Marketing Strategy of Uniqlo – Uniqlo Marketing Strategy: Uniqlo is a clothing company that is an entirely owned subsidiary that is part of Fast Retailing Co. Ltd. The brand is a Japanese casual apparel manufacturer, retailer, and designer. The brand is renowned for its high-end casual wear that is private-labeled and sold at a low cost.
The brand has expanded to around 1300 shops around the world and is spread across 15 countries in two decades. In Asia it’s the largest apparel chain, having around 800 stores. The brand is a symbol of Japanese tradition that values simplicity, quality, and long-lasting. Uniqlo is an apparel brand that offers simple clothes and hopes to improve the lives of its customers.
Did You Know About Uniqlo?
Company : Uniqlo
CEO: Tadashi Yanai
Founder: Tadashi Yanai
Year founded: March 1949
Headquarters: Yamaguchi, Japan
Annual Revenue (FY 2020): $5.96 billion
Profit | Net income (FY2020): $2.4 billion
Products & Services: jeans, sweaters, jackets, etc
Facts About Uniqlo: UNIQLO is a clothing apparel company, which was originally founded in Yamaguchi, Japan in 1949 as a textiles manufacturer. Now it is a global brand with over 1000 stores around the world. Redefining clothing, with a focus on quality and textiles which has been unwavered since the company’s origins in 1949
Segmentation, Positioning, and Targeting in the Marketing Strategy of Uniqlo
The concept of geographic segmentation targets the suburban and urban populations. Segmentation based on demographic segmentation is targeted at all age groups as well as both genders.
The people who have a low or middle income are the most targeted. Psychological segmentation targets the class of people who are working in both the upper and middle middle-class.
The primary consumer base for Uniqlo is adult females and males who range from 18 to 40, and who are in search of low-cost and high-quality clothes that are appropriate for their lifestyle.
It is aimed at people who want trendy clothing that is informal and casual. Uniqlo clothes aren’t just restricted to those with higher incomes. The high-end quality and affordable prices suggest value to customers. This method has expanded the scope of the marketplace since the majority of buyers are looking for high-end clothing that is affordable.
Uniqlo is positioned as an innovative Japanese company that aims to inspire customers to wear casual clothes. Uniqlo is based on a “made for all” positioning strategy and is a company that sells clothes that are simple, essential, and help wearers discover their unique styles. In essence, if you’re searching for high top-quality, fashionable and affordable clothing, the place to go is Uniqlo.
“Unlocking the Power of Clothing”. With a focus on products, supply chain, employees, stores, and communities, we will change the world for the better through our business.
Our vision is bold; to become the number 1 clothes retailer in the world. We truly believe that this dream can be achieved by providing the best customer service experience on the high street.
“Simple made better”
The Competitive Advantage in the Marketing Strategy of Uniqlo
Sustainability at the Forefront :
Uniqlo has launched an initiative known as the “All-Product Recycling initiative” which means that clients are invited to reuse their clothes and then use them as textile industry materials.
The company behind initiatives like this is trying its best to create a positive impact. With its sustainability campaign which declares” give your clothes a new life” The brand is trying to lessen the impact on the environment from its activities. The brand also pledged to eliminate the use of all hazardous chemicals by the year 2019.
The brand’s focus is on minimalism, which is among the most important aspects of Uniqlo and is a key point of distinction in the brand.
Today’s customers are looking for an item that they can confidently wear, and not too gaudy. Uniqlo is focused on helping people express themselves through their emotions, and regards it as an art.
Strategies for Brand :
Uniqlo is focused on the distinctive practical effectiveness of the label, with particular attention paid to the style and technological innovation of its clothing. Uniqlo distinguishes its brand from other brands by its unique innovations such as Lifewear, Heatech, AIRism, and more.
The brand provides customers a better shopping experience with its amazing store management and design with positive workplace culture. the use of in-store technology within the store, which includes videos that explain the design of the products.
Product Development Approach and Efficient Supply Chain
Tadashi Yanai likes declaring the following “Uniqlo is not a fashion company, it’s a technology company.” The way they go about creating apparel shares more connection with the iterative method of development of product development that is embraced by the tech industry as opposed to the cyclical, trends-driven pace of the fast-fashion retail market.
While its main rival Zara is constructed the largest business in apparel by swiftly responding to the latest fashion trends moving items from the factory to the store in just one week, Uniqlo adopts a completely different method, planning the production of its essential wardrobe items to a year advance.
In contrast to its rivals who offer an array of fashionable clothes inspired by the international fashion runways, Uniqlo focuses on producing some kinds of urban essentials.
BCG Matrix in the Marketing Strategy of Uniqlo
Uniqlo is a part of the fashion retailer named Fast Retailing Co. Ltd. The company also owns other brands, including Princess Tam-Tam Theory, J Brand, Comptoir des Cotonniers, PLST, GU, etc.
According to the latest analysis, Uniqlo Japan’s profits increased 3.2 points YOY. Uniqlo Japan generated an operating profit of Y=37.9 billion and revenues in the amount of Y=246.1 billion. UNIQLO International, which earned revenues in the amount of Y=291.3 billion.
The gross profit margin for Fast Retailing declined slightly as the expenses grew due to large expenditures for advertisements as well as marketing. The revenues, however, increased since the brand began to concentrate on mass-market products. The brand has the potential to grow, which is why under the BCG’s structure, Uniqlo is a leading brand for Fast Retailing.
Distribution in Marketing Strategy of Uniqlo
Uniqlo has a robust supply chain network. It has manufacturing centers across the globe that are located in areas such as Shanghai, Dhaka, Ho Chi Minh City, Istanbul, and Jakarta. It has opened over two thousand stores around 19 markets.
In March, 50 stores are located on both the East as well as West coasts. The concept meeting of the clothing is scheduled every year before the items are released and the merchandise when they are designed distributed and sold to the public worldwide.
The Brand Equity and Reputation of Uniqlo
The brand promise of Uniqlo is to provide performance-enhanced, high-quality, basic casual wear at affordable prices. Additionally, it has a robust delivery system to make sure the promise of the brand remains in place.
Uniqlo is an all-in-one brand that is simple and can be seen in the company’s operational strategies, marketing, and communication. The company has evolved from a single tailoring store to a worldwide causal wear brand that is now among the most notable brands in Asia and the present. With the assistance of Uniqlo, the parent company is aiming to achieve sales of $28 billion in 2020.
A Competitive Analysis in Marketing Strategy of Uniqlo
In the category of fast fashion according to the global rankings, Uniqlo comes third in the ranking, and it’s just behind the Spanish brand ZARA as well as Sweden’s H&M.
The rapid expansion of Uniqlo helped it overcome the American Gap which was the leading basic clothing store. Uniqlo is still required to concentrate on style, innovation, and quality to ensure it achieves its goal of becoming the largest retailer of fast fashion.
Outside of Asia, brand awareness and its footprint are relatively low when compared to other brands, and therefore must be addressed through global expansion plans marketing, advertising, and marketing.
Uniqlo is still in the shadow of Zara and H&M However, during the last quarter, sales grew 31.4 percent in the same period as the previous year.
Customer in Marketing Strategy of Uniqlo
The fundamental strategy behind Uniqlo is to appeal to the masses. Customers are from every financial background and are demographical of all different ages. The company does not push customers to wear a uniform and its products are not designed. The sizes are very diverse and range from 3XL for males and XXL for females.
The clothes are straightforward but also open to interpretation. The brand aims to build emotional bonds with customers. Uniqlo is determined to set an example in the multicultural society and tries to comprehend its customers.
Initially, the brand had difficulties when it expanded into Europe it was a struggle to expand in the United States because the customer needs and lifestyles differ. Uniqlo is now a top preference for those who are looking for basic items.
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