UNIQLO A BRAND AUDIT By ANH NGUYEN
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COMPANY
Location: Headquarter: Tokyo, Japan In addition to Japan, the company operates in China, Hong Kong, Taiwan, France, Malaysia, Bangladesh, the Philippines, Russia, Singapore, South Korea, Thailand, the United Kingdom, the United States and Indonesia.
Organization and major activities:
Uniqlo Co., Ltd. (pronounced "YOU-nee-klo" "YOU-nee-klo" in English) is a Japanese casual wear designer, manufacturer and retailer. The company, originally a division of Fast Retailing Co., Ltd., has been a wholly owned subsidiary since November 2005, listed on the First Section of the Tokyo Stock Exchange.
FAST RETAILING USA, Inc UNIQLO US
CEO: Shin Odake Established: November 22, 2004 Locaion: New York, USA 100% consolidated subsidiary Industry: Fashion & Retail Products: Clothing
Brand History:
March 1949, a Yamaguchi- based company, Ogori Shōji (which, until then, had been operating men's clothing shops called "Men's Shop OS") existed inUbe, inUbe, Yamaguchi. In May 1985, they opened a unisex casual unisex casual wear store in Fukuromachi, Naka-ku, machi, Naka-ku, Hiroshima Hiroshima under the name "Unique Clothing Warehouse". It was at this time that the name "Uniqlo" was born, as a contraction of "unique clothing". April 1994, there were over 100 Uniqlo stores operating throughout Japan. November 2004, Fast Retailing USA, Inc is established in New York. November 2006, UNIQLO Soho New York Store. November 2013, 17 stores in USA in New York, New Jersey, San Francisco, and San Mateo. 3
Financial statements and Annual reports: There is no public financial reports for Uniqlo US, but it is stated that the company recorded a loss in fiscal 2013.
Thousands of US Dollars Key personnel: Uniqlo Co., Ltd. - Tadashi Yanai, Chairman, Yanai, Chairman, President & CEO - Takahiro Wakabayashi, Senior Wakabayashi, Senior Vice President Uniqlo US - CEO: Lawrence Meyer
Recent news:
April 26,2013: How Clothing Chain Uniqlo Is Taking Over The World http://www.businessinsider.com/the-story-of-uni http://www .businessinsider.com/the-story-of-uniqlo-2013-4?op=1#ixzz2n38SQLHO qlo-2013-4?op=1#ixzz2n38SQLHO 4
September 4, 2013: Uniqlo Announces Opening Dates For Ten New Stores This Fall http://www.uniqlo.com/us/uniqlo-news/2013/un http://www .uniqlo.com/us/uniqlo-news/2013/uniqlo-announces-openingiqlo-announces-opening-dates-fordates-forten-new-stores-this-fall/ Why Uniqlo Chose A Forever 21 Veteran To Lead Its U.S. Business December 6, 2013: Why Uniqlo http://www.forbes.com/sites/barbaratha http://www.forbes .com/sites/barbarathau/2013/12/06/why-uniqlo-chose-a-forever u/2013/12/06/why-uniqlo-chose-a-forever-21-21veteran-to-lead-its-u-s-business/
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Category
Category Definition: Apparel Industry: All establishments producing clothing and fabricating products by cutting and sewing purchased woven or knit textile fabrics and related materials, such as leather, rubberized fabrics, plastics, and furs. This does not include knitting mills or custom tailors and dressmakers. The Apparel & Accessories industry consists of companies engaged in the manufacturing of clothing, such as men, women and children's clothing, uniforms, jackets, hats, socks, gloves, robes, hosiery and swim suits. The industry also includes accessories, such as handbags, attach cases, umbrellas, cosmetic bags, jewelry, watches, luggage, dog collars and leashes. The Apparel & Accessories industry excludes shoes, sneakers and slippers, classified in Footwear. Size of category: The U.S. apparel market is the largest in the world, comprising about 28 percent of the global total
The US apparel retail industry is expected to generate total revenues of $338.7bn in 2012, representing a compound annual growth rate (CAGR) of 2.9% between 2008 and 2012. The apparel manufacturing industry in the United States employed about 104,457 people in 2010; which in retrospect seems quite miniscule for being the largest global apparel market. However, one must remember that even though the majority of these apparel conglomerates are American based, many of them have their manufacturing plants in Asia. The United States imported about 9.74 units of apparel from China alone in 2011, a product value of approximately 29.4 billion U.S. dollars. The womenswear segment is expected to be the industry's most lucrative in 2012, with total revenues of $175.0bn, equivalent to 51.7% of the industry's overall value.
History of category:
Before the American Civil War (circa 1860), most clothing was made by tailors or by individuals or their family members at home. home. Ready-made or ready-to-wear apparel apparel existed, but its variety was limited. Mainly coats and jackets (known (known as outerwear) and undergarments were purchased using predetermined sizes. Mass Production & Sizing
The Civil War was a pivotal event in the historical development of men's ready-made clothing. At the outset of the Civil War, War, most uniforms were custom-made custom-made in workers' homes under government contract. As the war continued, however, manufacturers started to build factories that could quickly and efficiently meet the growing demands of 6
the military. Mass production of uniforms uniforms necessitated the development development of standard sizes. Measurements taken of the soldiers revealed that certain sets of measurements tended to recur with predictable regularity. After the war, these military measurements were used to create the first commercial sizing scales for men. The mass production of women's clothing developed more slowly. Women's outfits generally continued to be custom-made well into the 1920s. In that decade, factors such as the development of industrial production techniques, the rise of the advertising industry, the growth of an urban professional class, and the development of national markets accessed through chain stores and mail order catalogs, contributed to the success of the women's ready-made apparel industry. Ready-made articles of clothing were portrayed as modern and fashionable during a time when the new consumer industries were rapidly redefining the way Americans viewed mass-manufactured goods. Instead of seeing the purchase of mass-produced clothing as entailing a loss of individuality, American women began to accept the pieces of ready-made merchandise as convenient, affordable, and up-to-date fashion items that could be replaced easily as styles changed. However, the new ready-made clothing often fit poorly. Each manufacturer created its own unique and sometimes arbitrary sizing system based on inaccurate body data or no body data at all. Garments of widely different dimensions were frequently labeled the same size by different manufacturers. This situation resulted in additional costs for alterations and large volumes of returned merchandise. This, in turn, increased costs for the consumer of ready-to-wear clothing. Standardization Standardization of Sizes Si zes
In 1937, the U.S. Department of Agriculture prepared to conduct a study of women's body measurements for the purpose of creating a sizing system which the entire industry could follow. During 1939 and 1940, about 15,000 American women participated in a national survey conducted by the National Bureau of Home Economics of the U.S. Department of Agriculture. It was the first large-scale scientific study of women's body measurements ever recorded. A technician took 59 measurements of each volunteer, who was dressed only in underwear. Volunteers were paid a small fee for participating. The results of the study were published in 1941 in USDA Miscellaneous Publication 454, Women's Measurements for Garment and Pattern Construction. The purpose of the survey was to discover key measurements of the female body - that is the important measurements from which other measurements could best be predicted and then to propose a sizing system based on this discovery.
In the mid-1940s, the Mail-Order Association of America, a trade group representing catalog businesses such as Sears Roebuck and Spiegel, asked the Commodity Standards 7
Division of the National Bureau of Standards (NBS, now NIST) to conduct research to provide a reliable basis for industry sizing standards. NBS agreed, and punch cards holding the USDA survey results were transferred to NBS at its request for reanalysis. (While the women's apparel sizing standard is the focus of this exhibit, NBS also reanalyzed USDA data for teenage girls and children, resulting in other standards.) The USDA data was augmented by data received from the Research and Development Branch of the Army Quartermasters Corps during World War II when measurements were taken of 6,510 WAC personnel.
Method of distribution: Retail (In store and online store) and Wholesale
Major Players:
Seasonal factors: Apparel is a classic example of a seasonal product, with weather, the holidays and the school calendar all affecting household expenditure on clothing.
Apparel spend tends to stick to the following pattern: expenditures are lowest in the first quarter, increase through the year, and peak in the fourth quarter. Peak expenditures in the fourth quarter can be explained by environmental factors, such as the weather and the holiday season. 8
The results of cross-sectional studies show apparel expenditures are higher in winter than in summer. Elasticity was highest for autumn. The result was expected for two reasons. First, autumn and winter apparel, most of which is purchased during the autumn quarter (October through December), tends to be higher priced than that of spring and summer apparel. Second, autumn includes the holiday season, when many retailers realize as much as 25 per cent of annual sales. Regional factors: Very diverse, depending on each countries or even areas within each country. Legal considerations: Intellectual property (copyright and trademark and trademark law, including brand including brand licensing), licensing) , domestic and international business transactions, textiles, transactions, textiles, merchandising, employment merchandising, employment and labor concerns, and customs. and customs. Major trade publications:
Women’s Wear Daily
California ApparelNews Textile World Impressions Magazine Vogue Elle Harper’s Bazaar
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Major trade organizations: AAFA - American Apparel and Footwear Association - USA. Trade organization for US apparel and footwear manufacturers, suppliers and retailers. Extensive publications directory. Calendar of events. Consumer and community information. Links to governmental, trade, industry, labor and regulatory information.
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PRODUCTS WITHIN CATEGORY
Share of category by product:
Outerwear: Jackets, coats, ultra light down Tops: shirts, blouses, sweaters, knits, sweatshirts, fleece, dresses, T-shirt, tank tops. Bottoms: jeans, pants, shorts, skirts Innerwear and longue Accessories Collection: ultra light down, heattech, cashmere, flannel, ultra stretch, legging pants, warm easy pants.
Product-form description: At UNIQLO, the basic merchandising concept is to offer clothes that can be worn by anyone, anywhere, anytime. UNIQLO’s goal is to offer fashionable, high-quality basic casual wear at reasonable prices so that everyone can enjoy the quality, color and style of UNIQLO clothing. New product introductions: Lifewear Benefits and appeals of new product: targeting the emerging opportunity between casualwear and sportswear, which helps to explain why Uniqlo has recently teamed up with tennis and golf champions Novak Djokovic and Adam Scott, who are both “global brand ambassado rs” for the company.
New package: N/A
Innovations:
Heattech: Innerwear items that are designed with rayon fibres that retain and lock in
heat to the tiny airpockets created between them. Airism underwear is made of another custom fabric, a lightweight stretchy synthetic that fits closely but wicks away moisture —“so light you’ll forget you have them on.” Recent news about product category: August 19, 2013: Uniqlo Launches Latest Line Of Tennis Apparel In The U.S.
UNIQLO, the global clothing retailer, is pleased to announce the launch of the new, highly anticipated tennis apparel modeled after the 2013 U.S. Open performance wear which will be worn by Novak Djokovic, the world’s top-ranked professional men’s tennis player. The new collection for men, women and kids features polo shirts, pants, shorts, T-shirts, tracksuits and socks. Price points range from $49.90 to $59.90. 11
BRAND ANALYSIS
Top brands by dollar or unit sales:
Growth trends of top brands: Stable
Pricing trends: Stable
Category share by country and by region:
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Recent news about brand:
April 26,2013: How Clothing Chain Uniqlo Is Taking Over The World http://www.businessinsider.com/the-story-of-uni http://www .businessinsider.com/the-story-of-uniqlo-2013-4?op=1#ixzz2n38SQLHO qlo-2013-4?op=1#ixzz2n38SQLHO September 4, 2013: Uniqlo Announces Opening Dates For Ten New Stores This Fall http://www.uniqlo.com/us/uniqlo-news/2013/un http://www .uniqlo.com/us/uniqlo-news/2013/uniqlo-announces-openingiqlo-announces-opening-dates-fordates-forten-new-stores-this-fall/ Why Uniqlo Chose A Forever 21 Veteran To Lead Its U.S. Business December 6, 2013: Why Uniqlo http://www.forbes.com/sites/barbaratha http://www.forbes.c om/sites/barbarathau/2013/12/06/why-uniqlo-chose-a-forever-21 u/2013/12/06/why-uniqlo-chose-a-forever-21-veteran-to-lead-its-u-s-business/
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CONSUMER PROFILE
Demographic of users: Everybody Frequency of purchase/usage: Usage: daily wear Every seasonal product cycle (spring, summer, fall, winter) Not following new trends, continue purchasing until the products wear out
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Place of purchase: - Online store - Flagship store Heavy-user profile:
Demographics Age: 18 - 26 years old Gender: Both male and female Education: Undergraduate and above Occupation: University Student Income Range: more than $30,000 Race & Ethnicity: All races Geographic Location: Urban area Psychographics Perception: Recognize UNIQLO as top casual wear brand and believe that clothing is important element toward pleasant appearance Learning: Friends and family, newspapers, internet,environmental factors Motivation & Needs: Casual wear that ensures high quality and nice design Attitude & Personality: Sensitive and passion in fashion trends Lifestyle: Casual, healthy and challenging
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Awareness and attitude:
Decision maker vs purchaser: Male customers: Single: Decision makers are purchasers Living with family/In a relationship: They are purchasers, but their wife/mother/girlfriend will be decision makers Female customers: Children and teenagers: Purchasers, but decision makers are their mothers Adults: decision makers are purchasers Normal purchase cycle: Every seasonal product cycle (spring, summer, fall, winter) Not following new trends, continue purchasing until the products wear out
Brand loyalty/switching: Strong Reasons: Uniqlo is one of the rare brands with the 3 tactics: Basics over fads. Colors over styles. Fabric over fashion.
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ADVERTISING/MARKETING COMMUNICATIONS
Creative strategies of top brands
The brand course of action is to sell clothes, not style, so that emphasizing the brand is far from being a priority. Customer b uys Uniqlo’s product for its fashion and qualitative aspect, not for the sake of the brand, unlike what could happen with its competitor like H&M, Gap or Zara. This is a very functional level of customer relationship, and this is what differentiate Uniqlo with its main competitors.
Touchpoints: Stores
UNIQLO also puts a lot of effort on the design of its stores, as the store is the main touchpoint for both of them, clothing retail specialists. Uniqlo stores have all a very modern, even high-tech feeling to them with their TV screens, LED screens and glass displays, combining design with functionality.
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The wide range of colors of their products takes part in the design of the store itself, creating catchy arrays of colors. Finally, Uniqlo has strong focus on customer service. It hires a lot of employees, spends a lot of time training them in order to offer the best shopping experience to their customers. The check-out point is a testament to this commitment, with this full range of cashiers reducing queuing time for their customers. “The entire store is designed with customer service in mind,” said Shin Odake, UNIQLO USA CEO. Appeals and promises: Basics over fads. Uniqlo garments are plain but but well constructed. Whereas a woman might only wear a faddish top from H&M ten times, she’ll wear out her Uniqlo “urban basics” like khaki pants and oxford shirts. Colors over styles. Uniqlo offers a limited selection of styles , choosing instead to offer a basic item in an unusually wide range of colors, such as a basic polo shirt in 80 different
colors or a t-shirt in a hundred different different prints. Thus, they can order fabric in huge quantities and produce the same, simple item in huge quantities, but still create an instore perception of wide variety. Fabric over fashion. Unlike its competitors, Uniqlo focuses on obtaining premium quality fabrics (from selvedge denim to cashmere), then sells the finished garments for roughly half the price of their premium-brand competitors. Uniqlo’s Heattech line of long underwear, for example, is based on a custom fabric that is ultra-soft to the touch and uses shaped fibers that create air pockets to retain warmth. Their Airism Their Airism underwear is made of another custom fabric, a lightweight stretchy synthetic that fits closely but wicks away moisture —“so light you’ll forget you have them on.” This three-pronged strategy of differentiation from its competitors is indeed powerful, earning Uniqlo sales of about $10 billion annually from its 1,100 stores in 12 countries. Special effects: N/A
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Examples of past and current executions
Uniqlo launched a CSR initiative entitled “Clothes for Smiles with tennis player Novak Djokovic & UNICEF.” The company will establish a $10 million fund and use it i t to bring smiles to children all over the world. The fund will be collected from the sales of HEATTECH and Ultra Light Down items during the 2012 Fall/Winter se ason.
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MEDIA
Category and brand spending: N/A Spending compared with market share: N/A Spending patterns: Budget for marketing and advertising communications reaches its peak before winter season comes. Seasonality: Uniqlo increases their marketing and advertising communications before winter to motivate their users to purchase more basics and innerwear clothing. Regionality: N/A Media employed by top brands: - Social media - Internet - Billboards - Magazines - Celebrity advertising
PROMOTION
Promotion used in category:
Direct mail - catalogues, newsletters you may receive by post or email Exhibitions or events Sales promotions - such as discounts, discounts, money-off coupons or or competitions Public relations - through press conferences or by participating in charitable events Sponsorship Product placement gives clothes to famous people so that they create publicity when they wear them. This is seen as an endorsement for the product.
Major brand promotion types and examples: Direct mail, sales promotions and product placement Success rates of promotion : N/A
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Newsletter
Sales promotions
Catalogue
Product placement
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INTERNET AND NEW MEDIA
Social Media Uniqlo has created one page for one country it is operating in. This allows the brand to offer specific new products and sales to each country.
Its facebook page has nearly 600,000 likes, but only around 5,000 “talking about it.” It has daily updates, but the contents are not diverse and receive few likes and comments.
Pinterest activities are idle, with few customers claim “pinning.”
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Twitter has daily updates, but little followers (less than 25,000 followers).
Instagram has few followers (around 16,000). Photos uploaded are not diverse and gorgeous enough. Contents are boring, receiving few likes and comments.
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Website and online store : Gorgeous design. Easy to navigate to different categories, easy to browse platform.
Smartphone applications ANDROID
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iOS
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OTHER PERTINENT INFORMATION N/A at the present.
BRAND VALUE DISCUSSION Uniqlo’s brand value has increased thanks to the expansion of flagship stores in some major
cities on the West Coast. Furthermore, their activities on social media prove some positive impacts on brand awareness, though Uniqlo’s marketers do not seem to make use of all the potential benefits of the new media. The online store proves to be a tremendous advantage in promoting brand value and sales, while Uniqlo gradually opens more stores throughout the United States. Also, CSR programs such as “Clothes for Smiles with tennis player Novak Djokovic & UNICEF” not only introduce the brand to the public, but also at the same time create a positive public image for Uniqlo. Uniqlo stockholders can expect a gradual and stable increase in its brand value.
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BRAND EXPLORATORY Qualitative Research Methods Personal Interview with Linh Chu, 20 years old, female, international from Vietnam.
Q: How often do you buy your basic clothes? A: about 2 times. By the end of summer and in winter. Q: What features do you look for when you buy them? A: First is material. I want to feel comfortable and warm. And then color. I want my innerwear matches my outerwear. Q: When do you buy new basic clothes? Do you wear them till they wear out? A: Not always. I don’t wear too expensive basics so I buy new ones when I feel like to. Perhaps when I need new color or styles. Q: Can you tell me the 3 brands when it comes to basic clothing? A: Uniqlo, H&M, Forever21. Q: How did you know about Uniqlo? A: I used Uniqlo back in Asia. It is i s popular in Asia. My mother bought me Uniqlo costumes when I was a kid. That’s how I know about it. Q: Do you usually wear your basic Uniqlo clothes? A: Anytime. I even wear heattech when I go to bed. Q: Have you ever seen any Uniqlo store in America? A: No I have not yet. I know there are some stores in the East Coast, but there’s no store in Dallas. Q: Have you tried their online store? A: I did, but I just bought some basic clothes. For outerwear, I’d rather try them on before purchasing.
Personal Inteview with Devin Norman, 21 years old, male, from Dallas.
Q: How often do you buy your basic clothes? A: When I run out of them. 28
Q: What features do you look for when you buy them? A: Well, I don’t really know because my mom bought them all. Or sometimes my girlfriend. But I want them to be comfortable and durable. Q: When do you buy new basic clothes? Do you wear them till they wear out? A: When it wears out. Q: Do you care about the colors? A: Yes. I would like them to be blue, white, grey, or black. I don’t wear pink or yello or orange. I don’t like girly colors. Q: Are you willing to shop online for clothes? A: Never. I want to touch them and try them on. Q: Can you tell me the 3 brands when it comes to basic clothing? A: Gap, Old Navy, American Apparel. Q: Have you ever heard of Uniqlo? A: Never.
Personal Inteview with Michale Wang, 21 years old, male fr om San Francisco.
Q: How often do you buy your basic clothes? A: Once a year before winter. Q: What features do you look for when you buy them? A: Something that keeps me warm. Something nice, fresh. Q: When do you buy new basic clothes? Do you wear them till they wear out? A: No I don’t. I buy new ones every year. Q: Do you care about color and styles? A: Of course. Q: Do you wear you basic clothes to bed? A: Sometimes in winter Q: How many different colors would you buy for the same basic innerwear clothes? A: Around 5, I guess so. Q: Can you tell me the 3 brands when it comes to basic clothing? 29
A: H&M, Gap, Zara. Q: Have you heard of Uniqlo? A: Yes I do. Q: Do you know what products they are offering? A: Something colorful, basic, and not too expensive. Jackets, innerwear, sleepwear, sweatshirts. Well, I’m not sure. Q: Have you ever seen any Uniqlo store in America? A: In San Francisco and New York, but not in Dallas. Q: Have you tried their online store? A: No I did not.
Personal Inteview with Stephanie Smith, 20 years old, female from Dallas.
Q: How often do you buy your basic clothes? A: Once a year when it’s getting cold. Q: What features do you look for when you buy them? A: Material, style, color, and brand. Q: Can you tell me the 3 brands when it comes to basic clothing? A: Uniqlo, H&M, GAP. Q: When do you buy new basic clothes? Do you wear them till they wear out? A: I buy new ones when I feel like too. I usually do not wear stuff till they wear out. That’s just too much. Q: How did you know about Uniqlo? A: I studied abroad in JJapan apan in my sophomore year. Uniqlo is huge in Japan. Q: Do you usually wear your basic Uniqlo clothes? A: Yes I love it. I wish they had Uniqlo sleepwear in the US. Q: Have you ever seen any Uniqlo store in America? A: No I have not seen any store in Dallas yet. I know there are some stores in bigger cities. Q: Have you tried their online store? A: I’ve been using their online store since I was back from Japan. 30
Personal Inteview with Christine Pham, 20 years old, female from Dallas.
Q: Have you ever heard of Uniqlo? A: I’m wearing them right now. Q: Perfect. What products did you buy from Uniqlo? A: Heattech and pants. Q: What about outerwear? A: I’d rather choose something more than basic for outerwear. Q: How often do you buy your basic clothes? A: Every month. I love basics fashion. Q: What features do you look for when you buy them? A: Material, style, color, and price. Q: Can you tell me the 3 brands when it comes to basic clothing? A: Uniqlo, Zara, Hollister. Q: When do you buy new basic clothes? Do you wear them till they wear out? A: I buy new basics when I see some lovely colors or impressive styles. Q: What do you expect from Uniqlo USA? A: I don’t know why they do not produce sleepwear. Uniqlo clothes is very functional and comfortable. I would love to sleep in Uniqlo costumes. Q: How did you know about Uniqlo? A: I was in New York for DMHP spring trip and accidentally purchased some pairs of pants and heattech from Soho Store. Then I’ m in love with Uniqlo. Q: Have you tried their online store? A: Yes, but I hope they will soon open a store in Dallas.
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BRAND COLLAGE 4 people who are using Uniqlo’s products above and 2 other people who are working as sales
associates at Hollisters are asked to come up with a 5-picure collage of Uniqlo. Here are the results. - Colorful, Japanses streets, New York City, red logo, big stores - Asian clothes, many colors, big stores, urban, red logos - Red, basic clothing, colorful store, young people, Djokovic - Colorful, warm clothes, same styles, mother, Japanese - Colorful, Asian, urban, teenagers, basic clothes - Basic clothes, colorful, nice stores, college students, Japanese.
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RECOMMENDATIONS STORES To compete with other players in the same price range, Uniqlo has to expand its store towards different areas within America. Since its strength as well as marketing strategy focuses on the functionality and the high quality of the materials, it’s important i mportant that consumers have a chance to touch the fibers and try them on. Uniqlo may look very colorful on the website, but with basic clothing, it seems that people want to make sure how they feel when they wear them before purchasing. SLEEPWEAR With its focus on providing customers with the most comfortable clothing by the latest technology, Uniqlo should increase the promotions of its sleepwear costumes to their American consumers. Compared to standard outerwear, sweaters, trousers, and the heattech products, sleepwear, also known as “loungewear”on their website, seems to be shadowed by other categories. Uniqlo sleepwear is diverse in colors and styles, not to mention their exceptional materials quality: soft, light, and extremely warm. These criteria match Uniqlo’s priorities when they design their products. Furthermore, among their competitors, there has not yet any distinct brand or product chain for sleepwear. The diversity of Uniqlo products will be counted as an advantage if they introduce sleepwear. RETURN POLICY At the moment, Uniqlo does not offer free shipping for return products. Among their competitors, Zara does offer free shipping return. In addition, they also charge $7 as a return fee. Almost none of their competitors charge a return fee. Considering the situation that they are just starting to expand their store locations in America, this will be a disadvantage. Except for some magnet cities in the East Coast (New York) and West Coast ( Los Angeles and San Francisco), a lot of potential customers will not have a chance to try the real physical products before they purchase Uniqlo products for the first time. These include a lot of college students who obviously do not live in urban areas. My recommendation is that Uniqlo should stop charging return fees, or at least stop charing first-time purchasing customers. CORPORATE SOCIAL RESPONSIBILITY Uniqlo should increase its involvement in different CSR campaigns to both promote brand awareness and start building a positive public image. Especially when it would take some time to open new store throughout the United States, these marketing campaigns could increase Uniqlo’s online store traffic. SOCIAL MEDIA Uniqlo’s marketing department should make use of social media, since heavy-users are expected to be young adults. Moreover, using social media can help Uniqlo attract more teenagers who are not direct purchasers, but in many cases, are decision makers. Its Instagram 33
account should make use of the colorful stores as well as the diverse colors of different products to build a more stylish and fashionable brand imaginary, which is not U niqlo’s strength, but is still an inevitable factor in fast fashion industry. Because Uniqlo stores are not available in a lot of areas, Uniqlo may offer “posting for store credits” program for customers with many followers on Facebook or Instagram. CAMPUS ACTIVITIES Because high school and college students are considered target customers, Uniqlo may start considering brand ambassador programs in different college campuses through out America even before they open their stores in the area. Also, Uniqlo may consider directly competing with Jansport, Ralph Lauren, or other clothing companies to produce campus costumes. There is no faster way to introduce the brand to students than producing their school clothing that students see and wear everyday. LIFE TOOLS: Almost all Uniqlo apps are only available on Appstore and unavailable on Play Store, except for Uniqlo Wake up. Some appps, such as Uniqlo Calendar, are still only customized for Japanese users. Uniql should consider developing the apps for Android and Windows Phone, as well as developing American versions.
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