UNIQLO keep in mind - mbacasecomp.comUNIQLO keep in mind UNIQLO Porto Business School Team PBS Silvia Duarte Pedro Vilas Boas Rui Rosas Francisco Cudell . Challenge Analysis Recommendations

UNIQLO keep in mind UNIQLO

Porto Business School Team PBS Silvia Duarte Pedro Vilas Boas Rui Rosas Francisco Cudell

Challenge Analysis Recommendations Financials Risks & Plan

Challenge

How to achieve ¥100 billion in 3 years time in the U.S. and

continue the global sustainable growth of

UNIQLO?

Challenge


We identified the following Key Issues

Global fierce competitive market 1

There’s many competitors in the Asian market, as well, in the rest of the world

UNIQLO production is concentrated is Asia

2

Global distribution needs special, this will require new actions to adapt the desirable growth

No Marketing Strategy within the company

3

There’s no major efforts to communicate the market, market needs to know your value preposition

Challenge


Agenda

Analysis

Recommendations

Financial Impacts

Risks

Implementation Plan

Analysis


Who Are you?

Analysis

Pioneer of the SPA model in Japan

Retail Clothing Company

Asian Based Production and Majority of the Market

Strong Presence in Japan, China and South Korea

Fast growing company with 2870 stores worldwide


Who Are you?

Analysis

UNIQLO is already a player to take in consideration

Pioneer of the SPA model in Japan

Retail Clothing Company

Asian Based Production and Majority of the Market

Strong Presence in Japan, China and South Korea

Fast growing company with 2870 stores worldwide


How can you differentiate from competition?

Analysis

Fashion

Just in time delivery

Price

Industry

Quality

Fashion basic style


Price – dynamic prcing

UNIQLO

Innovation Utility and practical Increased Quality


How can you differentiate from competition?

Analysis

How can UNIQLO Capitalize on their extra strengths

Fashion


Price

Industry

Quality

Fashion basic style


Price – dynamic prcing

UNIQLO

Innovation Utility and practical Increased Quality


And how do you conduct your business?

Analysis

Planning Production Sales

R & D Merchandising Production Partner

Factories Inventory control Online

Japan Int.

Customer

Marketing

Designers Takumi Guidance Kayzen Process


And how do you conduct your business?

Analysis

The process is complete and correct, but is the product promotion enough?

Planning Production Sales

R & D Merchandising Production Partner

Factories Inventory control Online

Japan Int.

Customer

Marketing

Designers Takumi Guidance Kayzen Process


Regarding your sales, how’s your present situation?

Analysis

8 25 176

433

1232

2203

3000

0

500

1000

1500

2000

2500

3000

3500

1985 1990 1995 2000 2005 2010 2015

UNIQLO stores growth


Regarding your sales, how’s your present situation?

Analysis

Your Growth has been constant, but can you take UNIQLO to the next level?

8 25 176

433

1232

2203

3000

0

500

1000

1500

2000

2500

3000

3500

1985 1990 1995 2000 2005 2010 2015

UNIQLO stores growth


Now that we’ve seen your numbers let’s view the industry

Analysis

Economical Increased demand for cheaper clothes

Social Clothes that can be replaced more often

Technological Need for Innovation in the clothing industry


Now that we’ve seen your numbers let’s view the industry

Analysis

There must be a strong connection to these issues I order to succeed

Economical Increased demand for cheaper clothes

Social Clothes that can be replaced more often

Technological Need for Innovation in the clothing industry


Who are your competitors?

Analysis

Inditex Innovator in the Market, number one in the world of retail fashion

H&M Second largest player, that has a different bu also successful of the market

ASOS Online UK store that has shown rapid Asian Growth

GAP Also has a strong presence in China, Player to be aware of


Who are your competitors?

Analysis

Clearly the markets have an in season approach, that should become also the concern of UNIQLO Clothes

39% 61%

Zara

Seasonal "In Season"

80%

20% H&M

Seasonal "In Season"


Let’s take a deeper look into the industry

Analysis

Rivalry Very High – Fierce competitors with worldwide power

Suppliers High – UNIQLO needs successful partnerships

Customers Very high – Massive choice


Let’s take a deeper look into the industry

Analysis

There is the need to be aware of the strong rivalry and customer preferences

Rivalry Very High – Fierce competitors with worldwide power

Suppliers High – UNIQLO needs successful partnerships

Customers Very high – Massive choice


Let’s see what the future look like

Analysis

Blogs People rely on opinion makers

Technological Paradigm shift in wearables – innovation with integrated fabric technology with sensory and odor control

Omni-channel approach

ROPO – Research online purchase offline, and vice versa Need to be available in all channels


Let’s see what the future look like

Analysis

In order to succeed in this fierce market the new trends are the way forward

Blogs People rely on opinion makers

Technological Paradigm shift in wearables – innovation with integrated fabric technology with sensory and odor control

Omni-channel approach

ROPO – Research online purchase offline, and vice versa Need to be available in all channels


And what is the customer searching for?

Analysis

Let’s try and answer directly to what the client is searching for

Value for the money Pricing

High tech fabrics

Fast delivery

Fashion – always connected with latest fashion trends


Summing Up

S Innovation and reliable business model Dynamic pricing Quality

W Lack of marketing Production is Asian based only

O New technological trends Omni-channel approach

T Big Players Low international brand perception Real estate costs in US

Analysis

Recommendations


Challenge



UNIQLO?

Challenge






2



3


Challenge


Where and how to Expand?

Recommendations

UNIQLO

New Market Existing Market

New product Existing Product

New product

Existing Product

ASIA USA



Recommendations

UNIQLO



New product

Existing Product

ASIA USA



Recommendations

UNIQLO



New product

Existing Product

ASIA USA

UNIQLO to expand USA not forgetting ASIA


Entering USA market

Recommendations

Apparel Production Labor Force

Logistic Costs

TAXES RESULT

USA - - - + + + + 1

Mexico + + + + + 5

Brazil + + + - - - - -1

UNIQLO production is currently concentrated in Asia High logistic costs Slow delivery time Alternatives:



Recommendations

New product

Existing product

Existing market

New market

Asia USA

Asia

New products shall be launched first in Asia (Less Risky) Accordingly to its acceptance they can be re-launched in USA



Recommendations

New product

Existing product

Existing market

New market

Asia USA

Asia

New products shall be launched first in Asia (Less Risky) Accordingly to its acceptance they can be re-launched in USA

Market Penetration and Product Development in Asia Market Development in USA


Entering USA market

Recommendations

Apparel Production Labor Force

Logistic Costs

TAXES RESULT

USA - - - + + + + 1

Mexico + + + + + 5

Brazil + + + - - - - -1

UNIQLO production is currently concentrated in Asia High logistic costs Slow delivery time Alternatives:

UNIQLO to open a new factory in Mexico


How to get the results

Recommendations

USA Expansion

1

Dressing Uncle Sam

Capitalize Asian Market

2

Be the 1st

Marketing 3

Catwalk channels



Recommendations

USA Expansion

1

Dressing Uncle Sam


2

Be the 1st

Marketing 3

Catwalk channels


Dressing Uncle Sam

Recommendations

New Factory in Mexico

Open a new factory in Mexico to produce SKUs WHAT


Dressing Uncle Sam

Recommendations



HOW Joint venture with local textile industries – Reduce risks and increase commitment with local industries Takumi team to be present fulltime – Quality Control and process efficiency Kaizen process to be adopted – Continuous improvement


Dressing Uncle Sam

Recommendations



HOW Joint venture with local textile industries – Reduce risks and increase commitment with local industries Takumi team to be present fulltime – Quality Control and process efficiency Kaizen process to be adopted – Continuous improvement

2 Stage plan implementation ( 1st fabrics produced in Asia and clothes in Mexico; 2nd fabrics and clothes produced in Mexico)


Dressing Uncle Sam

Recommendations

One Table Meeting Event

Turn One table meeting event into a systematic event – twice a year

WHAT


Dressing Uncle Sam

Recommendations

One Table Meeting Event

Turn One table meeting event into a systematic event – twice a year

WHAT

Close relationship between Stakeholders (suppliers, stores, designers) to improve customer service


Dressing Uncle Sam

Recommendations

UNIQLO by Marc Jacobs

Launch a special clothes line with Marc Jacobs signature WHAT


Dressing Uncle Sam

Recommendations



HOW Partner with Marc Jacobs


Dressing Uncle Sam

Recommendations



American Fashion Style to foster brand penetration

HOW Partner with Marc Jacobs


Dressing Uncle Sam

Recommendations

4 Stores Opening

Open 4 flagship stores in USA (New York, Los Angeles, Chicago and Austin)

WHAT

American Fashion Style to foster brand penetration


Dressing Uncle Sam

Recommendations

4 Stores Opening


WHAT

HOW This stores will work as warehouse to support online sales Stores chosen accordingly to geographic location and population


Dressing Uncle Sam

Recommendations

4 Stores Opening


WHAT

Brick & Click strategy for USA to foster sales

HOW This stores will work as warehouse to support online sales Stores chosen accordingly to geographic location and population


Dressing Uncle Sam

Recommendations

Partnership with Amazon

Partnership with Amazon for online sales WHAT


Dressing Uncle Sam

Recommendations

Partnership with Amazon

Partnership with Amazon for online sales WHAT

Foster online Sales



Recommendations

USA Expansion

1

Dressing Uncle Sam


2

Be the 1st

Marketing 3

Catwalk channels


Be the 1st

Recommendations

Partnership with Alibaba

Partnership with Alibaba WHAT


Be the 1st

Recommendations

Partnership with Alibaba

Partnership with Alibaba WHAT

Foster online sales all over ASIA


Be the 1st

Recommendations

Contact less payment in Stores

Implement contact less payment in stores WHAT


Be the 1st

Recommendations

Contact less payment in Stores

Implement contact less payment in stores WHAT

Improve customer convenience



Recommendations

USA Expansion

1

Dressing Uncle Sam


2

Be the 1st

Marketing 3

Catwalk channels


Catwalk channels

Recommendations

Product Price Promotion Place

Innovative Fabrics with integrated sensors (biometric info and well being features)

WHAT


Catwalk channels

Recommendations



WHAT

HOW R&D with Toray


Catwalk channels

Recommendations



WHAT

HOW R&D with Toray

Differentiate from Competitors being Innovative


Catwalk channels

Recommendations


Special line of products customization WHAT


Catwalk channels

Recommendations



HOW Co-Creation with customers through web site or APP


Catwalk channels

Recommendations



HOW Co-Creation with customers through web site or APP

Customer Centric approach and brand engagement


Catwalk channels

Recommendations


Adopt same pricing strategy already implement WHAT


Catwalk channels

Recommendations


Adopt same pricing strategy already implement WHAT

Good results No need to change


Catwalk channels

Recommendations


APP where people could see themselves wearing UNIQLO clothes Loyalty card included Customization features

WHAT


Catwalk channels

Recommendations


APP where people could see themselves wearing UNIQLO clothes Loyalty card included Customization features

WHAT

Improve Customer Experience


Catwalk channels

Recommendations


Partnership with The Blond Salad fashion blogger (top 1 fashion blogger in USA)

WHAT


Catwalk channels

Recommendations


Partnership with The Blond Salad fashion blogger (top 1 fashion blogger in USA)

WHAT

Brand Awareness


Catwalk channels

Recommendations


Use of Ambassador (top one Japanese tennis player) WHAT

Brand Awareness


Catwalk channels

Recommendations


Use of Beacons within stores to communicate promotions and attract new customers

WHAT


Catwalk channels

Recommendations


Use of Beacons within stores to communicate promotions and attract new customers

WHAT

Improve Customers Experience and Raise sales


Catwalk channels

Recommendations


Adopt omni-channel approach WHAT



Catwalk channels

Recommendations


Adopt Omni-channel approach WHAT

HOW Brick & Click strategy between physical stores and online channels


Catwalk

Recommendations


Adopt Omni-channel approach WHAT


HOW Brick & Click strategy between physical stores and online channels


Challenge



UNIQLO?

Challenge






2



3


Challenge



Recommendations

USA Expansion

1

Dressing Uncle Sam


2

Be the 1st

Marketing 3

Catwalk channels

Financial Impact


Assumptions

Financials


Investment

Financials


OPEX

Financials


NPV

Financials

Goal of $833 mn Interesting NPV

Pay Back Period: 2,4 years

Risks


We identified the following risks

Risks & Plan

Risk Mitigation

1

23

probability

impa

ct

Failure Joint Venture with local Partners ; Mexico new factory

1

Value added to partners and all stakeholders by training, provide technology knowledge, continues improvement in all processes and provide quality

Dynamic pricing can mislead costumers

Assume this issue and keep quality and create value to customers

2

3Mark Jacobs can not accept the partnership

List of different American fashion designers

Implementation Plan


Implementation Plan - Gant Chart

Risks & Plan

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4Dressing Uncle SAM

joint venture with local textile produces negotiationmexico new fatory

constructiondistribuition

Meeting Eventswith StakeholdersColection with Mark Jacobs

negotiantionplansalles

4 stores openningAmazon partnership

Be the firstALLIBABA PARNERSHIP

negotiantionplansalles

contactless payments in storesCatwalk channelsteaEMBASSADOR

2016 2017 2018

Summing Up


Challenge



UNIQLO?

Challenge






2



3


Challenge

Documents

UNIQLO keep in mind - mbacasecomp.comUNIQLO keep in mind UNIQLO Porto Business School Team PBS Silvia Duarte Pedro Vilas Boas Rui Rosas Francisco Cudell . Challenge Analysis Recommendations