Strategic management presentation on UNIQLO business structure

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GLOBAL STRATEGIC MANAGEMENT
FOR HOSPITALITY AND TOURISM
Alfian Thomas
Nurul Farah Izzah Zailani
Norhasimah Hamim
Nurain Mohd Jais
Norfadila Hamim

2. Background of UNIQLO
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UNIQLO – “Changing Clothes. Change The World”
• An innovative brand from Japan. Self claimed that
this is not a “brand that dictates a total lifestyle”
• To them, clothes are items the individual choose to
express a personal lifestyle.
• All clothes are constantly refined to offer excellent
quality, design and technology, at easily affordable
prices.

3. Background of UNIQLO (M)
UNIQLO (Malaysia)
• Was established in June 2010 as a joint venture with
the Malaysian apparel company DNP Clothing Sdn.
Bhd.
• The first store finally opened in Malaysia on 11th
November 2010 and located in Bukit Bintang, the
most vibrant commercial district in the city of Kuala
Lumpur.
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4. Product Range
UT Collection
Various colors and designs based on world famous
comic, anime, game heroes and characters. The
significant ones are Mickey Mouse, Gundam and so on.
Big silhouettes for the men and T-shirt dress and
sleeveless design for the women. Size from S to
XL.
UJ Collection
Regular Fit Straight with 3 main colors of men’s Jeans
– Dark Blue, Black, and Blue Waist measurement
ranged from 27 to 35 inches.
Knit Legging Pant with 3 colors for women’s with
skinny and slim fit cutting style.
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5. Product Range
Fleece Collection for Men’s
Micro Fleece – Various designs with rich patterns included spots,
stripes, borders & checkers. Size S to XL.
Reversible Fleece – There is wide range of colors choices for men’s
reversible jacket – Size S to XL.
Fleece Collection for Women’s
Mouton Fleece – Comes with 4 natural colors; White, Beige, Dark
Brown & Black. Size ranged from S to XL.
Fluffy Fleece – Comes with 7 colors; White, Dark Blue, Purple, Brown,
Red, Grey and Black. Size ranged from S to XL.
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6. UNIQLO Business Model
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7. UNIQLO Business Strategy
Developing Products of Exceptionally High Quality
Product Development Based on Customer Feedback
Customer opinions and needs play a vital role in UNIQLO’s product
development.
The UNIQLO Customer Center receives approximately 70,000
comments from customers annually.
Material Procurement from Around the World
The UNIQLO Material Development Team is able to procure high-
quality materials at low cost through direct negotiations with and bulk
purchases from material manufacturer globally.
Expert Technical Guidance at Factories Emphasizes Quality
UNIQLO has a team of technical specialist, known as the TAKUMI
Team, boasting many years of experience in the Japanese textile
industry.
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8. UNIQLO Business Strategy
UNIQLO International: Rapid Expansion
Becoming the Top Brands in Asia
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9. UNIQLO Business Strategy
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HEATTECH

10. UNIQLO Business Strategy
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UNIQLO Takumi System
Third-party monitoring organizations conduct inspections from an unbiased,
independent perspective. In the textile industry, such organizations inspect
the quality of the fibers and the products. The Kaken Test Center is one
such entity in Japan.
Dye-fastness tests are durability assessments specifically used for products
that have been dyed.
Formalin (formaldehyde) is sometimes used in small amounts as an anti-
shrink and anti-crease softener when processing natural fibers.
Formaldehyde has been specifically linked to rashes and other allergic
reactions among people with particularly sensitive skin.

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UNIQLO Business Strategy
UNIQLO Takumi System

12. UNIQLO Strategic Target Audience
Current Consumer’s Characteristic
DEMOGRAPHIC PSYCHOGRAPHICS
Age: 15 – 40 years old
Gender: Male & Female
Education: Secondary and above
Occupation: Students to Working
Adults
Income Range: RM500 – RM4000
Geographic Location: Urban Area
Perception: Recognize UNIQLO
as top casual wear brand and
believe that clothing is important
element toward pleasant
appearance.
Motivation & Needs: Essential
clothing that is affordable with
high quality and yet pleasurable
in fashion trends.
Lifestyle: Casual, Modern and
Constantly Changing
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13. UNIQLO Competitive Situation
Market Place
Current Condition of the Market Place
• The market place of clothing and apparel
Malaysia intensive competitive.
• Bukit Bintang is considered as the biggest
fashion market with several giant shopping
centers that are vibrant and frequently visited.
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UNIQLO Competitive Situation
Market Place
Changes in Market
• Strong competitions in the market are leading
to more innovation and healthy growth of the
industry.
• Although lower price are resulted in
competition, there are still concerns and risks of
facing low quality production, bad shopping
experience and poor customer services.

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UNIQLO’s Competitors
Direct Competitors
ELEMENT
Founded 1975 1981
Genre Casual Casual
Year of Established in
Malaysia
2000 2000
No. of stores in
Malaysia
190 56
Similarities PDI provide range of casual
wear clothing
Apparel retailer which
focuses on casual wear
Strengths Well-known local brand,
strongly established with
recognizable brand, big amount
of outlets
Greatly expanded and high
brand loyalty due to frequent
promotions and sales.
Weakness More to western fitting rather
than eastern Asian
Weak execution of online
media

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UNIQLO’s Competitors
Indirect Competitors
ELEMENT
Founded 1975 1978
Genre Fast Fashion Fast Fashion
Year of Established in
Malaysia
2006 2007
No. of Stores in Malaysia 6 9
Differences More focused on fast fashion
development
More focused on high street
fashion
Strengths High productivity, only two weeks
for a development and launching
of new product
Offered a number of collections
designed by celebrities
Weakness Zero advertising European cutting and size that
not really suits Malaysian well

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UNIQLO’s Brand Image
Product Market Share
2014 2010

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UNIQLO’s Notable Project
Global Brand Ambassadors
Novac Djokovic
Djokovic was ranked World
No. 1 by the Association of
Tennis Professionals in 2011
Shingo Kunieda
The superstar of wheelchair
tennis in Paralympics
Kei Nishikori
Nishikori has shown
outstanding tennis talent since
his involvement as a Junior
Player, the first Japanese and
the youngest tennis player for
such achievements
Adam Scott
He is the second ranked
professional golfer in the world,
as of January 2014

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UNIQLO’s Notable Project
UNIQLO Recycle

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UNIQLO’s Notable Project
UNIQLO Green Campaign

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THANK YOU