Vision

Connecting people, technology and fashion

We provide "ZOZOTOWN" based on the concept of a town where "imagination" and "creativity" interact in times when neither buying nor selling clothes on the Internet was not common, and we have overturned common sense with our unique methods and technologies. Even as the Covid-19 spread and people's lifestyles and the fashion industry changed, we have challenged ourselves to solve problems together with everyone involved by connecting fashion, technology, and people, which is our strength.

Five Growth Strategies

We consider the target population of "ZOZOTOWN" to be 64 million people in their late teens to 50s. The EC conversion ratio is 28% of the 7.5 trillion yen market size including offline and online for the target population, and we estimate the online market to be 2.1 trillion yen, so we believe there is still much room for expansion considering the current Gross Merchandise Value of 500 billion yen.
Based on the management strategy"More Fashion × Better Fashion Tech - Explore your style. Make you delighted. -", we have focused on "Increase traffic other than “BUY””, “Step into the “Production Support"”, and "Try “Technology Licensing Sales”" as the 3 pillars of the strategy to accelerate our business growth. In the current fiscal year, we have formulated expansion growth strategies to specifically promote the 3 pillars of the strategy: "1. Attract a wider range of customers," "2. Increase in frequency of purchases per customer," "3. Production support by streamlining made-to-order through DX," "4. Expansion of non-apparel categories," and "5. Technology Monetization." We will continue to promote these initiatives.

1. Attract a wider range of customers

The number of active members is increasing steadily. The successful acquisition of new members has resulted in a record number of it in the last fiscal year. Furthermore, we recognize that there are still as many potential customers in the market as active members, and we will break down the market into detailed target segments and implement member acquisition measures with an awareness of the growth potential to drive growth.

2. Increase in frequency of purchases per capita

Last year, we conducted a "Awareness Survey on Fashion" of "ZOZOTOWN" users and found that many customers do not simply “want clothes” but feel that they “want to wear clothes that look good on them”. At the same time, however, it also became clear that many customers "do not know what it means to 'your style'". In December 2022, we opened niaulab by ZOZO, ZOZO's first-ever physical store in Omotesando, Tokyo, with the aim of clarifying what "your style" means. We believe that the clarification of "your style" will lead to the acquisition of new users and encourage existing users to use our services more than ever before, which in turn will lead to our future growth. In addition, the OMO solutions “ZOZOMO” launched in 2021, which connects ZOZOTOWN and physical stores of brands, will reduce the loss of purchase opportunities on "ZOZOTOWN" and increase the frequency of purchases by users through inventory linkage with the physical stores of brands.

3. Production support by streamlining made-to-order through DX

Production support service "Made by ZOZO(MbZ)" launched in September 2022 that accepts orders for a minimum of one garment, produces the garment, and from order to shipping within 10 days at the earliest, has been highly evaluated by brands for its ability to sell with zero inventory risk and its wide range of colors. The number of participating brands has increased, with 461 models produced and 120,000 pieces produced and sold in the first six months. In addition to existing brands adopting the "MbZ" system, new initiatives by brands utilizing the "MbZ" system are also being developed, such as the launch of a ZOZOTOWN original brand by SHIPS from the 2023SS. We will continue to increase the number of participating brands while improving production efficiency, aiming to generate double-digit billion yen in profits as soon as possible.

4. Expansion of non-apparel categories

In 2021, we launched a platform dedicated to the beauty and cosmetic category “ZOZOCOSME”, as part of our strategy to strengthen categories other than apparel. Over the past two years, we have focused on first creating the necessary environment for a sales area and then applying the know-how we have cultivated on "ZOZOTOWN. As a result, last fiscal year's gross merchandise value reached 9.1 billion yen, one of the largest in Japan's EC market. Even so, cosmetics purchasers still account for only 19% of our current active members, and we believe there is still much room for expansion. We will not rest on our laurels and aim to become the "largest" cosmetics mall in Japan. We will also use the know-how gained through ZOZOCOSME to explore the next category.

5. Technology Monetization

In the body management service "ZOZOFIT" launched in the U.S. in August 2022, utilizing a 3D measurement bodysuit “ZOZOSUIT” developed by our company that enables the generation of precise 3D models of the body, we sold approximately 8,300 "ZOZOSUIT" by March 2023. Although this business is still in a state of exploration, we have made various discoveries in the six months since the service was launched, including the discovery of needs that we had not anticipated. We will continue our efforts to grow this new business utilizing technology.

Environmental Initiatives

Climate change initiatives in FY2022 include the announcement of "Net Zero" greenhouse gas emissions to be virtually zero by 2050, disclosure of "Governance", "Strategy", "Risk Management" and "Metrics & Targets" based on TCFD recommendations. We have also submitted a letter of commitment to the SBT Initiative (SBTi) and implemented new initiatives including our supply chain. Other initiatives included switching more than 90% of electricity consumption at our sites to renewable energy sources, as well as initiatives to reduce CO2 emissions generated by deliveries, such as improving the load-carrying efficiency of trunk transportation and encouraging customers to "Package drop Service" at the time of delivery. As for waste, we have introduced the production support service “Made by ZOZO”, which manufactures products after receiving orders from customers and provides the service to our client brands, in addition to purchasing unused fashion-related products through our reuse business "ZOZOUSED," which has been in operation for 10 years. These services are effective in reducing the issues of the fashion industry-mass-production and mass-disposal. In terms of natural capital, we have adopted FSC-certified (*1) cardboard and environmentally friendly packaging materials made from biomass, reduced paper consumption by digitizing delivery slips and receipts, and switched from plastic to 100% recycled paper for cushioning materials used when placing products in cardboard boxes for delivery.Through these efforts, we are striving to curb deforestation and maintain, enhance, and preserve biodiversity and ecosystems. We will continue to work with our business partners and JSFA, of which we have been a member since last year, (*2) and various other stakeholders to resolve environmental issues throughout our supply chain.

(*1) FSC certification: An internationally recognized system for "appropriate forest management," which was created with the aim of sustainable forest use and conservation.
(*2) JSFA: An alliance for a sustainable fashion industry with fashion and textile companies as members and the Ministry of Economy, Trade and Industry, the Ministry of the Environment, and the Consumer Affairs Agency as public partners.

Social Initiatives

In April 2023, we launched "ZOZO WORKSTYLE," an updated personnel system, benefits, and work style to support the diverse lifestyles and career development of each and every employee. In addition, we set a goal last fiscal year to "Increase the percentage of female directors to 30% or more by 2030," and we will continue to improve the ratio of women in management positions by actively promoting measures for the further advancement of female employees. Also, in order to achieve the goal of "By 2030, Contribute to the revitalization of local communities, by having 'connections' with one million next-generation people under 20 years old," we have been providing On-Demand-Delivery Class for students from elementary school to university in Chiba City and Tsukuba City, with which we have concluded comprehensive cooperation agreements, as well as "Chiba Entrepreneurship Education Consortium Seedlings of Chiba" to nature entrepreneurship in children who will lead the next generation of industry. We will continue to expand our activities and achieve our goals.

Governance Initiatives

In June 2023, we transitioned from a company with a board of corporate auditors to a company with an audit and supervisory committee in order to further enhance sustainable corporate value and strengthen our corporate governance system, with a constant awareness of soundness and transparency in our management. Currently, five of the 11 directors are women, and the ratio of women on the Board of Directors is 45.4%. In addition, ESG indicators have been linked to executive compensation since June 2023. We have also actively promoted the disclosure of our other ideas and policies, including the formulation of the "ZOZO Sustainability Procurement Policy" for all suppliers and the "Declaration of Partnership Building. We will continue to strengthen our corporate governance to enhance transparency and fulfill our social responsibility as a TSE Prime-listed company.

To Our Stakeholders

We will continue to create a world where people can continue to enjoy fashion forever, by making a difference every day in the ZOZO way, with love, and by following the“Souzou no Nanameue" (Imagine the unexpected. Chart the unexplored.) approach. In order to create the world, we will also take environmental and social issues seriously, and work together with our stakeholders to solve global issues in innovative ways.