ZOZOUSED's Sustainable Framework

We are developing a "replacement discount" service that allows customers to trade in previously purchased products on ZOZOTOWN and purchase them at discounted prices when ordering. In recent years, mass disposal in the fashion industry has become an issue. In this service, clothing is recycled by selling trade-in products within ZOZOUSED brand-name used clothing zone. In fiscal 2022, more than 10 million products sent by customers under the "Replacement Discount" service. Those that are difficult to sell in ZOZOUSED due to dirty or other reasons were used for maintenance in an effort to re-distribute to the maximum extent possible. In addition, most products that cannot be sold again in ZOZOUSED are purchased by a number of properly processed clothing buyers. 80% of the products sent in fiscal 2022 are sold by ZOZOUSED, and about 2,790,000 of the remaining 20% are delivered to clothing purchasers. Assuming that CO2 emissions are avoided from the manufacturing process through disposal and incineration of newly produced products, this would result in a reduction of approximately 5,100 tons of CO2 emissions. When collecting trade-in products from customers through the "replacement discount" service, we recommend the use of ZOZOTOWN original non-woven fabric reused bags that can be used repeatedly. Currently, about 94% of reused bags used once have been cleaned, and the bags have been reused on average five to six times since then. We have been able to curtail resource consumption by increasing the efficiency of use. Reusable bags also have fasteners, which eliminate the need to prepare gummed tapes and other packaging materials, making it easy to prepare for shipments, thereby improving customer convenience. We will continue to pursue environmentally conscious actions.