Value Creation History

Becoming a Fashion Tech Company with "Imagine the unexpected. Chart the unexplored"

FY 2021 Gross Merchandise Value 508.8 billion yen
  • 2004 /
    Launched
    ZOZOTOWN

  • 2007 /
    The company is listed on the Tokyo Stock Exchange Mothers.

  • 2012 /
    Launched
    ZOZOUSED

  • 2013 /
    Launched
    WEAR

  • 2017 /
    Launched
    measurement
    services

  • 2018 /
    Renamed the name of company from "Start Today Co., Ltd." to "ZOZO, Inc."

  • 2019 /
    Capital and Business Alliance with Z Holdings Corporation

  • 2021 /
    Launched ZOZOCOSME and ZOZOVILLA

Launched e-commerce business (since 2000)

In 1998, the company began operations as Start Today Ltd. In 2000, we started an Internet-based website for importing and selling CDs and records called STMonline (*1). In 2004, we began operating ZOZOTOWN, a fashion e-commerce site focused on apparel merchandise. Currently, the number of shops we handle is more than 1,500, and over 10 million people per year (*2) customers use it. At ZOZOTOWN, we are developing a variety of original services, including ZOZOSHOES, a platform exclusively dedicated to footwear, ZOZOCOSME, a new platform dedicated to the beauty and cosmetic category, and ZOZOUSED, which handles second hand / vintage apparel.

*1 Import and sales business of CDs and records is ended in Sep. 2006
*2 Total number of active members and guest purchasers purchased at least once between April 1, 2021 and March 31, 2022

Launched measurement services (since 2017)

We have developed and offered measurement tools such as ZOZOSUIT for 3D body measuring, ZOZOMAT, a 3D foot scanning solution, and ZOZOGLASS, a skin tone capturing system, as technologies to eliminate concerns about size when shopping on the Internet. These measurement tools are used by a large number of customers, including the previous ZOZOSUIT (*) 2 million, ZOZOMAT 2.1 million, and ZOZOGLASS 1.2 million.
In addition, we have been recruiting partner companies to co-create new services, as well as using the developed measurement technologies not only in our own services. In addition, since last year we have been licensing and selling measurement technologies, and we are considering a variety of uses without distinction of industry or location.

* Announced in 2017, now terminated services

Materiality

We have identified the 10 most important materiality items in our sustainability key actions. Going forward, we will establish KPIs and action plans and promote initiatives to achieve both sustainable growth as a company and the fulfillment of social responsibilities and the resolution of social issues.

Sustainability Key Actions

  • 1

    Highlight sustainable fashion choices to improve usersʼ experience

    By sharing information, such as the sustainability criteria and production background of a particular garment, ZOZO will provide its customers with better opportunities to purchase sustainable products and services that are human rights and environmentally friendly.

  • 2

    Create a made-to-order platform for zero waste

    ZOZO will build a made-to-order production platform that dramatically reduces waste by avoiding mass production and mass disposal. This manufacturing system will utilize proprietary measurement technologies and various data inputs.

  • 3

    Promote diversity, equity & inclusion among everyone involved in fashion

    ZOZO will actively disseminate information and take initiatives that contribute to creating a society where everyone involved in fashion can fulfill their potential. This includes ZOZOʼs own employees, those leading the fashion industry as well as its next-generation, minorities, apparel manufacturers, people affected by pollution, and, of course, its customers.

  • 4

    Contribute to sustainable community development

    By combining fashion and technology, ZOZO will work with its stakeholders to solve environmental and social issues in each region and community, and it will contribute to the revitalization and sustainability of various regions.

* We are committed to achieving the goals outlined in our Sustainability Statement and Key Actions by 2030.

Identification of Materiality

We routinely gather expectations, requests and opinions from our important stakeholders. Expectations from our service users and clients, among other things, are gathered through questionnaires and interviews, and expectations from existing shareholders and other investors are also gathered through shareholder meetings, engagement meetings, and evaluation data to us. We also strive to understand the expectations of industry groups and NGOs through meetings and interviews. With reference to the expectations and demands of each of these stakeholders and the demands of society, such as the major ESG evaluation items, we discussed and examined them from the viewpoint of the characteristics of our group and the contribution to the growth of our group, and identified materiality items that are of high importance to both stakeholders and us.

* Materiality is discussed by SDGs Promotion Committee and approved in the Board of Directors on March 14, 2022.

Materiality Map

Sustainability Key Actions
  • 1:
  • 2:
  • 3:
  • 4:
  • Others:
Materiality Map

Relationship between Materiality and Sustainability Key Actions

Sustainability Key Actions① / Highlight sustainable fashion choices to improve usersʼ experience

By sharing information, such as the sustainability criteria and production background of a particular garment, ZOZO will provide its customers with better opportunities to purchase sustainable products and services that are human rights and environmentally friendly.

Materiality
Supplier Engagement / Consumer Engagement / Product Shipping / Packaging Waste & Recycling
Goals

Short Term / Labeling of products based on the sustainability criteria of each brand.

Mid-Long Term / Create a common sustainability standard together with brands, and to provide product information including the production background. We will also reduce the social and environmental impact of packaging materials and product transportation.

Contribution to the SDGs
  • 3 すべての人に健康と福祉を
  • 6 安全な水とトイレを世界中に
  • 7 エネルギーをみんなに。そしてクリーンに
  • 8 働きがいも経済成長も
  • 12 つくる責任、つかう責任
  • 13 気候変動に具体的な対策を
  • 14 海の豊かさを守ろう
  • 15 陸の豊かさも守ろう
  • 16 平和と公正をすべての人に

Sustainability Key Actions② / Create a made-to-order platform for zero waste

ZOZO will build a made-to-order production platform that dramatically reduces waste by avoiding mass production and mass disposal. This manufacturing system will utilize proprietary measurement technologies and various data inputs.

Materiality
Supplier Engagement / Apparel Waste & Recycling
Goals

Short Term / ZOZO will provide its made-to-order platform to select brands in addition to utilizing it for its in-house apparel production and sales.

Mid-Long Term / ZOZO will provide its made-to-order platform to all brands on ZOZOTOWN and to select users who wish to use this service.

Contribution to the SDGs
  • 9 産業と技術革新の基盤を作ろう
  • 11 住み続けられるまちづくりを
  • 12 つくる責任、つかう責任
  • 13 気候変動に具体的な対策を
  • 14 海の豊かさを守ろう
  • 15 陸の豊かさも守ろう

Sustainability Key Actions③ / Promote diversity, equity & inclusion among everyone involved in fashion

ZOZO will actively disseminate information and take initiatives that contribute to creating a society where everyone involved in fashion can fulfill their potential. This includes ZOZOʼs own employees, those leading the fashion industry as well as its next-generation, minorities, apparel manufacturers, people affected by pollution, and, of course, its customers.

Materiality
Employee Engagement / Human Capital Development / Diversity, Equity & Inclusion
Goals

Short Term / Raise diversity awareness and inclusion among ZOZO employees and stakeholders who are closely involved.

Mid-Long Term / Promote diversity and inclusion by collaborating with partners in the fashion industry and in the value chain to provide and communicate new services.

KPI
1.Increase the percentage of female directors to 30% or more by 2030. 2.Increase the percentage of female senior managers to 30% or more by 2030.
Contribution to the SDGs
  • 3 すべての人に健康と福祉を
  • 4 質の高い教育をみんなに
  • 5 ジェンダー平等を実現しよう
  • 8 働きがいも経済成長も
  • 10 人や国の不平等をなくそう
  • 17 パートナーシップで目標を達成しよう

Sustainability Key Actions④ / Contribute to sustainable community development

By combining fashion and technology, ZOZO will work with its stakeholders to solve environmental and social issues in each region and community, and it will contribute to the revitalization and sustainability of various regions.

Materiality
Sustainable Community Development / Climate Change
Goals

Short Term / Contribute to the resolution of local issues and revitalization in the areas where we operate our business.

Mid-Long Term / Help solve local issues and revitalize communities beyond our local community and region.

Contribution to the SDGs
  • 4 質の高い教育をみんなに
  • 9 産業と技術革新の基盤を作ろう
  • 11 住み続けられるまちづくりを
  • 17 パートナーシップで目標を達成しよう

Basic Sustainability Policy Including Materiality

Stakeholder Interviews

We Interviewed the Persons Who Support Us

  • URBAN RESEARCH Co.,Ltd.
    Operating officer
    Digital Business Division
    General manager

    SAITO Satoru

    We have had a long relationship with ZOZO, and since "ZOZOTOWN" was still a virtual town filled and aligned with virtual stores. We have been "buddies" from the early days in business for more than a decade, but I am particularly impressed with "Urban Galaxy", a collaborative project between Urban Research and "ZOZOTOWN", which we hijacked "ZOZOTOWN" throughout the website to promote our items. I think ZOZO's strengths lie in not only its innovative creativity, but imagination closely aligns with the feelings of customers and clients.
    I believe that ZOZO, who has been making surprising efforts in the past, will continue to make bold approaches to make a breath of fresh air for industries. We, Urban Research is currently working to realize a sustainable world under the slogan "3C" (*1). In order to revitalize local communities, we are working on SDGs in fashion point of view, such as producing "fisherman wear" with a group of young fishermen in Ishinomaki City, Miyagi Prefecture, (*2) and a project "commpost" (*3), which upcycles clothing waste in cooperation with different industries. In these categories - sustainability, we expect ZOZO would make a hit, and are more than happy to make a challenging effort together, as we did for "Urban Galaxy." Many people would start moving with the goal set by ZOZO as a beacon. Let us actively promote SDGs as a world citizen.

    *1 "3C": Urban Research's Basic SDGs Policy
    *2 JAPAN MADE PROJECT "TOHOKU": A local community project aimed for "regional revitalization," reexploring the beauty of the land is rethinked and disseminated together with local communities created by companies and creators in various regions of Japan and us.
    *3 "commpost": A sustainable material product brand born from the enthusiasm of showing people a new mindset towards the global environment and how people work and live in the future.

  • YAMATO TRANSPORT Co., Ltd.
    Responsible for overseeing EC Business
    Fulfillment Service Department
    Department Manager

    NAKANISHI Suguru

    We have challenged ourselves to take on innovative initiatives with ZOZO not only once, but several times. For example, we worked together from the development stage for "pick up outside home" service, which has become ordinary now. We have managed to offer even more functional and convenient user-experience as such you are now able to receive parcels at convenience stores, by reflecting the requests, issues and its solutions we found out through the whole process. Currently, we deliver not only conveniently, but also safely by improving security measures, such as employing two-dimensional coding of personal information printed on the delivery slips.
    Throwing back to the past, we have always overcome obstacles for new challenges with ZOZO but what remains particularly impressive is the launch of the "EAZY(*)" package drop service. Although there was a rapid increase in demand for non-face-to-face shipping as a result of the Covid-19, we also had some concerns about launching this service as we leave or drop the parcels outside but ZOZO did not hesitate, to challenge and give it a try. We would very much like to keep working closely with ZOZO even moving forward, for more new challenges including SDGs-related projects. We are committed to taking into account the global environment, while enhancing the convenience and functions of e-commerce . For instance, we will look at new delivery methods with a solution to cardboard wastes after deliveries. With ZOZO, we would be able to make an impact and influence not only on the transportation industry, but also on the EC industry as a whole. We are proud, and excited to take on challenges together.

    * "EAZY" is a service that enables customers to select from multiple ways of shipping options at their convenience, for orders from shops including online that are supported by Yamato Transport. Parcels can be delivered as handing over, or placed in front doors inside gas meter boxes, at car garages, or other locations on their own premises, and will be delivered in a non-face-to-face manner.

  • Mayor of Chiba City

    KAMIYA Shunichi

    I was assigned to Chiba City in 2013, eight years ago. Since that time, ZOZO has been headquartered in the city and in the forefront of fashion companies across the country. I was impressed by their corporate culture,an attitude to always challenge unconventionally without being constrained by stereotypes.ZOZO has always been behind the changes of the city, and placing great importance on the region, while expanding their business ZOZO introduced the Chiba Allowance, which provides allowances to employees living in Chiba City, which helps revitalize the local community and create a community where people live close to their office. ZOZO also sponsored the Makuhari Beach Fireworks Festa organized by Chiba City, and acquired the naming rights of Chiba Marine Stadium. These are only a few of their prominent achievements but we appreciate them helping to create a city where citizens are proud to live in.
    ZOZO is one of the first companies stepped in making contributions to community, and we have taken various measures to follow them. Moreover, ZOZO conducts ingeneous efforts to achieve SDGs through their business and stands out in their commitment to building new standards of sustainable business. I expect that ZOZO will be a leading company to create a sustainable community, as a company that loves, and loved by the local communities of Chiba.

We Interviewed our Employees about Key Actions

  • EC Promotion Division

    AKIYAMA Moe

    Better Opportunities for the Customers to Select Sustainable Products

    Many of the clothes we wear contain microfiber that leads to environmental pollution, but I think many people would not be so aware of this fact. In addition, consumers only have limited choice as there are relatively few clothes made with environment-friendly materials. To help resolve these issues, we aim to create a sales platform that provides our customers an opportunity to opt for sustainable products on ZOZOTOWN. First, we began introducing ethical products, and released pages with content where you are able to learn about issues in the fashion industry. ZOZOTOWN offers a new customer experience through which you can freely select fashions as if you make a choice for organic foods at supermarkets.

    Key Action 1
    "Highlight Sustainable Fashion Choices to Improve Users' Experience"
  • Production Platform Division

    KUWAYAMA Akinori

    A New Production Platform Aiming "Zero Waste" Future

    We state in our corporate philosophy that "Inspire the world. Deliver joy every day." For a long time in the fashion industry, the issue of mass production and mass disposal has been problematic, but it is also our "inspiration" to make every effort to resolve this issue.
    Currently, we are developing a new made-to-order production platform in anticipation of the world of "zero waste." We aim to create a fashion industry that makes customers, brands, and the planet smile by spreading globally the "MAKE FOR YOU", which is a production method using our vast amount of data and original measurement technologies to produce products that meet customers' orders. We are committed to digitize fashion production, to realize a sustainable world.

    Key Action 2
    "Create a Made-To-Order Platform for Zero Waste"
  • HR Division

    ICHIKAWA Misato

    Pursuing "Work with Fun" to Respect Individuality

    We have been committed to creating a workplace where all employees can demonstrate their potential. "Work with fun" has been rooted in us as our culture, and everyone pursues "how I think of the joy." What is required of us in the future is the realization of a world in which all people involved in fashion can demonstrate their potential. First, we are promoting awareness-raising and institutional designs for employees so that they can respect and cooperate with a diverse range of lifestyles. The mission of our department (*) is to create a community in which individuality is respected, while at the same time supporting diverse work styles.

    * The word "work" is ordinarily spelled as 仕事 (shi-goto), using a character 仕 (shi) represents "serving" by its literal meaning. Instead, we use a character 自 (shi) which is pronounced in a same way but represents "self (natural)" by its literal meaning. This implies we are not serving to someone or forced to work, but are working naturally and
    spontaneously.

    Key Action 3
    "Promote diversity, equity & inclusion among everyone involved in fashion"
  • Friendship Management Division

    UMEZAWA Takayuki

    Building Relationships as "Friends" with Stakeholders

    We have a department called "Friendship Management," which was established for the purpose of "building a relationship of trust like a friend." In particular, building an intimate relationship with local communities is one of the initiatives we are focusing on. As a part of this concept, the first floor of our head office has been glass-walled and this has been derived from our desire to create a connection between the local community and us by showing how our employees work. In addition, we are implementing a variety of initiatives, such as On-Demand-Delivery Class (*) at local schools. Collaboration between local communities and companies should create original colors and lead to the realization of a sustainable region. Through these initiatives, we hope to contribute to the realization of a sustainable community.

    * On-Demand-Delivery Class: Support for the development of the next generation sponsored by the Chiba City Education Board. Our employees serve as instructors and hold classes at local schools in Chiba City.

    Key Action 4
    "Contribute to Sustainable Community Development"
  • Fulfillment Division

    Yui Ito

    "ZOZOBASE" where everyone can smile

    ZOZOBASE logistics center is the base to which the largest numbers of staff is working at, and employs a diverse range of staff, including age, nationality, and gender. Our mission is "Smile Delivery," and the entire staff are working together to enable smile delivery to all parties involved, including customers and business partners. In our daily operations, we are working on safety management in the warehouse and the prevention of personal information leaks. In addition, we are making efforts to change to environmentally friendly packaging materials and eliminate the loss of discarded products. "ZOZOBASE" also aims to create environments where everyone can work with a smile, conscious of people's connections. Not only improving the working environment and introducing an education system, but also we intend to deepen communications with companies and residents in the surrounding communities, thereby contributing to solving the issues faced by our local communities and revitalizing them.

    Key Action 3
    "Promote diversity, equity & inclusion among everyone involved in fashion"
    Key Action 4
    "Contribute to Sustainable Community Development"

Financial Highlights

  • Gross Merchandise Value

    FY2021 Gross Merchandise Value 508.8 billion yen
  • Net sales

    FY2021 Net Sales 166.1 billion yen
  • Operating Profit

    FY2021 Operating Profit 49.6 billion yen
  • ROE

    FY2021 ROE 62.5%
  • Dividend Payout Ratio

    FY2021 Dividend Payout Ratio 50.4%

Financial Highlights

Integrated Report Top