China headhunter SunTzu Recruit have learned that among the companies listed on the Tokyo Stock Exchange Prime Market, only 29% have more than one foreign executive director.
Fast Retailing Co., Ltd., the global operator of the well-known retail brand “Uniqlo,” has announced its future strategic plan aimed at significantly increasing the proportion of foreigners in its global management team. According to this plan, by the fiscal year 2030, Fast Retailing aims to raise the proportion of foreigners in its global management to 80% and increase the proportion of foreign executive directors to 40%. This strategic decision reflects Fast Retailing’s strong commitment to and forward-thinking vision of global diversity in management.
To achieve this goal, Fast Retailing will deepen its collaboration with universities in Asia and other regions, actively recruiting new graduates and professionals as potential candidates for management positions. This move not only addresses the current low proportion of foreign management in Japanese companies’ overseas operations but also signals the beginning of a global competition for senior management talent.
Notably, Fast Retailing’s global business strategy includes establishing headquarters in Japan and the United States to attract and cultivate more management talent, creating a global system that encompasses store expansion, development, procurement, and information technology.
As of the end of August 2023, Fast Retailing’s management team comprised 2,144 people, with foreigners accounting for 56%. Currently, foreigners make up 19% of the executive directors, a figure expected to rise to 40% by 2030. This transformation involves not only store operations but also various fields requiring senior management talent.
To cultivate future management, Fast Retailing plans to increase the number of partner universities worldwide and has already established partnerships with six universities in India and Vietnam. Targeting IT professionals and MBA graduates, Fast Retailing has recruited approximately 70 individuals.
Additionally, Fast Retailing has initiated internship programs for overseas students in Japan. In the fiscal year 2023, over 60% of the approximately 1,100 new graduates hired were international students, reflecting Fast Retailing’s strong emphasis on global talent.
Fast Retailing offers a clear and defined career path for talent, starting from store staff to regional managers, and eventually to CEOs of various countries and regions. In departments such as logistics and product development, there are opportunities to be promoted to director positions overseeing multiple departments.
To ensure the stability of its workforce, Fast Retailing has implemented a series of detailed support measures. In 2023, the company reinstated its internal open recruitment system, allowing eligible talent to move across countries or departments. Additionally, Fast Retailing has attracted more talent by improving compensation, including for those recruited through social hiring. In October 2023, the salaries of employees in China were raised by up to 40%, and the starting salaries for new graduates in Japan were also increased. Fast Retailing Chairman and President Tadashi Yanai stated, “If someone is excellent enough, we can even offer an annual salary of 1 billion yen.” This commitment reflects Fast Retailing’s strong determination to attract senior talent in IT, creative positions, supply chain management, and other areas.
China headhunter SunTzu-Recruit also learned that in the context of globalization, an increasing number of Japanese companies are actively hiring foreigners. For instance, Hitachi aims to increase the proportion of foreigners in its executive ranks to 30% by the fiscal year 2030. However, only a few companies have set specific targets for the proportion of foreigners in management positions. According to management consulting firm ProNed, as of the fiscal year 2022, among the companies listed on the Tokyo Stock Exchange Prime Market with sales exceeding 500 billion yen, only 29% had more than one foreign executive director. Fast Retailing’s initiatives undoubtedly inject new vitality into this trend and are expected to lead more Japanese companies towards a more open and diverse management model.
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