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Uniqlo Clothes
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Uniqlo Clothes
Competitive Analysis
Uniqlo is a brand facing competition all over the world;
however, the major competitors include but not limited to
H&M, American Eagle Outfitters, Zara, Gap Inc., H&M
(Hennes & Mauritz)and MUJI. In the global market where fast
fashion has taken over the market, the consumer is indeed
presented with a diversity of options (Marshall & Johnston,
2019). Despite the appearance and the notion that the big brands
wield all the authority to persuade the customers, ultimately the
power lie in the hands of every individual company.
Uniqlo store was tidy and well assorted-nothing seemed
misplaced and this gave it a competitive edge because
customers found it easier to locate their preferred sizes and
styles. Also, the company’s technology and innovation has been
futuristic, their product information is established right into the
modern and pleasing displays, the maps of the stores are kept
and set up at strategic points making it very easier for the
customers to navigate and shop. Men and women sections
compartmentalized and the sale section is designed centrally
making it very easier for the customers to find bargains
(Marshall & Johnston, 2019). The change rooms are pretty and
smaller considering the huge size of the store. Nevertheless
H&M is also not leaving anything to chance. The company has
been giving Uniqlo a run on its investment through a very
comprehensive and strategic moves in the industry. The
company is fairly innovative and organized in its stores,
boasting of the similar setup as Uniqlo- the store directories and
strategic points, their digitization and the rating station. Unlike
the smaller changing rooms at Uniqlo, H&M is vast in its
changing rooms with its point of sales scattered and much
harder to differentiate.
Consequently, the assortment offering ready in-store is where
there is a real distinction. For instance, Uniqlo is emphasizing
the provision of affordable basics plus innovative fabri c
technology, this means that, customers will not be entangled
with numerous fast-fashion pieces or runway knock offs
(Marshall & Johnston, 2019). But despite being on the limelight
with a large assortment, the breadth is very small because many
styles are replicated in various colors or a slightly altered
signature silhouette.
Regarding the quality, Uniqlo always discloses country of
origin and the information pertaining to the content of the fabric
on their price tag (Marshall & Johnston, 2019). They are very
transparent in keeping customers in the know about what they
are buying and prices are relatively affordable and fair. For
instance, a cashmere sweater would be ranging from $40 to
$100 with a great fit (Marshall & Johnston, 2019).
H&M is boasting of their wider assortment between the two and
it is extremely focusing on trends with a deep breath of
fashionable products. Somewhat the quality is feeling cheaper
because of the nature of the fabric in their stores which is
somewhat 85 percent rayon and polyester (Usui et al., 2017).
They do not always disclose the content of their fabric,
however, viewable cloth tags states the country of origin, but
one must search beyond the tags into the garment to find the
contents of the fabric. Their pricing is relatively fair, however
some trendier items could be overcharged, and the fit is
sometimes poor with various discrepancies between styles.
Overall, Uniqlo is quite comprehensive in the market and maybe
be slightly above H&M in terms of quality products, store
assortments, and convenience to the customers (Anwar, 2017).
However, in terms of the market share, H&M is very older in
the market and it has expanded greatly over the last few years.
It is having over 4,300 stores open globally, as of April 2021
far more than Uniqlo (Tan & He, 2019). Its infiltration into the
United States market has also been progressive and prolific than
those of Uniqlo. Similarly, H&M has had to close select stores
as more and more customers take their purchase online,
representing the broader transition in the retail world from
physical brick and mortar to a more agile and vast e-commerce-
based model.
Another competitor of Uniqlo in this sense is Zara. Zara is
actually the youngest of the trio, having been conceived in
Spain in 1975, the company is under the purviews of the textile
giant lndetex and it is actually its flagship brand (Tan & He,
2019). The ownership of the company’s supply chain steps
allow it to exude rapid product turnover. Zara has got the
capacity to design a product and have it running in the stores a
month later.
It terms of its market share, within 96 countries, Zara has got 2,
200 stores and currently it is having 99 stores open in the
United States, and most of its location globally is concentrated
in Spain, where there are 464 stores including its headquarters.
Its most domineering strategy is provision of a higher number
of available products than the competitors like Uniqlo (Beser
Ramada, 2021). While brands like Uniqlo are clothing retailers
manufacturing and offering to the public 2000 to 4000
differentiated articles of clothing, Zara’s production has been
markedly greater with over 10000 pieces produced annually.
This unique feature within its competitive strategy has allowed
it appeal to a wider base of customers all over its marketplace
with unique tastes.
Competitive Analysis on Industry and Market
Uniqlo is clothing brand in the Fast Retail industry. The
Company was purchased by Fast Retailing Co. in November of
2005, but its original founding was in 1949 in Japan. The
company’s business model is reliant on that of the Gap. The
company is today boasting or more than 2000 stores in almost
more than 25 markets globally. Its introduction into the market
in the United States happened in 2006, and as of today, it has
opened 47 stores in the United States.
The company’s distribution chains are focused in its original
county; in fact, 806 Uniqlo store locations are established in
Japan. Its distribution strategy is centered on the timing of its
products’ inceptions into the stores, with new creations as
functions not of quantity, but of demand (Tan & He, 2019).
Within the industry, the company has mastered the heart of
responding flexibly to needs of the changing trends in the
Japanese fashion, and it is particularly tailoring its designs to
copy the minimalistic style that is so famous in Japan. This is
yielding results because it impacts on the appeal that Uniqlo
may have for its western distribution pathways, and thus, the
determining reason behind its low number of the stores situated
in markets like the United States.
Within the industry, by developing and purchasing brands with
uniqueness like H&M is hopefully appealing to the wider
market of the customers. Each H&M brand is tagged with its
individual price range and visual concept; for finance,
Collection of Style is actually tailored at a higher average price
than H&M’s principal basket products that are mainly
emphasizing the European markets (Tan & He, 2019). Similarly,
some brands sell clothing pieces that are actually half the price
of those sold by Collection of Style and tailor some diverse
designs that are relatively youthful.
Company’s like Zara are dividing the product sold within its
stores into some lower garments and upper garments, which an
obvious upper price points on the latter. They hope to be
perceived as high-end retailer with affordable prices. As such,
they open up their stores strategically in key traffic points
globally places with high real estate costs, like the Fifth Avenue
location in New York City (Beser Ramada, 2021). A company
like that is not stressing in making advertisement as part of its
branding strategy, and that is where Zara is differing from
Uniqlo, because it funnels the dollars that would have otherwise
been consumed by product/brand promotion into new store
openings.
The implied strategy like Gap that a company like Uniqlo is
applying is actually helping it to position its brand as private -
label apparel (Beser Ramada, 2021). It has created its own
clothing, and Uniqlo is only capable of selling such within the
confines of its brick-and-mortar stores and on its website. The
company also applies sporting events to apparel to the general
population so as to deepen its market base. The designs being
tailored by Uniqlo are quite simplistic and practical than those
sold by other companies in the industry such as Zara and H&M.
And with such, the appealing effect is so great in the market to
the different audiences.
Porter five forces and competitive profile matrix
Opportunities
Threats
Strengths
(SO)
Taking advantage of Uniqlo Supply's strengths to strengthen
and increase the market position.
(ST)
Uniqlo Supply has two options for market penetration: building
on current strengths or analyzing the trend and developing
systems for a two-pronged approach. Uniqlo Supply has two
options for market penetration: building on current strengths or
analyzing the trend and developing systems for a two-pronged
approach.
Weaknesses
(WO)
Developing tactics based on a consumer-centric approach to
product development and marketing.
(WT)
Uniqlo Supply should simply exit these markets and concentrate
on the strength and threats box, or the weakness and
opportunities box.
Porter five forces
Application of the model in relation to the competitive analysis
matrix above is very helpful for the determination of the
company’s attractiveness within the industry and understanding
how its competitive positioning in the market is robust. The
analysis is also applied for strategic decision making that can
facilitate the performance of Uniqlo and guarantee its long-term
survival.
Threats of New entrants
There is substantial financial resource needed for the entry into
the industry. This forces is losing its strength is products are
highly differentiated and customers place their money into
acquiring unique experience. Uniqlo is bound to have low
threats of new entrants if the current regulatory framework
imposes some problems to the new firms that are interested to
enter the market. As such, the new entrants will be needed to
fulfil such strict, bureaucratic regulatory instances, and such
might discourage others from entering, but the vice versa is
true.
Threats to substitutes
It is established that a cheaper substitute product or service is
available from many industries, and the psychology of
switching costs of moving from one industry to make such
substitute products is quite low. If the substitutes provides the
similar and even superior quality and performance that Uniqlo
then that is a threat like it is facing from Zara and H&M (Beser
Ramada, 2021).
Competition
The level of competition is only diminished if there are limited
number of players in the market, the industry is exuding faster
growth, and there is a clear market leaders. In the case of
Uniqlo, is quite difficult to avoid competitive now because
more firms are innovatively capturing the market and with great
saturating of products and brand leaderships.
Bargaining powers of suppliers
The bargaining force of suppliers will be high for UNIQLO if:
Suppliers have gathered into a particular locale, and their focus
is higher than their purchasers. This power is especially solid
when the expense to change from one provider to other is high
for purchasers (for instance, because of authoritative
connections). At the point when providers are not many and
interest in their offered item is high, it fortifies the providers'
situation against UNIQLO.
Bargaining force of buyers
There are a few factors that expansion the dealing force of
purchasers: A more focused client base expands their haggling
power against UNIQLO. Purchaser force will likewise be high
in case there are very few while various dealers (business
associations) are too much. Low exchanging costs (monetary
and mental) additionally increment the purchasers' bartering
power. In the event of corporate clients, their capacity to do in
reverse mix fortify their situation on the lookout. In reverse mix
shows the purchasers' capacity to create the actual items as
opposed to buying them from UNIQLO.
Marketing Mix
The 7 P's of marketing mix incorporate product, price,
promotion, place, people, process, and physical evidence. Also,
these seven components involve the showcasing blend. This
blend deliberately puts a business on the lookout and can be
utilized with shifting degrees of power.
Uniqlo Product Strategy
Men and Women: Outerwear, Ultra-Light Bottom Collection,
Sweaters, Fleece, et cetera. Young men and Girls: Outerwear,
Sweatpants, Sweatshirts, T-Shirts, Tops, Graphic Tees, Pants,
Shorts, Uniqlo Sportswear, Innerwear, Loungewear,
Accessories, Fleece. Infants: Toddler assortment comprises of
Outerwear, T-Shirts, Tops, Pants, et cetera (Sarker & Al Saeed,
2020). Every one of the items have a special present day look
which are stylish and appeal to the adolescent populace. Uniqlo
have an assortment of presenting for various events and a
segment on their site committed to accumulations that one could
gift others on vacations. This additionally helps in new client
securing.
Price
The principle pricing strategy in its advertising blend is to
contend with its rivals and construct a solid presence. They deal
chosen items at special costs which are by and large $5-$10 less
contrasted with the retail costs. Uniqlo likewise give free
transportation on all orders (Sarker & Al Saeed, 2020).
Place
Uniqlo have an Inventory control group that screens the store
stocks consistently and keeps up with the ideal degree of stock.
Toward the finish of the period they have a gathering with the
Marketing division and do any stock closeout deal fundamental
with special valuing.
Promotion
Uniqlo have a client creation group which does investigation on
the client buy information which helps in checking the client
inclination and plan limited time content appropriately. The
organizations developing internet based deals furnish the group
with essential huge information on the client buys and
inclinations which they use in their investigation (Sarker & Al
Saeed, 2020).
People
Uniqlo has got product categorization and segmentation based
on diverse demographics. The fundamental objective market
Uniqlo is the male and female grown-ups that are going from
the age 18 to 40 and are searching for reasonable and top notch
clothing that accommodates their ways of life. It focuses on
individuals who are searching for popular garments which are
easygoing and laidback (Sarker & Al Saeed, 2020).
Process
The confinement procedure has a more grounded capacity to
adjust to the objective market, and it likewise has a quicker
market reaction (Sarker & Al Saeed, 2020). Simultaneously, the
restriction technique has its imperfections, for example,
generally high creation and showcasing costs, and over-freedom
of every auxiliary. Thus, the collaboration among the auxiliaries
is somewhat more awful.
Physical evidence
The company’s business model is reliant on that of the Gap. The
company is today boasting or more than 2000 stores in almost
more than 25 markets globally. Its introduction into the market
in the United States happened in 2006, and as of today, it has
opened 47 stores in the United States (Sarker & Al Saeed,
2020). The company’s distribution chains are focused in its
original county; in fact, 806 Uniqlo store locations are
established in Japan. Its distribution strategy is centered on the
timing of its products’ inceptions into the stores, with new
creations as functions not of quantity, but of demand.
References
Anna, S. (2020). Integration of UN sustainable development
goals into the value chain of Uniqlo Company.
Anwar, S. T. (2017). Zara vs. Uniqlo: Leadership strategies in
the competitive textile and apparel industry. Global Business
and Organizational Excellence, 36(5), 26-35.
Beser Ramada, C. (2021). Fast and circular fashion: a
comparison on the sustainability of two fashion retail business
models.
Marshall, G., & Johnston, M (2019). Marketing management
(3rd ed.). McGraw-Hill Higher Education.
Sarker, T. R., & Al Saeed, L. S. L. A. (2020). Benchmarking
Marketing and Business Strategy of UNIQLO to Start-up a
Retail Shop in Bangladesh. Benchmarking, 12(2).
Tan, X., & He, Y. (2019). Research on Marketing Modes of
New Retail Based on 4C Principles: A Case Study of
UNIQLO. Advances in Economics, Business and Management
Research, 94, 944.
Usui, T., Kotabe, M., & Murray, J. Y. (2017). A dynamic
process of building global supply chain competence by new
ventures: The case of Uniqlo. Journal of International
Marketing, 25(3), 1-20.
1
Uniqlo Clothes
Name
Institution
Course
Professor
Date
Uniqlo Clothes
Uniqlo is a clothing apparel company, and it was initially
started in Yamaguchi, Japan, in 1949 as a textile-based
manufacturing company. Today, it has a global brand having
more than a thousand stores globally. The company is
specialized in clothes as its primary product. Through that, it
has redefined clothing, emphasizing quality and textiles, which
has been very firm since the company began.
Uniqlo is leveraging on affordable, primary designs because
such clothing products rhyme with almost everyone. Because of
their long-term collaboration with character licensors like
Disney, the company has found it very easy to maintain the
customers. The clothing products are of high quality and basic
casual wear-with performance enhanced features are tailored at
comparatively very low prices (Sarker et al., 2020). The
clothing is extremely qualified and in sync with the current
market demands and preferences, fashions, but not trends. The
company is thus offering made for all clothing products with
universal features which can be worn wherever and whenever.
Uniqlo segment is the native market in Japan; however, the
company has greatly expanded to incorporate nineteen other
markets globally. Under the auspices of geographic
segmentation, Uniqlo is much focused on the urban and
suburban population. At the same time, in terms of demographic
segmentation, the company targets all age groups and equally
all genders (Anwar, 2017). Also, in terms of the income
distribution, Uniqlo is concerned with low and middle-income
earners.
Therefore, Uniqlo's target market is both men and women
ranging between ages 18 and 34 years. Teenagers are also
included, plus the individuals approaching adulthood. The
clothing line of this company is quite trendy despite the
company not been focused on trends but rather on casual and
laidback clothing products. Uniqlo also caters to apparel for
kids and babies.
Consequently, regarding positioning strategy, the company has
always positioned itself as a modern Japanese enterprise aiming
to influence to consider casual wear. Its brand strategy has
embraced a "made for all" positioning strategy. It is selling
and/or dealing in apparel that is extremely critical, simple, and
facilitates customers to discover their individualistic styles.
Fundamentally, when the potential customers need good quality,
trendy and affordable clothes, the store should be Uniqlo. In
their mission statement, the company has connoted the
unpacking of power clothing, which focuses on products, supply
chain, workers, stores, and communities, to change the world
through business.
Considering its brand, the company has laid massive emphasis
on the outstanding functional performance of the brand,
focusing on creativity/innovation and the design of the apparel.
The company differentiates itself from its rivals through its
signature innovations, for instance, Heatech, AIRism, and
Lifewear.
SWOT Analysis
As already indicated, the major product of the company is men's
wear, women's clothing, and apparel. Also, the company is
dealing with casual/professional wear like t-shirts, jeans,
sportswear, polo shirts, outwear, et cetera. By 2020, the annual
operating profit amounted to 1.21 billion dollars, and the yearly
sales of the company's clothing were 17.2 billion dollars. The
company was employing more than thirty thousand workers to
help in the management of its global operations. With the very
stiff competition in this industry arising from larger companies
like Gucci, Amazon, Tesco, Walmart, et cetera, it is critical to
evaluate both the internal and external variables affecting the
world’s largest apparel company to understand how it has been
keeping up strategically. The SWOT will canvas the strengths,
weaknesses, opportunities, and even threats the company has
had over the time that has made it survive thus far.
Strengths
Uniqlo has an effective operational approach of outsourcing the
manufacturing work from other parts of the world like in China
and other Asian countries. This makes it enjoy the advantage of
getting cheap labor and attaining cost efficiency (Anna, 2020).
Basing on international statistics, Uniqlo clothes have
established more than 2252 stores in more than 17 countries
globally (Anna, 2020). The areas of its strong presence are
United States, South Korea, Singapore, India, China, Canada,
Germany, France, Australia, plus many more countries with
strong markets.
Also, Uniqlo is leveraging smart operational approaches to cut
redundant supply chains, thus reducing operating costs (Anna,
2020). This attainment of cost efficiency is making the company
offer discounted prices to its customers.
Weakness
The largest one here is the multiple issues with the supply
chain. Operating in more than 17 countries globally, the further
expansion in this larger global market is extremely strenuous
for the brand (Anna, 2020). Other brands have quickly adapted
to the creative destruction by transforming their businesses in e -
commerce; however, Uniqlo has been relatively slow.
Despite being an article of multinational clothing, Uniqlo has
registered extremely low brand recall value and making it have
a common market share in markets like the U.S.
Opportunities
The ever-expanding global market is providing Uniqlo to
advance its operations all over the work to attain a plethora of
available opportunities even in the emerging markets (Anna,
2020).
Due to the heavy presence of media and technological
advancement, platforms like Facebook, Google, YouTube,
Instagram, Twitter is offering Uniqlo diverse market segments
and customers who are alive and active (Anna, 2020). This
means the business must strategically expand or transform to
tap into the marketing opportunities provided by these
platforms.
Threats
The ongoing regulations being introduced periodically by
different governments for the clothing brands like Uniqlo are
quite wasteful. It is so because the regulations have inspired
challenges for the company to conduct its businesses of
expansion and marketing effectively.
Completion and brand switching as also the other threats (Anna,
2020). For instance, Zera, Gucci, Walmart, Tesco are all
competing for the same market. Thus, the presence of such huge
companies in the global market has limited Uniqlo's growth and
expansion rate.
PESTEL Analysis
This is one of the strategic tools the company is leveraging to
understand its macro-environment, particularly the political,
economic, sociocultural, technological, environmental, and
legal factors impacting this environment.
Political factors
As a company from the Asian continent- Japan, it can easily
leverage its very political factors. For instance, Vietnam-Japan
economic collaboration agreement, which came to being in
2008, has exacerbated opportunities for doing business for the
two countries and enabled them to access the capital, material
goods, technology, and even market for their products.
Economic Factors
Various bodies that constitute this external environment are
characterized by a particular environment that impacts the
economic environment. For instance, it was anticipated that the
six members of ASEAN would exacerbate faster economic
growth. Vietnam being a member of WTO and a TTP has
enabled the encroachment of more competition. Also, private
consumption has been on the rise, which has encouraged
consumer confidence and low inflation.
Social factors
The attitude and relationships formed between the company and
various cultures are very critical. For instance, in Asia, it is
paramount to respect the authorities, while it might not
necessarily be so (Usui et al., 2017). Therefore, Uniqlo must
promptly understand its attitude towards any government before
attempting its marketing campaigns. Also, they must clearly
understand the societal norms and hierarchy that constantly
influence consumption.
Technological Factors
Most clothing and apparel companies are migrating from the
conventional ways of doing business into the digital space to
contend with creative destruction. Uniqlo must now embrace
agile methodologies to establishing e-commerce and such like
infrastructural development. This is key for its business model.
Environmental Factors
Environmental regulation has proved to lay major impacts on
cost advantage dynamics in the industry. The focus and
investment in renewable energy and technologies can be
embraced by Uniqlo to make such a part of its competitive
strategy.
Legal Factors
Intellectual Property Rights Protection– Uniqlo ought to survey
the degree of security that protected innovation rights get under
the comprehensive set of laws of the country (Tan & He, 2019).
Customer Protection Laws – Uniqlo has to realize what the
purchaser laws are, what the pace of requirement is, what is the
disposition of specialists towards buyer insurance laws, and
what is the job of extremist gatherings in the authorization of
shopper assurance laws.
References
Anna, S. (2020). Integration of UN sustainable development
goals into the value chain of Uniqlo Company.
Anwar, S. T. (2017). Zara vs. Uniqlo: Leadership strategies in
the competitive textile and apparel industry. Global Business
and Organizational Excellence, 36(5), 26-35.
Beser Ramada, C. (2021). Fast and circular fashion: a
comparison on the sustainability of two fashion retail business
models.
Sarker, T. R., & Al Saeed, L. S. L. A. (2020). Benchmarking
Marketing and Business Strategy of UNIQLO to Start-up a
Retail Shop in Bangladesh. Benchmarking, 12(2).
Tan, X., & He, Y. (2019). Research on Marketing Modes of
New Retail Based on 4C Principles: A Case Study of
UNIQLO. Advances in Economics, Business and Management
Research, 94, 944.
Usui, T., Kotabe, M., & Murray, J. Y. (2017). A dynamic
process of building global supply chain competence by new
ventures: The case of Uniqlo. Journal of International
Marketing, 25(3), 1-20.
12Uniqlo ClothesNameInstitutionCourseProfessorDa

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12Uniqlo ClothesNameInstitutionCourseProfessorDa

  • 1. 12 Uniqlo Clothes Name Institution Course Professor Date Uniqlo Clothes Competitive Analysis Uniqlo is a brand facing competition all over the world; however, the major competitors include but not limited to H&M, American Eagle Outfitters, Zara, Gap Inc., H&M (Hennes & Mauritz)and MUJI. In the global market where fast fashion has taken over the market, the consumer is indeed presented with a diversity of options (Marshall & Johnston, 2019). Despite the appearance and the notion that the big brands wield all the authority to persuade the customers, ultimately the power lie in the hands of every individual company. Uniqlo store was tidy and well assorted-nothing seemed misplaced and this gave it a competitive edge because customers found it easier to locate their preferred sizes and
  • 2. styles. Also, the company’s technology and innovation has been futuristic, their product information is established right into the modern and pleasing displays, the maps of the stores are kept and set up at strategic points making it very easier for the customers to navigate and shop. Men and women sections compartmentalized and the sale section is designed centrally making it very easier for the customers to find bargains (Marshall & Johnston, 2019). The change rooms are pretty and smaller considering the huge size of the store. Nevertheless H&M is also not leaving anything to chance. The company has been giving Uniqlo a run on its investment through a very comprehensive and strategic moves in the industry. The company is fairly innovative and organized in its stores, boasting of the similar setup as Uniqlo- the store directories and strategic points, their digitization and the rating station. Unlike the smaller changing rooms at Uniqlo, H&M is vast in its changing rooms with its point of sales scattered and much harder to differentiate. Consequently, the assortment offering ready in-store is where there is a real distinction. For instance, Uniqlo is emphasizing the provision of affordable basics plus innovative fabri c technology, this means that, customers will not be entangled with numerous fast-fashion pieces or runway knock offs (Marshall & Johnston, 2019). But despite being on the limelight with a large assortment, the breadth is very small because many styles are replicated in various colors or a slightly altered signature silhouette. Regarding the quality, Uniqlo always discloses country of origin and the information pertaining to the content of the fabric on their price tag (Marshall & Johnston, 2019). They are very transparent in keeping customers in the know about what they are buying and prices are relatively affordable and fair. For instance, a cashmere sweater would be ranging from $40 to $100 with a great fit (Marshall & Johnston, 2019). H&M is boasting of their wider assortment between the two and it is extremely focusing on trends with a deep breath of
  • 3. fashionable products. Somewhat the quality is feeling cheaper because of the nature of the fabric in their stores which is somewhat 85 percent rayon and polyester (Usui et al., 2017). They do not always disclose the content of their fabric, however, viewable cloth tags states the country of origin, but one must search beyond the tags into the garment to find the contents of the fabric. Their pricing is relatively fair, however some trendier items could be overcharged, and the fit is sometimes poor with various discrepancies between styles. Overall, Uniqlo is quite comprehensive in the market and maybe be slightly above H&M in terms of quality products, store assortments, and convenience to the customers (Anwar, 2017). However, in terms of the market share, H&M is very older in the market and it has expanded greatly over the last few years. It is having over 4,300 stores open globally, as of April 2021 far more than Uniqlo (Tan & He, 2019). Its infiltration into the United States market has also been progressive and prolific than those of Uniqlo. Similarly, H&M has had to close select stores as more and more customers take their purchase online, representing the broader transition in the retail world from physical brick and mortar to a more agile and vast e-commerce- based model. Another competitor of Uniqlo in this sense is Zara. Zara is actually the youngest of the trio, having been conceived in Spain in 1975, the company is under the purviews of the textile giant lndetex and it is actually its flagship brand (Tan & He, 2019). The ownership of the company’s supply chain steps allow it to exude rapid product turnover. Zara has got the capacity to design a product and have it running in the stores a month later. It terms of its market share, within 96 countries, Zara has got 2, 200 stores and currently it is having 99 stores open in the United States, and most of its location globally is concentrated in Spain, where there are 464 stores including its headquarters. Its most domineering strategy is provision of a higher number of available products than the competitors like Uniqlo (Beser
  • 4. Ramada, 2021). While brands like Uniqlo are clothing retailers manufacturing and offering to the public 2000 to 4000 differentiated articles of clothing, Zara’s production has been markedly greater with over 10000 pieces produced annually. This unique feature within its competitive strategy has allowed it appeal to a wider base of customers all over its marketplace with unique tastes. Competitive Analysis on Industry and Market Uniqlo is clothing brand in the Fast Retail industry. The Company was purchased by Fast Retailing Co. in November of 2005, but its original founding was in 1949 in Japan. The company’s business model is reliant on that of the Gap. The company is today boasting or more than 2000 stores in almost more than 25 markets globally. Its introduction into the market in the United States happened in 2006, and as of today, it has opened 47 stores in the United States. The company’s distribution chains are focused in its original county; in fact, 806 Uniqlo store locations are established in Japan. Its distribution strategy is centered on the timing of its products’ inceptions into the stores, with new creations as functions not of quantity, but of demand (Tan & He, 2019). Within the industry, the company has mastered the heart of responding flexibly to needs of the changing trends in the Japanese fashion, and it is particularly tailoring its designs to copy the minimalistic style that is so famous in Japan. This is yielding results because it impacts on the appeal that Uniqlo may have for its western distribution pathways, and thus, the determining reason behind its low number of the stores situated in markets like the United States. Within the industry, by developing and purchasing brands with uniqueness like H&M is hopefully appealing to the wider market of the customers. Each H&M brand is tagged with its individual price range and visual concept; for finance, Collection of Style is actually tailored at a higher average price than H&M’s principal basket products that are mainly emphasizing the European markets (Tan & He, 2019). Similarly,
  • 5. some brands sell clothing pieces that are actually half the price of those sold by Collection of Style and tailor some diverse designs that are relatively youthful. Company’s like Zara are dividing the product sold within its stores into some lower garments and upper garments, which an obvious upper price points on the latter. They hope to be perceived as high-end retailer with affordable prices. As such, they open up their stores strategically in key traffic points globally places with high real estate costs, like the Fifth Avenue location in New York City (Beser Ramada, 2021). A company like that is not stressing in making advertisement as part of its branding strategy, and that is where Zara is differing from Uniqlo, because it funnels the dollars that would have otherwise been consumed by product/brand promotion into new store openings. The implied strategy like Gap that a company like Uniqlo is applying is actually helping it to position its brand as private - label apparel (Beser Ramada, 2021). It has created its own clothing, and Uniqlo is only capable of selling such within the confines of its brick-and-mortar stores and on its website. The company also applies sporting events to apparel to the general population so as to deepen its market base. The designs being tailored by Uniqlo are quite simplistic and practical than those sold by other companies in the industry such as Zara and H&M. And with such, the appealing effect is so great in the market to the different audiences. Porter five forces and competitive profile matrix Opportunities Threats Strengths (SO) Taking advantage of Uniqlo Supply's strengths to strengthen and increase the market position. (ST) Uniqlo Supply has two options for market penetration: building
  • 6. on current strengths or analyzing the trend and developing systems for a two-pronged approach. Uniqlo Supply has two options for market penetration: building on current strengths or analyzing the trend and developing systems for a two-pronged approach. Weaknesses (WO) Developing tactics based on a consumer-centric approach to product development and marketing. (WT) Uniqlo Supply should simply exit these markets and concentrate on the strength and threats box, or the weakness and opportunities box. Porter five forces Application of the model in relation to the competitive analysis matrix above is very helpful for the determination of the company’s attractiveness within the industry and understanding how its competitive positioning in the market is robust. The analysis is also applied for strategic decision making that can facilitate the performance of Uniqlo and guarantee its long-term survival. Threats of New entrants There is substantial financial resource needed for the entry into the industry. This forces is losing its strength is products are highly differentiated and customers place their money into acquiring unique experience. Uniqlo is bound to have low threats of new entrants if the current regulatory framework imposes some problems to the new firms that are interested to enter the market. As such, the new entrants will be needed to fulfil such strict, bureaucratic regulatory instances, and such might discourage others from entering, but the vice versa is true. Threats to substitutes It is established that a cheaper substitute product or service is available from many industries, and the psychology of
  • 7. switching costs of moving from one industry to make such substitute products is quite low. If the substitutes provides the similar and even superior quality and performance that Uniqlo then that is a threat like it is facing from Zara and H&M (Beser Ramada, 2021). Competition The level of competition is only diminished if there are limited number of players in the market, the industry is exuding faster growth, and there is a clear market leaders. In the case of Uniqlo, is quite difficult to avoid competitive now because more firms are innovatively capturing the market and with great saturating of products and brand leaderships. Bargaining powers of suppliers The bargaining force of suppliers will be high for UNIQLO if: Suppliers have gathered into a particular locale, and their focus is higher than their purchasers. This power is especially solid when the expense to change from one provider to other is high for purchasers (for instance, because of authoritative connections). At the point when providers are not many and interest in their offered item is high, it fortifies the providers' situation against UNIQLO. Bargaining force of buyers There are a few factors that expansion the dealing force of purchasers: A more focused client base expands their haggling power against UNIQLO. Purchaser force will likewise be high in case there are very few while various dealers (business associations) are too much. Low exchanging costs (monetary and mental) additionally increment the purchasers' bartering power. In the event of corporate clients, their capacity to do in reverse mix fortify their situation on the lookout. In reverse mix shows the purchasers' capacity to create the actual items as opposed to buying them from UNIQLO. Marketing Mix The 7 P's of marketing mix incorporate product, price, promotion, place, people, process, and physical evidence. Also, these seven components involve the showcasing blend. This
  • 8. blend deliberately puts a business on the lookout and can be utilized with shifting degrees of power. Uniqlo Product Strategy Men and Women: Outerwear, Ultra-Light Bottom Collection, Sweaters, Fleece, et cetera. Young men and Girls: Outerwear, Sweatpants, Sweatshirts, T-Shirts, Tops, Graphic Tees, Pants, Shorts, Uniqlo Sportswear, Innerwear, Loungewear, Accessories, Fleece. Infants: Toddler assortment comprises of Outerwear, T-Shirts, Tops, Pants, et cetera (Sarker & Al Saeed, 2020). Every one of the items have a special present day look which are stylish and appeal to the adolescent populace. Uniqlo have an assortment of presenting for various events and a segment on their site committed to accumulations that one could gift others on vacations. This additionally helps in new client securing. Price The principle pricing strategy in its advertising blend is to contend with its rivals and construct a solid presence. They deal chosen items at special costs which are by and large $5-$10 less contrasted with the retail costs. Uniqlo likewise give free transportation on all orders (Sarker & Al Saeed, 2020). Place Uniqlo have an Inventory control group that screens the store stocks consistently and keeps up with the ideal degree of stock. Toward the finish of the period they have a gathering with the Marketing division and do any stock closeout deal fundamental with special valuing. Promotion Uniqlo have a client creation group which does investigation on the client buy information which helps in checking the client inclination and plan limited time content appropriately. The organizations developing internet based deals furnish the group with essential huge information on the client buys and inclinations which they use in their investigation (Sarker & Al Saeed, 2020). People
  • 9. Uniqlo has got product categorization and segmentation based on diverse demographics. The fundamental objective market Uniqlo is the male and female grown-ups that are going from the age 18 to 40 and are searching for reasonable and top notch clothing that accommodates their ways of life. It focuses on individuals who are searching for popular garments which are easygoing and laidback (Sarker & Al Saeed, 2020). Process The confinement procedure has a more grounded capacity to adjust to the objective market, and it likewise has a quicker market reaction (Sarker & Al Saeed, 2020). Simultaneously, the restriction technique has its imperfections, for example, generally high creation and showcasing costs, and over-freedom of every auxiliary. Thus, the collaboration among the auxiliaries is somewhat more awful. Physical evidence The company’s business model is reliant on that of the Gap. The company is today boasting or more than 2000 stores in almost more than 25 markets globally. Its introduction into the market in the United States happened in 2006, and as of today, it has opened 47 stores in the United States (Sarker & Al Saeed, 2020). The company’s distribution chains are focused in its original county; in fact, 806 Uniqlo store locations are established in Japan. Its distribution strategy is centered on the timing of its products’ inceptions into the stores, with new creations as functions not of quantity, but of demand. References Anna, S. (2020). Integration of UN sustainable development
  • 10. goals into the value chain of Uniqlo Company. Anwar, S. T. (2017). Zara vs. Uniqlo: Leadership strategies in the competitive textile and apparel industry. Global Business and Organizational Excellence, 36(5), 26-35. Beser Ramada, C. (2021). Fast and circular fashion: a comparison on the sustainability of two fashion retail business models. Marshall, G., & Johnston, M (2019). Marketing management (3rd ed.). McGraw-Hill Higher Education. Sarker, T. R., & Al Saeed, L. S. L. A. (2020). Benchmarking Marketing and Business Strategy of UNIQLO to Start-up a Retail Shop in Bangladesh. Benchmarking, 12(2). Tan, X., & He, Y. (2019). Research on Marketing Modes of New Retail Based on 4C Principles: A Case Study of UNIQLO. Advances in Economics, Business and Management Research, 94, 944. Usui, T., Kotabe, M., & Murray, J. Y. (2017). A dynamic process of building global supply chain competence by new ventures: The case of Uniqlo. Journal of International Marketing, 25(3), 1-20. 1 Uniqlo Clothes Name Institution Course Professor Date
  • 11. Uniqlo Clothes Uniqlo is a clothing apparel company, and it was initially started in Yamaguchi, Japan, in 1949 as a textile-based manufacturing company. Today, it has a global brand having more than a thousand stores globally. The company is specialized in clothes as its primary product. Through that, it has redefined clothing, emphasizing quality and textiles, which has been very firm since the company began. Uniqlo is leveraging on affordable, primary designs because such clothing products rhyme with almost everyone. Because of their long-term collaboration with character licensors like Disney, the company has found it very easy to maintain the customers. The clothing products are of high quality and basic casual wear-with performance enhanced features are tailored at comparatively very low prices (Sarker et al., 2020). The clothing is extremely qualified and in sync with the current market demands and preferences, fashions, but not trends. The company is thus offering made for all clothing products with universal features which can be worn wherever and whenever. Uniqlo segment is the native market in Japan; however, the company has greatly expanded to incorporate nineteen other markets globally. Under the auspices of geographic segmentation, Uniqlo is much focused on the urban and suburban population. At the same time, in terms of demographic segmentation, the company targets all age groups and equally all genders (Anwar, 2017). Also, in terms of the income distribution, Uniqlo is concerned with low and middle-income earners. Therefore, Uniqlo's target market is both men and women ranging between ages 18 and 34 years. Teenagers are also
  • 12. included, plus the individuals approaching adulthood. The clothing line of this company is quite trendy despite the company not been focused on trends but rather on casual and laidback clothing products. Uniqlo also caters to apparel for kids and babies. Consequently, regarding positioning strategy, the company has always positioned itself as a modern Japanese enterprise aiming to influence to consider casual wear. Its brand strategy has embraced a "made for all" positioning strategy. It is selling and/or dealing in apparel that is extremely critical, simple, and facilitates customers to discover their individualistic styles. Fundamentally, when the potential customers need good quality, trendy and affordable clothes, the store should be Uniqlo. In their mission statement, the company has connoted the unpacking of power clothing, which focuses on products, supply chain, workers, stores, and communities, to change the world through business. Considering its brand, the company has laid massive emphasis on the outstanding functional performance of the brand, focusing on creativity/innovation and the design of the apparel. The company differentiates itself from its rivals through its signature innovations, for instance, Heatech, AIRism, and Lifewear. SWOT Analysis As already indicated, the major product of the company is men's wear, women's clothing, and apparel. Also, the company is dealing with casual/professional wear like t-shirts, jeans, sportswear, polo shirts, outwear, et cetera. By 2020, the annual operating profit amounted to 1.21 billion dollars, and the yearly sales of the company's clothing were 17.2 billion dollars. The company was employing more than thirty thousand workers to help in the management of its global operations. With the very stiff competition in this industry arising from larger companies like Gucci, Amazon, Tesco, Walmart, et cetera, it is critical to evaluate both the internal and external variables affecting the world’s largest apparel company to understand how it has been
  • 13. keeping up strategically. The SWOT will canvas the strengths, weaknesses, opportunities, and even threats the company has had over the time that has made it survive thus far. Strengths Uniqlo has an effective operational approach of outsourcing the manufacturing work from other parts of the world like in China and other Asian countries. This makes it enjoy the advantage of getting cheap labor and attaining cost efficiency (Anna, 2020). Basing on international statistics, Uniqlo clothes have established more than 2252 stores in more than 17 countries globally (Anna, 2020). The areas of its strong presence are United States, South Korea, Singapore, India, China, Canada, Germany, France, Australia, plus many more countries with strong markets. Also, Uniqlo is leveraging smart operational approaches to cut redundant supply chains, thus reducing operating costs (Anna, 2020). This attainment of cost efficiency is making the company offer discounted prices to its customers. Weakness The largest one here is the multiple issues with the supply chain. Operating in more than 17 countries globally, the further expansion in this larger global market is extremely strenuous for the brand (Anna, 2020). Other brands have quickly adapted to the creative destruction by transforming their businesses in e - commerce; however, Uniqlo has been relatively slow. Despite being an article of multinational clothing, Uniqlo has registered extremely low brand recall value and making it have a common market share in markets like the U.S. Opportunities The ever-expanding global market is providing Uniqlo to advance its operations all over the work to attain a plethora of available opportunities even in the emerging markets (Anna, 2020). Due to the heavy presence of media and technological advancement, platforms like Facebook, Google, YouTube, Instagram, Twitter is offering Uniqlo diverse market segments
  • 14. and customers who are alive and active (Anna, 2020). This means the business must strategically expand or transform to tap into the marketing opportunities provided by these platforms. Threats The ongoing regulations being introduced periodically by different governments for the clothing brands like Uniqlo are quite wasteful. It is so because the regulations have inspired challenges for the company to conduct its businesses of expansion and marketing effectively. Completion and brand switching as also the other threats (Anna, 2020). For instance, Zera, Gucci, Walmart, Tesco are all competing for the same market. Thus, the presence of such huge companies in the global market has limited Uniqlo's growth and expansion rate. PESTEL Analysis This is one of the strategic tools the company is leveraging to understand its macro-environment, particularly the political, economic, sociocultural, technological, environmental, and legal factors impacting this environment. Political factors As a company from the Asian continent- Japan, it can easily leverage its very political factors. For instance, Vietnam-Japan economic collaboration agreement, which came to being in 2008, has exacerbated opportunities for doing business for the two countries and enabled them to access the capital, material goods, technology, and even market for their products. Economic Factors Various bodies that constitute this external environment are characterized by a particular environment that impacts the economic environment. For instance, it was anticipated that the six members of ASEAN would exacerbate faster economic growth. Vietnam being a member of WTO and a TTP has enabled the encroachment of more competition. Also, private consumption has been on the rise, which has encouraged consumer confidence and low inflation.
  • 15. Social factors The attitude and relationships formed between the company and various cultures are very critical. For instance, in Asia, it is paramount to respect the authorities, while it might not necessarily be so (Usui et al., 2017). Therefore, Uniqlo must promptly understand its attitude towards any government before attempting its marketing campaigns. Also, they must clearly understand the societal norms and hierarchy that constantly influence consumption. Technological Factors Most clothing and apparel companies are migrating from the conventional ways of doing business into the digital space to contend with creative destruction. Uniqlo must now embrace agile methodologies to establishing e-commerce and such like infrastructural development. This is key for its business model. Environmental Factors Environmental regulation has proved to lay major impacts on cost advantage dynamics in the industry. The focus and investment in renewable energy and technologies can be embraced by Uniqlo to make such a part of its competitive strategy. Legal Factors Intellectual Property Rights Protection– Uniqlo ought to survey the degree of security that protected innovation rights get under the comprehensive set of laws of the country (Tan & He, 2019). Customer Protection Laws – Uniqlo has to realize what the purchaser laws are, what the pace of requirement is, what is the disposition of specialists towards buyer insurance laws, and what is the job of extremist gatherings in the authorization of shopper assurance laws.
  • 16. References Anna, S. (2020). Integration of UN sustainable development goals into the value chain of Uniqlo Company. Anwar, S. T. (2017). Zara vs. Uniqlo: Leadership strategies in the competitive textile and apparel industry. Global Business and Organizational Excellence, 36(5), 26-35. Beser Ramada, C. (2021). Fast and circular fashion: a comparison on the sustainability of two fashion retail business models. Sarker, T. R., & Al Saeed, L. S. L. A. (2020). Benchmarking Marketing and Business Strategy of UNIQLO to Start-up a Retail Shop in Bangladesh. Benchmarking, 12(2). Tan, X., & He, Y. (2019). Research on Marketing Modes of New Retail Based on 4C Principles: A Case Study of UNIQLO. Advances in Economics, Business and Management Research, 94, 944. Usui, T., Kotabe, M., & Murray, J. Y. (2017). A dynamic process of building global supply chain competence by new ventures: The case of Uniqlo. Journal of International Marketing, 25(3), 1-20.