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ContentsIntroduction3Part I: Analysis Section51 Market Structure51.1 Market Overview51.2 Submarket Structure61.3 Driving Force121.4 Market Profitability161.5 Intensity of Rivalry161.6 Barrier to Entry171.7 Cost Structure171.8 Distribution System181.9 Market Trend191.10 Key Success Factor202 Customer Analysis222.1 Fashionista222.2 Trendy222.3 Basic Stylish233 Competitors253.1 H&M253.2 Zara283.3 Assess Competitive Advantage313.4 Six Forces Model324 Brand Positioning384.1 Brand Analysis384.2 SWOT Analysis40Part II: Strategic Section465 Segmentation-Targeting-Positioning465.1 Segmentation and Targeting465.2 Positioning486 Competitive Strategy507 Growth Strategy53Part III: Operation Section558 Operational Strategy558.1 Product558.2 Place608.3 Promotion618.4 Price629Action Plan6310 Forecast64

IntroductionUniqlo Unique Clothing Uniqlo Fast Retailing Group SPA (Specialty store retailer of Private label Apparel: ) Uniqlo Uniqlo Function Uniqlo 800 140 Uniqlo Thailand .. 2554 Mitsubishi Corporation 27 Uniqlo 160 Uniqlo Uniqlo Uniqlo Uniqlo Uniqlo

Part I: Analysis Section1 Market Structure1.1 Market Overview

Figure 1: .. 2557

.. 2557 1.16 2.5 10 2 5 (, Marketeer, 2558) .. 2557 250,000 (, ()) 3 2563 (, 2557) (Emotional Benefit) Impulse Buying

1.2 Submarket Structure (Retail Clothing Market)

Retail Clothing 3 Formal, Casual Sports

1. Formal Clothing Segment 1.1 Business Attire 1.2 Occasion Wear

2. Casual Clothing 3 2.1 Luxury Wear Luxury Imported Brand Gucci DKNY Designer Brand Nagara, Pichitra, Kai Boutique Designer Brand Imported Brand 2.2 Fast Fashion (Quick Response) Fast Fashion 2 2.2.1 Interbrand 3 - Licensing Agreement - Franchising Agreement Franchiser Franchisee Franchisee Franchiser - Own-management Interbrand Fast Fashion H&M ZARA MANGO Uniqlo Flagship Own-management Fast Fashion Global Brand Fast Fashion Fast Fashion 3 1 3 8 2554 22 2556 10 ( 30 2553-2555) 8 2556 404.70 14.7 (YoY) (, 2557)

2.2.2 Local Brand Soda Greyhound Flynow Espada AIIZ Thai Designer 2-3 Local Brand Mainstream Mass Market

3. Sports Clothing Sportswear lookbook Sports Clothing Segment 3 3.1 Professional Functional Benefit Professional Niche 3.2 Sportswear Professional 3.3 Lifestyle 2-3

1.3 Driving Force Casual Fast Fashion P-Politics - (Free Trade Agreement) FTA 5-12.9 0 Information Technology AEC E-Economics (QE) Competitive S-Social Country of origin Made in Japan (Social Status Self-Expression) Fast Fashion T-Technology Customize CAD (Computer Aided Design) CAM (Computer Aided Manufacturing) Functional Heat-tech AIRism UniqloN-Natural GDP

Commoditization Mass Fast Fashion Commoditization Mass Fast Fashion Differentiate Luxury Product Emotional value 1.4 Market Profitability Fast fashion 70-100% Economy of Scale

1.5 Intensity of Rivalry Fast Fashion Fast Fashion ( 4 )

1.6 Barrier to Entry Fast Fashion Mass production Economy of scale Fast fashion Loyalty Switch Barrier to entry ( 3 )

1.7 Cost Structure (Fast Fashion Retailer) Retail Cost Marketing Cost 1.7.1 Retail Cost Location Stores (Inventory Management) 1. Location Stores 60% 2 (1) Fixed Central Plaza 1,200 Emporium 1,300 (2) Gross Profit (GP) Central 37% Emporium 35%

2. Inventory management 15% Cost Category Management Out of Stock GP Promotion / Advertising 3. ( Promotion PR ) 15% 1.7.2 Marketing Cost 10% (Traditional Media) Wrap Digital Media Digital Campaign Facebook Instagram 1.8 Distribution System Retail Fast Fashion 2 1.8.1 Flagship store, Stand alone Store in store Factory outlet 1.8.2 Social network

1.9 Market Trend Fast Fashion 2-3 Segment Fast Fashion Local Brand Style Brand Identity

1.10 Key Success Factor Fast fashion Strategic factor Retail global brand 1. (Fast delivery to the market) (Fast fashion) 1-2 Lead Time 2. (Number of Location) (Medium-high) Positioning Window Display 3. (Varieties of design) Second first High-end Brand Image 4. (Sale Promotion) Fast fashion

2 Customer Analysis Casual Fast Fashion 3 Fashionista Trendy Basic Stylish2.1 Fashionista Fashionista 25-39 Character Runway Social Network Figure 2: Fashionista customer

2.2 Trendy Trendy Fashionista 15-39 (in trend) Social Network Figure 3: Trendy Customer

2.3 Basic Stylish 15-39 Lifestyle Trend

Figure 4: Basic Stylish Customer

Concept Uniqlo Made for all Mass Appeal Cheap-Chic Uniqlo

3 Competitors 2014 COTTON USA Global Lifestyle Monitor 3 2563 2558 6.92 [footnoteRef:1] [1: , 2558]

Fast Fashion Fast Fashion ZARA H&M 3.1 H&M

H&M Hennes&Mauritz 1947 Motto 3 Fashion Quality Best Price H&MH&M 3 (Women) (Men) (Kid) 57% 27% 16% ( : Number of products online, 2558) H&M Sub-segment (Divided Youth) (H&M+Plus sizes) Collection H&M 80 20 H&M 2 Sustainability Collection 6-8

H&M 300 10,000 900 ZARA

H&M 2,776 14

H&M Collection Facebook Twitter Instagram Youtube Pinterest Application H&M ios Android

H&M Luxury Brand Comme des garcons H&M H&M H&M H&M Outsource

Fast fashion 2014 H&M 2 10-15% 400 80 60 Zara 100 Uniqlo H&M 2,000

3.2 Zara

ZARA .. 1975 Amancio Ortega Rosala Mera ZARA ZARA

ZARA ZARA Lead time Collection 2 2 2-4 ZARA

ZARA Premium -

ZARA 10 One stop shopping Mix and Match Apple watch

ZARA 1 3.5 ZARA Billboard ZARA (Word of mouth)

Zara Vertical-integrated group Zara Zara Fast Fashion ZARA One stop shopping Mix and match Zara ZARA

Switch brand

3.3 Assess Competitive Advantage Judgment based on sophisticated country style customerZaraH&MUniqlo

Resource or capabilityImportance WeighStrength RatingWeighted ScoreStrength RatingWeighted ScoreStrength RatingWeighted Score

Fast delivery to the market0.392.182.462.1

Number of Location0.281.681.491.2

Varieties of design0.381.490.851.2

Sale Promotion0.271.481.291.4

Total1.08.38.17.0

Key success factor Uniqlo Zara H&M Uniqlo Sale promotion Fast fashion Uniqlo Collection Collection Design Collection 7.0 Zara H&M 8.3 8.1 Uniqlo Design Collection

3.4 Six Forces Model 6-Forces Model Retail Clothing Market Fast Fashion Interbrand 3.4.1 Intensity of Rivalry among Existing FirmsStrategic Position Fast Fashion Mass 5

Nature Of Competition Branding 5

Industry Growth Rate Fast Fashion Interbrand 2

Barrier To Exit Fast Fashion Interbrand 4

Profitability 5

Rivalry Among Existing Firms 4

3.4.2 Threat of New Entrants1) Barrier To EntryTechnology Know-How Fast Fashion Interbrand technology know-how 5

Economy Of ScaleEconomy of scale Fast Fashion Interbrand Economy of scale 1

Brand Loyalty Fast Fashion Interbrand Switch 3

Capital 1

Barrier To Entry 3

2) Reaction From Existing Competitors Fast Fashion Interbrand ( 4) Threat of New Entrant 4 Brand Loyalty

3.4.3 Threat of Substitute Products or Services Functional Perception 3.4.4 Bargaining Power of BuyersPrice Sensitivity Price Sensitivity 5

Switching Cost Switching Cost 5

Level Of Product Differentiation Core Benefit Level Of Product Differentiation 5

Brand Loyalty Fast Fashion Interbrand Brand Loyalty Switch 3

Bargaining Buyer 5

3.4.5 Bargaining Power of SuppliersUniqueness Of Product Uniqueness of Product Supplier 2

Importance Of Supplier Product To Finished Goods Fast Fashion Interbrand Supplier Supplier Supplier 5

Switching Cost Supplier Switching Cost Supplier Supplier 1

Bargain Supplier Supplier 3

Fast Fashion Interbrand ( 4) ( 4) ( 5) Supplier ( 3) Complementary Fast Fashion Interbrand

4 Brand Positioning4.1 Brand Analysis

Uniqlo Unique Clothing Uniqlo Tadashi Yanai .. 2549 Tagline Made for All .. 2553 Uniqlo Mass Appeal Uniqlo Brand Identity Tadashi Yanai Uniqlo Uniqlo Uniqlo , , , , Uniqlo Uniqlo HEATTECH AIRism Zusuki, Hello kitty, Star Wars Uniqlo Zara H&M

Uniqlo Uniqlo 27 Zara H&M

Uniqlo /BTS Official Website Facebook Uniqlo

4.2 SWOT Analysis S - StrengthUniqlo Uniqlo 27 Zara H&M .. ()

20113-

20126100%

201313117%

20142054%

20152735%

2020100-

Uniqlo Supply chain SPA (Specialty store retailer of Private Label Apparel) Cashmere Supima cotton Uniqlo Uniqlo Uniqlo Uniqlo (Economy of Scale)

Toray Industries, Inc. HEATTECH AIRism Uniqlo one stop shopping

W - WeaknessesCustomer Relationship Management (CRM) Customer Relationship Management CRM Collection Collection Uniqlo 4 collection Uniqlo

Uniqlo collection Uniqlo Uniqlo (Made for All) Uniqlo Made for All Uniqlo Trendy Fashionista Trendy 80% Uniqlo Uniqlo O - Opportunities (Social Network) Generation X Generation Y lifestyle Trend mass Social Network 2 Online e-Commerce e-Commerce 24 . 2014 31 3G e-Commerce () (.)ETDA () 2558 (42.6 %) Uniqlo VISA Uniqlo Casual 1 Euromonitor International 2020 15,000 6 Uniqlo Uniqlo

T - Threats Uniqlo

Part II: Strategic Section5 Segmentation-Targeting-Positioning5.1 Segmentation and Targeting Fast Fashion Interbrand 3 Fashionista Trendy Basic Stylish 2 Basic Stylish Uniqlo Motivation Functional Benefit (Out-of-date) Basic Design Pain Point Uniqlo

Figure 5: Basic Stylish Customer

Trendy Motivation Fast Fashion Selective Demand Uniqlo Uniqlo

Figure 6: Trendy Customer

Fashionista Focus Motivation Brand Characterestic Uniqlo - Uniqlo

5.2 Positioning 1. Trendy (Fashionable) (Cutting) Uniqlo 2. Familiarity Uniqlo

2 (Differentiate) Fast Fashion Fashion Catwalk Season Uniqlo Familiarity Fast Fashion Interbrand Brand Uniqlo

Hot Button Uniqlo Positioning Value-based claim Trendy ( Multi-cultural ) Localized Sense of belonging (Size) Identity

6 Competitive Strategy Uniqlo Fast Fashion Interbrand Uniqlo (Leader) 30% 2557 (: www.dbd.go.th) Zara H&M Fast Fashion Interbrand Uniqlo (Offensive Strategy) Differentiation Product Image Uniqlo Uniqlo Trendy Fast Fashion Uniqlo Favorable (Growth Stage) H&M 2555 Uniqlo 1 Fast Fashion 2 Differentiate Strategy Grow Strategy1. Differentiate Strategy Uniqlo Fast Fashion Interbrand Trendy Familiarity Uniqlo Familiarity 2. Grow Strategy Uniqlo 2.1 Uniqlo 2 1) Uniqlo 2) Trendy pattern Major Change 2.2 Selective Demand Trendy pattern Mix&Match

7 Growth Strategy

Uniqlo Fast Fashion 1) (Market Penetration) 1.1 (Trendy) Collection Uniqlo 1.2 (Customer Relationship Management) Light User 2) (Market Development) Uniqlo Unqlo Uniqlo 2.1 Mix& Match

Part III: Operation Section8 Operational Strategy Competitive Strategy Differentiation Grow 8.1 Product 8.1.1 Product Design Uniqlo "" 2 1) Current classic and functional product Uniqlo Uniqlo

Figure 7: Uniqlo Current Product2) New design product Uniqlo Chic item style

Trendy design

Figure 8: New Trendy Product Mix & match design Fast Fashion Mix and Match Smart-looked Mix and Match

Figure 9: New Mix and Match Product

For Thai design Uniqlo Everyday use AIRism Functional Emotional

Figure 10: For Thai Product

8.1.2 Brand Collaboration Uniqlo Collaboration Collection - Hello Kitty Collection 1) Positioning Image Uniqlo 2) Collection Limited edition 3) Collection

8.1.3 Merchandise Management Uniqlo Economy of scale SPA End user Made for all Variety of design Item Uniqlo 10 Stock Collection Brand Image Uniqlo 1) Focus Category Uniqlo Casual Occasional 2) Color Selection Uniqlo Turnover SKU 3) Best Seller Forecast Items Uniqlo Uniqlo

8.2 Place Modern trade Tesco Lotus Store-in-store Uniqlo 8.2.1 Uniqlo 8.2.2 Potential target Monitoring Sales per door 8.2.3 Harvesting Re-positioning 8.2.4 24 Uniqlo

8.3 Promotion Uniqlo Offline /BTS Online Official Website Facebook Collection Awareness Preference Uniqlo 8.3.1 Window Display Fast Fashion Design Emotional Impulse buying Uniqlo Perception Value for money Uniqlo Promotion Window Display Impulse buying8.3.2 (Personal Selling) Labor cost Uniqlo 8.3.3 (Customer Relationship Management) Loyalty Personalized Utilized Collection 8.3.4 (Sale Promotion) Fast Fashion Uniqlo Brand Image8.3.5 Life-style Multi-screen Activity Social Customer-journey-based communication approach Relevance

8.4 Price Uniqlo (Value for money) Uniqlo Uniqlo Fast Fashion Interbrand Uniqlo H&M Zara 8.4.1 Generic Product Collection Penetration pricing Strategy8.4.2 New Collection/ Special Collection Collection Value-based pricing

9 Action Plan Uniqlo Operational Strategy Action Plan 2016 Research and Development Fast Fashion 5% 2015 280

10 Forecast Uniqlo 2013 2014 7 1,400 200 2015 5,800 30% 2016 Uniqlo Head Quarter 10 Organic Growth 2,000 2016 7,800 Uniqlo Implement Re-positioning Incremental revenue 10% 780 Potential Uniqlo 45% 8,500

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