Industry Review

Fast fashion trends

Opportunity

USP

Brand proposition

Brand communication

campaign

Customer Competitors UNIQLO

Online TV Design In-store experienceEventCeleb

Strategy: to make UNIQLO the largest apparel retailer and achieve sales of two trillion JPY per year.

The above upside down pyramid reviews the current conventions and conditions, identifying opportunity, and funneling the information to form a Unique Selling Point (USP) for UNIQLO

Given our established USP, we developed a

new brand proposition and key components to

our brand communication

campaign.

Data Source: Datamonitor, Company Profiles, Industry Profiles, Various Websites, Journals and Newspaper Articles

Bath + one:Alex Stepanov - 10BN946JJenny, Sau Man Lee - 10BN945FNanami Isono - 09BN192R Nicholas Trombert -10BN947L Pru, Suthirat Owlarn -10BN943M

Industry Review - UNIQLO› Fast Retailing group’s most successful brand

› Contribute more than 80% to sales

Business Model:

Adopts SPA manufacturer retailer model Coordinate and maintain control over the entire producing process Cooperates with Mitsubishi “Japanese” Recommended to choose Li & Fung as consultant for “global” expansion

Main products: Prices & Values Customers

Casual wear Low pricesHigh quality

Wide range Main target: women aged 25 - 35

Industry Review - Competitors

Main Competitors: › Gap, H&M, A&F, Zara, United colors of Benetton, American Apparel

Strategies of Competitors: › Expanding into Asian countries.› Increasing online presence to reduce the cost and meet consumers’ demand of convenience. › Effective and organised supply chain management to control inventory and merchandising. › Increasing in emphasis on unique designs and making patents.

Strengths Weaknesses

• Women’s, Men’s, Kid’s ranges.• Internationally successful.• Fashion led.•Very popular with younger generation.

• Doesn’t appeal to older age range.• No websites and not much media coverage in some of the countries.•Do not make use of new technologies.

Industry Review - Consumers› Price conscious: cut back expenditure on fashion› Influenced by the brand's celebrities and publicity. › Women’s wear makes up the majority of the

market.› Increasing online usage.› Low switching cost & lots of alternatives.› Growth of cheaper and discount apparel stores. › Largest segment globally: women (58% )

UNIQLO Strengths UNIQLO Weaknesses

• Market leader in Japan• Cheap prices for quality products• Cater for all ages, young and old• Internationally successful• Always trying new ways to sell their products•Try to be environmentally friendly• Research & Development in Heattech fabric

• Clothes are quite plain, no patterns.• Not all clothes are available on website.• Inconsistency in advertisement and marketing communications• Uniqlo’s simple approach without logo did not catch on with UK consumers• Single supplier

China Japan S. Korea

0

20

40

60Growing Asian

Market

Industry trends and opportunity (5 forces analysis)

New Entrant: moderate

Small stores: easy Global stores:

difficultLow switching cost

Industry Rivalry: high

Matured market, substitutes and global players :

intense competition

Substitute : highCheaper fashion:

cosmetics, accessories,

or cutback due to recession

Supplier Power: low

Many suppliers and cheap labor

(Uniqlo has long-term relations with

suppliers)

Buyer Power : highMany choices and low switching cost,

but possible to establish brand

loyalty

Uniqlo’sPosition

Industry trends and opportunity

Trends (Opportunities/Threats)

Potential Strategies

Growing Asian market: China, India, South Korea, etc.

Troubling EU market: Cheap to enter

Highly fragmented market (e.g. consumer age, income, taste) ⇒Easy to differentiate

Unpredictable fashion trends ⇒Fast fashion and low inventory

Low brand loyalty=low switching cost

Increasing counterfeits =possibility of diluting brand image

Intense competition ⇒Establish brand and control costs

⇒Maintain and expand foreign operations

⇒Establish brand and create some price setting power

Unique Selling Point“Japanese” × Fast Fashion

Japanese fashion is closely focused upon by world’s fashion leaders.

Celebrities, haute couture, etc…

Fast fashion updated according to Japanese style:

Establish Uniqlo as a

“Japanese” fashion led brand

Positioning Brand

Proposition

UNIQLO is the unique clothing experience among international retailers because we are the only one who provides vogue Japanese fast fashion.

Attributes

•Good quality clothes

•Well designed Japanese fashion

Functional Benefits

•Variety of lines, style

•Design for wide range of customers

Emotional Benefits

•Differentiating oneself from the crowd

•Increase self-confidence

Values

•Everyday unique fashion to express yourself

Brand Ladder

Marketing ImplementationOur communication objective is to create an unique Japanese fashion experience through integrating numerous marketing strategies.

PricePar with fast

fashion competitors such as Zara

Place- Create a unique Japanese fashion

experience in every store.

- Good control over logistics

ProductWill invest in R&D and designers to

maintain fashionable image

Promotion- Create brand

awareness-Create positive

brand association-Monitor consumer

feedback

Promotions i.e.

Use of celebrities to create awareness

Interactive Website

Social medias

Multi-ethnicity models

Host/ Sponsor events

TV ads