Subject: Retailing and Omnichannel

1. MSc in Strategic Marketing 2019/20
Module title: CRM & ROM
INDIVIDUAL REPORT
Uniqlo UK – Customer experience and web-atmospheric
TRAN HOANG LINH
S310955

2. 1. Executive summary
The development of Internet has significant impact on the way customers purchase products,
especially in fashion industry. Nowadays, rather than visiting brick-and-mortar stores to check
and buy products, customers can stay at home and browse products from different brands on
the Internet for the most suitable one. Therefore, purchasing experience is important and all
brands are trying to provide best purchasing experiences to their customers. As of Mintel (2019),
86% of consumers prefer brands which provide pleasant experience. On this circumstance,
Uniqlo – one of the biggest apparel manufacturers globally – is no exception. They optimize the
experience on both online and offline channels to create most satisfied experiences for their
customers and compete with other brands.
To determine the quality of Uniqlo’s channels, this article will test their service blueprint to see
all touchpoints they have with customers and survey of customer satisfaction on each
touchpoint. Secondly, the web atmospheric – one of the most important channels in not only
selling products but also in building brand and loyalty of customers – will be analysed. Finally,
some suggestions will be given for Uniqlo to enhance their omnichannel model.
2. Background information
Uniqlo is a global manufacturer in clothing apparel which was founded in 1949 in Japan. Until
2019, Uniqlo has had more than 1000 stores all over the world and become one of the biggest
apparel brands in the world (Uniqlo, 2019). They focus on casual clothes for all people. Uniqlo is
owned by Fast Retailing Co., Ltd – a public retail holding company. (Fast Retailing, 2019). As the
report of Statista (2017), Uniqlo, accounting for 0.7% market share, is the 5th largest share-owned
brand in the world, after Nike, Adidas, H&M, Zara. Among those brands, main competitors of

3. Uniqlo are H&M and Zara. They are also 3rd and the 4th largest companies in this industry, which
account for 1.4% and 1% market shares respectively.
Figure 1: Brand share in apparel industry 2017 (source: Statista)
In Fast Retailing (2019), Uniqlo established a business model called SPA (Specially store retailer
of Private label Apparel) which helps them to manage all steps of business, from designing,
manufacturing to marketing and selling products. Thanks to this strategy, Uniqlo remarkably
differentiates themselves from other competitors by unique products. The diagram below shows
how this model works:

4. Sources: Fast Retailing (2019)
Adapted from Tracey and Wiersema (1995) about the model of choice, Uniqlo’s “product leader”
score is very high since they have a comprehensive process to manage their manufacturing and
provide high quality products; Uniqlo’s “operational system” is good, but product prices are quite
high compared to its competitors such as H&M or Zara. Therefore, its “operational excellence”
factor is not highly evaluated. Finally, Uniqlo is a popular brand. They do not provide exclusive
products or services to customers as luxury brands. However, Uniqlo allows their customers to
personalize products by co-creation activities. Therefore, “customer intimacy” is medium.
Generally, we can draw the strategy of Uniqlo as the diagram below:

5. Uniqlo sells products in both offline & online channels. Same as other brands, online channel is
increasingly important to Uniqlo. As the financial report of Fast Retailing (2019), the online sales
in China and United States took up for around 15% and 20% of total sales quantity respectively.
3. Service Blueprint
According to Lemon and Verhoef (2016), the customer experience can be divided into 3 phases:
pre-purchase, purchase and post-purchase.
3.1 Pre-purchase
This stage includes all interaction between customers and the brand before trading begins. We
can divide this stage into 2 different steps: awareness and research (Lemon and Verhoef, 2016)
During the awareness phase, customers are aware of information passively from brands without
purchasing aim. For example, people see some brand’s billboards on streets, or find some
promotion programs while browsing Internet. Uniqlo tries to interact with customers through
social media, outdoor billboards, newspapers, advertisements and physical stores. Below are
some evidences of communication channels from Uniqlo:

6. In the next phase, customers start to research and examine products to make decision. As of
Deloitte (2014), about 33% customers researched products in multiple channels in their recent
purchases. To deal with this phenomenon, Uniqlo used both offline channel (physical stores) and
online channel (website and app) so that customers can find the product information such as
price, specification, stock, delivery before purchasing anytime and anywhere.

7. 3.2 Purchase
Uniqlo provides both online and offline purchase to customers. With online purchasing,
customers need to make payment in advance then they can choose between 2 options: delivery
or click-and-collect. With offline purchase, customers come to checkout at counter and pay.
3.3 Post purchase
At this stage, retailers allow their customers to return or exchange products if they are not happy
with them. As the policy issued by Uniqlo (2014), if customers want to return products they have
bought, they can do it on both online and offline platforms. By returning online, customers
contact to Uniqlo website, email to them. The condition of returned products must be as good

8. as when they bought it, and they must return within 28 days. By returning to a physical store,
customers must bring products together with the tax invoice enclosed in the package to a
physical store of Uniqlo within 28 days. After all, customers must wait 14 days from the date they
receive the return product to receive the money back.
We can draw the service blueprint of Uniqlo as below:
3.4 Customer experience with Uniqlo

9. 3.4.1 Data collection
Adapted from Stauss and Weinlich (1997), I have conducted a survey about customer experience
with Uniqlo basing on suggestion of “Sequential Incident Laddering Technique”. Firstly, I designed
a group interview with 4 customers about the way they purchase fashion products. Participants
were asked to recall the purchasing journey of apparel products before with all possible
touchpoints. This survey showed the result that a typical purchasing actions can go through 6
steps: awareness, research, seek assistance (optional), try product, purchase, return product
(optional). Secondly, we created a questionnaire basing on the result of the first survey and
conducted a quantitative research (see Appendix). This survey asked customers to score their
experiences in all steps of customer journey. The survey also asked them to point out one biggest
problem they had with each channel.
The survey was sent to customers from various nationalities, aged from 20 – 35 years old. 2300
people who are students studying in UK was sent the questionnaire. To prevent deviation, people
who were working or studying marketing are not included. After 3 weeks, there were 100 valid
people responded who were from China (32%), Vietnam (26%), United Kingdom (20%) and the
other 12% from German, Indonesia, Italian, Japanese, Portugal, Spain. Among 100 valid
questionnaires, 87% have purchased Uniqlo before. Therefore, the result of the survey was valid.
3.4.2 Analyse data
In pre-purchase phase, all brands try to approach customers with communication tools, such as
email marketing, advertising, worth of mouth. With Uniqlo, friends (word of mouth) and physical
stores are the most popular information sources with 73% each. Next is information from home
page, search engine (Google/Bing/…) and social media with 53% each. Newspaper, billboard and
leaflet are not popular with customers.

10. The survey reminded attendants to fulfil channels they had experiences before. Basing on the
number of responders in each channel, we can see that 34% responders experienced the app;
60% responders experienced Uniqlo home page and 87% responders visited physical stores. The
result shows that customers nowadays still prefer visiting store to check and have direct
interactions with products before buying.
In terms of Uniqlo app, 30% responders have used and rated. As of the diagram below, most
people used Uniqlo app to search products and check product information, and no one used it to
return products. Overall, customer satisfaction of this app is quite low since most people rated
“very poor”, “poor” and “neutral”.
53.3%
73.3%
33.3%
53.3%
73.3%
53.3%
13.3%
0.0%
Uniqlo homepage
Friends
Newspaper
Search engine
Physical stores
Social media
Outdoor billboard/leaflet
Television
Percentages of people are aware of Uniqlo in specific channels
33%
60%
87%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Uniqlo app Uniqlo website Physical store
Proportion Uniqlo buying channels

11. Besides, some customers gave feedback for Uniqlo app. A responder said that he cannot login by
using his social account; two informants said that the app is very slow when they browse
products.
In terms of Uniqlo website, customers use Uniqlo website more frequently than the app, and the
score is higher. 100% customers using website to search products while those who seek
assistance and check product fitting are about 80% and those who have made purchase is more
than 60%. Most people rated “neutral” “good” “very good” for Uniqlo home page.
0%
20%
40%
60%
80%
100%
120%
Search products
(places/prices/promotion)
Seek assistance/interact
with employees
Check product fitting
(suitable size/color/style...)
Purchase/payment Return products
Uniqlo app evaluation
Very poor Poor Neutral Good Very good
0%
20%
40%
60%
80%
100%
Search products
(places/prices/promotion)
Seek assistance/interact with
employees
Check product fitting
(suitable size/color/style...)
Purchase/payment Return products
Uniqlo home page evaluation
Very poor Poor Neutral Good Very good

12. There are some customers who are not satisfied with the Uniqlo website. 20% people are
unhappy with the navigation of Uniqlo website (too many sections, the flow of content is not
easy to follow, not easy to find products).
Most informants experienced with Uniqlo physical stores before. Most people coming to stores
to search products (85%), check fitting (78%) and purchase (78%). Customers are quite satisfied
with physical stores of Uniqlo. Many people rated “neutral”, “good” “very good” for each step.
However, for customers, there are still some issues. Someone complains about the way Uniqlo
categorized products; 13% people feedback about the staff’s unfriendliness and over-
concentration on their own tasks without acknowledging customers’ presence; 2 people said that
they found the stores untidy.
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Search products
(places/prices/promotion)
Seek assistance/interact
with employees
Check product fitting
(suitable size/color/style...)
Purchase/payment Return products Click & collect
Uniqlo physical store
Very poor Poor Neutral Good Very good

13. 4. The web atmospheric of Uniqlo
Nowadays, purchasing online is becoming more and more important, and fashion is no exception.
As in Mintel (2019), the share of online sales of clothing, accessories and footwear is increasing:
10,687 12,010 15,001 17,512 20,224 22,934
18% 19%
23%
26%
29%
33%
0%
5%
10%
15%
20%
25%
30%
35%
0
5,000
10,000
15,000
20,000
25,000
2014 2015 2016 2017 2018 2019 (est)
Clothing Retailing in UK
Online sales of clothing, accessories and footwear (£m)
Online's share of consumer spending on clothing, accessories and footwear (%)

14. Ha and Link (2005) suggested that brand experience on the web would considerably affect
customer trust, satisfaction and familiarity. Therefore, building up a good experience on website
is essential. Moreover, as Uniqlo sells products in both online & offline channels, they should
develop to become an omnichannel retailer – where customers can have the same experience
and interact with the brand via all various channels, not just via a single one (Tyrväinen and
Karjaluoto, 2019).
This article will analyse the web atmospheric of Uniqlo website and suggest what they should do
to not only satisfy customers but also cope with physical stores to become an omnichannel
retailer.
4.1 Usefulness
Adapted from Davis (1989), usefulness is evaluated by the fact that customers believe that using
Uniqlo website can help them research & purchase products more effective. From observation,
Uniqlo website provides comprehensive functions that customers can use: from researching
products, checking information, checking stocks, purchasing, making payment to returning
products. Therefore, the usefulness of Uniqlo homepage is highly evaluated.
4.2 Ease of use
Adapted from Davis (1989) to Uniqlo website, “Ease of use” is evaluated by the fact that
customers believe that using Uniqlo website is easy. In Uniqlo website home page, customers
can find product by either search engine or product categories without difficulties.

15. Source: Uniqlo
In product interface, all functions are easy to understand for customers. People just need to move
their mouse to choose different colour, size. Therefore, Uniqlo “ease of use” are highly evaluated.
Source: Uniqlo

16. 4.3 Navigability
Applying the description from Vrechopoulos et al., (2004), Uniqlo website’s layout is the
combination between grid layout and free-form layout. Customers can search for products from
main category -> sub-category -> final products (grid layout) and access to desired products in
the search engine (freeform) as well. Besides, they can get access to special offers in main page.
This layout is very helpful for customers in researching and purchasing products.
4.4 Entertainment
Adapted from Vrechopoulos et al., (2004), the Uniqlo website is not arranged as
racetrack/boutique layout. Therefore, it does not focus on creating unusual and interesting
shopping experience to entertain customers. Instead, it is simplified with basic background (red
and white). Only pictures are used in lieu of complex effects or videos. Uniqlo tries to create a
store enabling customers to search and purchase, not just a fabulous looking site.
4.5 Interactivity
Interactivity is the way that Uniqlo responds to customers in their webpage. Adapted from
dimension of interactivity from Merrilees (2002), we observed that: Uniqlo home page helps
customers join, learn the system and do their purchase; and has system of “feedback” and
“Chatbot” to react to request from customers. They do not have effective two-way
communication because consumers are not able to chat directly with the employees. As of the
survey, shopping experience is good, but there are still some problems. Customers can create
account and log in; however, they are logged out after exiting the website. Therefore, the
interactivity of Uniqlo website is quite limited.
5. Conclusion and recommendation
Uniqlo provides a variety of channels to interact with customers, both online and offline which
are no different in design and style: Customers can research, purchase, seek assistance, collect
and return products anytime in any channel with the same experience. Therefore, Uniqlo can be
recognized as an omnichannel retail. However, there are also some weaknesses that Uniqlo can
improve.

17. Firstly, Uniqlo should raise awareness to customers by improving communication channels. Social
media channels should not be divided into geography as current since we are all globalizing and
customers might travel to a lot between countries to use the service. Instead, Uniqlo only needs
1 social media page to share information. Moreover, search engine plays an essential role in
making decision of customers. Uniqlo should invest more to be on the top 10 of search results of
some important keywords.
Secondly, Uniqlo can improve the experience in app. They must make the app smoother when
navigating products and improve the login system so that consumers are able to research and
purchase more easily.
Thirdly, Uniqlo should improve their website by enhancing their interactivity by improving the
login system and personalizing the user page via purchase history or special offers. Uniqlo should
assign employees to interact with customers more quickly and effectively. Besides, Uniqlo could
apply technologies to allow customers to try products online (i.e. virtual reality fitting). Currently
customers can base on their figures to receive advices from Uniqlo but if Uniqlo can provide a
better fitting solution, it would improve customer’s satisfaction.
Fourthly, Uniqlo should enhance their web atmosphere. Currently, there are too many sub-
categories suggested to customers when they look for products. Uniqlo should re-arrange
categories and make it simpler.
Finally, Uniqlo should improve the way they arrange products in physical stores. Many products
are folded so if people try it but not buy it, the display will be untidy, which decreases the
customers enjoyment. Also due to that reason, employees are very busy re-arranging clothes and
do not have time to attend to customers. It is not difficult to catch this scene in every Uniqlo
store. Uniqlo should assign employees advising customers rather than arranging products.
Interactivity on physical stores is also important to build customers’ trust and loyalty.

19. References
Davis, F. D. (1989) ‘Perceived Usefulness, Perceived Ease of Use, and User Acceptance of
Information Technology’, MIS Quarterly, 13(3), pp. 319 – 340
Deloitte (2014), The omnichannel opportunity Unlocking the power of the connected consumer.
February. Available at: https://www2.deloitte.com/uk/en/pages/consumer-
business/articles/unlocking-the-power-of-the-connected-consumer.html (Accessed: 13
December 2019)
Fast Retailing (2019) Group Companies. Available at: https://www.fastretailing.com/eng/group/
(Accessed: 12 December 2019)
Fast Retailing (2019) UNIQLO Business Model, Available at:
https://www.fastretailing.com/eng/group/strategy/uniqlobusiness.html (Accessed: 12
December 2019)
Fast Retailing (2019) ‘Annual Report 2018’. Available at:
https://www.fastretailing.com/eng/ir/library/annual.html (Accessed: 12 December 2019)
Ha, H. Y., and Perks, H. (2005) ‘Effects of consumer perceptions of brand experience on the
web: Brand familiarity, satisfaction and brand trust’, Journal of Consumer Behaviour, 4(6), pp.
438 – 452
Lemon, K. N. and Verhoef, P. C. (2016), ‘Understanding Customer Experience Throughout the
Customer Journey’, Journal of Marketing, 80(6), pp. 69 – 96
Merrilees, B. (2002), ‘Interactivity Design as the Key to Managing Customer Relations in E-
Commerce’, Journal of Relationship Marketing, 1, pp. 111-126
Mintel (2019), Clothing Retailing - UK - October 2019, Available at:
https://academic.mintel.com/display/982376/?highlight#hit1 (Accessed: 12 December 2019)

20. Statista (2017) Market share of clothing and apparel brands worldwide in 2017. Available at:
https://www.statista.com/statistics/856454/market-share-of-the-leading-clothing-and-apparel-brands-
worldwide/ (Accessed: 12 December 2019)
Treacy, M. and Wiersema, F. (1995), The discipline of market leaders, choose your customers,
narrow your focus, dominate your market. London HarperCollins
Tyrväinen, O., and Karjaluoto, H. (2019), ‘Omnichannel experience: Towards successful channel
integration in retail’, Journal of Customer Behaviour, 18(1), pp.17-34
Uniqlo (2019) About Uniqlo. Available at: https://www.uniqlo.com/uk/en/company/ (Accessed:
12 December 2019)
Uniqlo (2014), RETURNS POLICY UK. Available at:
https://www.uniqlo.com/uk/en/company/returnpolicy.html (Accessed: 12 December 2019)
Vrechopoulos, A. P., O’Keefe, R. M., Doukidis, G. I., and Siomkos, G. J. (2004), ‘Virtual store
layout: an experimental comparison in the context of grocery retail’, Journal of Retailing, 80(1),
pp. 13 – 22

21. Appendix: The questionnaire of customer experience