Fast Retailing to set up
By Lindsay Whipp in
Financial Times
Published: July 13 2010
http://www.ft.com/cms/s/0/6c36ad9a-8e8c-11df-964e-00144feab49a.html
Fast Retailing will become the first Asian company to set up a "social business" – a term given to companies formed to address a social cause and whose profits are ploughed back into the company – in the region. It will own 99 per cent of the new company with Grameen Healthcare Trust holding the other 1 per cent. It will begin operations in September.
Muhammed Yunus, Nobel peace prize-winner and the founder of Grameen Bank, said: "It [sends] a big message to Japanese companies to use their technology to solve the problems of the people."
Fast Retailing, whose president, Tadashi Yanai, is
However, it has an economic growth rate of 5.6 per cent and is benefiting from a shift out of relatively high-cost production bases, such as southern
The Japanese government this year established a new study group with the aim of creating public-private partnerships in developing countries to target middle- and low-income groups as developed country markets stagnate.
The venture, which has a temporary name of Grameen Uniqlo, will sell products such as underwear, blankets, raincoats and school uniforms to families living in poverty at affordable prices – likely to be about a $1 or less. This will demand the most efficient and low-cost production.
Grameen Uniqlo is planning to employ 1,500 people within three years, the vast majority of whom will be sales people, who will use techniques such as door-to-door selling and education about the importance of sanitation and cleanliness. The venture also aims to nurture entrepreneurs through their sales training and employment.
The venture will benefit from access to Grameen's 8m borrowers and the use of its well-known brand in
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