Fast Retailing forms Bangladesh joint venture

JAPAN: Fast Retailing forms Bangladesh joint venture

By just-style.com | 13 July 2010

Fast Retailing said it wants to help tackle poverty in the country

Japanese fashion group Fast Retailing is to set up a socially responsible joint venture in Bangladesh in September that will both make and sell clothing in the country.

Its new subsidiary Uniqlo Social Business Bangladesh will form the venture with Grameen Healthcare Trust of the Grameen Bank Group.

Fast Retailing said the objective of joint venture was to "help solve social problems, including poverty, sanitation and education issues in Bangladesh through the planning, production and sale of clothing".

The joint venture will be called Grameen Uniqlo and be located in the Bangladeshi capital of Dhaka.

A statement by the company said: "Bangladesh is expected to experience economic growth, with much of it driven by the textile industry, but it's people still face an abundance of social problems, including poverty, sanitation and education.

"Utilising our unique SPA (specialty store retailer of private label apparel) know-how, we will plan, produce and sell clothing at a price point that is affordable to people living below the poverty line while still maintaining product quality.

"This joint venture will also create jobs, thereby improving the lives of the Bangladeshi people."

On the retail front, Fast Retailing also plans to use Grameen's borrower network of 8m people to create jobs selling clothes door-to-door in the country.

In the first year, the company plans to generate work for 250 people and to increase this figure to 1,500 within three years.

Sectors: Apparel, Manufacturing, Retail

Companies: Fast Retailing, Uniqlo