This proposal conducted with @TienKhai @TamLai @PhuLuc @TranPhuc.

2. Uniqlo: Conquering Global Market to Become a Global Brand
Situation
Complication
Question
Solution
● Uniqlo - a Japanese apparel brand - have succeeded in making its brand present in Asian countries
with growing sales and expansion
● The Western Uniqlo presence is still behind its competitors and company’s goal
● Loss of first-mover advantage in Western market
● Unmatched products to consumers’ taste and preference and relatively low brand awareness in
Western markets
How can Uniqlo match itself to become local and closer to Western consumers?
● Brand awareness strategy to foster
sale and communicate brand’s
identity to customers;
● Channel strategy goes along to
promote Brand Awareness
● Adjust inbound logistics to adapt to
the new brand awareness strategy;
● Develop an outbound logistics
system to leverage e-commerce.

3. US & EUROPE - THE INCOMPLETELY EXPLOITED MARKETS
Overview Brand awareness strategy Supply chain management

4. Why Uniqlo can not stand out in US market?
“The brand awareness is still very low, so that's where our issues lie,”
Uniqlo US CEO - Hiroshi Taki
Loss of first-mover advantages
&
Unable to communicate good qualities
Low social media presence
Zara entered US
H&M entered US
Uniqlo entered US
1989
2000
2005
1.2 mil
23 mil
2.3 mil
39.3 mil
Untapped rural area
With over 50 store opened in North
America centered in main
metropolitans,
Uniqlo may miss out potential rural
consumers
Zara’s followers
Uniqlo’s
followers
Overview Brand awareness strategy Supply chain management

5. A more “American” approach: Uniqlo’s special items tailored for US market & Rural consumer exploitation
Special products fit American customers Tapping into potential rural customers:
American customers’
tastes and preferences
Uniqlo’s brand identity
Uniqlo’s signature items exclusive
for US market
A thorough marketing campaign
Bring Uniqlo closer to American consumers
Creating chances to meet rural consumers
Pop-up store in rural areas to initiate demand
E-commerce strategy to facilitate rural
customers’ access to Uniqlo’s products
Acquire more customers in rural
areas and increase brand awareness
Overview Brand awareness strategy Supply chain management

6. American Items R&D:
✔ Uniqlo data (online and offline customers)
✔ Monitor social media data
✔ Identify key segment with data
✔ Partner with local fashion designers
✔ Target segment
✔ Taste and preference
American tailored
designs
✔ Store display
✔ E-commerce display
✔ Production planning
✔ Takumi team
✔ Data
✔ Consumers purchasing pattern
✔ Consumer neuroscience analysis
Harness data for insight
researching
Generate matched
insights
Propose
designs
Market
launch
Overview Brand awareness strategy Supply chain management

7. five human senses can only be stimulated in store!
HYBRID BUSINESS BETWEEN PHYSICAL & DIGITAL EXPERIENCE
Make-shift Stores (Cross-border) Ecommerce
New Market or Rural/Suburban Market US, EU
• Accustomized Store Display from
Minimalism common in Japan to US/EU
tastes (one-of-a-kind store display)
• Technology in Stores (QR Code, electric
shopping carts, In-Store Neuroscience,
Virtual Rail, Interactive Dressing Room...)
• Raise awareness of Uniqlo
Presence in chosen areas
• No need for Store Upkeep
costs & low Renting Cost
• Test new markets without heavily
investing in the traditionally needed
offline sales/marketing channels
• Leverage Partner’s global logistics
efficiency
• Supply Chain from warehouse to direct
consumers
• Leverage Low Cost Advantage
“Rural customers would really like Uniqlo, if only they
had the chance to meet. “
Official Uniqlo Store
Overview Brand awareness strategy Supply chain management

8. Customers
Offline Stores
Ecommerce
Uniqlo
Uniqlo
Customer
s
Ecommerce Rural/Suburban Market US,
EU
Customer
s
Cross-Border
Ecommerce
New Market
Make-shift
Stores
Customer
s
New Market or Rural/Suburban Market US,
EU
Official Store Customer
s
New Market or Rural/Suburban Market US,
EU

9. UNIQLO SEES WAYS FOR RAISING BRANDING VIA [FUNCTIONALITY + SUSTAINABILITY]
SUSTAINABILITY MATERIAL INNOVATION
• Bio-based material
• Bio-fabricated leather,
biodegradable textiles
• Increased content of
secondhand apparel in
production input
• HeatTech, AIRism,
Lifewear...
• Closed-loop recycling
• Upcycling: From Rags to Riches
• Collect, sort and transform thousands of
irreparable old clothes into desirable items
while turning a profit.
+
Overview Brand awareness strategy Supply chain management

10. Implementation
Key metrics Projection
Exclusive items sold 7% revenue
Pop-up stores 100 stores
E-commerce revenue 30% revenue (10%
2020 2021 2022
Exclusive items
Marketing campaign
Pop-up stores in rural
Social media marketing
and management
E-commerce policy for
rural
Overview Brand awareness strategy Supply chain management

11. Implementation Plan
2020 2021 2022 2023 2024
Main actiivities Q3 Q4
[FUNCTIO
NALITY +
SUSTAINA
BILITY]
Closed-loop recycling
Upcycling: From Rags to Riches
MATERIAL INNOVATION
HYBRID
BUSINE
SS
BETWEE
N
PHYSIC
AL &
DIGITAL
EXPERIE
NCE
Make-shift Stores
Choosing strategic market to launch make-shift stores
Design concept of make-shift stores
Official launch make-shift launch
Cross-border Ecommerce
Form Partnership with AliExpress
Launch Cross-border Ecommerce Globally
Official Uniqlo Store
Test new market demand
Choosing strategic market to launch Uniqlo stores
Planning, Forecasting and Preparing Supply Chain for new stores
Official launch
Overview Brand awareness strategy Supply chain management

12. Main activities Cost projection (2020.$)
[FUNCTIONALITY +
SUSTAINABILITY]
Closed-loop recycling 1.000.000
Upcycling: From Rags to Riches 10.000.000
Material Innovation 8.000.000
HYBRID BUSINESS
BETWEEN PHYSICAL &
DIGITAL EXPERIENCE
Make-shift Stores 800.000
Cross-border Ecommerce 400.000
Official Uniqlo Store 1.000.000
Total
Cost Projection
Overview Brand awareness strategy Supply chain management

13. Major costs Projection (US $)
Exclusive items production 9.500.000
R&D 3.500.000
Production cost 6.000.000
Marketing digital 3.500.000
Digital 2.000.000
Offline and human expense 1.500.000
Rural approach campaign 3.500.000
Pop-up stores 500.000
E-commerce promotion 3.000.000
RISKS MITIGATION PLANS LEVEL
Low response from rural
areas
• More attractive pricing strategy/ Ecommerce promotion
• Optimization to deliver products faster
• Sponsor popular events, festivals,… to increase presence
MODERATE
Overview Brand awareness strategy Supply chain management

14. RISK MITIGATION
THREAT
LEVEL
Uniqlo face regulation barriers to launch
make-shift store in new markets
• Modify the format (fair, trade show, 1-weak store,....) of Make-shift stores to make
it possible according to the regualtions (land use, construction license, location
renting,...)
LOW
Uniqlo Make-shift stores prove little
efficiency in raising brand awareness
and drive sales due to low store
• Increase marketing to raising awareness of Make-shift store presence in a short
time
• Shorten Make-shift store opening to raise urgency and push buyers to come
• Push up E-commerce along to drive buyers to Uniqlo collection
HIGH
Hardships for purchasers resulting from
Cross-border Ecommerce to new
market (tax, long leadtime,...)
• Aggregating orders in terms of weeks, semi-months (via promotion, marketing) and
fulfil orders to give buyers satisfaction in the face of global barriers
• Contracting firmly with AliExpress to fulfil global orders promptly
HIGH
Opening new stores in new markets
render Uniqlo Global Supply Chain less
efficiently
• Redesign Uniqlo Supply Chain to fix: open new warehouse, allocate inventory from
nearby/nationby warehouse to the new stores, upgrade distribution center
MEDIUM
Risk
Assessment
Overview Brand awareness strategy Supply chain management

15. ADJUST INBOUND LOGISTICS TO REDUCE LEAD TIME TO ADAPT TO THE NEW BRANDING STRATEGY
Production & logistics for US market
Why Latin America (esp Mexico)? Expected results
Before
After
Partner factories
in China & SEA
Japan’s large
warehouse
Local
warehouses
Stores
Partner factories in Latin
America (esp Mexico)
Local US warehouses Stores
● Low cost & large supply of labor (Mexico is top option)
● Proximity to the US (Mexico is top option)
● Developing infrastructure
● Logistics cost optimization in US market (-30%)
● Lead time optimization in US market (-50%)
○ Better customer experience
○ E-commerce leveraging
Overview Brand awareness strategy Supply chain management

16. DEVELOP AN OUTBOUND LOGISTICS SYSTEM TO LEVERAGE E-COMMERCE
● Near high schools and university campus
● The size of DC in each state is determined by the
forecasted customers volume
Developing and Managing Strategic
partnership (IT, Takumi team, Kaizen
philosophy, quality control) is one of the
Uniqlo’s competencies
Keep the low cost to
maintain the price advantage
Focus on E-commerce
Reduce delivery time to compete with
other online fashion retailers
Open new distribution centers in US and Europe
(in partnership with other companies – 3PL)
Implement new technologies to supply chain
management
● Integrate AR technology to help customer try on
before making decision → reduce the product
return rate
● Cloud Computing (SaaS System) → low initial cost,
easy to adjust to the performance
● Distribute the inventory among DCs basing on
real-time demand
Expected results: E-commerce will constitute 40% (currently 25% in NA) of total sales in NA & EU by 2025
Overview Brand awareness strategy Supply chain management

17. 2021 2022 2023
Open DCs in large states X
Open smaller ones in some rural areas X
New partnered factories in Mexico X
Production partnership sourcing & negotiation X
Risk Level Mitigation
Redundant logistics infrastructure Medium Forecast the demand and optimize the marketing strategy
Ineffective synergy with 3PL partners High Utilize the Takumi Team, closely supervise the partnership
Political instability in Latin America Medium Production outsourcing only, no stake investment in joint ventures
IMPLEMENTATION PLAN
Overview Brand awareness strategy Supply chain management