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Strategic analysis of Uniqlo competitors analysis

Research Proposal · October 2020

DOI: 10.13140/RG.2.2.30296.16649

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Retailing Management
Name Jakhongir Khajibaev Student ID 12204879
Week 8 (25-Oct) Topic of Lecture Retail customers
Title of Case: A Dynamic Process of Building Global Supply Chain Competence by New Ventures: The Case of Uniqlo
* Retrieved from
https://www.researchgate.net/publication/315063771_A_Dynamic_Process_of_Building_Global_S
upply_Chain_Competence_by_New_Ventures_The_Case_of_Uniqlo

Answer)
World’s top fashion retailers including Zara, H&M, The Gap and local, niche, SPA
(Specialty retailer of Private label Apparel) clothing brands such as Ralph Lauren, Nike,
Q1) American Eagle, Levi’s
Who are the main
competitors in the market? Basis of your answer)
Uniqlo has always managed to develop at an impressive rate, despite having to compete
against other bigger players like ZARA (Inditex), H&M, Gap and Forever21. In producing
quality and value-rich goods, Uniqlo stands strong in that they are affordable to the average
consumer at the same time and of high quality. (Figure 1) Japan, the home market of the
company, contributed 44% to its overall sales, with one in four Japanese reported owning
a Uniqlo down jacket. In the home market, after Uniqlo, GU, WEGO, SHIMAMURA,
HONEYS are the next biggest rivals gaining big market shares. 1
Uniqlo applies the shun and kino-bi principles. Shun means "timing, the best timing, but
it's also a trend at the same time," something changed and just in time, neither early nor
late. Kino-bi means function and beauty, united together: the clothing is presented in an
organized, rational manner, and that very organization and rationality creates an artistic
pattern and rhythm. 2

Answer)
Its unwavering commitment to innovation and its company culture, superlative physical
shopping experience, visionary leadership apart from most price-driven, value retailers

Q2) Basis of your answer)

What are the key Instead of following quick-fashion trends like its other rivals, the corporate approach that
differentiation points? has succeeded for Uniqlo so far is to "totally ignore fashion". The "Made for All" brand
ideology places its apparel in order to transcend age, gender, ethnicity and all other ways of
identifying individuals. (Figure 2) Unlike to its name “Uniqlo”, its clothes are simple,
essential yet universal, allowing consumers to blend them with their individualistic style. 3
The brand emphasizes on minimalism and it is one of the Uniqlo 's strongest aspects, and
this is also a point of distinction. Nowadays, consumers are looking for something that is
nice to wear and that is not fussy. Uniqlo focuses on helping individuals convey feelings
and claims that it is an art. 4
Long testing periods for new prototypes are included in their product development plans
and Uniqlo ensures that good partnerships with suppliers are established. As a
consequence, Uniqlo is able to manufacture goods that are guaranteed to sell to large
numbers of individuals. (Figure 3) 5
Answer)
With the slogan “Made for All”, Uniqlo targets the urban and suburban population mostly
aged between 18-40 years old and both genders, social class with low and middle income
Basis of your answer)
Q3)
Male and female adults between the ages of 18 and 40 are the main target market for Uniqlo
Who is the target customer
and what are their who are searching for inexpensive and high-quality apparel that suits their lifestyles.
characteristics? (Figure 4) It targets people who are looking for casual and laidback, fashionable clothing.
Uniqlo apparels are not only limited to higher income people. Good quality and
affordability are an indicator of good consumer value. Basically, if people are looking to
find, good quality, trendy and affordable clothes, the destination is Uniqlo. 6
 Answer)
Transformation to SPA model, aggressive overseas expansion, dominant strategy,
sophisticated supply chain management
Basis of your answer)
Q4) The business models of The Limited and GAP were studied by Fast Retailing’s founder
How did Uniqlo (Fast Tadashi Yanai during the 1990s. He came to realize that the SPA (Private Label Apparel
Retailing) enter the world’s Specialty Retailer) business model should be incorporated in the business and that he
largest top 3 fashion should abandon traditional wholesaler merchandising operations and focus on
retailers list by revenue in manufacturers. 7
just matter of 20 years? Further overseas expansion was seen in 2005, with stores opening in the U.S. (New York
City), Hong Kong (Tsim Sha Tsui) and South Korea (Seoul). One of the key tactics of the
organization was a dominant strategy. The idea of having a geographical advantage is
based on it. Fast Retailing, for example, had more than 2000 stores in Japan in 2009,
covering the vast majority of the Asian geography. The decision to integrate SPA into the
strategic nucleus eventually made get involved both in developing the logistical system as
well as in the establishment of sophisticated supply chain management. 8

Appendix A

Figure 1 – Pricing range of Uniqlo Figure 2 – Assortment mix in percentages

Figure 3 – Average number of available sizes Figure 4 – Average number of colors

Reference
1) 5 Popular Japanese Clothing Brands (Jun 06,2020). Retrieved from https://jw-webmagazine.com/5-clothing-stores-in-
japan-to-shop-cheap-look-rich-9f878e06c49a/

2) Uniqlo: From Tokyo to New York to Global brand (Apr 26, 2007). Retrieved from
https://www.japansociety.org/uniqlo_from_tokyo_to_new_york_to_global_brand

3) Uniqlo: The Strategy Behind The Global Japanese Fast Fashion Retail Brand (Oct 2019). Retrieved from
https://martinroll.com/resources/articles/strategy/uniqlo-the-strategy-behind-the-global-japanese-fast-fashion-retail-
brand/

4) Marketing Strategy of Uniqlo – Uniqlo Marketing Strategy (May 29, 2019). Retrieved from
https://www.marketing91.com/marketing-strategy-of-uniqlo/

5) 6 Reasons Why Uniqlo Is Winning (Oct 6, 2014). Retrieved from https://www.prophet.com/2014/10/6-reasons-why-

 uniqlo-is-winning/

6) Uniqlo Strategy – The Differences with Competitors H&M and Zara (Oct 22,2019). Retrieved from
https://retviews.com/blog/focus/uniqlo-competitors/

7) Uniqlo Co., Ltd. – section “Private-label strategy”. Retrieved from https://en.wikipedia.org/wiki/Uniqlo

8) Takeo Iida (2006). Strategy of Fast Retailing －Exploring the Organizational Growth and Success. Retrieved from
https://core.ac.uk/download/pdf/267849438.pdf

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