Uniqlo

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UNIQLO at the core of Fast Retailing’s strategy
FAST RETAILING, Uniqlo’s parent company, aims at becoming the world’s No 1 apparel retailer group by 2020
With Uniqlo as the No 1 apparel brand in Japan
Target of quadrupling annual sales to Y2,000 billion by 2020
Ensure profitability, with the SPA business model
Ensure top level of growth, with an increasing presence abroad
Win customers by responding to their demand
Sticking to Uniqlo’s core positioning ‘quality at reasonable price’
Launch of hit products : basic design combined with high performance
Focus on big scale stores in Japan and major global cities overseas Objectives

Uniqlo

  1. 1.  UNIQLO at the core of Fast Retailing’s strategy  FAST RETAILING, Uniqlo’s parent company, aims at becoming the world’s No 1 apparel retailer group by 2020  With Uniqlo as the No 1 apparel brand in Japan  Target of quadrupling annual sales to Y2,000 billion by 2020 Ensure profitability, with the SPA business model Ensure top level of growth, with an increasing presence abroad Win customers by responding to their demand  Sticking to Uniqlo’s core positioning ‘quality at reasonable price’  Launch of hit products : basic design combined with high performance  Focus on big scale stores in Japan and major global cities overseas Objectives
  2. 2. UNIQLO has established a SPA (Specialty store retailer ofPrivate label Apparel) business model encompassing all stages ofthe business--from design and production to final sale. Bycontinuously refining this SPA model, UNIQLO successfullydifferentiates itself from the competition by developing uniqueproducts. They quickly make adjustments to production to reflectthe latest sales environment and minimize store-operation costs,such as personnel costs and rent. This is how UNIQLO providesuch high-quality clothing at such reasonable prices.
  3. 3. The SPA (Specialty store retailer of Private label Apparel) business model incorporates the entire clothes-making process from procurement of materials, product planning, development and manufacture through distribution and retail to inventory management.
  4. 4. • Thanks to the SPA model pricing gives a competitive advantage against a backdrop of tightening budgets. Strengths • Capacity to output hit products such as Heattech (28 million Heattech garments sold in F/W 2008, including 1 million oversea) • Among top five Japanese apparel retailers. • Risk of reliance on certain regions for production (about 80% of Uniqlo products are manufactured in China).Weaknesses • High reliance on Japan exaggerated by comparative weaker performance overseas (88.5% of the total revenues in FY 2009 made in Japan).
  5. 5. • Popularity of large format storesOpportunities • Increase in demand • Uniqlo perceived as a good quality, with stylish design brand • Stiff competition from Global operators like H&M, Gap, Topshop… Threats • Lower spending capacity in Japanese households. • Unfavorable demographic trend in Japan.
  6. 6. New Entrant: moderate Supplier Power: low Small stores: easy Many suppliers and cheap labor Global stores: difficult (Uniqlo has long-term relations Low switching cost with suppliers) Industry Rivalry: high Matured market, substitutes and global players : intense competition Buyer Power : high Substitute : high Many choices and low Cheaper fashion: cosmetics,switching cost, but possible to accessories, or cutback due to establish brand loyalty recession
  7. 7. • Good quality clothesAttributes • Well designed Japanese fashion • Variety of lines, styleFunctional • Design for wide range of customers. Benefits • Differentiating oneself from the crowdEmotional • Increase self- confidence Benefits • Everyday unique fashion to express yourself Values
  8. 8. UNIQLO is the unique clothingexperience among internationalretailers because we are the onlyone who provides vogueJapanese fast fashion.

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