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. 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
3. UNIQLO has established a SPA (Specialty store retailer of
Private label Apparel) business model encompassing all stages of
the business--from design and production to final sale. By
continuously refining this SPA model, UNIQLO successfully
differentiates itself from the competition by developing unique
products. They quickly make adjustments to production to reflect
the latest sales environment and minimize store-operation costs,
such as personnel costs and rent. This is how UNIQLO provide
such high-quality clothing at such reasonable prices.
4. 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.
5. • 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).
6. • Popularity of large format stores
Opportunities
• 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.
7. 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
8. • Good quality clothes
Attributes • Well designed Japanese fashion
• Variety of lines, style
Functional • Design for wide range of customers.
Benefits
• Differentiating oneself from the crowd
Emotional • Increase self- confidence
Benefits
• Everyday unique fashion to express yourself
Values
9.
10. UNIQLO is the unique clothing
experience among international
retailers because we are the only
one who provides vogue
Japanese fast fashion.