appealing to a wide range of female customers,
primarily women in their 20s, by capturing the biggest trends of the season. Thesemajor trend items will include leggings pants, Tee-one piece and short pants.

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2 ＧＵ 3

Product Strategy (Men)Designs will focus on sophisticated colors and styles for out-on-the-town fashion,
featuring themes including “urban nautical”, natural ethnic”, and “street & mode”

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Product Strategy (Kids)

Fun, Spring and Summery lineup for kidsLeggings Pants and Cropped Pants also available

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Store Opening and Service Strategy■ Store development strategy
Introduction of a range of new store formats, including large-scale stores,urban stores, stores in shopping center, roadside (stand-alone) stores, andstores in new regions.
March 22: Power Mall Maebashi Store(largest roadside (stand-alone) store with approximately 1,500 square
meters of floor space)
March 29: Yodobashi Kichijoji Store(urban store)
Mid-April: Kobe Harborland Store(urban, next generation trial store)

Mid April: First store in Iwate and Aomori Prefectures in northern Japan

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Store Opening and Service Strategy■ Introduction of new store concept: Cross Garden TamaStore, the next-generation large store format–The success of Cross Garden Tama Store, the next-generation large format store, will beapplied to other large store formats going forward(The initial trial will be made at Power Mall Maebashi Store)

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Store Opening and Service Strategy■ Pilot test for new store concept: experimention of nextgeneration fixtures at Kobe Harborland Store■ Expansion of the Osharista fashion advisor service=>(The Ikebukuro flagship store will start offering this service in April)
By expanding the Osharista service, expect to increase customer satisfaction
and generate a higher average number of items per purchase.
Develop “fashion eye” among all staff members and directly reflect feedback
from stores into product development
Aim to implement Osharista services at all stores, including those overseas, inthe futureReference: Speed of GU’s GrowthUNIQLO

GUFirst Store Opening

1984, Hiroshima

2006, Chiba

Sales surpass
50 bil yen
Sales surpass
100 bil yen
1st store opening
outside Japan19962012(12years after 1st store)(6 years after 1st store)
1999
2014 (planned)(15 years after 1st store) (8 years after 1st store)
2001
2013-2014 (planned)(17 years after 1st store) (7-8 years after 1st store)

・GU is expanding at roughly double the pace of UNIQLO. Aiming to expand
to overseas market sometime this year

・GU will continue to further accelerate its growth to become one of thegrowth drivers within the Fast Retailing GroupNew Campaign for 2013 Spring / Summer“Oshare (Style) Invader”“Oshare (Style) Invader” Kyary Pamyu Pamyu plots to take over the world through990-yen fashion under the theme “energizing the world through fashion."

New Campaign for 2013 Spring / Summer“Oshare (Style) Invader”

The new cast will include the comedy duo Peace,in order to strengthen the promotion of the men’s line.

New Logo Application Game “GU Dice”

Objective:
To generate awareness for the new logo
How to play:
Start up application and take a picture with
the new logo. The lottery will start, and lucky
winners will receive a “100 yen off” coupon
Campaign Period:
March 5 – March 17
Coupon expires:
March 17

New Application Game “Shout Kyu-Kyu!! (990 yen)”

Objective:
To generate awareness for the new 990
yen pricing strategy
How to play:
Start up application and shout “KyuKyu!” while clicking on the UFO (fashioninvader) to receive original Kyari Pamyu
Pamyu desktop wallpaper. Shout “GU!”and “Kyari!” and maybe you’ll discover
fun, original contents!
Campaign period:
March 18 – April 7